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<SEC-DOCUMENT>0001072613-06-002523.txt : 20061213
<SEC-HEADER>0001072613-06-002523.hdr.sgml : 20061213
<ACCEPTANCE-DATETIME>20061213133340
ACCESSION NUMBER:		0001072613-06-002523
CONFORMED SUBMISSION TYPE:	SB-2
PUBLIC DOCUMENT COUNT:		73
FILED AS OF DATE:		20061213

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			Bridgeline Software, Inc.
		CENTRAL INDEX KEY:			0001378590
		IRS NUMBER:				522263942
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			0930

	FILING VALUES:
		FORM TYPE:		SB-2
		SEC ACT:		1933 Act
		SEC FILE NUMBER:	333-139298
		FILM NUMBER:		061273725

	BUSINESS ADDRESS:	
		STREET 1:		10 SIXTH ROAD
		CITY:			WOBURN
		STATE:			MA
		ZIP:			01801
		BUSINESS PHONE:		781 376 5555

	MAIL ADDRESS:	
		STREET 1:		10 SIXTH ROAD
		CITY:			WOBURN
		STATE:			MA
		ZIP:			01801
</SEC-HEADER>
<DOCUMENT>
<TYPE>SB-2
<SEQUENCE>1
<FILENAME>formsb-2_14663.htm
<DESCRIPTION>FORM SB-2 REGISTRATION STATEMENT
<TEXT>
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WWW.EXFILE.COM, INC. -- 14663 -- BRIDGELINE SOFTWARE, INC. -- FORM SB-2
</title>
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      filed with the Securities and Exchange Commission on December 13,
      2006</strong></font></div>
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      No.&#160;333-______</strong></font></div>
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      STATES</strong></font></div>
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      AND EXCHANGE COMMISSION</strong></font></div>
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      20549</strong></font></div>
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      SB-2</strong></font></div>
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      STATEMENT UNDER THE SECURITIES ACT OF 1933</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
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                Standard Industrial</em></font></div>
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      Sixth Road</strong></font></div>
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      376-5555</strong></font></div>
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            <td align="left" valign="middle" width="40%">
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            <td align="left" valign="middle" width="20%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
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                622-5930</strong></font></div>
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                622-5933 (fax)</strong></font></div>
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                V. De Martino,&#160;Esq.</strong></font></div>
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                Alec Orudjev,&#160;Esq.</strong></font></div>
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                I Street, N.W., Suite&#160;1100</strong></font></div>
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      date of commencement of proposed sale to the public:</strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      As soon
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      statement.</font></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">If
      any of
      the securities being registered on this form are to be offered on a delayed
      or
      continuous basis pursuant to Rule 415 under the Securities Act of 1933, check
      the following box. </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Wingdings">&#254;</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">If
      this
      Form is filed to register additional securities for an offering pursuant to
      Rule&#160;462(b) under the Securities Act, please check the following box and
      list the Securities Act registration statement number of the earlier effective
      registration statement for the same
      offering.&#160;&#160;&#160;&#160;&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Wingdings">
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      this
      Form is a post-effective amendment filed pursuant to Rule&#160;462(c) under the
      Securities Act, check the following box and list the Securities Act registration
      statement number of the earlier effective registration statement for the same
      offering.&#160;&#160;&#160;&#160;&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Wingdings">
      o</font></div>
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      this
      Form is a post-effective amendment filed pursuant to Rule&#160;462(d) under the
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      offering.&#160;&#160;&#160;&#160;&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Wingdings">
      o</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">If
      delivery of the prospectus is expected to be made pursuant to Rule&#160;434,
      please check the following box.&#160;&#160;&#160;&#160;&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Wingdings">o</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Calculation
      of Registration Fee</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;&#160;&#160;&#160;</font></div>
    <div>
      <table cellpadding="0" cellspacing="0" width="100%">

          <tr>
            <td align="left" valign="bottom" width="26%" style="border-bottom: black thin solid;">&#160;</td>
            <td valign="top" width="13%" style="border-bottom: black thin solid;">&#160;</td>
            <td valign="bottom" width="12%" style="border-bottom: black thin solid;">&#160;</td>
            <td valign="bottom" width="14%" style="border-bottom: black thin solid;">&#160;</td>
            <td valign="top" width="13%" style="border-bottom: black thin solid;">&#160;</td>
          </tr>
          <tr>
            <td align="left" valign="bottom" width="26%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Title
                of Each Class of Securities to be Registered</strong></font></div>
            </td>
            <td valign="top" width="13%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Amount
                to be</strong></font></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Registered</strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>(1)</strong></font></div>
            </td>
            <td valign="bottom" width="12%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Proposed</strong></font></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Maximum</strong></font></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Offering
                Price</strong></font></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Per
                Share</strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>(2)</strong></font></div>
            </td>
            <td valign="bottom" width="14%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Proposed</strong></font></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Maximum</strong></font></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Aggregate</strong></font></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Offering
                Price</strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>(2)</strong></font></div>
            </td>
            <td valign="top" width="13%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Amount
                of</strong></font></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Registration
                Fee</strong></font></div>
            </td>
          </tr>
          <tr>
            <td align="left" valign="top" width="26%">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: -9pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Common
                stock</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(3)</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">:</font></div>
            </td>
            <td align="left" valign="top" width="13%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">3,450,000
                shares </font></div>
            </td>
            <td valign="top" width="12%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$
                6.00</font></div>
            </td>
            <td align="left" valign="top" width="14%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$&#160;
                20,700,000.00</font></div>
            </td>
            <td align="left" valign="top" width="13%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$
                </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2,214.90</font></div>
            </td>
          </tr>
          <tr>
            <td align="left" valign="top" width="26%">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: -9pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Warrants
                issued to the Underwriters (&#8220;Underwriters&#8217; Warrants&#8221;)</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(4)</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">:</font></div>
            </td>
            <td align="left" valign="top" width="13%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">300,000
                warrants </font></div>
            </td>
            <td valign="top" width="12%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$&#160;&#160;
                &#160;<font style="DISPLAY: inline; FONT-FAMILY: Times New Roman">&#8212;</font></font></div>
            </td>
            <td align="left" valign="top" width="14%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
                &#8212;</font></div>
            </td>
            <td align="left" valign="top" width="13%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$&#160;&#160;
                &#160;&#160;&#160;&#160;&#160;&#160;&#160; &#8212;</font></div>
            </td>
          </tr>
          <tr>
            <td align="left" valign="top" width="26%">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: -9pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Shares
                of common stock underlying the Underwriters&#8217; Warrants</font></div>
            </td>
            <td align="left" valign="top" width="13%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">300,000
                shares</font></div>
            </td>
            <td valign="top" width="12%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$
                6.00</font></div>
            </td>
            <td align="left" valign="top" width="14%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$&#160;&#160;&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">1,800,000.00</font></div>
            </td>
            <td align="left" valign="top" width="13%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$&#160;&#160;&#160;
                </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">192.60</font></div>
            </td>
          </tr>
          <tr>
            <td align="left" valign="top" width="26%">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: -9pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Warrants
                for resale by existing warrant holders</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(4)</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">:</font></div>
            </td>
            <td align="left" valign="top" width="13%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">392,000
                warrants</font></div>
            </td>
            <td valign="top" width="12%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$&#160;&#160;
                &#160;&#8212;</font></div>
            </td>
            <td align="left" valign="top" width="14%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$&#160;&#160;
                &#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
                &#8212;</font></div>
            </td>
            <td align="left" valign="top" width="13%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$&#160;
                &#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; &#8212;</font></div>
            </td>
          </tr>
          <tr>
            <td align="left" valign="top" width="26%">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: -9pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Common
                stock for resale by existing warrant holders after
                exercise</font></div>
            </td>
            <td align="left" valign="top" width="13%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 4.35pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">392,000
                shares</font></div>
            </td>
            <td valign="top" width="12%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$
                6.00</font></div>
            </td>
            <td align="left" valign="top" width="14%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$&#160;&#160;
                </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2,352,000.00</font></div>
            </td>
            <td align="left" valign="top" width="13%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$
                &#160;&#160; </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">251.66</font></div>
            </td>
          </tr>
          <tr>
            <td align="left" colspan="4" valign="top" width="66%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Total
                Amount of Registration Fees:</font></div>
            </td>
            <td align="left" valign="top" width="13%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$
                2,660.00</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(1)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
                accordance with Rule 416 under the Securities Act of 1933, as amended
                (the
                &#8220;Securities Act&#8221;), in order to prevent dilution, a presently
                indeterminable number of shares of common stock are registered hereunder
                which may be issued in the event of stock splits, stock dividends,
                triggering of any anti-dilution provisions in the warrants and the
                Underwriters&#8217; warrants for the purchase of common stock or similar
                transactions involving the common stock of the Registrant. No additional
                registration fee has been paid for these shares of common
                stock.</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(2)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Estimated
                solely for the purposes of calculating the registration fee pursuant
                to
                Section 6(b) of the Securities Act, and computed pursuant to Rule
                457(a)
                promulgated under the Securities
                Act.</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(3)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Includes
                450,000 shares which the Underwriters have the option to purchase
                from the
                Registrant to cover over-allotments, if
                any.</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(4)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">No
                fee pursuant to Rule 457(g).</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>The
      Registrant hereby amends this Registration Statement on such date or dates
      as
      may be necessary to delay its effective date until the Registrant shall file
      a
      further amendment which specifically states that this Registration Statement
      shall thereafter become effective in accordance with Section&#160;8(a) of the
      Securities Act, as amended, or until this Registration Statement shall become
      effective on such date as the Securities and Exchange Commission, acting
      pursuant to said Section&#160;8(a), may determine.</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>EXPLANATORY
      NOTE:</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">This
      registration statement contains two forms of prospectus: one for use in our
      underwritten initial public offering, and one for use by selling shareholders
      after completion of the underwritten initial public offering. The two
      prospectuses are identical in all respects except for the alternate pages for
      the selling shareholder prospectus, which are labeled &#8220;Alternate Page for
      Selling Shareholder Prospectus.&#8221;</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
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        </div>
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        <div style="WIDTH: 100%; TEXT-ALIGN: center">
        </div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="2">
        </div>
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      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">
        </div>
      </div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div>
      <table cellpadding="0" cellspacing="0" width="100%">

          <tr>
            <td align="justify" valign="middle" width="78%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: red; FONT-FAMILY: Times New Roman">The
                information in this prospectus is not complete and may be changed.
                We may
                not sell these securities until the registration statement filed
                with the
                Securities and Exchange Commission is effective. The prospectus is
                not an
                offer to sell these securities and it is not soliciting an offer
                to buy
                these securities in any state where the offer or sale is not
                permitted.</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: red; FONT-FAMILY: Times New Roman"><strong>SUBJECT
      TO COMPLETION, DATED DECEMBER 13, 2006</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>PROSPECTUS</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><img src="logo_14663.jpg" alt="LOGO"></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 24pt; FONT-FAMILY: Times New Roman"><strong>Bridgeline
      Software, Inc.</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><strong>3,000,000
      shares of Common Stock</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">This
      is a
      firm commitment initial public offering of 3,000,000 shares of our common stock.
      This is our initial public offering and no public market currently exists for
      our common stock. The initial public offering price for the shares offered
      hereby is estimated to be between $5.00 and $6.00&#160;per share.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">We
      have
      applied for listing of our common stock on the Nasdaq Capital Market and the
      Boston Stock Exchange under the symbols &#8220;BLSW&#8221; and &#8220;BLS&#8221;, respectively.
</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Investing
      in our common stock involves risks. See &#8220;Risk Factors&#8221; beginning on page&#160;9
      for a discussion of certain factors that should be considered by prospective
      purchasers of our shares.</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>These
      securities have not been approved or disapproved by the Securities and Exchange
      Commission or any state securities commission, nor has the Securities and
      Exchange Commission or any state securities commission passed upon the accuracy
      or adequacy of this prospectus. Any representation to the contrary is a criminal
      offense.</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div align="left">
      <table cellpadding="0" cellspacing="0" width="100%">

          <tr>
            <td align="left" valign="middle" width="20%" style="border-bottom: #ffffff solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
            </td>
            <td align="left" valign="middle" width="1%" style="border-bottom: #ffffff solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
            </td>
            <td colspan="2" valign="bottom" width="19%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Price
                to the Public</strong></font></div>
            </td>
            <td align="left" valign="bottom" width="14%" style="border-bottom: #ffffff solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
            </td>
            <td colspan="6" valign="bottom" width="16%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Underwriting
                Discounts</strong></font></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>and
                Commissions</strong></font></div>
            </td>
            <td align="left" valign="bottom" width="3%" style="border-bottom: #ffffff solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
            </td>
            <td colspan="5" valign="bottom" width="13%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Proceeds,
                </strong></font></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Before
                Expenses, </strong></font></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>to
                the Company</strong></font></div>
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          </tr>
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            <td align="left" valign="bottom" width="20%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
            </td>
            <td align="left" valign="bottom" width="1%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
            </td>
            <td colspan="2" valign="bottom" width="19%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
            </td>
            <td align="left" valign="bottom" width="14%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
            </td>
            <td colspan="6" valign="bottom" width="16%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
            </td>
            <td align="left" valign="bottom" width="3%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
            </td>
            <td colspan="5" valign="bottom" width="13%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
            </td>
          </tr>
          <tr>
            <td align="left" valign="top" width="20%">
              <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Per
                Share</font></div>
            </td>
            <td align="left" valign="middle" width="1%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
            </td>
            <td align="left" colspan="2" valign="bottom" width="19%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
            </td>
            <td align="left" valign="middle" width="14%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
            </td>
            <td align="left" colspan="6" valign="bottom" width="16%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
            </td>
            <td align="left" valign="middle" width="3%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
            </td>
            <td align="left" colspan="5" valign="bottom" width="13%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
            </td>
          </tr>
          <tr>
            <td align="left" valign="top" width="20%">
              <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Total</font></div>
            </td>
            <td align="left" valign="middle" width="1%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
            </td>
            <td align="left" colspan="2" valign="bottom" width="19%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
            </td>
            <td align="left" valign="middle" width="14%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
            </td>
            <td align="left" colspan="6" valign="bottom" width="16%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
            </td>
            <td align="left" valign="middle" width="3%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
            </td>
            <td align="left" colspan="5" valign="bottom" width="13%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;&#160;&#160;&#160;
      </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">We
      have
      granted the underwriters a 45-day option to purchase up to an additional 450,000
      shares to cover over-allotments, if any. The shares are being offered by the
      underwriters named herein, subject to prior sale, when, as and if accepted
      by
      them and subject to certain conditions.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><strong>Joseph
      Gunnar &amp; Co., LLC</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      date
      of this prospectus is
&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;,
      2007.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 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="WIDTH: 100%; TEXT-ALIGN: center">
        </div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <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="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>PROSPECTUS
      SUMMARY</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>This
      summary highlights information contained elsewhere in this prospectus and does
      not contain all of the information you should consider in making your investment
      decision. You should read this summary together with the more detailed
      information, including our financial statements and the related notes, elsewhere
      in this prospectus. You should carefully consider, among other things, the
      matters discussed in &#8220;Risk Factors&#8221; on page&#160;9. In addition, some of the
      statements made in this prospectus discuss future events and developments,
      including our future business strategy and our ability to generate revenue,
      income and cash flow. These forward-looking statements involve risks and
      uncertainties which could cause actual results to differ materially from those
      contemplated in these forward-looking statements. See &#8220;Cautionary
      Note&#160;Regarding Forward-Looking Statements&#8221; on page 17.</em></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Unless
      the context indicates otherwise, the terms &#8220;our,&#8221; &#8220;we,&#8221; &#8220;us,&#8221; and &#8220;Bridgeline&#8221;
refer to Bridgeline Software, Inc. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Bridgeline
      Software</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Bridgeline
      Software is a developer of Web software tools and Web applications that help
      our
      customers to optimize business processes utilizing Web-based technologies.
      We
      help our customers attain the following objectives:</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;
              &#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Increased
                sales</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;
              &#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Improved
                customer service and customer
                loyalty</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;
              &#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Enhanced
                employee communication and training</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;
              &#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Reduced
                administrative and operational
                expenses</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">We
      develop award-winning Web applications and Web software tools&#160;for use over
      the Internet as well as for particular customers&#8217; intranets and extranets. Our
      in-house team of Microsoft</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><sup>&#174;</sup></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">-certified
      developers specializes in:</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;
              &#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Information
                architecture and usability
                engineering</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;
              &#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Web
                application development</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;
              &#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Rich
                media development</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;
              &#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">e-Commerce
                applications</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;
              &#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">e-Training
                applications</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;
              &#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Search
                engine optimization</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">To
      differentiate ourselves from our competition and improve our value proposition,
      we have developed our own Web software tools such as a Web content management
      system and an on-Demand Web-based platform that provide expandable modules
      such
      as eSurvey, eNewsletter, eCommerce, Content Management, Relationship Management,
      Event Registration and Integrated Grants Management. A description of our Web
      software tools and Web services can be found beginning on page 39 of this
      prospectus.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">We
      have
      more than 70 active customers, including Nomura Securities, The Bank of New
      York, Pfizer, Depository Trust &amp; Clearing Corporation and John Hancock,
      comprising approximately 23%, 9%, 6%, 6% and 5% of our revenues, respectively,
      for the ten months ended July 31, 2006.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">We
      have
      received multiple industry awards, including WebAwards from the Web Marketing
      Association; MITX Awards from the Massachusetts Innovation &amp; Technology
      Exchange; Axiem Awards; and One Show Interactive Awards. A description of these
      awards can be found on page 38 of this prospectus. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 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="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="2">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">
        </div>
      </div>
    </div><br>
    <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Market
      Opportunity</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">We
      believe the&#160;Web application development market is rapidly growing and
      fragmented, and that there is an opportunity for us to expand and significantly
      enhance our market share position by acquiring companies who specialize in
      Web
      application development, thereby potentially creating one of the largest
      interactive technology companies in North America. We believe that established
      yet small Web application development companies have the ability to market,
      sell
      and install Web-based software tools in their local metropolitan markets. In
      addition, we believe that these companies also have customer bases and a niche
      presence in the local markets in which they operate. We believe that by
      acquiring certain of these companies and applying our business practices and
      efficiencies, we can dramatically accelerate our time to market in geographic
      locations other than those in which we now operate.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">We
      estimate, based on our experience in having made such acquisitions, that
      compounded annual growth rates of at least 20% per year for each acquired entity
      may be possible. We target certain established Web application development
      companies that we believe have both:</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td style="width: 18pt;">&#160;</td>
            <td style="width: 18pt;">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(1)
                </font></div>
            </td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">the
                complementary technical ability to market, sell and install Web-based
                software tools in their particular metropolitan market areas; and
                </font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td style="width: 18pt;">&#160;</td>
            <td style="width: 18pt;">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(2)</font></div>
            </td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">an
                established base of customers with local market presence that can
                potentially accelerate our time to market in geographic areas where
                we do
                not currently operate. </font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
      addition, we believe that even established Web application development companies
      we acquire could improve their profit margins by (i) licensing our Web software
      tools to their customer base, (2) reducing development costs by leveraging
      our
      Bangalore, India development center and (3) consolidating marketing, general
      and
      administrative functions at our corporate headquarters in Massachusetts. We
      believe this expansion strategy by which we grow primarily by acquiring
      profitable operating&#160;companies is a key component of our business
      model.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Acquisitions</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Since
      our
      inception, we have consummated the acquisition of four Web application
      development companies: </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;
              &#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
                December 2000, we acquired Streamline Communications, a Boston,
                Massachusetts-based company.</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;
              &#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
                February 2002, we acquired Lead Dog Digital, Inc., a New York, New
                York-based company.</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;
              &#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
                December 2004, we acquired Interactive Applications Group, Inc. (&#8220;iapps&#8221;),
                a Washington, D.C.-based company.</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;
              &#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
                April 2006, we acquired New Tilt, Inc., a Cambridge, Massachusetts-based
                company.</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
      addition, on December 7, 2006, we signed a definitive merger agreement. Under
      this agreement, we intend to acquire all outstanding capital stock of
      Objectware, Inc., an Atlanta, Georgia-based Web application development company.
      </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      consideration for the acquisition of Objectware will be paid to Objectware&#8217;s
      sole stockholder, Erez M. Katz, and will consist of </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(i)
      $2,500,000 in cash, (ii) shares of our common stock having a value (based on
      the
</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">initial
      public offering price of our shares in this offering)</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      of
      $2,700,000 and (iii) deferred, contingent consideration of up to $1,800,000,
      payable in cash and stock quarterly over the three years after we acquire
      Objectware, contingent upon Objectware generating positive earnings before
      interest, taxes and depreciation and amortization of at least $250,000 per
      calendar quarter during the 12 consecutive calendar quarters following this
      offering. In no event, however, will we issue shares to Mr. Katz in connection
      with this acquisition which would result in ownership by Mr. Katz of more than
      19.9% of the total issued and outstanding shares of our common stock without
      the
      prior approval of our shareholders. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      acquisition of Objectware will close in escrow shortly before the completion
      of
      this offering. Prior to the completion of this offering all closing
      documentation other than the cash and stock consideration will be deposited
      with
      the escrow agent. Once this offering is completed, we will deposit the cash
      and
      stock consideration with the escrow agent. Upon receipt of the cash and stock
      consideration, the escrow agent will release all closing materials to the
      parties in accordance with the terms of the escrow agreement. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 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="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">3</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <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="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Summary
      Risk Factors</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Our
      business is subject to various risks and challenges, including (without
      limitation or any specific order):</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 27pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 63pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;&#160;&#160;
              &#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">our</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
                limited operating history on which to evaluate our operations and
                we have
                suffered losses since inception which may recur in the future as
                we
                expand; </font></div>
            </td>
          </tr>

      </table>
    </div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 63pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;&#160;&#160;&#160;&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">our
                licenses are renewable on a monthly basis and a reduction in our
                license
                renewal rate could significantly reduce our revenues;
                </font></div>
            </td>
          </tr>

      </table>
    </div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 63pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;&#160;&#160;&#160;&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">our
                inability to manage our future growth efficiently or
                profitably;</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 63pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;&#160;&#160;&#160;&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">our
                inability to complete the Objectware acquisition or to&#160;effeciently
                integrate Objectware into our operations;
</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 63pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;&#160;&#160;&#160;&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">if
                our products fail to perform properly due to undetected errors or
                similar
                problems, our business could suffer, and we could face product liability
                exposure; </font></div>
            </td>
          </tr>

      </table>
    </div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 63pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;&#160;&#160;&#160;&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">if
                the security of our software, in particular the hosted Internet solutions
                products we have developed, is breached, our business and reputation
                could
                suffer; </font></div>
            </td>
          </tr>

      </table>
    </div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 63pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;&#160;&#160;&#160;&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">if
                we undertake future business combinations and acquisitions, they
                may be
                difficult to integrate into our existing operations, may disrupt
                our
                business, dilute stockholder value or divert management&#8217;s attention;
                </font></div>
            </td>
          </tr>

      </table>
    </div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 63pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;&#160;&#160;&#160;&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">our
                dependence on our management team and key personnel and the loss
                or
                inability to retain these individuals could harm our business;
                and</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 63pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;&#160;&#160;&#160;&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">intense
                and growing competition, which could result in price reductions,
                reduced
                operating margins and loss of market
                share.</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font id="TAB1" style="MARGIN-LEFT: 18pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">For
      a
      detailed description of these and additional risk factors, please refer to
&#8220;Risk
      Factors&#8221; beginning at page 9.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><a name="page_0_1_7"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Corporate
      Information</strong></font></a></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><br></font>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Our
        principal executive offices are located at </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">10
        Sixth
        Road, Woburn, Massachusetts 01801</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">,
        and our
        telephone number is (</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">781)
        376-5555</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">.
        </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">We
        maintain offices in Cambridge, MA, New York, New York and in Washington,
        D.C.,
        as well as a development center in Bangalore, India. </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">We
        maintain a website at www.bridgelinesw.com. The information on our website
        is
        not part of this prospectus.</font></div>
    </div>
    <div>&#160;</div>
    <div>&#160;</div>
    <div>&#160;</div>
    <div><br>&#160;</div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 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="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">4</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <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="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>THE
      OFFERING</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
    <div>
      <table cellpadding="0" cellspacing="0" width="100%">

          <tr>
            <td align="left" valign="top" width="23%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Securities
                Offered</strong></font></div>
            </td>
            <td align="left" valign="top" width="2%">&#160;</td>
            <td align="justify" valign="top" width="54%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">3,000,000
                shares of our common stock.</font></div>
            </td>
          </tr>
          <tr>
            <td align="left" valign="top" width="23%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Over-Allotment
                Option</strong></font></div>
            </td>
            <td align="left" valign="top" width="2%">&#160;</td>
            <td align="justify" valign="top" width="54%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">450,000
                shares of our common stock.</font></div>
            </td>
          </tr>
          <tr>
            <td align="left" valign="top" width="23%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Common
                Stock to be Outstanding After This Offering</strong></font></div>
            </td>
            <td align="left" valign="top" width="2%">&#160;</td>
            <td align="justify" valign="top" width="54%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">7,273,833
                </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">shares
                (</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">7,723,833
                </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">shares
                if the over-allotment option is exercised in full by the underwriters),
                of
                which 3,000,000 shares or approximately 41.2% would be held by persons
                purchasing in this offering (3,450,000 shares or approximately 44.7%,
                if
                the over-allotment option is exercised in full by the
                underwriters).</font></div>
            </td>
          </tr>
          <tr>
            <td align="left" valign="top" width="23%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Use
                of Proceeds</strong></font></div>
            </td>
            <td align="left" valign="top" width="2%">&#160;</td>
            <td align="justify" valign="top" width="54%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">We
                intend to use the net proceeds from this offering as follows:
</font></div>
              <div style="MARGIN-LEFT: 63pt; TEXT-INDENT: -9pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif"><strong>&#183;</strong></font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 9pt">&#160;&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Approximately
                $2,800,000 to repay all of our indebtedness;</font></div>
              <div style="MARGIN-LEFT: 72pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif"><strong>&#183;</strong></font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 9pt">&#160;&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Approximately
                $2,955,000 to pay the cash portion of the acquisition of Objectware,
                together with expenses associated with that acquisition; and</font></div>
              <div style="MARGIN-LEFT: 72pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif"><strong>&#183;</strong></font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 9pt">&#160;&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$8,380,000
                for general corporate purposes, including working capital and to
                complete
                future acquisitions. See &#8220;Use of Proceeds&#8221; for additional
                information.</font></div>
            </td>
          </tr>
          <tr>
            <td align="left" valign="top" width="23%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Trading
                Symbols</strong></font></div>
            </td>
            <td align="left" valign="top" width="2%">&#160;</td>
            <td align="justify" valign="top" width="54%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">We
                have applied for listing of our common stock on the Nasdaq Capital
                Market
                and the Boston Stock Exchange under the symbols &#8220;BLSW&#8221; and &#8220;BLS,&#8221;
                respectively. </font></div>
            </td>
          </tr>
          <tr>
            <td align="left" valign="top" width="23%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Risk
                Factors</strong></font></div>
            </td>
            <td align="left" valign="top" width="2%">&#160;</td>
            <td align="justify" valign="top" width="54%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">You
                should consider carefully all of the information set forth in this
                prospectus, and, in particular, the specific factors set forth under
&#8220;Risk
                Factors&#8221; beginning at page 9, before deciding whether to invest in our
                shares.</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
    <div>&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      number of shares of common stock to be outstanding after the offering is based
      on 4,233,833 shares outstanding as of July 31, 2006 and excludes:</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">490,909
                shares issuable upon the acquisition of Objectware;
                </font></div>
            </td>
          </tr>

      </table>
    </div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">925,832
                shares issuable upon the exercise of outstanding options at a weighted
                average price of $2.96 per share;</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">618,269
                shares issuable upon the exercise of outstanding warrants;
                and</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">300,000
                shares issuable upon exercise of underwriters&#8217; warrants at a price equal
                to 125% of the offering price of the
                shares.</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">We
      are
      registering 4,142,000 shares, which, on a pro forma basis, would represent
      approximately 41% of our outstanding securities as of July 31, 2006 calculated
      as a fully-diluted basis, assuming the exercise of the over-allotment option
      granted to the underwriters.</font></div>
    <div>&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;&#160;&#160;&#160;
      </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Unless
      otherwise indicated, all information in this prospectus assumes no exercise
      of
      the over-allotment option granted to the underwriters. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">_______________________</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><a name="gmnh103"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8220;Bridgeline,&#8221;
      &#8220;Bridgeline Software,&#8221; &#8220;iapps,&#8221; &#8220;netEDITOR,&#8221; &#8220;netEDITOR-pro&#8221; and &#8220;Orgitecture&#8221;
are our trademarks and service marks. We have registered the trademarks
&#8220;Bridgeline,&#8221; &#8220;iapps&#8221; and &#8220;netEDITOR&#8221; with the United States Patent and
      Trademark Office, and have filed applications to register &#8220;netEDITOR-pro&#8221; and
&#8220;Orgitecture,&#8221; and claim common law rights in such marks. </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">This
      prospectus refers to the trade names, service marks and trademarks of other
      companies. These references are made with due recognition of the rights of
      these
      companies and without any intent to misappropriate these names or
      marks.</font></a></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 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="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">5</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <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="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>SUMMARY
      FINANCIAL DATA</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">You
      should read the following summary financial data together with our financial
      statements and related notes appearing at the end of this prospectus and the
      &#8220;Management&#8217;s Discussion and Analysis and Results of Operations&#8221; and &#8220;Risk
      Factors&#8221; sections included elsewhere in this prospectus. The summary financial
      data as of and for the years ended September 30, 2004 and September 30, 2005
      set
      forth below are derived from, and are qualified by reference to, our financial
      statements that have been audited by </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">UHY
      LLP</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">,
      our
      independent registered public accounting firm, and are included elsewhere in
      this prospectus. The summary financial data as of July 31, 2006 and for the
      ten
      months ended July 31, 2006 and 2005 set forth below are derived from our
      unaudited financial statements that are included elsewhere in this prospectus.
      The unaudited related financial data includes all adjustments (consisting only
      of normal recurring adjustments) that are necessary for a fair presentation
      of
      our financial position and results of operations for these periods. Historical
      results are not necessarily indicative of future results.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br>
      <div>
        <table cellpadding="0" cellspacing="0" id="ftable" width="100%">

            <tr>
              <td valign="bottom" width="43%" style="border-bottom: medium none;">&#160;</td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td colspan="5" valign="bottom" width="26%" style="border-bottom: medium none;">
                <div align="center">&#160;</div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td colspan="2" valign="bottom" width="12%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td colspan="2" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td valign="bottom" width="43%" style="border-bottom: #ffffff solid;">&#160;</td>
              <td width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td colspan="5" valign="bottom" width="26%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Ten
                  Months Ended July 31,</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="right" colspan="5" valign="bottom" width="25%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Year
                  Ended September 30,</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;">&#160;</td>
            </tr>
            <tr>
              <td valign="bottom" width="43%" style="border-bottom: #ffffff solid;">&#160;</td>
              <td width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" colspan="2" valign="bottom" width="12%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2006
                  (c)</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" colspan="2" valign="bottom" width="12%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2005
                  (a)</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" colspan="2" valign="bottom" width="12%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2005
                  (a)</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" colspan="2" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2004</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="43%" style="border-bottom: medium none;">
                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Historical
                  Statements of Operations Data: </strong></font></div>
              </td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td colspan="2" valign="bottom" width="12%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td colspan="2" valign="bottom" width="12%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td colspan="2" valign="bottom" width="12%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td colspan="2" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td valign="bottom" width="43%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Revenues
                  </font></div>
              </td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">6,603</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">4,645</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">5,769</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">4,888</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td valign="bottom" width="43%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Cost
                  of revenue </font></div>
              </td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">2,924
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">2,527
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">3,113
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">2,290
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td valign="bottom" width="43%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Gross
                  profit </font></div>
              </td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">3,679
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">2,118
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">2,656
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">2,598
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td valign="bottom" width="43%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Operating
                  loss </font></div>
              </td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(115</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(373</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(461</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(132</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
              </td>
            </tr>
            <tr>
              <td valign="bottom" width="43%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Net
                  loss </font></div>
              </td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(698</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(413</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(517</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(178</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
              </td>
            </tr>
            <tr>
              <td valign="bottom" width="43%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Basic
                  and diluted loss per share </font></div>
              </td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(0.17</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(0.11</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(0.14</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
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              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
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              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
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              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
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              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
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              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">3,026,163
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              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
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            <tr>
              <td valign="bottom" width="43%" style="border-bottom: medium none;">&#160;</td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td valign="bottom" width="43%" style="border-bottom: medium none;">&#160;</td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>

        </table>
      </div>
      <div>&#160;</div>
      <div>&#160;</div>
      <div>
        <table cellpadding="0" cellspacing="0" id="ftable" width="100%">

            <tr>
              <td valign="bottom" width="43%" style="border-bottom: medium none;">&#160;</td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td colspan="5" valign="bottom" width="26%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Unaudited
                  </font></div>
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              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td colspan="2" valign="bottom" width="12%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td colspan="2" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td valign="bottom" width="43%" style="border-bottom: #ffffff solid;">&#160;</td>
              <td width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td colspan="5" valign="bottom" width="26%" style="border-bottom: black thin solid;">
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                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Ten
                    Months Ended </font>July 31,</div>
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              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" colspan="5" valign="bottom" width="25%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Year
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              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;">&#160;</td>
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            <tr>
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                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Other
                  Financial Data: </strong></font></div>
              </td>
              <td width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="right" colspan="2" valign="bottom" width="12%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2006
                  (c)</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="right" colspan="2" valign="bottom" width="12%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2005
                  (a)</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="right" colspan="2" valign="bottom" width="12%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2005
                  (a)</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="right" colspan="2" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2004</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="43%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Net&#160;loss
                  </font></div>
              </td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(698</font></div>
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              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(413</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
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              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(517</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(178</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
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            <tr>
              <td align="left" valign="bottom" width="43%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Interest
                  expense </font></div>
              </td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">583
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">40
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">56
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">46
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="43%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Depreciation
                  </font></div>
              </td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">141
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">86
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">107
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">78
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="43%" style="border-bottom: #ffffff solid;">
                <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Amortization
                  of intangibles </font></div>
              </td>
              <td width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">97
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">75
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">94
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">30
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="43%" style="border-bottom: #ffffff solid;">
                <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">EBITDA
                  (b) </font></div>
              </td>
              <td width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black double;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">123</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
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              <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
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              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
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                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
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              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
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              <td align="left" valign="bottom" width="43%" style="border-bottom: medium none;">&#160;</td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="43%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Capital
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              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
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              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">242</font></div>
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              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
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              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">119</font></div>
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              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
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              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">161</font></div>
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              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
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              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">134</font></div>
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              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 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="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">6</font></div>
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      <div id="HDR">
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        </div>
      </div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">
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        <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Bridgeline
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      </div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br>
      <div align="left">
        <table border="0" cellpadding="0" cellspacing="0" id="ftable" width="100%">

            <tr>
              <td valign="bottom" width="69%" style="border-bottom: #ffffff solid;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="right" colspan="2" valign="bottom" width="12%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center">
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                    Months Ended </font></div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">July
                  31, 2006 (d)</font></div>
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              <td align="left" valign="bottom" width="4%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td colspan="2" valign="bottom" width="12%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center">
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                    Ended </font></div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">September
                  30, 2005 (d)</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="69%" style="border-bottom: medium none;">
                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Unaudited
                  Proforma Statements of Operations Data: </strong></font></div>
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              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" colspan="2" valign="bottom" width="12%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="4%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" colspan="2" valign="bottom" width="12%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="69%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Revenues
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">10,658
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="4%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">11,111</font></div>
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              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="69%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Cost
                  of revenue </font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">5,275
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="4%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">6,305
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="69%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Gross
                  profit </font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">5,383
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="4%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">4,806
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="69%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Operating
                  income </font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">366
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="4%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">182
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="69%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Net
                  income </font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">339
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="4%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">154
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="69%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Earnings
                  per
                  share:&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
                  Basic</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">0.05</font></div>
              </td>
              <td align="left" valign="bottom" width="4%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">0.02</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="69%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 126pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Diluted
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">0.04</font></div>
              </td>
              <td align="left" valign="bottom" width="4%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">0.02</font></div>
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              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="69%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Weighted
                  average shares:&#160; Basic</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">7,134,998
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="4%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">7,614,527
                  </font></div>
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              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="69%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 126pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Diluted
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">7,705,893
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="4%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">7,978,917
                  </font></div>
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              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>

        </table>
      </div><br>
      <div><br>
        <div align="left">
          <table border="0" cellpadding="0" cellspacing="0" id="ftable" width="100%">

              <tr>
                <td align="left" valign="bottom" width="69%" style="border-bottom: #ffffff solid;">
                  <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Other
                    Unaudited Proforma Financial Data: </strong></font></div>
                </td>
                <td width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
                <td align="right" colspan="2" valign="bottom" width="12%" style="border-bottom: black thin solid;">
                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center">
                    <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Ten
                      Months Ended </font></div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">July
                    31, 2006 (d)</font></div>
                </td>
                <td align="left" valign="bottom" width="4%" style="border-bottom: #ffffff thin solid;">&#160;</td>
                <td align="right" colspan="2" valign="bottom" width="12%" style="border-bottom: black thin solid;">
                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center">
                    <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Year
                      Ended </font></div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">September
                    30, 2005 (d)</font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              </tr>
              <tr>
                <td align="left" valign="bottom" width="69%" style="border-bottom: medium none;">
                  <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Net
                    income </font></div>
                </td>
                <td width="2%" style="border-bottom: medium none;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
                </td>
                <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">339</font></div>
                </td>
                <td align="left" valign="bottom" width="4%" style="border-bottom: medium none;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
                </td>
                <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">154</font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              </tr>
              <tr>
                <td align="left" valign="bottom" width="69%" style="border-bottom: medium none;">
                  <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Income
                    tax provision </font></div>
                </td>
                <td width="2%" style="border-bottom: medium none;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">46
                    </font></div>
                </td>
                <td align="left" valign="bottom" width="4%" style="border-bottom: medium none;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">27
                    </font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              </tr>
              <tr>
                <td align="left" valign="bottom" width="69%" style="border-bottom: medium none;">
                  <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Interest
                    expense </font></div>
                </td>
                <td width="2%" style="border-bottom: medium none;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">13
                    </font></div>
                </td>
                <td align="left" valign="bottom" width="4%" style="border-bottom: medium none;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">3
                    </font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              </tr>
              <tr>
                <td align="left" valign="bottom" width="69%" style="border-bottom: medium none;">
                  <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Depreciation
                    </font></div>
                </td>
                <td width="2%" style="border-bottom: medium none;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">106
                    </font></div>
                </td>
                <td align="left" valign="bottom" width="4%" style="border-bottom: medium none;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">166
                    </font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              </tr>
              <tr>
                <td align="left" valign="bottom" width="69%" style="border-bottom: #ffffff solid;">
                  <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Amortization
                    of intangibles </font></div>
                </td>
                <td width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">176
                    </font></div>
                </td>
                <td align="left" valign="bottom" width="4%" style="border-bottom: #ffffff thin solid;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">228
                    </font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              </tr>
              <tr>
                <td align="left" valign="bottom" width="69%" style="border-bottom: #ffffff solid;">
                  <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">EBITDA
                    (b) </font></div>
                </td>
                <td width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
                </td>
                <td align="right" valign="bottom" width="11%" style="border-bottom: black double;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">680</font></div>
                </td>
                <td align="left" valign="bottom" width="4%" style="border-bottom: #ffffff solid;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
                </td>
                <td align="right" valign="bottom" width="11%" style="border-bottom: black double;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">578</font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff solid;">&#160;</td>
              </tr>

          </table>
        </div>
      </div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br>
      <div align="left">
        <table border="0" cellpadding="0" cellspacing="0" id="ftable" width="100%">

            <tr>
              <td valign="bottom" width="69%" style="border-bottom: #ffffff solid;">&#160;</td>
              <td width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="right" colspan="2" valign="bottom" width="12%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center">
                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">As
                    of July 31, 2006</font></div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Historical
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="4%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" colspan="2" valign="bottom" width="12%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center">
                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">As
                    of July 31, 2006</font></div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Pro
                  Forma (d) </font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="69%" style="border-bottom: medium none;">
                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Balance
                  Sheet Data: </strong></font></div>
              </td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" colspan="2" valign="bottom" width="12%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="4%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" colspan="2" valign="bottom" width="12%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="69%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Working
                  capital </font></div>
              </td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(1,092</font></div>
              </td>
              <td align="left" valign="bottom" width="4%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">10,713</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="69%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Total
                  assets </font></div>
              </td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">9,977</font></div>
              </td>
              <td align="left" valign="bottom" width="4%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">24,556</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="69%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Total
                  liabilities </font></div>
              </td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">3,596</font></div>
              </td>
              <td align="left" valign="bottom" width="4%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">1,604</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="69%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Total
                  shareholders&#8217; equity </font></div>
              </td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">6,381</font></div>
              </td>
              <td align="left" valign="bottom" width="4%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">22,952</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>

        </table>
      </div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Notes
        to Summary Historical and Pro Forma Financial Data</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
    </div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 18pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(a)&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">On
                December 15, 2004 we acquired iapps. The results of operations of
                iapps
                are included in our consolidated financial statements from the date
                of
                acquisition.</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 18pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(b)&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8220;EBITDA&#8221;
                is defined as net income (loss), plus provision for income taxes,
                interest
                expense, depreciation and amortization of intangibles. EBITDA is
                a
                non-Generally Accepted Accounting Principle (&#8220;GAAP&#8221;) financial measure and
                is a numeric measure of our financial performance, financial position
                or
                cash flows. EBITDA is used here because we believe it is an effective
                indicator of our ability to fund growth and measure cash flows from
                operations. However, EBITDA should not be considered as an alternative
                to
                net income as a measure of operating results or cash flow as a measure
                of
                liquidity in accordance with GAAP. Similarly adjusted, our computation
                of
                EBITDA may not be comparable to comparable measures of other companies.
                </font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
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        </div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">7</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <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="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 18pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(c)&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">On
                April 24, 2006 we acquired New Tilt. The results of operations of
                New Tilt
                are included in our consolidated financial statements from the date
                of the
                acquisition. </font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 18pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(d)&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">On
                April 24, 2006 and December 15, 2004 we acquired New Tilt and iapps,
                respectively. The results of operations of New Tilt and iapps&#160;are
                included in our consolidated financial statements from the dates
                of the
                acquisitions. Subsequent to the sale of 3,000,000 shares of our common
                stock in this offering, we intend to acquire Objectware. A portion
                of the
                proceeds of this offering will be used to retire indebtedness. The
                accompanying summary financial data reflect the effect of these
                transactions as if they occurred at the beginning of the most recent
                fiscal year on October 1, 2004 and as of the beginning of the interim
                period as of October 1, 2005.</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div><br>&#160;</div>
    <div>&#160;</div>
    <div>&#160;</div>
    <div>&#160;</div>
    <div>&#160;</div>
    <div>&#160;</div>
    <div>&#160;</div>
    <div>&#160;</div>
    <div>&#160;</div>
    <div>&#160;</div>
    <div>&#160;</div>
    <div>&#160;</div>
    <div>&#160;</div>
    <div>&#160;</div>
    <div>&#160;</div>
    <div><br>&#160;</div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 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="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">8</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
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        </div>
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    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><a name="gmnh104"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>RISK
      FACTORS</strong></font></a></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>You
      should carefully consider and evaluate all of the information contained in
      this
      prospectus, including the following risk factors, before deciding to invest
      in
      our securities. Any of these risks could materially and adversely affect our
      business, financial condition and results of operations, which in turn could
      adversely affect the price of our common stock.</em></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Risks
      Related to our Business</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>We
      have a limited operating history on which to evaluate our operations and may
      again incur losses in the future as we expand.</em></strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">During
      the most recent three years of operations, in 2003, 2004, 2005 and for the
      first
      ten months of 2006, we had revenues of approximately $4.2 million, $4.9 million,
      $5.8 million and $6.6 million, respectively and net losses of $750,000,
      $178,000, $517,000 and $698,000, respectively. We have a limited operating
      history on which to base an evaluation of our business and prospects. Since
      2003, we have funded operations through operating cash flows, when available,
      sales of equity securities, issuances of debt and lines of credit. Any
      investment in our company should be considered a high risk investment because
      you will be placing funds at risk in an unseasoned early stage company with
      unforeseen costs, expenses, competition and other problems to which such
      companies are often subject. Our revenues and operating results are difficult
      to
      forecast and our projected growth is dependent, in part, on our ability to
      complete future acquisitions of prospective target companies and the future
      revenues and operating results of such acquired companies. We therefore believe
      that period-to-period comparisons of our operating results thus far should
      not
      be relied upon as an indication of future performance.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>As
      we have a limited operating history, we may be unable to accurately predict
      our
      future operating expenses, which could cause us to experience cash shortfalls
      in
      future periods.</em></strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      proceeds of this offering will be used </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">to
      repay
      indebtedness in the aggregate principal amount of $2,800,000, together with
      accrued interest, to pay the $2,500,000 cash portion of the Objectware, Inc.
      purchase price, for general corporate purposes, including other acquisitions,
      as
      well as for general working capital purposes.</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      In
      addition, in order to substantially grow our business both organically and
      through additional acquisitions, we may, from time to time, require additional
      funding. There can be no assurance that we will be able to raise any
      additionally needed funds, on acceptable terms or at all. The procurement of
      any
      such additional financing may result in the dilution of your ownership interest
      in our company. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>Because
      most of our licenses are renewable on a monthly basis, a reduction in our
      license renewal rate could reduce our revenues.</em></strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Our
      customers have no obligation to renew their monthly subscription licenses,
      and
      some customers have elected not to do so. Our license renewal rates may decline
      or fluctuate as a result of a number of factors, including customer
      dissatisfaction with our products and services, our failure to update our
      products to maintain their attractiveness in the market, or constraints or
      changes in budget priorities faced by our customers. A decline in license
      renewal rates could cause our revenues to decline which would have a material
      adverse effect on our operations. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>Only
      a few customers account for a substantial portion of our revenues, and the
      loss
      of any of these customers could substantially reduce our net sales.
</em></strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">We
      derive
      a significant portion of our revenues from a small number of customers. For
      the
      ten months ended July 31, 2006, approximately 23% of our revenues were generated
      from Nomura Securities, 9</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">%
      of
</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">our
      revenues were generated from</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      Bank
      of New York, 6</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">%
      of our
      revenues were generated from </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Pfizer,
      6</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">%
      of our
      revenues were generated from </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Depository
      Trust &amp; Clearing Corporation and 5</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">%
      of our
      revenues were generated from </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">John
      Hancock. The loss of business from any of</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      these
      customers could substantially reduce our net sales and results of operations
      and
      could seriously harm our business.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
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        </div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">9</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <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="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>We
      might not be able to manage our future growth efficiently or
      profitably.</em></strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">We
      anticipate that continued expansion of our business will be required to address
      potential market opportunities. For example, we will need to expand the size
      of
      our research and development, sales, corporate finance and operations staff.
      There can be no assurance that our infrastructure will be sufficiently flexible
      and adaptable to manage our projected growth or that we will have sufficient
      resources, human or otherwise, to sustain such growth. If we are unable to
      adequately address these additional demands on our resources, our profitability
      and growth might suffer. Also, if we continue to expand our operations,
      management might not be effective in expanding our physical facilities and
      our
      systems, procedures or controls might not be adequate to support such expansion.
      Our inability to manage our growth could harm our business and decrease our
      revenues. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>We
      might not be able to complete our acquisition of
      Objectware.</em></strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">On
      December 7, 2006, we signed a definitive merger agreement. Under this agreement,
      we expect to acquire Objectware, Inc. shortly before we complete this offering.
      The closing of our acquisition of Objectware is subject to several conditions
      customary to the acquisitions of this nature, including completion of
      satisfactory due diligence analysis. We cannot assure you that we will be able
      to satisfy the conditions to closing of the acquisition. If the acquisition
      of
      Objectware does not occur, our pro-forma revenue and earnings before interest
      and taxes at the initial public offering will be reduced
      significantly.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>You
      will incur ownership dilution as a result of our proposed acquisition of
      Objectware.</em></strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      purchase price for Objectware consists of cash and shares of our common stock.
      Upon the closing of the acquisition and the release of the escrowed materials,
      we will issue to Objectware&#8217;s sole stockholder, Mr. Erez M. Katz, cash and
      shares of our common stock valued at (based on the </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">initial
      public offering price of our shares in this offering)</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      $2,700,000. These shares may not be sold or otherwise disposed of during a
      lock-up period of up to one year from the date of this prospectus. We have
      also
      agreed to pay Mr. Katz a deferred purchase price, contingent on Objectware&#8217;s
      future financial performance, payable in cash and stock quarterly over the
      three
      years after we acquire Objectware. See &#8220;Business - Growth and Expansion Strategy
      - Pending Acquisition - Objectware&#8221; at page 50. As a result of the issuance of
      shares of our common stock upon the closing of the acquisition, and the shares,
      if any, that we may issue to Mr. Katz in the future in payment of any deferred
      purchase price, you will experience ownership dilution.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>Our
      acquisition of Objectware involves other risks, including our inability to
      integrate successfully its business and our assumption of
      liabilities.</em></strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">We
      may
      not be able to integrate successfully Objectware&#8217;s business into our existing
      business. We cannot assure you that we will be able to market the services
      provided by Objectware with the other services we provide to customers. Further,
      integrating Objectware&#8217;s business may involve significant diversion of our
      management time and resources and be costly. Our acquisition of Objectware
      also
      involves the risks that the business acquired may prove to be less valuable
      than
      we expected and/or that Objectware may have unknown or unexpected liabilities,
      costs and problems. In entering into the Objectware definitive merger agreement,
      we relied on limited representations and warranties of Objectware&#8217;s sole
      stockholder. Although we have contractual and other legal remedies for losses
      that we may incur as a result of breaches of his agreements, representations
      and
      warranties, we cannot assure you that our remedies will adequately cover any
      losses that we incur.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>If
      we undertake additional business combinations and acquisitions, they may be
      difficult to integrate into our existing operations, may disrupt our business,
      dilute stockholder value or divert management&#8217;s
      attention.</em></strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">During
      the course of our history, we have acquired four businesses, and on December
      7,
      2006 we&#160;signed a definitive merger agreement with Objectware. Under this
      agreement, we intend to acquire all outstanding capital stock of Objectware.
      A
      key element of our growth strategy is the pursuit of additional acquisitions
      in
      the fragmented Web development/services industry in the future. These
      acquisitions could be expensive, disrupt our ongoing business and distract
      our
      management and employees. We may not be able to identify suitable acquisition
      candidates, and if we do identify suitable candidates, we may not be able to
      make these acquisitions on acceptable terms or at all. If we make an
      acquisition, we could have difficulty integrating the acquired technology,
      employees or operations. In addition, the key personnel of the</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 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="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">10</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <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="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">acquired
      company may choose not to work for us. Acquisitions also involve the risk of
      potential unknown liabilities associated with the acquired business. Each of
      t</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">hese
      risks exists in connection with our acquisition of Objectware.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>If
      our products fail to perform properly due to undetected errors or similar
      problems, our business could suffer, and we could face product liability
      exposure.</em></strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Complex
      applications software we sell may contain undetected errors, or bugs. Such
      errors can be detected at any point in a product&#8217;s life cycle, but are
      frequently found after introduction of new software or enhancements to existing
      software. We continually introduce new products and new versions of our
      products. Despite internal testing and testing by current and potential
      customers, our current and future products may contain serious defects. If
      we
      detect any errors before we ship a product, we might have to delay product
      shipment for an extended period of time while we address the problem. We might
      not discover software errors that affect our new or current products or
      enhancements until after they are deployed, and we may need to provide
      enhancements to correct such errors. Therefore, it is possible that, despite
      our
      testing, errors may occur in our software. These errors could result in:
</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;
              &#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">harm
                to our reputation; </font></div>
            </td>
          </tr>

      </table>
    </div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;
              &#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">lost
                sales; </font></div>
            </td>
          </tr>

      </table>
    </div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;
              &#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">delays
                in commercial release; </font></div>
            </td>
          </tr>

      </table>
    </div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;
              &#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">product
                liability claims; </font></div>
            </td>
          </tr>

      </table>
    </div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;
              &#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">contractual
                disputes;</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;
              &#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">negative
                publicity;</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;
              &#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">delays
                in or loss of market acceptance of our products;
                </font></div>
            </td>
          </tr>

      </table>
    </div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;
              &#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">license
                terminations or renegotiations; or</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;
              &#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">unexpected
                expenses and diversion of resources to remedy errors.
                </font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Furthermore,
      our customers may use our software together with products from other companies.
      As a result, when problems occur, it might be difficult to identify the source
      of the problem. Even when our software does not cause these problems, the
      existence of these errors might cause us to incur significant costs, divert
      the
      attention of our technical personnel from our product development efforts,
      impact our reputation or cause significant customer relations
      problems.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font id="TAB1" style="MARGIN-LEFT: 9pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>If
      we are unable to protect our proprietary technology and other intellectual
      property rights, our ability to compete in the marketplace may be substantially
      reduced.</em></strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">If
      we are
      unable to protect our intellectual property, our competitors could use our
      intellectual property to market products similar to our products, which could
      decrease demand for such products, thus decreasing our revenues. We rely on
      a
      combination of copyright, trademark and trade secret laws, as well as licensing
      agreements, third-party non-disclosure agreements and other contractual
      measures, to protect our intellectual property rights. These protections may
      not
      be adequate to prevent our competitors from copying or reverse-engineering
      our
      products. Our competitors may independently develop technologies that are
      substantially equivalent or superior to our technology. To protect our trade
      secrets and other proprietary information, we require employees, consultants,
      advisors and collaborators to enter into confidentiality agreements. These
      agreements may not provide meaningful protection for our trade secrets, know-how
      or other proprietary information in the event of any unauthorized use,
      misappropriation or disclosure of such trade secrets, know-how or other
      proprietary information. The protective mechanisms we include in our products
      may not be sufficient to prevent unauthorized copying. Existing copyright laws
      afford only limited protection for our intellectual property rights and may
      not
      protect such rights in the event competitors independently develop similar
      products. In addition, the laws of some countries in which our products are
      or
      may be licensed do not protect our products and intellectual property rights
      to
      the same extent as do the laws of the United States. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Policing
      unauthorized use of our products is difficult, and litigation could become
      necessary in the future to enforce our intellectual property rights. Any
      litigation could be time consuming and expensive to prosecute or resolve, result
      in substantial diversion of management attention and resources, and materially
      harm our business or financial condition.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 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="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">11</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <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="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>If
      a third party asserts that we infringe upon its proprietary rights, we could
      be
      required to redesign our products, pay significant royalties or enter into
      license agreements.</em></strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">A
      third
      party may assert that our technology or technologies of entities we acquire
      violates its intellectual property rights. As the number of software products
      in
      our markets increases and the functionality of these products further overlap,
      we believe that infringement claims will become more common. Any claims against
      us, regardless of their merit, could: </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;
              &#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">be
                expensive and time consuming to defend;
</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;
              &#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">result
                in negative publicity;</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;
              &#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">force
                us to stop licensing our products that incorporate the challenged
                intellectual property; &#160;</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;
              &#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">require
                us to redesign our products; &#160;</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;
              &#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">divert
                management&#8217;s attention and our other resources; or
                &#160;</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;
              &#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">require
                us to enter into royalty or licensing agreements in order to obtain
                the
                right to use necessary technologies, which may not be available on
                terms
                acceptable to us, if at all.</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">We
      believe that any successful challenge to our use of a trademark or domain name
      could substantially diminish our ability to conduct business in a particular
      market or jurisdiction and thus decrease our revenues and result in possible
      losses to our business.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>If
      the security of our software, in particular the hosted Internet solutions
      products we have developed, is breached, our business and reputation could
      suffer.</em></strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Fundamental
      to the use of our products is the secure collection, storage and transmission
      of
      confidential information. Third parties may attempt to breach our security
      or
      that of our customers and their databases. We might be liable to our customers
      for any breach in such security, and any breach could harm our customers, our
      business and reputation. Any imposition of liability, particularly liability
      that is not covered by insurance or is in excess of insurance coverage, could
      harm our reputation, business and operating results. Computers, including those
      that utilize our software, are vulnerable to computer viruses, physical or
      electronic break-ins and similar disruptions, which could lead to interruptions,
      delays or loss of data. We might be required to expend significant capital
      and
      other resources to protect further against security breaches or to rectify
      problems caused by any security breach, which, in turn could divert funds
      available for corporate growth and expansion or future acquisitions.
</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>We
      are dependent upon our management team, and the loss of any of these individuals
      could harm our business.</em></strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">We
      are
      dependent on the efforts of our key management personnel. The loss of any of
      our
      key management personnel, or our inability to recruit and train additional
      key
      management and other personnel in a timely manner, could materially and
      adversely affect our business, operations and future prospects. We do not
      maintain a key man insurance policy covering any of our employees. In addition,
      in the event that Thomas Massie, our founder, Chairman and Chief Executive
      Officer, is terminated by us without cause, he is entitled to receive severance
      payments equal to the greater of (a) three years&#8217; total compensation, including
      bonus amounts, or (b) $1 million. In the event we are required to pay the
      severance payments to Mr. Massie, it could have a material adverse effect on
      our
      results of operations for the fiscal quarter and year in which such payments
      are
      made.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>Our
      costs will increase significantly as a result of operating as a public Exchange
      Act reporting company, and our management will be required to devote substantial
      time to complying with public company rules and regulations.
</em></strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Following
      this offering, as a public company, we will incur significant legal, financial,
      accounting and other costs and expenses that we did not incur as a private
      company. In addition, the Sarbanes-Oxley Act of 2002 (SOX) and rules and
      regulations of the Securities and Exchange Commission and various exchanges,
      including the Nasdaq Stock Market, have imposed various requirements on public
      companies, including changes in corporate governance practices and disclosures.
      Our management and other personnel will need to devote a substantial amount
      of
      time to ensure ongoing compliance with these new requirements. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 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="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">12</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <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="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>If
      we fail to maintain an effective system of internal controls, we may not be
      able
      to accurately report our financial results or prevent fraud. As a result,
      current and potential shareholders could lose confidence in our financial
      reporting, which would harm our business and the trading price of our
      stock.</em></strong></font><a name="page_0_1_21"/></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Effective
      internal controls are necessary for us to provide reliable financial reports
      and
      effectively minimize the possibility of fraud and its impact on our company.
      If
      we cannot provide financial reports or effectively minimize the possibility
      of
      fraud, our business reputation and operating results could be harmed. Inferior
      internal controls could also cause investors to lose confidence in our reported
      financial information, which could have a negative effect on the trading price
      of our stock. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
      addition, we will be required to include the management and auditor reports
      on
      internal controls as part of our annual report for the fiscal year ending
      September 30, 2008, pursuant to SOX Section&#160;404, which requires, among
      other things, that we maintain effective internal controls over financial
      reporting and effective disclosure controls and procedures. In particular,
      we
      must perform system and process evaluation and testing of our internal controls
      over financial reporting to allow management and our independent registered
      public accounting firm to report on the effectiveness of our internal controls
      over financial reporting, as required by Section 404. Our compliance with
      Section 404 will require that we incur substantial accounting expense and expend
      significant management efforts.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">We
      cannot
      be certain as to the timing of the completion of our evaluation and testing,
      the
      timing of any remediation actions that may be required or the impact these
      may
      have on our operations. Furthermore, there is no precedent available by which
      to
      measure compliance adequacy. If we are not able to implement the requirements
      relating to internal controls and all other provisions of Section&#160;404 in a
      timely fashion or achieve adequate compliance with these requirements or other
      SOX requirements, we might become subject to sanctions or investigation by
      regulatory authorities such as the Securities and Exchange Commission or any
      securities exchange on which we may be trading at that time, which action may
      be
      injurious to our reputation and affect our financial condition and decrease
      the
      value and liquidity of our securities, including our common stock.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Risks
      Related to Our Industry</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>We
      face intense and growing competition, which could result in price reductions,
      reduced operating margins and loss of market share.</em></strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">We
      operate in a highly competitive marketplace and generally encounter intense
      competition to create and maintain demand for our services and to obtain service
      contracts. If we are unable to successfully compete for new business and license
      renewals, our revenue growth and operating margins may decline. The market
      for
      our products, </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>i.e</em></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">.,
      Web
      development services, content management products, asset management products,
      e-Training products, foundations management products, and Web analytics are
      competitive and rapidly changing, and barriers to entry in such markets are
      relatively low. With the introduction of new technologies and market entrants,
      we expect competition to intensify in the future. Some of our principal
      competitors offer their products at a lower price, which may result in pricing
      pressures. Such pricing pressures and increased competition generally could
      result in reduced sales, reduced margins or the failure of our product and
      service offerings to achieve or maintain more widespread market acceptance.
      </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      Web
      development/services market is highly fragmented with a large number of
      competitors and potential competitors. Our primary public company competitors
      are Website Pros, Filenet, aQuantive, Vignette and WebSideStory. We also face
      competition from customers and potential customers who develop their own
      applications internally. We also face competition from potential competitors
      that are substantially larger than we are and who have significantly greater
      financial, technical and marketing resources, and established, direct and
      indirect channels of distribution. As a result, they are able to respond more
      quickly to new or emerging technologies and changes in customer requirements,
      or
      to devote greater resources to the development, promotion and sale of their
      products than we can. In addition, current and potential competitors have
      established or may establish cooperative relationships among themselves or
      prospective customers. Accordingly, it is possible that new competitors or
      alliances among competitors may emerge and rapidly acquire significant market
      share which could reduce our market share and decrease our revenues. See
&#8220;Business - Competition&#8221; on page 53.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 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="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">13</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <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="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>Increasing
      government regulation could affect our business.</em></strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">We
      are
      subject not only to regulations applicable to businesses generally, but also
      to
      laws and regulations directly applicable to electronic commerce. Although there
      are currently few such laws and regulations, state, federal and foreign
      governments may adopt laws and regulations applicable to our business. Any
      such
      legislation or regulation could dampen the growth of the Internet and decrease
      its acceptance. If such a decline occurs, companies may choose in the future
      not
      to use our products and services. Any new laws or regulations in the following
      areas could affect our business: </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;
              &#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">user
                privacy; &#160;</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;
              &#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">the
                pricing and taxation of goods and services offered over the
                Internet;&#160;</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;
              &#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">the
                content of Websites; &#160;</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;
              &#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">copyrights;
                &#160;</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;
              &#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">consumer
                protection, including the potential application of &#8220;do not call&#8221; registry
                requirements on customers and consumer backlash in general to direct
                marketing efforts of customers; </font></div>
            </td>
          </tr>

      </table>
    </div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;
              &#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">the
                online distribution of specific material or content over the Internet;
                or
                &#160;</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;
              &#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">the
                characteristics and quality of products and services offered over
                the
                Internet. </font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>Because
      competition for highly qualified personnel is intense, we might not be able
      to
      attract and retain the employees we need to support our planned
      growth.</em></strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">We
      will
      need to increase the size and maintain the quality of our sales force, software
      development staff and professional services organization to execute our growth
      plans. To meet our objectives, we must attract and retain highly qualified
      personnel with specialized skill sets. Competition for qualified personnel
      can
      be intense, and we might not be successful in attracting and retaining them.
      Our
      ability to maintain and expand our sales, product development and professional
      services teams</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>&#160;</strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">will
      depend on our ability to recruit, train and retain top quality people with
      advanced skills who understand sales to, and the specific needs of, our target
      customers. For these reasons, we have experienced, and we expect to again
      experience in the future, challenges in hiring and retaining highly skilled
      employees with appropriate qualifications for our business. In addition to
      hiring services personnel to meet our needs, we may also engage additional
      third-party consultants as contractors, which could have a negative impact
      on
      our financial results. If we are unable to hire or retain qualified personnel,
      or if newly hired personnel fail to develop the necessary skills or reach
      productivity slower than anticipated, it would be more difficult for us to
      sell
      our products and services, and we could experience a shortfall in revenue and
      not achieve our planned growth. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Risks
      Related to this Offering</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>There
      is no prior public market for our common stock and our stock price could be
      volatile and could decline following this offering, resulting in a substantial
      loss in your investment.</em></strong></font></div>
    <div>&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Prior
      to
      this offering, there has not been a public market for our common stock. An
      active trading market for our common stock may never develop or if it develops
      it may not be sustained, which could affect your ability to sell your shares
      and
      could depress the market price of your shares. In addition, the initial public
      offering price of the shares has been determined through negotiations between
      us
      and the representatives of the underwriters and may bear no relationship to
      the
      price at which the shares will trade upon completion of this offering. The
      stock
      market can be highly volatile. As a result, the market price of our common
      stock
      can be similarly volatile, and investors in our common stock may experience
      a
      decrease in the value of their stock, including decreases unrelated to our
      operating performance or prospects. The market price of our common stock after
      the offering will likely vary from the initial offering price and is likely
      to
      be highly volatile and subject to wide fluctuations in response to various
      factors, many of which are beyond our control. These factors
      include:</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;
              &#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">variations
                in our operating results;</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;
              &#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">changes
                in the general economy and in the local economies in which we
                operate;</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;
              &#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">the
                departure of any of our key executive officers and
                directors;</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;
              &#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">the
                level and quality of securities analysts&#8217; coverage for our common
                stock;</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;
              &#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">announcements
                by us or our competitors of significant acquisitions, strategic
                partnerships, joint ventures or </font></div>
            </td>
          </tr>

      </table>
    </div>
    <div>&#160;</div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 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="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">14</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="2">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">
        </div>
      </div>
    </div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 36pt;">&#160;</td>
            <td><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">capital
              commitments;</font></td>
          </tr>

      </table>
    </div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;
              &#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">changes
                in the federal, state, and local laws and regulations to which we
                are
                subject;&#160;and</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;
              &#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">future
                sales of our common stock.</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div>&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>Shares
      of common stock that are issuable pursuant to our stock option plan and our
      outstanding warrants could result in dilution to existing shareholders and
      could
      cause the market price of our common stock to fall.</em></strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">We
      have
      reserved 1,400,000&#160;shares of common stock that are issuable pursuant to our
      Amended and Restated Stock Incentive Plan. As of the date of this prospectus,
      we
      have issued 925,832 options under the plan. In addition, we have 618,267 shares
      that are issuable pursuant to our outstanding warrants. The existence of these
      options and warrants may reduce earnings per share under U.S. generally accepted
      accounting principles and, to the extent they are exercised and shares of our
      common</font><a name="page_0_1_22"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      stock
      are issued, dilute percentage ownership of existing shareholders, which result
      in a decline in the market price of our common stock.</font></a></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>Future
      sale of a significant number of our securities could cause a substantial decline
      in the price of our securities, even if our business is doing
      well.</em></strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Sales
      of
      a substantial number of shares of our common stock or the availability of a
      substantial number of such shares for sale could result in a decline of
      prevailing market price of our common stock. In particular, we are registering
      the resale of up to </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">392,000
      </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">shares
      of
      our common stock that may be acquired upon the exercise of certain warrants.
      </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">These
      shares may not be sold or otherwise disposed of during a lock-up period of
      up to
      six months from the date of this prospectus; thereafter, </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">holders
      of those shares will be able to sell them into the public market without
      restriction. In addition, we could issue other series or classes of preferred
      stock having rights, preferences and powers senior to those of our common stock,
      including the right to receive dividends and preferences upon liquidation,
      dissolution or winding-up in excess of, or prior to, the rights of the holders
      of our common stock. This could reduce or eliminate the amounts that would
      otherwise have been available to pay dividends on the common stock. In addition,
      all of our directors, officers and shareholders have executed lock-up agreements
      with the underwriters agreeing not to sell, transfer or otherwise dispose of
      any
      of their shares for a period of one year from the date of this prospectus.
      The
      lock-up agreements are subject to customary exceptions and may be waived by
      the
      underwriters. Sales of a substantial number of these shares in the public market
      could depress the market price of our common stock and impair our ability to
      raise capital through the sale of additional equity securities.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>The
      results of our operations could cause our stock price to
      decline.</em></strong></font></div>
    <div>&#160;<font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;&#160;&#160;&#160;
      </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Our
      operating results in the future may be affected by a number of factors and,
      as a
      result, fall below expectations. Any of these events could negatively affect
      our
      operating results which might cause our stock price to fall:</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;
              &#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Our
                inability to attract new customers at a steady or increasing
                rate;</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;
              &#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Our
                inability to provide and maintain customer
                satisfaction;</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;
              &#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Price
                competition or higher prices in the
                industry;</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;
              &#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Higher
                than expected costs of operating our
                business;</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;
              &#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
                amount and timing of operating costs and capital expenditures relating
                to
                the expansion of our business, operations and infrastructure are
                greater
                and higher than expected;</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;
              &#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Technical,
                legal and regulatory difficulties with respect to our business
                occur;&#160;and</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;
              &#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">General
                downturn in economic conditions that are specific to our market,
                such as a
                decline </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">in
                information technology spending</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">.</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>Purchasers
      in this offering will experience immediate and substantial dilution in the
      book
      value of their investment.</em></strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      initial public offering price of our common stock is substantially higher than
      the net tangible book value per share of our common stock immediately after
      this
      offering. If you purchase our shares in this offering, you will incur an
      immediate dilution of $3.86 per share of common stock ($3.74 if the
      over-allotment option is exercised by the underwriters) in net tangible book
      value per share from the price you paid, based on an assumed initial
      mid-point</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 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="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">15</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <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="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">offering
      price between $5.00 and $6.00&#160;per share. Upon the issuance of additional
      shares of our common stock to Objectware&#8217;s sole stockholder in the closing
      described at page 53 of this prospectus, dilution will be reduced by $0.01
      per
      share of common stock ($0.00 if the over-allotment option is exercised by the
      underwriters) in net tangible book value per share from the price you paid,
      based on an assumed initial mid-point offering price between $5.00 and
      $6.00&#160;per share.</font></div>
    <div>&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>We
      do not intend to pay dividends, which may limit the return on your
      investment.</em></strong></font></div>
    <div>&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">We
      have
      never declared or paid cash dividends or distributions to our equity owners.
      We
      currently intend to retain all available funds and any future earnings for
      use
      in the operation and expansion of our business and do not anticipate paying
      any
      cash dividends in the foreseeable future. You should not make this investment
      in
      our securities if you require dividend income from your investment. The success
      of your investment will likely depend entirely upon any future appreciation
      of
      the market price of our common stock, which is uncertain and unpredictable.
      There is no guarantee that our common stock will appreciate in value after
      this
      offering or even maintain the price at which you purchased your
      shares.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>We
      have substantial discretion as to how to use the offering
      proceeds.</em></strong></font><br></div>
    <div>&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">While
      we
      currently intend to use the net proceeds of this offering as set forth in &#8220;Use
      of Proceeds&#8221; on page 18 of this prospectus, we may choose, in our sole
      discretion, to use the net offering proceeds for different purposes. The effect
      of the offering will be to increase capital resources available to our
      management, and our management will allocate these capital resources as
      necessary to enhance shareholder value. You will be relying on the judgment
      of
      our management with regard to the use of the net proceeds of this
      offering.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>Provisions
      in our charter documents or Delaware law might discourage, delay or prevent
      a
      change of control of our company, which could negatively affect your
      investment.</em></strong></font></div>
    <div>&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Our
      Amended and Restated Certificate of Incorporation (which will become effective
      shortly before the completion of this offering) and Amended and Restated By-laws
      will contain provisions that could discourage, delay, or prevent a change of
      control of our company or changes in our management that our shareholders may
      deem advantageous. These provisions include:</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;
              &#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">authorizing
                the issuance of preferred stock that can be created and issued by
                our
                Board of Directors without prior shareholder approval, commonly referred
                to as &#8220;blank check&#8221; preferred stock, with rights senior to those of our
                common stock;</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;
              &#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">limiting
                the persons who can call special shareholder
                meetings;</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;
              &#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">establishing
                advance notice requirements to nominate persons for election to our
                Board
                of Directors or to propose matters that can be acted on by shareholders
                at
                shareholder meetings;</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;
              &#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">the
                lack of cumulative voting in the election of
                directors;</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;
              &#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">requiring
                an advance notice of any shareholder business before the annual meeting
                of
                our shareholders;</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;
              &#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">filling
                vacancies on our Board of Directors by action of a majority of the
                directors and not by the
                shareholders,&#160;and</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;
              &#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">the
                division of our Board of Directors into three classes with each class
                of
                directors elected for a staggered three year term. In addition, our
                organizational documents will contain a supermajority voting requirement
                for any amendments of the staggered board
                provisions.</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">These
      and
      other provisions in our organizational documents could allow our Board of
      Directors to affect your rights as a shareholder in a number of ways, including
      making it more difficult for shareholders to replace members of our Board of
      Directors. Because our Board of Directors is responsible for appointing members
      of our management team, these provisions could in turn affect any attempt to
      replace the current management team. These provisions could also limit the
      price
      that investors would be willing to pay in the future for shares of our common
      stock. We are also subject to the provisions of Section&#160;203 of the Delaware
      General Corporation Law, which may discourage, delay, or prevent a change of
      control of our company. See &#8220;Description of Capital Stock&#8221;</font><a name="gmnh105"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      on page
      70.</font></a></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 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="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">16</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <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="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>CAUTIONARY
      NOTE&#160;REGARDING FORWARD-LOOKING STATEMENTS</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Some
      of
      the information in this prospectus contains forward-looking statements within
      the meaning of the federal securities laws. These statements are only
      predictions and you should not place undue reliance on them. Forward-looking
      statements typically are identified by use of terms such as &#8220;anticipate,&#8221;
&#8220;believe,&#8221; &#8220;plan,&#8221; &#8220;expect,&#8221; &#8220;future,&#8221; &#8220;intend,&#8221; &#8220;may,&#8221; &#8220;will,&#8221; &#8220;should,&#8221;
&#8220;estimate,&#8221; &#8220;predict,&#8221; &#8220;potential,&#8221; &#8220;continue,&#8221; and similar words, although some
      forward-looking statements are expressed differently. All forward-looking
      statements address matters that involve risks and uncertainties. There are
      many
      important risks, uncertainties and other factors that could cause our actual
      results, as well as trends and conditions within the markets we serve, levels
      of
      activity, performance, achievements and prospects to differ materially from
      the
      forward-looking statements contained in this prospectus. You should also
      carefully consider all forward-looking statements in light of the risks and
      uncertainties set forth under &#8220;Risk Factors&#8221; and elsewhere in this prospectus.
      We undertake no obligation to publicly update or review any forward-looking
      statements, whether as a result of new information, future developments or
      otherwise.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
      light
      of the significant uncertainties inherent in the forward-looking statements
      made
      in this prospectus, particularly in view of our early stage of operations,
      the
      inclusion of this information should not be regarded as a representation by
      us
      or any other person that our objectives, future results, levels of activity,
      performance or plans will be achieved.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br>&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>DETERMINATION
      OF OFFERING PRICE</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      offering price of our common stock was arbitrarily determined by our management
      after consultation with our underwriters and was based upon consideration of
      various factors including our history and prospects, the background of our
      management and current conditions in the securities markets. As a result, the
      price of our common stock does not necessarily bear any relationship to our
      assets, book value, net worth or other economic or recognized criteria of value.
      In no event should the offering price of our common stock be regarded as an
      indicator of any future market price of our securities.</font><a name="gmnh107"/></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right">&#160;</div>
    <div>&#160;</div>
    <div>&#160;</div>
    <div>&#160;</div>
    <div>&#160;</div>
    <div><br>&#160;</div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 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="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">17</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <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="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>USE
      OF PROCEEDS</strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Our
      net
      proceeds from the sale and issuance of 3,000,000 shares are estimated to be
      approximately $</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">14,135,000
      </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(approximately
      $</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">16,610,000
      </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">if
      the
      underwriters&#8217; over-allotment option is exercised in full), based upon an
      estimated initial public offering price of $5.50 per share and after deducting
      the estimated underwriting discount, the non-accountable expense allowance
      and
      the estimated offering expenses payable by us.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">We
      intend
      to use the net proceeds of this offering as follows:</font>&#160;</div>
    <div align="left">
      <table border="0" cellpadding="0" cellspacing="0" id="ftable" width="100%">

          <tr>
            <td align="left" valign="bottom" width="67%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Use</strong></font></div>
            </td>
            <td width="4%" style="border-bottom: #ffffff solid;">&#160;</td>
            <td align="left" colspan="2" valign="bottom" width="12%" style="border-bottom: black thin solid;">&#160;

              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Amount</strong></font></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>(in
                thousands)</strong></font></div>
            </td>
            <td align="left" valign="bottom" width="4%" style="border-bottom: #ffffff solid;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Percent</strong></font>&#160;</div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff solid;">&#160;</td>
          </tr>
          <tr>
            <td align="left" valign="bottom" width="67%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 27pt; TEXT-INDENT: -27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Repayment
                of indebtedness (approximate)</font></div>
            </td>
            <td width="4%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
            </td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">2,800</font></div>
            </td>
            <td align="left" valign="bottom" width="4%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">19.8</font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">%</font></div>
            </td>
          </tr>
          <tr>
            <td align="left" valign="bottom" width="67%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 27pt; TEXT-INDENT: -27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Payment
                of cash portion in connection with the acquisition of Objectware,
                together
                with expenses associated with that acquisition</font></div>
            </td>
            <td width="4%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px">
              </div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px">
              </div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">2,955</font></div>
            </td>
            <td align="left" valign="bottom" width="4%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px">
              </div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px">
              </div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">20.9</font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px">
              </div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px">
              </div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">%</font></div>
            </td>
          </tr>
          <tr>
            <td align="left" valign="bottom" width="67%" style="border-bottom: #ffffff solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 27pt; TEXT-INDENT: -27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">General
                corporate purposes, including working capital</font></div>
            </td>
            <td width="4%" style="border-bottom: #ffffff thin solid;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">8,380</font></div>
            </td>
            <td align="left" valign="bottom" width="4%" style="border-bottom: #ffffff thin solid;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">59.3</font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">%</font></div>
            </td>
          </tr>
          <tr>
            <td align="left" valign="bottom" width="67%" style="border-bottom: #ffffff solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Total</strong></font></div>
            </td>
            <td width="4%" style="border-bottom: #ffffff solid;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
            </td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: black double;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">14,135</font></div>
            </td>
            <td align="left" valign="bottom" width="4%" style="border-bottom: #ffffff solid;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">&#160;</td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: black double;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">100.0</font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">%</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;&#160;&#160;&#160;</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      amounts and timing of our actual expenditures will depend on numerous factors,
      including the results of our sales, marketing activities, competition and the
      amount of cash generated or used by our operations. For example, in the event
      that we do not complete the acquisition of Objectware, we will use the proceeds
      of this offering allocated to that acquisition for general corporate purposes,
      including working capital and to complete future acquisitions. The amount and
      timing of our actual expenditures may vary substantially from the foregoing
      estimates. We may find it necessary or advisable to use the net proceeds for
      other purposes, and we will have broad discretion in the application of the
      balance of the net proceeds. Pending the uses described above, we intend to
      invest the net proceeds in certificates of deposit, short-term obligations
      of
      the United States government, or other money-</font><a name="page_0_1_26"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">market
      instruments that are rated investment grade or its equivalent. </font></a></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>DIVIDEND
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">We
      have
      never paid cash dividends or distributions to our equity owners. We do not
      expect to pay cash dividends on our common stock, but, instead, intend to
      utilize available cash to support the development and expansion of our business.
      Any future determination relating to our dividend policy will be made at the
      discretion of our Board of Directors and will depend on a number of factors,
      including, but not limited to, future operating results, capital requirements,
      financial condition and the terms of any credit facility or other financing
      arrangements we may obtain or enter into, future prospects and other factors
      our
      Board of Directors may deem relevant at the time such payment is considered.
      There is no assurance that we will be able or will desire to pay dividends
      in
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    <div><br>&#160;</div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 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="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">18</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <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="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>CAPITALIZATION</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      following table sets forth our capitalization as of July 31, 2006. You should
      read this table in conjunction with &#8220;Management&#8217;s Discussion and Analysis&#8221;
beginning on page 26 and the financial statements and accompanying notes
      included elsewhere in this prospectus. Such information is set forth on the
      following basis:</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div>
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            <td>
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                is based on our unaudited financial statements as of July 31,
                2006.</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;
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                gives the effect of the sale of shares in this offering and the
                application of the net proceeds from this offering as described under
&#8220;Use
                of Proceeds&#8221; on page 18 and assumes that the underwriters do not exercise
                their over-allotment option and is further adjusted for issuances
                of
                shares and options pursuant to the completion of the acquisition
                of
                Objectware.</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;
              &#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8220;As
                Adjusted&#8221; gives the net effect of the adjustments to actual for the sale
                of shares in this offering and the application of the net proceeds
                from
                this offering as described under &#8220;Use of Proceeds&#8221; on page
                18&#160;assuming that the underwriters do not exercise their
                over-allotment option, and the effect for issuances of shares and
                options
                pursuant to the completion of the acquisition of
                Objectware.</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div>&#160;</div>
    <div>&#160;</div>
    <div align="left">
      <table border="0" cellpadding="0" cellspacing="0" id="ftable" width="100%">

          <tr>
            <td align="left" valign="bottom" width="53%" style="border-bottom: #ffffff solid;">&#160;</td>
            <td width="2%" style="border-bottom: #ffffff solid;">&#160;</td>
            <td align="left" colspan="8" valign="bottom" width="44%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>July
                31, 2006</strong></font></div>
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            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff solid;">&#160;</td>
          </tr>
          <tr>
            <td align="left" valign="bottom" width="53%" style="border-bottom: #ffffff solid;">
              <div>&#160;</div>
              <div>&#160;</div>
            </td>
            <td width="2%" style="border-bottom: #ffffff solid;">&#160;</td>
            <td align="left" colspan="2" valign="bottom" width="12%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Actual</strong></font></div>
            </td>
            <td align="left" valign="bottom" width="4%" style="border-bottom: #ffffff solid;">&#160;</td>
            <td align="left" colspan="2" valign="bottom" width="12%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Adjustments
                (a)</strong></font></div>
            </td>
            <td align="left" valign="bottom" width="4%" style="border-bottom: #ffffff solid;">&#160;</td>
            <td align="left" colspan="2" valign="bottom" width="12%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>As
                </strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Adjusted</strong></font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff solid;">&#160;</td>
          </tr>
          <tr>
            <td align="left" valign="bottom" width="53%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Long-term
                obligations, including current maturities</font></div>
            </td>
            <td width="2%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
            </td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">2,715</font></div>
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            <td align="left" valign="bottom" width="4%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
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            <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
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            <td align="left" valign="bottom" width="4%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
            </td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">169</font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
          </tr>
          <tr>
            <td align="left" valign="bottom" width="53%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Shareholders&#8217;
                equity:</font></div>
            </td>
            <td width="2%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
            </td>
            <td align="left" valign="bottom" width="4%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="bottom" width="4%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
          </tr>
          <tr>
            <td align="left" valign="bottom" width="53%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Common
                stock $.001 par value: 15,000,000 shares authorized, 4,233,833 shares
                issued and outstanding (actual) and 20,000,000 shares authorized,
                </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">7,233,833
                </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">shares
                issued and outstanding (as adjusted)</font></div>
            </td>
            <td width="2%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">4</font></div>
            </td>
            <td align="left" valign="bottom" width="4%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">3</font></div>
            </td>
            <td align="left" valign="bottom" width="4%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">7</font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
          </tr>
          <tr>
            <td align="left" valign="bottom" width="53%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Preferred
                stock, $.001 par value: 1,000,000 shares authorized, no shares issued
                and
                outstanding</font></div>
            </td>
            <td width="2%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">&#8212;
                </font></div>
            </td>
            <td align="left" valign="bottom" width="4%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">&#8212;</font></div>
            </td>
            <td align="left" valign="bottom" width="4%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">&#8212;</font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
          </tr>
          <tr>
            <td align="left" valign="bottom" width="53%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Paid-in
                capital</font></div>
            </td>
            <td width="2%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">9,790
                </font></div>
            </td>
            <td align="left" valign="bottom" width="4%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">17,015</font></div>
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            <td align="left" valign="bottom" width="4%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">26,805</font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
          </tr>
          <tr>
            <td align="left" valign="bottom" width="53%" style="border-bottom: #ffffff solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Accumulated
                deficit</font></div>
            </td>
            <td width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(3,413</font></div>
            </td>
            <td align="left" valign="bottom" width="4%" style="border-bottom: #ffffff thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(612</font></div>
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            <td align="left" valign="bottom" width="4%" style="border-bottom: #ffffff thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)(b)</font></div>
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            <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(4,025</font></div>
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            <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
            </td>
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          <tr>
            <td align="left" valign="bottom" width="53%" style="border-bottom: #ffffff solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Total
                equity</font></div>
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            <td width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">6,381
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            <td align="left" valign="bottom" width="4%" style="border-bottom: #ffffff thin solid;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">16,406</font></div>
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            <td align="left" valign="bottom" width="4%" style="border-bottom: #ffffff thin solid;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">22,787</font></div>
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            <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;">&#160;</td>
          </tr>
          <tr>
            <td align="left" valign="bottom" width="53%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
            </td>
            <td width="2%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
            </td>
            <td align="left" valign="bottom" width="4%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="bottom" width="4%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
          </tr>
          <tr>
            <td align="left" valign="bottom" width="53%" style="border-bottom: #ffffff solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Total
                capitalization</font></div>
            </td>
            <td width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
            </td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: black double;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">9,096</font></div>
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            <td align="left" valign="bottom" width="4%" style="border-bottom: #ffffff solid;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
            </td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: black double;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">13,860</font></div>
            </td>
            <td align="left" valign="bottom" width="4%" style="border-bottom: #ffffff solid;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
            </td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: black double;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">22,956</font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff solid;">&#160;</td>
          </tr>
          <tr>
            <td align="left" valign="bottom" width="53%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
            </td>
            <td width="2%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
            </td>
            <td align="left" valign="bottom" width="4%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
            </td>
            <td align="left" valign="bottom" width="4%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">_________________</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(a)&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Gives
                effect to the sale of an aggregate 3,000,000 shares of common stock
                in
                this offering resulting in net proceeds of </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$14,135,000
                </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">to
                us, assuming no exercise of the underwriters&#8217; over-allotment option, and
                issuance of an additional 490,909 contingent shares of common stock
                upon
                the completion of the acquisition of Objectware at an assumed price
                of
                $5.50 per share combined with $180 representing conversion of Objectware
                options to Bridgeline options.</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(b)&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Includes
                expensing the unamortized debt discount of $254, unamortized values
                of
                Underwriter Debt Warrants, as defined, of $53, unamortized financing
                fees
                of $263, and deferred offering costs of
                $42.</font></div>
            </td>
          </tr>

      </table><br></div>
    <div><br>&#160;</div>
    <div>&#160;</div>
    <div><br>&#160;</div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 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="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">19</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <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="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>UNAUDITED
      CONDENSED PRO FORMA FINANCIAL DATA</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
      accordance with Article&#160;11 of Regulation&#160;S-X under the Securities Act
      of 1933, as amended, a condensed pro forma balance sheet as of July 31, 2006
      and
      a condensed pro forma statement of operations for the ten months ended July
      31,
      2006 and for the year ended September 30, 2005 have been prepared based upon
      our
      historical financial statements and the historical financial statements of
      New
      Tilt, Inc. and Objectware, Inc. included elsewhere in this prospectus and should
      be read in conjunction therewith. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      unaudited condensed pro forma statement of operations for the year ended
      September 30, 2005 reflects the acquisitions of Interactive Applications Group,
      Inc. as if it had been completed on October 1, 2004, and New Tilt, Inc. and
      Objectware, Inc. as though such acquisitions had been completed on October
      1,
      2005. The pro forma figures, as adjusted, reflect the 3,000,000 shares of common
      stock to be issued in this offering effective as of July 31, 2006 and October
      1,
      2005, respectively.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      following unaudited condensed pro forma financial data should be read in
      conjunction with the audited and unaudited historical financial statements
      of
      our company, New Tilt, Inc. and Objectware, Inc. and the unaudited pro forma
      combined consolidated financial information, including the notes thereto,
      appearing elsewhere in this prospectus. The unaudited pro forma condensed
      combined information is presented for illustrative purposes only and is not
      necessarily indicative of the results of operations or financial position that
      would have occurred if the transactions had been completed at the dates
      indicated, nor is it necessarily indicative of future results of operations
      or
      financial position of the combined company.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">
      <div align="left">
        <table border="0" cellpadding="0" cellspacing="0" id="ftable" width="100%">

            <tr>
              <td align="left" colspan="20" valign="bottom" width="100%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Bridgeline
                  Software, Inc. Unaudited Condensed Pro Forma Financial Data
                  </strong></font></div>
              </td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="22%" style="border-bottom: medium none;">&#160;</td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" colspan="2" valign="bottom" width="10%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" colspan="2" valign="bottom" width="10%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" colspan="2" valign="bottom" width="10%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" colspan="2" valign="bottom" width="10%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" colspan="2" valign="bottom" width="10%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" colspan="2" valign="bottom" width="10%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td valign="bottom" width="22%" style="border-bottom: #ffffff solid;">&#160;</td>
              <td width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td colspan="8" valign="bottom" width="36%" style="border-bottom: black thin solid;">
                <div align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Unaudited
                  Ten Months Ended July 31,</font></div>
              </td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="right" colspan="8" valign="bottom" width="36%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Year
                  Ended September 30, </font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;">&#160;</td>
            </tr>
            <tr>
              <td valign="bottom" width="22%" style="border-bottom: medium none;">&#160;</td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td colspan="2" valign="bottom" width="10%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: medium none;">&#160;</td>
              <td colspan="2" valign="bottom" width="10%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: medium none;">&#160;</td>
              <td colspan="2" valign="bottom" width="10%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: medium none;">&#160;</td>
              <td colspan="2" valign="bottom" width="10%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: medium none;">&#160;</td>
              <td colspan="2" valign="bottom" width="10%" style="border-bottom: medium none;">
                <div align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Unaudited</font></div>
              </td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" colspan="2" valign="bottom" width="10%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td valign="bottom" width="22%" style="border-bottom: medium none;">&#160;</td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td colspan="2" valign="bottom" width="10%" style="border-bottom: medium none;">
                <div align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Historical
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: medium none;">&#160;</td>
              <td colspan="2" valign="bottom" width="10%" style="border-bottom: medium none;">
                <div align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Pro
                  Forma </font></div>
              </td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: medium none;">&#160;</td>
              <td colspan="2" valign="bottom" width="10%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Historical
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: medium none;">&#160;</td>
              <td colspan="2" valign="bottom" width="10%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Historical</font></div>
              </td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: medium none;">&#160;</td>
              <td colspan="2" valign="bottom" width="10%" style="border-bottom: medium none;">
                <div align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Pro
                  Forma</font></div>
              </td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: medium none;">&#160;</td>
              <td colspan="2" valign="bottom" width="10%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Historical
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td valign="bottom" width="22%" style="border-bottom: #ffffff solid;">&#160;</td>
              <td width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" colspan="2" valign="bottom" width="10%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2006</font></div>
              </td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" colspan="2" valign="bottom" width="10%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2006
                  (b)</font></div>
              </td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" colspan="2" valign="bottom" width="10%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2005
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" colspan="2" valign="bottom" width="10%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2005
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" colspan="2" valign="bottom" width="10%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2005
                  (a) </font></div>
              </td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" colspan="2" valign="bottom" width="10%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2004
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="22%" style="border-bottom: medium none;">
                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Income
                  Statement Data: </strong></font></div>
              </td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" colspan="2" valign="bottom" width="10%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" colspan="2" valign="bottom" width="10%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" colspan="2" valign="bottom" width="10%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" colspan="2" valign="bottom" width="10%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" colspan="2" valign="bottom" width="10%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" colspan="2" valign="bottom" width="10%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="22%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Revenues
                  </font></div>
              </td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">6,603</font></div>
              </td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">10,658</font></div>
              </td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">4,645</font></div>
              </td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">5,769</font></div>
              </td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">11,111</font></div>
              </td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">4,888</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="22%" style="border-bottom: #ffffff solid;">
                <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Cost
                  of revenue </font></div>
              </td>
              <td width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">2,924
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">5,275
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">2,527
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">3,113
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">6,305
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">2,290
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="22%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Gross
                  profit </font></div>
              </td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">3,679
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">5,383
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">2,118
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">2,656
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">4,806
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">2,598
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="22%" style="border-bottom: #ffffff solid;">
                <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Income
                  (loss) from operations </font></div>
              </td>
              <td width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: black double;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(115</font></div>
              </td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: #ffffff solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: black double;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">366</font></div>
              </td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: #ffffff solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: black double;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(373</font></div>
              </td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: #ffffff solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: black double;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(461</font></div>
              </td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: #ffffff solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: black double;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">182</font></div>
              </td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: #ffffff solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: black double;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(132</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
              </td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="22%" style="border-bottom: #ffffff solid;">
                <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Net
                  income (loss) </font></div>
              </td>
              <td width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: black double;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(698</font></div>
              </td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: #ffffff solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: black double;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">339</font></div>
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              <td align="left" valign="bottom" width="3%" style="border-bottom: #ffffff solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
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              <td align="right" valign="bottom" width="9%" style="border-bottom: black double;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(413</font></div>
              </td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: #ffffff solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
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              <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
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              <td align="right" valign="bottom" width="9%" style="border-bottom: black double;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(517</font></div>
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              <td align="left" valign="bottom" width="3%" style="border-bottom: #ffffff solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
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              <td align="right" valign="bottom" width="9%" style="border-bottom: black double;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">154</font></div>
              </td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: #ffffff solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
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              <td align="right" valign="bottom" width="9%" style="border-bottom: black double;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(178</font></div>
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              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
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            </tr>
            <tr>
              <td align="left" valign="bottom" width="22%" style="border-bottom: medium none;">&#160;</td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="22%" style="border-bottom: medium none;">
                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Net
                  income (loss) per share: </font></div>
              </td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="22%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Basic
                  </font></div>
              </td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(0.17</font></div>
              </td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">0.05</font></div>
              </td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(0.11</font></div>
              </td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(0.14</font></div>
              </td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">0.03</font></div>
              </td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(0.06</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
              </td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="22%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Diluted
                  </font></div>
              </td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(0.17</font></div>
              </td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">0.04</font></div>
              </td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(0.11</font></div>
              </td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(0.14</font></div>
              </td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">0.02</font></div>
              </td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(0.06</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
              </td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="22%" style="border-bottom: medium none;">&#160;</td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="22%" style="border-bottom: medium none;">
                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Balance
                  Sheet Data: </strong></font></div>
              </td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
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            <tr>
              <td align="left" valign="bottom" width="22%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Current
                  assets </font></div>
              </td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
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              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">2,379</font></div>
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              <td align="left" valign="bottom" width="3%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
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              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">12,173</font></div>
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              <td align="left" valign="bottom" width="3%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
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              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">1,269</font></div>
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              <td align="left" valign="bottom" width="3%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">935</font></div>
              </td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">2,030</font></div>
              </td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">1,878</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="22%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Total
                  assets </font></div>
              </td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">9,977</font></div>
              </td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">24,556</font></div>
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              <td align="left" valign="bottom" width="3%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">7,119</font></div>
              </td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">6,739</font></div>
              </td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">14,820</font></div>
              </td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">4,959</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="22%" style="border-bottom: medium none;">&#160;</td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="22%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Current
                  liabilities </font></div>
              </td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">3,471</font></div>
              </td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">1,460</font></div>
              </td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">1,393</font></div>
              </td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">1,114</font></div>
              </td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">1,122</font></div>
              </td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">980</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="22%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Total
                  liabilities </font></div>
              </td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">3,596</font></div>
              </td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">1,604</font></div>
              </td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">1,424</font></div>
              </td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">1,147</font></div>
              </td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">1,423</font></div>
              </td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">1,085</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="22%" style="border-bottom: medium none;">&#160;</td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
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            <tr>
              <td align="left" valign="bottom" width="22%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Total
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              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
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              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
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              <td align="left" valign="bottom" width="3%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
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              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">22,972</font></div>
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              <td align="left" valign="bottom" width="3%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
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              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">5,695</font></div>
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              <td align="left" valign="bottom" width="3%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
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              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">5,592</font></div>
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              <td align="left" valign="bottom" width="3%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
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              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">13,020</font></div>
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              <td align="left" valign="bottom" width="3%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
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              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">3,874</font></div>
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              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="22%" style="border-bottom: medium none;">&#160;</td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="22%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 27pt; TEXT-INDENT: -9pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Total
                  liabilities and shareholders&#8217; equity </font></div>
              </td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">9,977</font></div>
              </td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">24,556</font></div>
              </td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">7,119</font></div>
              </td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">6,739</font></div>
              </td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">14,820</font></div>
              </td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">4,959</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="22%" style="border-bottom: medium none;">&#160;</td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="22%" style="border-bottom: medium none;">
                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Cash
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              </td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="22%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 27pt; TEXT-INDENT: -9pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Net
                  cash&#160;used in operating activities </font></div>
              </td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(493</font></div>
              </td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(661</font></div>
              </td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(432</font></div>
              </td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(378</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
              </td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="22%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 27pt; TEXT-INDENT: -9pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Acquisitions,
                  net of cash acquired </font></div>
              </td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(554</font></div>
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              <td align="left" valign="bottom" width="3%" style="border-bottom: medium none;">
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              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
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              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
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              <td align="left" valign="bottom" width="3%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
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                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
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              <td align="left" valign="bottom" width="3%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
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              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
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              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">&#8212;
                    </font></div>
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              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="22%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 27pt; TEXT-INDENT: -9pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Net
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              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
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              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
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              <td align="left" valign="bottom" width="3%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
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              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(540</font></div>
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              <td align="left" valign="bottom" width="3%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
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              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(543</font></div>
              </td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(226</font></div>
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              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
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            </tr>
            <tr>
              <td align="left" valign="bottom" width="22%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 27pt; TEXT-INDENT: -9pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Proceeds
                  from issuance of stock </font></div>
              </td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">&#8212;
                    </font></div>
                </div>
              </td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">&#8212;
                    </font></div>
                </div>
              </td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">&#8212;
                    </font></div>
                </div>
              </td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">1,640</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="22%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 27pt; TEXT-INDENT: -9pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Proceeds
                  from issuance of short-term debt </font></div>
              </td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">2,433</font></div>
              </td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">&#8212;
                    </font></div>
                </div>
              </td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">&#8212;
                    </font></div>
                </div>
              </td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">&#8212;
                    </font></div>
                </div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="22%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 27pt; TEXT-INDENT: -9pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Net
                  increase (decrease) in cash for the period </font></div>
              </td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">833</font></div>
              </td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(863</font></div>
              </td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(818</font></div>
              </td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">858</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>

        </table>
      </div>
      <div align="left">&#160;</div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">
      <div>
        <hr style="COLOR: black" align="left" noshade size="1" width="15%">
      </div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">
      <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt">
        <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">

            <tr valign="top" style="line-height: 1.25;">
              <td align="left" style="width: 27pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(a)</font></td>
              <td align="left">
                <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Reflects
                  the April 24, 2006 and December 15, 2005 acquisitions of New Tilt
                  and
                  iapps, respectively, and the probable </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">acquisition
                  of Objectware, and this offering.</font></div>
              </td>
            </tr>

        </table>
      </div>
      <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt">
        <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">

            <tr valign="top" style="line-height: 1.25;">
              <td align="left" style="width: 27pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(b)</font></td>
              <td align="left">
                <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Reflects
                  the April 24, 2006 acquisition of New Tilt, the probable acquisition
                  of
                  Objectware and this offering.</font></div>
              </td>
            </tr>

        </table>
      </div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 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="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">21</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <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="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><a name="gmnh110"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>D</strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>ILUTION</strong></font></a></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">If
      you
      invest in our common stock, the book value of your shares will be diluted to
      the
      extent of the difference between the public offering price for each share common
      stock and the adjusted net tangible book value per share of our common stock
      immediately following the completion of this offering. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      net
      tangible book value of our common stock as of July 31, 2006 was $(866,000),
      or
      $(0.20)&#160;per share. Net tangible book value per share before this offering
      has been determined by dividing net tangible book value (book value of total
      assets less intangible assets, less total liabilities) by the number of shares
      of common stock outstanding as of July 31, 2006. After (i)&#160;giving effect to
      the sale of our shares in this offering at an estimated initial public offering
      of $5.50&#160;per share and (ii)&#160;deducting underwriting discounts and
      commissions, the non-accountable expense allowance to the representatives of
      the
      underwriters and estimated offering expenses payable by us, our net tangible
      book value as of July 31, 2006 would have been $13,269,000 or $1.84&#160;per
      share. This represents an immediate increase in net adjusted tangible book
      value
      of $3.34&#160;per share to existing holders of common stock and an immediate
      dilution of net tangible book value of $3.66&#160;per share to purchasers of
      common stock in this offering. Giving effect to the release of the closing
      escrow related to the acquisition of Objectware immediately after this offering,
      our net tangible book value as of July 31, 2006 would have been $14,722,000
      or
      $1.91&#160;per share. This represents an immediate additional increase in net
      adjusted tangible book value of $3.48&#160;per share to existing holders of
      common stock and an immediate additional dilution of net tangible book value
      of
      $3.59&#160;per share to purchasers of common stock in this offering, as
      illustrated in the following table:</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div align="left">
      <table border="0" cellpadding="0" cellspacing="0" id="ftable" width="100%">

          <tr>
            <td align="left" valign="bottom" width="65%" style="border-bottom: medium none;">&#160;</td>
            <td width="2%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" colspan="2" valign="bottom" width="14%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Without
                giving effect </font></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">to
                the release of the </font></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">closing
                escrow in </font></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">connection
                with the </font></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">acquisition
                of </font></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>Objectware</u></font></div>
            </td>
            <td align="left" valign="bottom" width="4%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" colspan="2" valign="bottom" width="14%" style="border-bottom: medium none;">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">After
                giving effect </font></div>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">to
                the release of the </font></div>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">closing
                escrow in </font></div>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">connection
                with the </font></div>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">acquisition
                of </font></div>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>Objectware</u></font></font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
          </tr>
          <tr>
            <td align="left" valign="bottom" width="65%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Assumed
                initial public offering price per share</font></div>
            </td>
            <td width="2%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
            </td>
            <td align="right" valign="bottom" width="13%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">5.50</font></div>
            </td>
            <td align="left" valign="bottom" width="4%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
            </td>
            <td align="right" valign="bottom" width="13%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">5.50</font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
          </tr>
          <tr>
            <td align="left" valign="bottom" width="65%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: -9pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Net
                tangible book value (deficit) per share before the
                offering</font></div>
            </td>
            <td width="2%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            <td align="right" valign="bottom" width="13%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(0.20</font></div>
            </td>
            <td align="left" valign="bottom" width="4%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            <td align="right" valign="bottom" width="13%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(0.20</font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
            </td>
          </tr>
          <tr>
            <td align="left" valign="bottom" width="65%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 27pt; TEXT-INDENT: -27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Reduction
                in deficit in net tangible book value per share attributable to the
                offering</font></div>
            </td>
            <td width="2%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            <td align="right" valign="bottom" width="13%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">2.04</font></div>
            </td>
            <td align="left" valign="bottom" width="4%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            <td align="right" valign="bottom" width="13%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">2.04</font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
          </tr>
          <tr>
            <td align="left" valign="bottom" width="65%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 27pt; TEXT-INDENT: -27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Reduction
                in deficit in net tangible book value per share attributable to the
                acquisition of Objectware</font></div>
            </td>
            <td width="2%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            <td align="right" valign="bottom" width="13%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">&#8212;</font></div>
            </td>
            <td align="left" valign="bottom" width="4%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            <td align="right" valign="bottom" width="13%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">0.07</font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
          </tr>
          <tr>
            <td align="left" valign="bottom" width="65%" style="border-bottom: #ffffff solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 27pt; TEXT-INDENT: -27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Pro
                forma net tangible book value per share after the offering</font></div>
            </td>
            <td width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
            <td align="right" valign="bottom" width="13%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">1.84</font></div>
            </td>
            <td align="left" valign="bottom" width="4%" style="border-bottom: black thin solid;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
            <td align="right" valign="bottom" width="13%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">1.91</font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;">&#160;</td>
          </tr>
          <tr>
            <td align="left" valign="bottom" width="65%" style="border-bottom: #ffffff solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
              <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Dilution
                per share to new investors</font></div>
            </td>
            <td width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
            </td>
            <td align="right" valign="bottom" width="13%" style="border-bottom: black double;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">3.66</font></div>
            </td>
            <td align="left" valign="bottom" width="4%" style="border-bottom: black double;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px">
              </div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
            </td>
            <td align="right" valign="bottom" width="13%" style="border-bottom: black double;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px">
              </div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">3.59</font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff solid;">&#160;</td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Assuming
      the underwriters exercise their over-allotment option in full, existing
      shareholders would have an immediate increase in adjusted tangible book value
      of
      $3.92 per share and investors in this offering would incur an immediate dilution
      of $3.45 per share or 63%, without giving effect to the release of the closing
      escrow in connection with the acquisition of Objectware, and existing
      shareholders would have an immediate increase in adjusted tangible book value
      of
      $3.06 per share and investors in this offering would incur an immediate dilution
      of $3.41 per share or 62%, giving effect to the release of the closing escrow
      in
      connection with the acquisition of Objectware.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><a name="page_0_1_33"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Assuming
      the exercise of all outstanding stock options and warrants as of July 31, 2006
      with exercise prices equal to or below the estimated initial public offering
      price of $5.50 per share, the net tangible book value of our common stock as
      of
      July 31, 2006 would have been $7,633,000 or $1.32 per share. After
      (i)&#160;giving effect to the sale of our shares in this offering at an
      estimated initial public offering of $5.50&#160;per share, (ii)&#160;deducting
      underwriting discounts and commissions, the non-accountable expense allowance
      to
      the representatives of the underwriters, and estimated offering expenses payable
      by us, our net tangible book value as of July 31, 2006 would have been
</font></a></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 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="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">22</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <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="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$21,156,000
      or $2.41 per share ($23,361,000 if the over-allotment option is exercised by
      the
      underwriter or $2.56 per share). This represents an immediate increase in net
      adjusted tangible book value of $5.00 ($5.58 if the over-allotment option is
      exercised by the underwriter) per share to existing holders of common stock
      and
      an immediate dilution of net tangible book value of $3.09 ($2.94 if the
      over-allotment option is exercised by the underwriters) per share to purchasers
      of common stock in this offering.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      following table summarizes, on a pro forma basis after the closing of this
      offering, the differences in total consideration paid by persons who are
      shareholders prior to completion of this offering and by persons investing
      in
      this offering as of December 11, 2006:</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div align="left">
      <table cellpadding="0" cellspacing="0" id="ftable" width="100%">

          <tr>
            <td align="left" valign="bottom" width="26%" style="border-bottom: #ffffff solid;">&#160;</td>
            <td width="2%" style="border-bottom: #ffffff solid;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff solid;">&#160;</td>
            <td align="right" valign="bottom" width="10%" style="border-bottom: #ffffff solid;">&#160;</td>
            <td align="left" valign="bottom" width="4%" style="border-bottom: #ffffff solid;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff solid;">&#160;</td>
            <td align="right" valign="bottom" width="10%" style="border-bottom: #ffffff solid;">&#160;</td>
            <td align="left" valign="bottom" width="4%" style="border-bottom: #ffffff solid;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff solid;">&#160;</td>
            <td align="right" valign="bottom" width="10%" style="border-bottom: #ffffff solid;">&#160;</td>
            <td align="left" valign="bottom" width="4%" style="border-bottom: #ffffff solid;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
            <td align="right" colspan="4" valign="bottom" width="25%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Consideration</strong></font></div>
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            <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff solid;">&#160;</td>
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          <tr>
            <td align="left" valign="bottom" width="26%">&#160;</td>
            <td width="2%">&#160;</td>
            <td align="left" valign="bottom" width="1%">&#160;</td>
            <td align="right" valign="bottom" width="10%">
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            </td>
            <td align="left" valign="bottom" width="4%">&#160;</td>
            <td align="left" valign="bottom" width="1%">&#160;</td>
            <td align="right" valign="bottom" width="10%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Purchased</strong></font></div>
            </td>
            <td align="left" valign="bottom" width="4%">&#160;</td>
            <td align="left" valign="bottom" width="1%">&#160;</td>
            <td align="right" valign="bottom" width="10%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Total
                </strong></font></div>
            </td>
            <td align="left" valign="bottom" width="4%">&#160;</td>
            <td align="left" valign="bottom" width="1%">&#160;</td>
            <td align="right" valign="bottom" width="10%">&#160;</td>
            <td align="left" valign="bottom" width="4%">&#160;</td>
            <td align="left" valign="bottom" width="1%">&#160;</td>
            <td align="right" valign="bottom" width="10%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Price/Share</strong></font></div>
            </td>
            <td align="left" valign="bottom" width="1%">&#160;</td>
          </tr>
          <tr>
            <td align="left" valign="bottom" width="26%" style="border-bottom: #ffffff solid;">&#160;</td>
            <td width="2%" style="border-bottom: #ffffff solid;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
            <td align="right" valign="bottom" width="10%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Number</strong></font></div>
            </td>
            <td align="left" valign="bottom" width="4%" style="border-bottom: #ffffff solid;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
            <td align="right" valign="bottom" width="10%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Percent</strong></font></div>
            </td>
            <td align="left" valign="bottom" width="4%" style="border-bottom: #ffffff solid;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
            <td align="right" valign="bottom" width="10%" style="border-bottom: black thin solid;">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><strong><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Amount</font></strong></div>
            </td>
            <td align="left" valign="bottom" width="4%" style="border-bottom: #ffffff solid;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
            <td align="right" valign="bottom" width="10%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Percent</strong></font></div>
            </td>
            <td align="left" valign="bottom" width="4%" style="border-bottom: #ffffff solid;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
            <td align="right" valign="bottom" width="10%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Average</strong></font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff solid;">&#160;</td>
          </tr>
          <tr>
            <td align="left" valign="bottom" width="26%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Officers,
                directors, promoters and affiliated </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">persons</font></div>
            </td>
            <td width="2%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            <td align="right" valign="bottom" width="10%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">1,523,863</font></div>
            </td>
            <td align="left" valign="bottom" width="4%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            <td align="right" valign="bottom" width="10%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">20.95</font></div>
            </td>
            <td align="left" valign="bottom" width="4%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">%</font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
            </td>
            <td align="right" valign="bottom" width="10%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">1,549,675</font></div>
            </td>
            <td align="left" valign="bottom" width="4%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            <td align="right" valign="bottom" width="10%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">8.59</font></div>
            </td>
            <td align="left" valign="bottom" width="4%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">%</font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
            </td>
            <td align="right" valign="bottom" width="10%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">1.02</font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
          </tr>
          <tr>
            <td align="left" valign="bottom" width="26%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Other
                existing shareholders</font></div>
            </td>
            <td width="2%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            <td align="right" valign="bottom" width="10%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">2,749,970</font></div>
            </td>
            <td align="left" valign="bottom" width="4%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            <td align="right" valign="bottom" width="10%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">37.81</font></div>
            </td>
            <td align="left" valign="bottom" width="4%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">%</font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            <td align="right" valign="bottom" width="10%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">9,293,409</font></div>
            </td>
            <td align="left" valign="bottom" width="4%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            <td align="right" valign="bottom" width="10%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">33.99</font></div>
            </td>
            <td align="left" valign="bottom" width="4%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">%</font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
            </td>
            <td align="right" valign="bottom" width="10%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">3.38</font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
          </tr>
          <tr>
            <td align="left" valign="bottom" width="26%" style="border-bottom: #ffffff solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">New
                Investors</font></div>
            </td>
            <td width="2%" style="border-bottom: #ffffff solid;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
            <td align="right" valign="bottom" width="10%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">3,000,000</font></div>
            </td>
            <td align="left" valign="bottom" width="4%" style="border-bottom: #ffffff solid;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
            <td align="right" valign="bottom" width="10%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">41.24</font></div>
            </td>
            <td align="left" valign="bottom" width="4%" style="border-bottom: #ffffff solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">%</font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
            <td align="right" valign="bottom" width="10%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">16,500,000</font></div>
            </td>
            <td align="left" valign="bottom" width="4%" style="border-bottom: #ffffff solid;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
            <td align="right" valign="bottom" width="10%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">91.41</font></div>
            </td>
            <td align="left" valign="bottom" width="4%" style="border-bottom: #ffffff solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">%</font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
            </td>
            <td align="right" valign="bottom" width="10%" style="border-bottom: #ffffff thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">5.50</font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff solid;">&#160;</td>
          </tr>
          <tr>
            <td align="left" valign="bottom" width="26%" style="border-bottom: #ffffff solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Total</font></div>
            </td>
            <td width="2%" style="border-bottom: #ffffff solid;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">&#160;</td>
            <td align="right" valign="bottom" width="10%" style="border-bottom: black double;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">7,273,833</font></div>
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            <td align="left" valign="bottom" width="4%" style="border-bottom: #ffffff solid;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">&#160;</td>
            <td align="right" valign="bottom" width="10%" style="border-bottom: black double;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">100.0</font></div>
            </td>
            <td align="left" valign="bottom" width="4%" style="border-bottom: #ffffff solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">%</font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
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            <td align="right" valign="bottom" width="10%" style="border-bottom: black double;">
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            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            <td align="right" valign="bottom" width="10%" style="border-bottom: medium none;">
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            <td align="left" valign="bottom" width="4%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            <td align="right" valign="bottom" width="10%" style="border-bottom: medium none;">
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            <td align="left" valign="bottom" width="4%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            <td align="right" valign="bottom" width="10%" style="border-bottom: medium none;">
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            <td align="left" valign="bottom" width="4%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            <td align="right" valign="bottom" width="10%" style="border-bottom: medium none;">
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            <td align="left" valign="bottom" width="4%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            <td align="right" valign="bottom" width="10%" style="border-bottom: medium none;">
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            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;&#160;&#160;&#160;</font></div>
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      (i)&#160;474,824 shares of common stock pursuant to the exercise of outstanding
      options held by persons or entities other than officers, directors, promoters
      and affiliated persons, (ii) 474,169&#160;shares of common stock pursuant to the
      exercise of outstanding warrants held by persons or entities other than
      officers, directors, promoters and affiliated persons, and (iii)&#160;467,089
      shares of common stock reserved for issuance under our Amended and Restated
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
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    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="left">
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        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="2">
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      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">
        </div>
      </div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>SELECTED
      FINANCIAL DATA</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      summary below sets forth certain selected historical financial data. The
      financial data below should be read in conjunction with the historical financial
      statements and the notes thereto of our company, New Tilt, Inc. and Objectware,
      Inc. appearing elsewhere in this prospectus. </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      selected financial data for the year ended September 30, 2004 and as of and
      for
      the year ended September 30, 2005 set forth below are derived from, and are
      qualified by reference to, our financial statements that have been audited
      by
      UHY LLP, our independent registered public accounting firm, and are included
      elsewhere in this prospectus. The selected financial data as of July 31, 2006
      and 2005 for the ten months ended July 31, 2006 and 2005 set forth below are
      derived from our unaudited financial statements that are included elsewhere
      in
      this prospectus. The unaudited related financial data includes all adjustments
      (consisting only of normal recurring adjustments) that are necessary for a
      fair
      presentation of our financial position and results of operations for these
      periods. Historical results are not necessarily indicative of future
      results.</font></div>
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      you
      read the selected financial data below, it is important that you also read
      our
      audited and unaudited consolidated financial statements and the notes to those
      statements appearing elsewhere in this prospectus, as well as the section of
      this prospectus entitled <font style="DISPLAY: inline; FONT-FAMILY: Times New Roman">&#8220;</font>Management&#8217;s
      Discussion and Analysis and Results of Operations&#8221; and &#8220;Risk
      Factors.&#8221;</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">
      <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Bridgeline
        Software, Inc. </strong></font></div>
      <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Selected
        Financial Data</strong></font></div><br>
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            <tr>
              <td valign="bottom" width="40%" style="border-bottom: medium none;">&#160;</td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
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                  Ten Months</font></div>
                <div align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Ended
                  July 31, </font></div>
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                  Ended September 30, </font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
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            <tr>
              <td valign="bottom" width="40%" style="border-bottom: #ffffff solid;">&#160;</td>
              <td width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
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                  thousands) </font></div>
              </td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td colspan="5" valign="bottom" width="27%" style="border-bottom: black thin solid;">
                <div align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(in
                  thousands) </font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;">&#160;</td>
            </tr>
            <tr>
              <td valign="bottom" width="40%" style="border-bottom: medium none;">&#160;</td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td colspan="2" valign="bottom" width="12%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: medium none;">&#160;</td>
              <td colspan="2" valign="bottom" width="12%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: medium none;">&#160;</td>
              <td colspan="2" valign="bottom" width="12%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: medium none;">&#160;</td>
              <td colspan="2" valign="bottom" width="12%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
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            <tr>
              <td valign="bottom" width="40%" style="border-bottom: #ffffff solid;">&#160;</td>
              <td width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" colspan="2" valign="bottom" width="12%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2006
                  (a)</font></div>
              </td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" colspan="2" valign="bottom" width="12%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2005</font></div>
              </td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" colspan="2" valign="bottom" width="12%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2005</font></div>
              </td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" colspan="2" valign="bottom" width="12%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2004</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="40%" style="border-bottom: medium none;">
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              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" colspan="2" valign="bottom" width="12%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" colspan="2" valign="bottom" width="12%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" colspan="2" valign="bottom" width="12%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" colspan="2" valign="bottom" width="12%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="40%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Revenues
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              </td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">6,603</font></div>
              </td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">4,645</font></div>
              </td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
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              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
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              <td align="left" valign="bottom" width="3%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
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              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">4,888</font></div>
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              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="40%" style="border-bottom: #ffffff solid;">
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              <td width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
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              <td align="left" valign="bottom" width="3%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">2,527
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              <td align="left" valign="bottom" width="3%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">3,113
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              <td align="left" valign="bottom" width="3%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
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              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="40%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Gross
                  profit </font></div>
              </td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">3,679
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">2,118
                  </font></div>
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              <td align="left" valign="bottom" width="3%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">2,656
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              <td align="left" valign="bottom" width="3%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">2,598
                  </font></div>
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              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="40%" style="border-bottom: #ffffff solid;">
                <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Loss
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              <td width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
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              <td align="right" valign="bottom" width="11%" style="border-bottom: black double;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(115</font></div>
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              <td align="left" valign="bottom" width="3%" style="border-bottom: #ffffff solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
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              <td align="right" valign="bottom" width="11%" style="border-bottom: black double;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(373</font></div>
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              <td align="left" valign="bottom" width="3%" style="border-bottom: #ffffff solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
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              <td align="right" valign="bottom" width="11%" style="border-bottom: black double;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(461</font></div>
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              <td align="left" valign="bottom" width="3%" style="border-bottom: #ffffff solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
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              <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
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              <td align="right" valign="bottom" width="11%" style="border-bottom: black double;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(132</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
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            <tr>
              <td align="left" valign="bottom" width="40%">&#160;</td>
              <td width="2%">&#160;</td>
              <td align="left" valign="bottom" width="1%">&#160;</td>
              <td align="right" valign="bottom" width="11%">&#160;</td>
              <td align="left" valign="bottom" width="3%">&#160;</td>
              <td align="left" valign="bottom" width="1%">&#160;</td>
              <td align="right" valign="bottom" width="11%">&#160;</td>
              <td align="left" valign="bottom" width="3%">&#160;</td>
              <td align="left" valign="bottom" width="1%">&#160;</td>
              <td align="right" valign="bottom" width="11%">&#160;</td>
              <td align="left" valign="bottom" width="3%">&#160;</td>
              <td align="left" valign="bottom" width="1%">&#160;</td>
              <td align="right" valign="bottom" width="11%">&#160;</td>
              <td align="left" valign="bottom" width="1%">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="40%" style="border-bottom: #ffffff solid;">
                <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Net
                  loss </font></div>
              </td>
              <td width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black double;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(698</font></div>
              </td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: #ffffff solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black double;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(413</font></div>
              </td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: #ffffff solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black double;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(517</font></div>
              </td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: #ffffff solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black double;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(178</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
              </td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="40%" style="border-bottom: medium none;">&#160;</td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="40%" style="border-bottom: medium none;">
                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Net
                  loss per share: </font></div>
              </td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="40%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Basic
                  and diluted </font></div>
              </td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(0.17</font></div>
              </td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(0.11</font></div>
              </td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(0.14</font></div>
              </td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(0.06</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
              </td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="40%" style="border-bottom: medium none;">&#160;</td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="40%" style="border-bottom: medium none;">
                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Balance
                  Sheet Data: </strong></font></div>
              </td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="40%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Current
                  assets </font></div>
              </td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">2,379</font></div>
              </td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">1,269</font></div>
              </td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">935</font></div>
              </td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">1,878</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="40%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Definite-lived
                  intangible aseets, net </font></div>
              </td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">325</font></div>
              </td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">349</font></div>
              </td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">331</font></div>
              </td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">72</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="40%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Goodwill
                  </font></div>
              </td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">6,310</font></div>
              </td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">5,097</font></div>
              </td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">5,097</font></div>
              </td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">2,740</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="40%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Total
                  assets </font></div>
              </td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">9,977</font></div>
              </td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">7,119</font></div>
              </td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">6,739</font></div>
              </td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">4,959</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="40%" style="border-bottom: medium none;">&#160;</td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="40%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Senior
                  notes payable, net of discount </font></div>
              </td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">2,546</font></div>
              </td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">&#8212;</font></div>
                </div>
              </td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">&#8212;</font></div>
                </div>
              </td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">&#8212;</font></div>
                </div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="40%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Current
                  liabilities </font></div>
              </td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">3,471</font></div>
              </td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">1,393</font></div>
              </td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">1,114</font></div>
              </td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">980</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="40%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Total
                  liabilities </font></div>
              </td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">3,596</font></div>
              </td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">1,424</font></div>
              </td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
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              <td align="left" valign="bottom" width="3%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
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              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">1,085</font></div>
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              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="40%" style="border-bottom: medium none;">&#160;</td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="40%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Total
                  shareholders&#8217; equity </font></div>
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              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">6,381</font></div>
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              <td align="left" valign="bottom" width="3%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">5,695</font></div>
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              <td align="left" valign="bottom" width="3%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">5,592</font></div>
              </td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">3,874</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="40%" style="border-bottom: medium none;">&#160;</td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="40%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Total
                  liabilities and shareholders&#8217; equity </font></div>
              </td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">9,977</font></div>
              </td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">7,119</font></div>
              </td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">6,739</font></div>
              </td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">4,959</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>

        </table>
      </div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 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="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">24</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <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="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">
      <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Bridgeline
        Software, Inc. </strong></font></div>
      <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Selected
        Financial Data </strong></font></div><br>
      <div align="left">
        <table border="0" cellpadding="0" cellspacing="0" id="ftable" width="100%">

            <tr>
              <td align="left" valign="bottom" width="65%" style="border-bottom: medium none;">&#160;</td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" colspan="2" valign="bottom" width="14%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="4%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" colspan="2" valign="bottom" width="14%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center">
                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Unaudited</font></div>
                </div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="65%" style="border-bottom: medium none;">&#160;</td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" colspan="2" valign="bottom" width="14%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Unaudited
                  Ten </font></div>
              </td>
              <td align="left" valign="bottom" width="4%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" colspan="2" valign="bottom" width="14%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Year
                  Ended </font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="65%" style="border-bottom: medium none;">&#160;</td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" colspan="2" valign="bottom" width="14%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Months
                  Ended </font></div>
              </td>
              <td align="left" valign="bottom" width="4%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" colspan="2" valign="bottom" width="14%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">September
                  30,</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="65%" style="border-bottom: medium none;">&#160;</td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" colspan="2" valign="bottom" width="14%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">July
                  31, 2006 (b) </font></div>
              </td>
              <td align="left" valign="bottom" width="4%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" colspan="2" valign="bottom" width="14%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2005
                  (c)</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="65%" style="border-bottom: medium none;">&#160;</td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" colspan="2" valign="bottom" width="14%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Pro
                  Forma </font></div>
              </td>
              <td align="left" valign="bottom" width="4%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" colspan="2" valign="bottom" width="14%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Pro
                  Forma</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="65%" style="border-bottom: #ffffff solid;">&#160;</td>
              <td width="2%" style="border-bottom: #ffffff solid;">&#160;</td>
              <td align="left" colspan="2" valign="bottom" width="14%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(in
                  thousands) </font></div>
              </td>
              <td align="left" valign="bottom" width="4%" style="border-bottom: #ffffff solid;">&#160;</td>
              <td align="left" colspan="2" valign="bottom" width="14%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(in
                  thousands)</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff solid;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="65%" style="border-bottom: medium none;">
                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Income
                  Statement Data: </strong></font></div>
              </td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" colspan="2" valign="bottom" width="14%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="4%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" colspan="2" valign="bottom" width="14%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="65%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Revenues
                  </font></div>
              </td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="13%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">10,658</font></div>
              </td>
              <td align="left" valign="bottom" width="4%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="13%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">11,111</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="65%" style="border-bottom: #ffffff solid;">
                <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Cost
                  of revenue</font></div>
              </td>
              <td width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="13%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">5,275
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="4%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="13%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">6,305
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="65%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Gross
                  profit </font></div>
              </td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="13%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">5,383
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              <td align="left" valign="bottom" width="4%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="13%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">4,806
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              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="65%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Sales
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              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="13%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">2,270
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              <td align="left" valign="bottom" width="4%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="13%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">2,197
                  </font></div>
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              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="65%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Technology
                  development </font></div>
              </td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="13%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">140
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              </td>
              <td align="left" valign="bottom" width="4%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="13%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">43
                  </font></div>
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              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="65%" style="border-bottom: #ffffff solid;">
                <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">General
                  and administrative expense </font></div>
              </td>
              <td width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="13%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">2,607
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="4%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="13%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">2,384
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="65%" style="border-bottom: #ffffff solid;">
                <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Income&#160;from
                  operations </font></div>
              </td>
              <td width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="13%" style="border-bottom: black double;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">366</font></div>
              </td>
              <td align="left" valign="bottom" width="4%" style="border-bottom: #ffffff solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="13%" style="border-bottom: black double;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">182</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff solid;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="65%">&#160;</td>
              <td width="2%">&#160;</td>
              <td align="left" valign="bottom" width="1%">&#160;</td>
              <td align="right" valign="bottom" width="13%">&#160;</td>
              <td align="left" valign="bottom" width="4%">&#160;</td>
              <td align="left" valign="bottom" width="1%">&#160;</td>
              <td align="right" valign="bottom" width="13%">&#160;</td>
              <td align="left" valign="bottom" width="1%">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="65%" style="border-bottom: #ffffff solid;">
                <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Net
                  income</font></div>
              </td>
              <td width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="13%" style="border-bottom: black double;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">339</font></div>
              </td>
              <td align="left" valign="bottom" width="4%" style="border-bottom: #ffffff solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="13%" style="border-bottom: black double;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">154</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff solid;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="65%" style="border-bottom: medium none;">&#160;</td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="13%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="4%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="13%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="65%" style="border-bottom: medium none;">
                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Net
                  income per share: </font></div>
              </td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="13%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="4%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="13%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="65%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Basic
                  </font></div>
              </td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="13%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">0.05</font></div>
              </td>
              <td align="left" valign="bottom" width="4%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="13%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">0.02</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="65%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Diluted
                  </font></div>
              </td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="13%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">0.04</font></div>
              </td>
              <td align="left" valign="bottom" width="4%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="13%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">0.02</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="65%" style="border-bottom: medium none;">&#160;</td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="13%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="4%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="13%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="65%" style="border-bottom: medium none;">
                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Balance
                  Sheet Data: </strong></font></div>
              </td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="13%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="4%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="13%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="65%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Current
                  assets </font></div>
              </td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="13%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">12,173</font></div>
              </td>
              <td align="left" valign="bottom" width="4%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="13%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">2,030</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="65%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Definite-lived
                  intangible aseets, net </font></div>
              </td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="13%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">734</font></div>
              </td>
              <td align="left" valign="bottom" width="4%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="13%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">831</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="65%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Goodwill</font></div>
              </td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="13%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">10,440</font></div>
              </td>
              <td align="left" valign="bottom" width="4%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="13%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">11,003</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="65%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Total
                  assets </font></div>
              </td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
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              <td align="right" valign="bottom" width="13%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">24,556</font></div>
              </td>
              <td align="left" valign="bottom" width="4%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
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              <td align="right" valign="bottom" width="13%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">14,638</font></div>
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              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="65%" style="border-bottom: medium none;">&#160;</td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="13%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="4%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="13%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="65%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Short-term
                  debt, net of discount </font></div>
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              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="13%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman">&#8212;</font></font></div>
                </div>
              </td>
              <td align="left" valign="bottom" width="4%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="13%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">151</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="65%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Current
                  liabilities </font></div>
              </td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
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              <td align="right" valign="bottom" width="13%" style="border-bottom: medium none;">
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              <td align="left" valign="bottom" width="4%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
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              <td align="right" valign="bottom" width="13%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">1,499</font></div>
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              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="65%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Total
                  liabilities </font></div>
              </td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
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              <td align="right" valign="bottom" width="13%" style="border-bottom: medium none;">
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              </td>
              <td align="left" valign="bottom" width="4%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="13%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">1,800</font></div>
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              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="65%" style="border-bottom: medium none;">&#160;</td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="13%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="4%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="13%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="65%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Total
                  shareholders&#8217; equity </font></div>
              </td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="13%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">22,952</font></div>
              </td>
              <td align="left" valign="bottom" width="4%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="13%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">12,838</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="65%" style="border-bottom: medium none;">&#160;</td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="13%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="4%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="13%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="65%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Total
                  liabilities and shareholders&#8217; equity </font></div>
              </td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="13%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">24,556</font></div>
              </td>
              <td align="left" valign="bottom" width="4%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="13%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">14,638</font></div>
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              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>

        </table>
      </div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">_______________________</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 18pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(a)&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">On
                April 25, 2006, we acquired New Tilt. The operations of New Tilt
                have been
                included in our consolidated financial statements from the date of
                acquisition.</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 18pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(b)&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Reflects
                the probable acquisition of Objectware and the
                offering.</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 18pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(c)&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">On
                December 15, 2004, we acquired iapps, on April 24, 2006, we acquired
                New
                Tilt and, subsequent to the sale of 3,000,000 shares of our common
                stock
                in this offering, we intend to acquire Objectware. A portion of the
                proceeds will be used to retire indebtedness. The accompanying pro
                forma
                adjustments reflect these transactions as if they occurred at the
                beginning of the most recent fiscal year on October 1, 2004 and as
                of the
                beginning of the interim period as of October 1,
                2005.</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 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="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">25</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <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="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><a name="gmnh112"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>MANAGEMENT&#8217;S
      DISCUSSION AND ANALYSIS</strong></font></a></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>(Amounts
      in thousands)</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>&#160;The
      following Discussion and Analysis of Financial Condition and Results of
      Operations </em></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>should
      be read in conjunction with the historical financial statements and other
      financial information appearing elsewhere in this prospectus, including &#8220;Summary
      Financial Data,&#8221; &#8220;Capitalization&#8221; and &#8220;Selected Financial Data&#8221; on pages 6, 19
      and 24, respectively.</em></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Overview</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">We
      are
      developers of </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">award-winning</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      Web
      applications and&#160;Web software tools. Our team of Microsoft</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><sup>&#174;</sup></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">-</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">certified
      developers specializes in information architecture and usability engineering,
      W</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">eb
      applications</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">,
      rich
      media development, e-commerce application development,&#160;e-training
      application development, and search engine optimization. We have developed
      our
      own quality Web tools such as </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Content
      Management</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">,
      Relationship Management, eSurvey, eNewsletter, eCommerce, and Event
      Registration. By providing award-winning Web application development
      capabilities with our own Web tools, we </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">help
      our
      customers to optimize business processes utilizing Web-based
      technologies</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">.
      </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Although
      our revenues have increased substantially on an annual basis since fiscal 2003,
      and our EBITDA currently is positive, we have experienced&#160;net losses and
      negative cash flows from operations in each fiscal period since inception,
      and
      as of July&#160;31, 2006, we had an accumulated deficit of $3,413 and a working
      capital deficit of $1,092. Since inception, we have significantly increased
      our
      revenues through a combination of factors including (i)&#160;obtaining new
      customers, (ii)&#160;expanding existing customer relationships,
      (iii)&#160;acquiring complementary businesses, (iv)&#160;expanding the features
      of our software tools, and (v)&#160;offering new and improved products and
      services. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>Sources
      of Revenue</em></strong></font></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">We
      generate the majority of our revenue from four different sources: (a) Web
      Services, (b) Managed Services, (c) Software Licenses and (d) Subscriptions.
      We
      primarily enter into Web Services engagements&#160;that are typically six months
      or more in duration. Our customers pay us fees as products or services are
      delivered. Revenues are recognized for our fixed fee engagements in proportion
      to the extent of progress toward completion of the project and on an incurred
      basis for monthly time and materials projects. Managed Service and Subscription
      Revenue is generally recognized monthly or ratably over the period in which
      the
      service is provided. We also sell software licenses under either perpetual
      or
      fixed term subscription licenses. Revenue for perpetual licenses is included
      in
      Web Services revenue and is generally recognized upon delivery of the software.
      Revenue for licensed subscription agreements is include in Subscription Revenue
      and is generally recognized over the term of the agreements. We offer
      maintenance and post contract support (PCS) to our customers, however the
      revenues from these support services are not material to the periods presented.
      During the fiscal ten months ended July 31, 2006 and 2005 and the fiscal years
      ended September 30, 2005 and 2004 the composition of our revenue was as
      follows:</font></div>
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      <table bgcolor="white" border="0" cellpadding="0" cellspacing="0" width="100%">

          <tr bgcolor="white">
            <td width="24%" style="border-bottom: #ffffff solid;">&#160;</td>
            <td width="8%" style="border-bottom: #ffffff solid;">&#160;</td>
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              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center">&#160;<font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Fiscal
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            <td width="8%">&#160;</td>
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            <td width="14%">
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                &#160;72.7%</font></div>
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            <td width="8%">&#160;</td>
            <td width="14%">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;
                &#160;72.5%</font></div>
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            <td width="2%">&#160;</td>
            <td width="14%">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;
                &#160;78.2%</font></div>
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            <td width="8%">&#160;</td>
            <td width="14%">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;13.6&#160;</font></div>
            </td>
            <td width="2%">&#160;</td>
            <td width="14%">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">21.3</font></div>
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            <td width="14%">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;21.6&#160;</font></div>
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            <td width="14%">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;21.8&#160;</font></div>
            </td>
          </tr>
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              Revenue</font></td>
            <td width="8%" style="border-bottom: #ffffff solid;">&#160;</td>
            <td width="14%" style="border-bottom: black thin solid;">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;5.3</font></div>
            </td>
            <td width="2%">&#160;</td>
            <td width="14%" style="border-bottom: black thin solid;">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;6.0</font></div>
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            <td width="8%" style="border-bottom: #ffffff solid;">&#160;</td>
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              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;5.9</font></div>
            </td>
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            <td width="14%" style="border-bottom: black thin solid;">
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            </td>
          </tr>
          <tr bgcolor="white">
            <td width="24%" style="border-bottom: #ffffff solid;">&#160;</td>
            <td width="8%" style="border-bottom: #ffffff solid;">&#160;</td>
            <td width="14%" style="border-bottom: black double;">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;100.0%</font></div>
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            <td width="2%">&#160;</td>
            <td width="14%" style="border-bottom: black double;">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;100.0%</font></div>
            </td>
            <td width="8%" style="border-bottom: #ffffff solid;">&#160;</td>
            <td width="14%" style="border-bottom: black double;">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;100.0%</font></div>
            </td>
            <td width="2%">&#160;</td>
            <td width="14%" style="border-bottom: black double;">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;100.0%</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div align="center">&#160;</div>
    <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt"><a name="eolPage23"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      demand for our services has been affected in the past, and may continue to
      be
      affected in the future, by various factors, including but not limited to, the
      following: </font></a></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">economic
                conditions affecting the budget priorities of our
                customers;</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">the
                acquisition or cancellation of significant clients;
                </font></div>
            </td>
          </tr>

      </table>
    </div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">worldwide
                acts of terrorism effecting U.S. markets;
                and</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div>&#160;</div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
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        <div id="GLFTR" style="WIDTH: 100%" align="left">
        </div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">26</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="2">
        </div>
      </div>
      <div id="HDR">
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        </div>
      </div>
      <div>
        <div>&#160;</div>
        <div>
          <table cellpadding="0" cellspacing="0" id="list" width="100%">

              <tr valign="top" style="line-height: 1.25;">
                <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
                <td>
                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">seasonality.</font></div>
                </td>
              </tr>

          </table>
        </div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      </div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">For
      these
      and other reasons, our revenue and results of operations in fiscal 2005 and
      prior periods may not necessarily be indicative of future revenues and results
      of operations. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">We
      define
      our significant customers as those that generate in excess of ten percent of
      total revenues. These significant customers in aggregate generated 43.1%, 42.1%,
      37.1% and 63.2% of our revenues in the ten months ended July 31, 2006 and 2005
      and the fiscal years ended September 30, 2005 and 2004, respectively. One
      customer generated greater than 10% of total revenue in the ten months ended
      July 31, 2006 and three customers generated greater than 10% of total revenue
      in
      the ten months ended July 31, 2005 and the fiscal years ended September 30,
      2005
      and 2004. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>Cost
      of Revenue and Operating Expenses </em></strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>Cost
      of Revenue</em></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">.
      Cost of
      revenue includes salaries, benefits and related expenses of operations and
      database support, implementation and support services and the amortization
      of
      intangible assets resulting from prior acquisitions. Gross profit represents
      revenue less the costs of revenue for personnel directly involved in Web
      development and support activities. Gross profit percentage is highly dependent
      on contract agreements and overhead allocations. We do not believe that
      historical gross profit margins are a reliable indicator of future gross profit
      margins. As our Subscription Revenue increases, we expect our gross margins
      to
      also increase. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>Sales
      and Marketing Expenses</em></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">.
      Sales
      and marketing expenses consist primarily of salaries, commissions, benefits
      and
      related expenses of personnel engaged in selling, marketing and customer support
      functions, as well as public relations, advertising and promotional costs,
      and
      overhead costs of our various locations. Sales and marketing expenses include
      stock-based compensation allocable to certain personnel performing sales and
      marketing activities. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>General
      and Administrative Expenses. </em></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">General
      and administrative expenses consist primarily of personnel-related expenses,
      depreciation, legal and other professional fees, facilities and communication
      expenses and expenses to maintain our information technology infrastructure.
      General and administrative expenses include stock-based compensation allocable
      to certain personnel performing general and administrative activities.
</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font><a name="eolPage25"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>Acquisitions
      </em></strong></font></a></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Acquisitions
      have been an important part of our growth and expansion to date. Our
      acquisitions have enabled us to increase our product and service offerings
      and
      expand into other geographies. We may continue to acquire companies that provide
      us with proprietary technology, access to key accounts, or personnel with
      significant experience in the Web development industry. During 2004, we
      completed the acquisition of Interactive Applications Group, Inc. (&#8220;iapps&#8221;)
      giving us further exposure and access into the foundation and non-profit
      industry. During 2006, we completed the acquisition of New Tilt, Inc., expanding
      our exposure and access into the life sciences segment of our industry.
</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">From
      time
      to time, in connection with business acquisitions, we agree to make additional
      future payments to sellers contingent upon achievement of specific
      performance-based milestones by the acquired entities. Pursuant to the
      provisions of SFAS No.&#160;141, </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>Business
      Combinations,</em></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      such
      amounts are accrued, and therefore, recorded by us as liabilities when the
      contingency is probable and estimatable and, hence, the additional consideration
      becomes payable. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>Business
      Enterprise Segments</em></strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">We
      are
      structured and operate internally as one reportable operating segment as defined
      in SFAS No.&#160;131, </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>Disclosures
      about Segments of an Enterprise and Related Information</em></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      (&#8220;SFAS
      131&#8221;). SFAS 131 establishes standards for the way public business enterprises
      report information about operating segments in annual consolidated financial
      statements and requires that those enterprises report selected information
      about
      operating segments in interim financial reports. SFAS 131 also establishes
      standards for related disclosures about products and services, geographic areas
      and major customers. Although we had three U.S. operating locations and an
      Indian </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 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="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">27</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <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="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">subsidiary
      at September&#160;30, 2005, under the aggregation criteria set forth in SFAS
      131, we operate in only one reportable operating segment since each location
      has
      similar economic characteristics. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>Critical
      Accounting Policies and Estimates</em></strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      preparation of financial statements in accordance with accounting principles
      generally accepted in the United States of America requires us to make estimates
      and assumptions that affect the reported amounts of assets and liabilities
      at
      the date of the financial statements and the reported amounts of revenue and
      expenses in the reporting period. We regularly make estimates and assumptions
      that affect the reported amounts of assets and liabilities. The most significant
      estimates included our valuation of accounts receivable and long-term assets,
      including intangibles and deferred tax assets, amounts of revenue to be
      recognized on service contracts in progress, unbilled receivables, and deferred
      revenue. We base our estimates and assumptions on current facts, historical
      experience and various other factors that we believe to be reasonable under
      the
      circumstances, the results of which form the basis for making judgments about
      the carrying values of assets and liabilities and the accrual of costs and
      expenses that are not readily apparent from other sources. The actual results
      experienced by us may differ materially and adversely from our estimates. To
      the
      extent there are material differences between our estimates and the actual
      results, our future results of operations will be affected.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;We
      consider the following accounting policies to be both those most important
      to
      the portrayal of our financial condition and those that require the most
      subjective judgment: </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Allowance
                for doubtful accounts;</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Revenue
                recognition;</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Accounting
                for goodwill and other intangible assets;
                and</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Accounting
                for stock-based compensation.</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>&#160;
      Allowance for doubtful accounts. </em></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">We
      maintain an allowance for doubtful accounts which represents estimated losses
      resulting from the inability, failure or refusal of our clients to make required
      payments. We analyze historical percentages of uncollectible accounts and
      changes in payment history when evaluating the adequacy of the allowance for
      doubtful accounts. We use an internal collection effort, which may include
      our
      sales and services groups as we deem appropriate. Although we believe that
      our
      reserves are adequate, if the financial condition of our clients deteriorates,
      resulting in an impairment of their ability to make payments, or if we
      underestimate the allowances required, additional allowances may be necessary,
      resulting in increased expense in the period in which such determination is
      made. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
      Revenue Recognition.</em></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      Substantially all of our revenue is generated from four activities: Web
      Services, Managed Services, Software Licenses and Subscriptions. We enter into
      arrangements to sell services, software licenses or combinations thereof.
</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">We
      recognize revenue in accordance </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">with
      SEC
      Staff Accounting Bulletin (&#8220;SAB&#8221;) No. 104, </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>Revenue
      Recognition in Financial Statements</em></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">,
      Emerging Issues Task Force (&#8220;EITF&#8221;) Issue No. 00-21, </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>Accounting
      For Revenue Arrangements with Multiple Deliverables, </em></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">and
      American Institute of Certified Public Accountant&#8217;s Statement of Position No.
      97-2, </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>Software
      Revenue Recognition</em></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      (&#8220;SOP
      97-2&#8221;). Revenue is recognized when all of the following conditions are
      satisfied: (1) there is persuasive evidence of an arrangement; (2) the services
      have been provided to the customer; (3) the amount of fees to be paid by the
      customer is fixed or determinable; and (4) the collection of the fees is
      probable. Billings made or payments received in advance of providing services
      are deferred until the period these services are provided. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
      Web Services and Managed Services include consulting services that are related
      to specific customer needs such as information architecture and usability
      engineering, interface configuration, Web application development and hosting,
      rich media, e-Commerce, e-Learning and e-Training, search engine optimization,
      and content management. Such services typically do not involve significant
      production, modification, or customization of our licensed software products.
      </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Managed
      Services also include on-going retained professional services and hosting
      arrangements. Our Managed Services typically include on-going retained
      professional services that are either contracted for on an &#8220;on-call&#8221; basis or
      for a certain amount of hours each month. We also enter engagements that provide
      for a guaranteed </font></div>
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          <hr style="COLOR: black" noshade size="2">
        </div>
      </div>
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        </div>
      </div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">number
      of
      hours each month on a &#8220;use it or lose it&#8221; basis. These arrangements do not
      require formal customer acceptance and we do not grant any future rights to
      labor hours contracted for but not used. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;In
      determining whether we can account for Web Services separately from other
      elements in multi-element arrangements, we consider the following factors for
      each agreement: the availability of the Web Services from other vendors, whether
      objective and reliable evidence of fair value exists for the undelivered
      elements, and whether delivery of any undelivered elements is probable and
      can
      be controlled by us. We determine the amount of revenue recognized for Web
      Services in multi-element arrangements by use of the residual
      method.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;We
      recognize revenue for Web Services and Managed Services when the services are
      performed or when they are complete. </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">We
      </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">follow
      the Proportional Performance Model and recognize revenue from fixed-fee
      development contracts when delivery has occurred in relation to the extent
      of
      progress toward completion. We allocate revenue between reporting periods based
      on the actual labor dollars&#160;incurred each period in proportion to total
      estimated labor dollars&#160;necessary to deliver the services under the
      arrangement. Billings on uncompleted contracts may be less than or greater
      than
      the revenues recognized and are recorded as either unbilled receivables (an
      asset) or deferred revenue (a liability) in our consolidated financial
      statements. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;We
      sell software licenses under fixed-term and perpetual license agreements. For
      perpetual licenses, we generally recognize revenue upon delivery of the software
      in accordance with SOP 97-2. Revenue for licensed subscription agreements is
      generally recognized over the term of the agreements. We provide maintenance
      and
      post contract support (<font style="DISPLAY: inline; FONT-FAMILY: Times New Roman">&#8220;</font>PCS<font style="DISPLAY: inline; FONT-FAMILY: Times New Roman">&#8221;</font>);
      however our
      revenues from PCS are not material to all periods presented. Subscription
      Revenue often includes hosting and other support services such as help desk,
      site or solution usage reporting. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Certain
      arrangements include a warranty period generally between 30 to 90 days from
      the
      completion of work. In hosting arrangements, we may provide warranties of
      up-time reliability. To date, few warranty claims have been received. We
      continue to monitor the conditions that are subject to the warranties to
      identify if a warranty claim may arise. If we determine that a warranty claim
      is
      probable, then any such estimable cost would be recognized to comply with the
      warranty requirements.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;In
      connection with certain arrangements, reimbursable expenses are incurred and
      billed to customers and such amounts are recognized as both revenue and cost
      of
      revenue. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>Accounting
      for Goodwill and Other Intangible Assets. </em></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Goodwill
      and other intangible assets require us to make estimates and judgments about
      the
      value and recoverability of those assets. We have made several acquisitions
      of
      businesses that resulted in both goodwill and intangible assets being recorded
      in our financial statements.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Goodwill
      is recorded as the difference, if any, between the aggregate consideration
      paid
      for an acquisition and the fair value of the net tangible and intangible assets
      acquired. The amounts and useful lives assigned to other intangible assets
      impact the amount and timing of future amortization, and the amount assigned
      to
      in-process research and development is expensed immediately. The value of our
      intangible assets, including goodwill, could be impacted by future adverse
      changes such as: (i)&#160;any future declines in our operating results,
      (ii)&#160;a decline in the value of technology company stocks, including the
      value of our common stock, (iii)&#160;any failure to meet the performance
      projections included in our forecasts of future operating results. We evaluate
      goodwill and other intangible assets deemed to have indefinite lives on an
      annual basis in the quarter ended September 30 or more frequently if we believe
      indicators of impairment exist. Application of the goodwill impairment test
      requires judgment including the identification of reporting units, assigning
      assets and liabilities to reporting units, assigning goodwill to reporting
      units
      and determining the fair value of each reporting unit. In accordance with SFAS
      No.&#160;142, </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>Goodwill
      and Other Intangible Assets</em></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      (&#8220;SFAS
      142&#8221;), management has determined that there was only one reporting unit to be
      tested. The goodwill impairment test compares the implied fair value of the
      reporting unit with the carrying value of the reporting unit. The implied fair
      value of goodwill is determined in the same manner as in a business combination.
      Determining the fair value of the implied goodwill is judgmental in nature
      and
      often involves the use of significant estimates and assumptions. These estimates
      and assumptions could have a significant impact on whether or not an impairment
      charge is recognized and also the magnitude of any such charge. Estimates of
      fair value are primarily determined using discounted cash flows and market
      comparisons. These approaches use significant estimates and assumptions,
      including projection and timing of future cash flows, discount rates reflecting
      the risk inherent in future cash flows, perpetual growth rates, determination
      of
      appropriate market comparables, and determination of </font></div>
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    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">whether
      a
      premium or discount should be applied to comparables. It is reasonably possible
      that the plans and estimates used to value these assets may be incorrect. If
      our
      actual results, or the plans and estimates used in future impairment analyses,
      are lower than the original estimates used to assess the recoverability of
      these
      assets, we could incur additional impairment charges.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      results of the assessments performed to date was that the fair value of the
      reporting unit exceeded its carrying amount; therefore, no impairment charges
      to
      the carrying value of goodwill have been recorded since inception. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">We
      also
      assess the impairment of our long-lived assets, including definite-lived
      intangible assets and equipment and improvements when events or changes in
      circumstances indicate that an asset&#8217;s carrying value may not be recoverable. An
      impairment charge is recognized when the sum of the expected future undiscounted
      net cash flows is less than the carrying value of the asset. Any impairment
      charge would be measured by comparing the amount by which the carrying value
      exceeds the fair value of the asset being evaluated for impairment. Any
      resulting impairment charge could have an adverse impact on our results of
      operations.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>Stock
      Based Compensation</em></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Effective
      October&#160;1, 2006, we adopted the fair value recognition provisions of SFAS
      No.&#160;123R,</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>
      Share-Based Payments (&#8220;SFAS 123R&#8221;)</em></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">,
      </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">using
      the
      modified prospective transition method. Under that transition method,
      compensation expense that we recognize beginning on that date will include:
      (a)&#160;compensation expense for all share-based payments granted prior to, but
      not yet vested as of October&#160;1, 2006, based on the grant date fair value
      estimated in accordance with the original provisions of SFAS No.&#160;123,
</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>Accounting
      for Stock-Based Compensation (&#8220;SFAS 123&#8221;),</em></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      and
      (b)&#160;compensation expense for all share-based payments granted on or after
      October&#160;1, 2006, based on the grant date fair value estimated in accordance
      with the provisions of SFAS No.&#160;123R. Results for prior periods will not be
      restated. At July 31, 2006, there was approximately </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$382</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      of total
      unrecognized compensation cost related to non-vested share-based compensation
      arrangements granted under all equity compensation plans.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">We
      estimate the fair value of options granted using the Black-Scholes-Merton option
      valuation model (the </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8220;Model&#8221;)
      and the assumptions shown in Note 1 to our financial statements. We estimate
      the
      expected term of options granted based on the history of grants and exercises
      in
      our option database. We estimate the volatility of our common stock at the
      date
      of grant based on both the historical volatility as well as the implied
      volatility of publicly traded options on our common stock, consistent with
      SFAS
      No.&#160;123R&#160;and Securities and Exchange Commission Staff Accounting
      Bulletin No.&#160;107, </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>Share
      Based Payment</em></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">.
      We base
      the risk-free interest rate that we use in the Model on the implied yield in
      effect at the time of option grant on U.S. Treasury zero-coupon issues with
      equivalent remaining terms. We have never paid any cash dividends on our common
      stock and we do not anticipate paying any cash dividends in the foreseeable
      future. Consequently, we use an expected dividend yield of zero in the Model.
      We
      amortize the fair value ratably over the vesting period of the awards, which
      is
      typically three years. We may elect to use different assumptions under the
      Model
      in the future or select a different option valuation model altogether, which
      could materially affect our net income or loss and net income or loss per share
      in the future.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Since
      inception in August 2000, there has been no public market for our common stock
      from which to observe its stock price for use in estimating the fair value
      of
      the stock when granting stock options. Therefore, for purposes of applying
      the
      intrinsic value method of accounting for stock-based compensation, we estimated
      the stock price based on the guidance in the American Institute of Certified
      Public Accountants Practice Alert No. 00-1, </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>Accounting
      for Certain Equity Transactions</em></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">.
      We
      executed six private placement transactions between August 2000 and December
      2004 selling common stock to related and independent third parties in exchange
      for cash that provided the capital necessary to complete our business
      combination transactions. In addition, approximately half of the purchase
      consideration in each business combination was common stock. We did not obtain
      contemporaneous valuations by an unrelated valuation specialist as neither
      the
      investors or the selling shareholders in the business combinations required
      them. These private placements and business combination transactions provided
      objective and contemporaneous evidence for our stock price that we used to
      estimate the fair value of stock options at the time the option grants were
      made. When stock options were granted through July 2005, we used the value
      of
      the most recent private placement as representative of the estimated fair value
      of our common stock on the grant date for purposes of applying the intrinsic
      value method.</font><br></div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 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="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">30</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <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="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;For
      periods beginning in August 2005 and thereafter, we estimated the fair value
      of
      the stock price on the date of grant for purposes of applying the intrinsic
      value method after weighing a variety of different quantitative and qualitative
      factors including, but not limited to, the status of business development,
      our
      financial position, the composition and ability of our engineering, operations
      and management team, the economic climate in the marketplace, the illiquid
      nature of our common stock, contemporaneous and anticipated private sales of
      our
      common stock, the probability of a liquidation event such as an initial public
      offering or the sale of Bridgeline, and our analysis of a peer group of
      comparable public company trading prices. In addition, during October 2005
      we
      engaged an investment banking firm to provide us and our board of directors
      strategic growth and financing advice regarding the potential valuation of
      Bridgeline and our common stock. Since August 2005, we have estimated the value
      of common stock using this combination of valuation methodologies, including
      income, market and transaction approaches. We believe that its valuation of
      the
      stock price on the date of grant represents fair value and that the practices
      and approach employed by us is consistent with the practices recommended by
      the
      American Institute of Certified Public Accountants Audit and Accounting Practice
      Aid Series: </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>Valuation
      of Privately-Held-Company Equity Securities Issued as
      Compensation</em></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">,
      issued
      in 2004.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Comparison
      of Fiscal Ten Months Ended July&#160;31, 2006 and 2005</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Results
      of Operations</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      following table sets forth certain Consolidated Statements of Operations data
      expressed as a percentage of revenue for the periods indicated: </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 5pt; FONT-FAMILY: Times New Roman, serif">&#160;
      </font></div>
    <div align="center">
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          <tr>
            <td align="left" valign="bottom" width="71%" style="border-bottom: #ffffff solid;">&#160;</td>
            <td width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
            <td colspan="5" valign="bottom" width="26%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Fiscal
                Ten Months</strong></font></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Ended
                July 31,</strong></font></div>
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            <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;">&#160;</td>
          </tr>
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            <td align="left" valign="bottom" width="71%" style="border-bottom: #ffffff solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><a name="FIS_UNIDENTIFIED_TABLE_4"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;
                </font></a></div>
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            <td width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
            <td colspan="2" valign="bottom" width="12%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>2006
                </strong></font></div>
            </td>
            <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
            <td colspan="2" valign="bottom" width="12%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;
                </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>2005
                </strong></font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td align="left" valign="bottom" width="71%" style="border-bottom: white;">
              <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Revenue
                </font></div>
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            <td width="2%" style="border-bottom: white;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">100
                </font></div>
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            <td align="left" valign="bottom" width="2%" style="border-bottom: white;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">%</font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">100
                </font></div>
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            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">%</font></div>
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          </tr>
          <tr>
            <td align="left" valign="bottom" width="71%" style="border-bottom: #ffffff solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Cost
                of revenue</font><font style="DISPLAY: inline; FONT-SIZE: 6pt; FONT-FAMILY: Times New Roman, serif"><sup>&#160;</sup></font></div>
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            <td width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">44
                </font></div>
            </td>
            <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">54
                </font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;">&#160;</td>
          </tr>
          <tr>
            <td align="left" valign="bottom" width="71%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Gross
                profit </font></div>
            </td>
            <td width="2%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">56
                </font></div>
            </td>
            <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">46
                </font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
          </tr>
          <tr>
            <td align="left" valign="bottom" width="71%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Operating
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            <td width="2%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td align="left" valign="bottom" width="71%" style="border-bottom: white;">
              <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Sales
                and marketing</font></div>
            </td>
            <td width="2%" style="border-bottom: white;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">34
                </font></div>
            </td>
            <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">35
                </font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td align="left" valign="bottom" width="71%" style="border-bottom: white;">
              <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">General
                and administrative</font></div>
            </td>
            <td width="2%" style="border-bottom: white;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">22
                </font></div>
            </td>
            <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">18
                </font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td align="left" valign="bottom" width="71%" style="border-bottom: white solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Technology
                development </font></div>
            </td>
            <td width="2%" style="border-bottom: white thin solid;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">2</font></div>
            </td>
            <td align="left" valign="bottom" width="2%" style="border-bottom: white thin solid;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">1</font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: white thin solid;">&#160;</td>
          </tr>
          <tr>
            <td align="left" valign="bottom" width="71%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Loss
                from operations</font></div>
            </td>
            <td width="2%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(2
                </font></div>
            </td>
            <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(8
                </font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td align="left" valign="bottom" width="71%" style="border-bottom: #ffffff solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Interest
                income (expense), net </font></div>
            </td>
            <td width="2%" style="border-bottom: #ffffff solid;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(9</font></div>
            </td>
            <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(1
                </font></div>
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            <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
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          <tr>
            <td align="left" valign="bottom" width="71%" style="border-bottom: #ffffff solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Net
                loss </font></div>
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            <td width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">&#160;</td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: black double;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(11
                </font></div>
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            <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">%)</font></div>
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            <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">&#160;</td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: black double;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(9
                </font></div>
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            <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">%)</font></div>
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      </table>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 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="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">31</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
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        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">
        </div>
      </div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>Revenue,
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      following table presents revenue, cost of revenue and gross profit for the
      fiscal ten months ended July 31, 2006 and 2005: </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 5pt; FONT-FAMILY: Times New Roman, serif">&#160;
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    <div align="center">
      <table border="0" cellpadding="0" cellspacing="0" id="ftable" width="90%">

          <tr>
            <td align="left" valign="bottom" width="43%" style="border-bottom: #ffffff solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;
                </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;
                </font></div>
            </td>
            <td width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
            <td align="left" colspan="2" valign="bottom" width="12%" style="border-bottom: #ffffff thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;
                </font></div>
            </td>
            <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
            <td align="left" colspan="2" valign="bottom" width="12%" style="border-bottom: #ffffff thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;
                </font></div>
            </td>
            <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
            <td colspan="5" valign="bottom" width="26%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Net
                change </strong></font></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>2006
                vs. 2005 </strong></font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;">&#160;</td>
          </tr>
          <tr>
            <td align="left" valign="bottom" width="43%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Fiscal
                Ten Months Ended July&#160;31, </strong></font></div>
            </td>
            <td width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
            <td colspan="2" valign="bottom" width="12%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>2006
                </strong></font></div>
            </td>
            <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
            <td colspan="2" valign="bottom" width="12%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>2005
                </strong></font></div>
            </td>
            <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
            <td colspan="2" valign="bottom" width="12%" style="border-bottom: black thin solid;">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font>&#160;</div>
            </td>
            <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
            <td colspan="2" valign="bottom" width="12%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">%</font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td align="left" valign="bottom" width="43%" style="border-bottom: white;">
              <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Total
                revenue </font></div>
            </td>
            <td width="2%" style="border-bottom: white;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
            </td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">6,603
                </font></div>
            </td>
            <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
            </td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">4,645
                </font></div>
            </td>
            <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
            </td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">1,958
                </font></div>
            </td>
            <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">42
                </font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">%</font></div>
            </td>
          </tr>
          <tr>
            <td align="left" valign="bottom" width="43%" style="border-bottom: #ffffff solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Cost
                of revenue </font></div>
            </td>
            <td width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">2,924</font></div>
            </td>
            <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">2,527
                </font></div>
            </td>
            <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">397
                </font></div>
            </td>
            <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">16
                </font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td align="left" valign="bottom" width="43%" style="border-bottom: white solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Gross
                profit </font></div>
            </td>
            <td width="2%" style="border-bottom: white thin solid;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
            </td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: black double;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">3,679</font></div>
            </td>
            <td align="left" valign="bottom" width="2%" style="border-bottom: white solid;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
            </td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: black double;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">2,118
                </font></div>
            </td>
            <td align="left" valign="bottom" width="2%" style="border-bottom: white solid;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
            </td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: black double;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">1,561</font></div>
            </td>
            <td align="left" valign="bottom" width="2%" style="border-bottom: white solid;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">&#160;</td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: black double;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">74
                </font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: white solid;">&#160;</td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>Revenue.
      </em></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Our
      revenue is generated principally by fees paid for Web Services, Managed Services
      and Subscription Revenue. The following table presents revenue from each of
      our
      revenue streams and their respective contribution to the increase in revenue
      in
      the fiscal ten months ended July 31, 2006 and 2005: </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;
      </font></div>
    <div align="center">
      <table border="0" cellpadding="0" cellspacing="0" id="ftable" width="90%">

          <tr>
            <td align="left" valign="bottom" width="43%" style="border-bottom: #ffffff solid;">&#160;</td>
            <td width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
            <td align="left" colspan="2" valign="bottom" width="12%" style="border-bottom: #ffffff solid;">&#160;&#160;</td>
            <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
            <td align="left" colspan="2" valign="bottom" width="12%" style="border-bottom: #ffffff solid;">&#160;&#160;</td>
            <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
            <td align="left" colspan="5" valign="bottom" width="26%" style="border-bottom: black thin solid;">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;<strong>Net
                change </strong></font></div>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><strong>2006&#160;vs.&#160;2005
                </strong></strong></font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;">&#160;</td>
          </tr>
          <tr>
            <td align="left" valign="bottom" width="43%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Fiscal
                Ten Months Ended July&#160;31,</strong></font></div>
            </td>
            <td width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
            <td colspan="2" valign="bottom" width="12%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>2006
                </strong></font></div>
            </td>
            <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
            <td colspan="2" valign="bottom" width="12%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>2005
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              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
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            <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
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            <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
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            <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
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            <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
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      the proportionate performance model or may be recognized as delivered. Revenue
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      growth was primarily due to engagements with new customers and new work with
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      product in the foundation and non-profit sector of our business. Revenues from
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      compared to $849, or 18% of revenues, in 2005. The total increase resulted
      primarily from an increase of $163 attributed to an increase in headcount
      resulting from direct hires and acquisitions. We also had an increase in
      computer maintenance purchases, increased compensation levels, and an increase
      in travel and related expenses and an increase in training for our
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</font></div>
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          <tr>
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            <td width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
            <td colspan="5" valign="bottom" width="26%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Fiscal
                Years</strong></font></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Ended
                September. 30,</strong></font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;">&#160;</td>
          </tr>
          <tr>
            <td align="left" valign="bottom" width="71%" style="border-bottom: #ffffff solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;
                </font></div>
            </td>
            <td width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
            <td colspan="2" valign="bottom" width="12%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>2005
                </strong></font></div>
            </td>
            <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
            <td colspan="2" valign="bottom" width="12%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;
                </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>2004
                </strong></font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td align="left" valign="bottom" width="71%" style="border-bottom: white;">
              <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Revenue
                </font></div>
            </td>
            <td width="2%" style="border-bottom: white;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">100
                </font></div>
            </td>
            <td align="left" valign="bottom" width="2%" style="border-bottom: white;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">%</font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">100
                </font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">%</font></div>
            </td>
          </tr>
          <tr>
            <td align="left" valign="bottom" width="71%" style="border-bottom: #ffffff solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Cost
                of revenue</font><font style="DISPLAY: inline; FONT-SIZE: 6pt; FONT-FAMILY: Times New Roman, serif"><sup>&#160;</sup></font></div>
            </td>
            <td width="2%" style="border-bottom: #ffffff solid;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">54
                </font></div>
            </td>
            <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff solid;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">47
                </font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff solid;">&#160;</td>
          </tr>
          <tr>
            <td align="left" valign="bottom" width="71%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Gross
                profit </font></div>
            </td>
            <td width="2%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">46
                </font></div>
            </td>
            <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">53
                </font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
          </tr>
          <tr>
            <td align="left" valign="bottom" width="71%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Operating
                expenses: </font></div>
            </td>
            <td width="2%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td align="left" valign="bottom" width="71%" style="border-bottom: white;">
              <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Sales
                and marketing</font></div>
            </td>
            <td width="2%" style="border-bottom: white;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">36
                </font></div>
            </td>
            <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">38
                </font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td align="left" valign="bottom" width="71%" style="border-bottom: white;">
              <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">General
                and administrative</font></div>
            </td>
            <td width="2%" style="border-bottom: white;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">17
                </font></div>
            </td>
            <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">17
                </font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td align="left" valign="bottom" width="71%" style="border-bottom: #ffffff solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Technology
                development</font></div>
            </td>
            <td width="2%" style="border-bottom: #ffffff solid;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">1
                </font></div>
            </td>
            <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff solid;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">1
                </font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff solid;">&#160;</td>
          </tr>
          <tr>
            <td align="left" valign="bottom" width="71%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Loss
                from operations</font></div>
            </td>
            <td width="2%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(8
                </font></div>
            </td>
            <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(3
                </font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td align="left" valign="bottom" width="71%" style="border-bottom: #ffffff solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Interest
                income (expense), net </font></div>
            </td>
            <td width="2%" style="border-bottom: #ffffff solid;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(1</font></div>
            </td>
            <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(1
                </font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
            </td>
          </tr>
          <tr>
            <td align="left" valign="bottom" width="71%" style="border-bottom: #ffffff solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Net
                loss </font></div>
            </td>
            <td width="2%" style="border-bottom: #ffffff solid;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">&#160;</td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: black double;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(9
                </font></div>
            </td>
            <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">%)</font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">&#160;</td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: black double;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(4
                </font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">%)</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>Revenue,
      Cost of Revenue and Gross Profit </em></strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      following table presents revenue, cost of revenue and gross profit for the
      fiscal years ended September 30, 2005 and 2004: </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div align="center">
      <table border="0" cellpadding="0" cellspacing="0" id="ftable" width="90%">

          <tr>
            <td align="left" valign="bottom" width="43%" style="border-bottom: #ffffff solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
            </td>
            <td width="2%" style="border-bottom: #ffffff solid;">&#160;</td>
            <td align="right" colspan="2" valign="bottom" width="12%" style="border-bottom: #ffffff solid;">&#160;</td>
            <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff solid;">&#160;</td>
            <td align="right" colspan="2" valign="bottom" width="12%" style="border-bottom: #ffffff solid;">&#160;</td>
            <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff solid;">&#160;</td>
            <td align="right" colspan="5" valign="bottom" width="26%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Net
                change </strong></font></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>2005
                vs. 2004&#160;</strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;</font>&#160;</div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff solid;">&#160;</td>
          </tr>
          <tr>
            <td align="left" valign="bottom" width="43%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Fiscal
                Year Ended September&#160;30,&#160;</strong></font>&#160;&#160;</div>
            </td>
            <td width="2%" style="border-bottom: #ffffff solid;">&#160;</td>
            <td align="right" colspan="2" valign="bottom" width="12%" style="border-bottom: black thin solid;">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><strong><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2005</font></strong></div>
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            <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff solid;">&#160;</td>
            <td align="right" colspan="2" valign="bottom" width="12%" style="border-bottom: black thin solid;">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><strong><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2004</font></strong></div>
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            <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff solid;">&#160;</td>
            <td align="right" colspan="2" valign="bottom" width="12%" style="border-bottom: black thin solid;">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><strong><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></strong></div>
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            <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff solid;">&#160;</td>
            <td align="right" colspan="2" valign="bottom" width="12%" style="border-bottom: black thin solid;">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><strong><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">%</font></strong></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff solid;">&#160;</td>
          </tr>
          <tr>
            <td align="left" valign="bottom" width="43%">&#160;</td>
            <td width="2%">&#160;</td>
            <td align="left" valign="bottom" width="1%">&#160;</td>
            <td align="right" valign="bottom" width="11%">&#160;</td>
            <td align="left" valign="bottom" width="2%">&#160;</td>
            <td align="left" valign="bottom" width="1%">&#160;</td>
            <td align="right" valign="bottom" width="11%">&#160;</td>
            <td align="left" valign="bottom" width="2%">&#160;</td>
            <td align="left" valign="bottom" width="1%">&#160;</td>
            <td align="right" valign="bottom" width="11%">&#160;</td>
            <td align="left" valign="bottom" width="2%">&#160;</td>
            <td align="left" valign="bottom" width="1%">&#160;</td>
            <td align="right" valign="bottom" width="11%">&#160;</td>
            <td align="left" valign="bottom" width="1%">&#160;</td>
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          <tr bgcolor="white">
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              <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Total
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            <td width="2%" style="border-bottom: white;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
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            <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">5,769</font></div>
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            <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
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            <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">4,888
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            <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
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            <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">881</font></div>
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            <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">18
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            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">%</font></div>
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            <td align="left" valign="bottom" width="43%" style="border-bottom: #ffffff solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Cost
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            <td width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">3,113
                </font></div>
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            <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">2,290
                </font></div>
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            <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">823
                </font></div>
            </td>
            <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">36
                </font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td align="left" valign="bottom" width="43%" style="border-bottom: white solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Gross
                profit </font></div>
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            <td width="2%" style="border-bottom: white thin solid;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
            </td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: black double;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">2,656</font></div>
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            <td align="left" valign="bottom" width="2%" style="border-bottom: white solid;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
            </td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: black double;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">2,598</font></div>
            </td>
            <td align="left" valign="bottom" width="2%" style="border-bottom: white solid;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
            </td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: black double;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">58</font></div>
            </td>
            <td align="left" valign="bottom" width="2%" style="border-bottom: white solid;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">&#160;</td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: black double;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">2
                </font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: white thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">%</font></div>
            </td>
          </tr>
          <tr>
            <td align="left" valign="bottom" width="43%" style="border-bottom: medium none;">&#160;</td>
            <td width="2%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
            </td>
            <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
            </td>
            <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
            </td>
            <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>Revenue.
      </em></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Our
      revenue is generated principally by fees paid for Web Services, Managed Services
      and Subscription Revenue. The following table presents revenue from each of
      our
      revenue streams and their respective contribution to the increase in revenue
      in
      the fiscal years ended September 30, 2005 and 2004:</font></div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 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="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">33</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <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="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div align="center">
      <table border="0" cellpadding="0" cellspacing="0" id="ftable" width="90%">

          <tr>
            <td align="left" valign="bottom" width="43%" style="border-bottom: #ffffff solid;">&#160;</td>
            <td width="2%" style="border-bottom: #ffffff solid;">&#160;</td>
            <td align="right" colspan="2" valign="bottom" width="12%" style="border-bottom: #ffffff solid;">&#160;</td>
            <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff solid;">&#160;</td>
            <td align="right" colspan="2" valign="bottom" width="12%" style="border-bottom: #ffffff solid;">&#160;</td>
            <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff solid;">&#160;</td>
            <td align="right" colspan="5" valign="bottom" width="26%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Net
                change </strong></font></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>2005
                vs. 2004&#160;</strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;</font>&#160;&#160;</div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff solid;">&#160;</td>
          </tr>
          <tr>
            <td align="left" valign="bottom" width="43%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Fiscal
                Year Ended
                September&#160;30,&#160;</strong></font>&#160;&#160;&#160;</div>
            </td>
            <td width="2%" style="border-bottom: #ffffff solid;">&#160;</td>
            <td align="right" colspan="2" valign="bottom" width="12%" style="border-bottom: black thin solid;">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><strong><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2005</font></strong>&#160;</div>
            </td>
            <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff solid;">&#160;</td>
            <td align="right" colspan="2" valign="bottom" width="12%" style="border-bottom: black thin solid;">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><strong><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2004</font></strong>&#160;</div>
            </td>
            <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff solid;">&#160;</td>
            <td align="right" colspan="2" valign="bottom" width="12%" style="border-bottom: black thin solid;">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><strong><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></strong>&#160;</div>
            </td>
            <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff solid;">&#160;</td>
            <td align="right" colspan="2" valign="bottom" width="12%" style="border-bottom: black thin solid;">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><strong><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">%</font></strong>&#160;</div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff solid;">&#160;</td>
          </tr>
          <tr>
            <td align="left" valign="bottom" width="43%" style="border-bottom: medium none;">&#160;</td>
            <td width="2%" style="border-bottom: medium none;">&#160;</td>
            <td align="right" colspan="2" valign="bottom" width="12%" style="border-bottom: medium none;">&#160;&#160;</td>
            <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
            <td align="right" colspan="2" valign="bottom" width="12%" style="border-bottom: medium none;">&#160;&#160;</td>
            <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
            <td align="right" colspan="2" valign="bottom" width="12%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
            <td align="right" colspan="2" valign="bottom" width="12%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td align="left" valign="bottom" width="43%" style="border-bottom: white;">
              <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Web
                Services</font></div>
            </td>
            <td width="2%" style="border-bottom: white;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
            </td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">4,182</font></div>
            </td>
            <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
            </td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">3,820
                </font></div>
            </td>
            <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
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            <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
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              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman">&#8212;</font></font></div>
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            <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">343
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            <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
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                </font></div>
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            <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
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            <td align="right" valign="bottom" width="11%" style="border-bottom: black double;">
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            </td>
            <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff solid;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">&#160;</td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: black double;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">18
                </font></div>
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            </td>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Web
      Services revenue consists primarily of revenue generated from architecture,
      design and development of our customers Web application projects. Depending
      on
      the nature of the contract, this revenue may have been accounted for utilizing
      the proportionate performance model or may be recognized as delivered. Revenue
      from Web services increased 9% to $4,182 in 2005 from $3,820 in 2004. This
      growth was primarily due to the ongoing signing of new or expanded customer
      accounts requiring Web services. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Managed
      Services revenue consists primarily of retained maintenance services agreements
      and Web maintenance and hosting arrangements. Revenues from managed services
      increased 16% to $1,244 in 2005 from $1,068 in 2004 primarily due to increased
      hosting and retained services revenue with three financial services
      customers.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Subscription
      Revenue consists primarily of on-demand license rentals of our Orgitecture
      product in the foundation and non-profit sector of our business. Revenues from
      Subscription Revenue increased $343,000 in 2005, primarily due to the
      acquisition of iapps in December 2004.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>Cost
      of Revenues and Gross Profit</em></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">.
      Cost of
      revenues increased to $3,113 in 2005 from $2,290 in 2004 primarily due to
      increases in staff related costs associated with the delivery of Web services.
      </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      c</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">ost
      of
      revenues also increased as a result of the iapps acquisition. Specifically,
      we
      recognized $94&#160;and $30 in amortization of intangibles related to this
      acquisition </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">for
      the
      years ended September 30, 2005 and 2004, respectively</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">.
      Gross
      margin during 2005 of 46% of revenues decreased from 2004 gross margin of 53%
      driven primarily by the increased direct labor incurred and associated
      inefficiencies of ramping up sales resulting in lower billable utilization
      and
      overrun in costs on certain engagements.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>Sales
      and Marketing Expenses</em></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">.
      Sales
      and marketing expenses increased to $2,060 in 2005 from $1,874 in 2004, but
      as a
      percentage of revenue decreased from 38% in 2004 to 35% in 2005. The increase
      in
      selling and marketing expenses was primarily due to the costs associated with
      the additional personnel acquired in the iapps acquisition.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>General
      and Administrative Expenses. </em></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">General
      and administrative expenses increased to $1,014&#160;in 2005 compared to $830 in
      2004. The increase resulted primarily from an increase in headcount resulting
      from direct hires and acquisitions. We also had an increase in computer
      maintenance purchases and increased compensation levels. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>Technology
      Development Expenses.</em></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Technology
      development expenses increased to $43, or 1% of revenues, in 2005 compared
      to
      $26, or 0.5% of revenues, in 2004. The total increase resulted primarily from
      product development enhancement activities for the netEDITOR content management
      product.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Liquidity
      and Capital Resources</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">We
      have
      historically funded our operations principally through issuances of short-term
      debt and private equity. In April 2006, we completed a private placement
      financing in the amount of $2,800 and received net proceeds of $2,433 after
      financing fees. In connection with this debt, we issued 280,000 warrants
      exercisable at $0.001 and 112,000 warrants exercisable at the initial public
      offering price of our shares in this offering. These warrants have been valued
      at $646 and are recorded as a debt discount and prepaid finance costs. This
      debt
      carries an interest rate of </font></div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
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        <div style="WIDTH: 100%; TEXT-ALIGN: center">
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      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">10%
      per
      annum for the first six months and 12% per annum thereafter. The effective
      interest rate, considering the amortization of the debt discount and other
      debt
      issuance costs, is 47%. The debt was subordinated to certain debt that was
      retired in July 2006. The debt carries default provisions including: (1) failure
      to pay principal or accrued interest when due, (2) failure to observe or perform
      various positive and negative covenants as set forth in the loan document,
      (3)
      failure to expeditiously process our initial public offering and (4) the
      occurrence of a bankruptcy or similar event. In the event of loan default,
      the
      interest rate will increase to 15% per annum and in case of default in payment
      of the principal, the interest rate would increase to 18% per annum. This debt
      carries a one-year term and will be retired upon the successful completion
      of
      this offering. If this offering is not completed, we expect to request an
      extension on the payment date of the notes. If we are unable to extend the
      maturity of these obligations, we may be forced to raise additional funds to
      pay
      them, through the issuance of additional debt or equity securities.
</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>Cash
      Flows </em></strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>Operating
      Activities </em></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Our
      net
      cash used in operating activities was $493 for the fiscal ten months ended
      July
      31, 2006 compared to $661 for the fiscal ten months ended July&#160;31, 2005.
      For the ten fiscal months ended July&#160;31, 2006, the increase in revenue was
      the primary reason for the decrease in cash used in operating activities. We
      used cash in operating activities of $432 for the fiscal year ended
      September&#160;30, 2005 as compared to $378 for the fiscal year ended September
      30, 2004. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">At
      July&#160;31, 2006, we had a working capital deficit of $1,092 compared to a
      working capital deficit of $179 at September&#160;30, 2005. This increase was
      primarily a result of the $2,800 private placement completed in April 2006
      net
      of an increase in cash and accounts receivable resulting from an increase in
      revenue.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">At
      July&#160;31, 2006, we had trade accounts receivable of&#160;$1,073.&#160;This
      compares to $605 in trade accounts receivable at September&#160;30, 2005. The
      level of trade accounts receivable at July&#160;31, 2006 represented
      approximately 48 days of revenues as compared to 38 days at September 30, 2005.
      We typically require 30-day terms from our customers. Our receivables can vary
      dramatically due to overall sales volumes, the timing of implementation of
      services, receipts from large customers, and other contract payments.
</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;
      </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>Investing
      Activities </em></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Net
      cash
      used in investing activities was $754 for the ten fiscal months ended
      July&#160;31, 2006. This was primarily the result of the cash utilized in the
      purchase of New Tilt in April 2006 of $554. This compares to net cash used
      in
      investing activities in the ten fiscal months ended July 31, 2005 of $540 which
      included a cash payment of $308 used to acquire iapps in December 2004. We
      expect to incur more costs for future acquisitions and capital expenditures
      as
      well as contingent earn-out payments related to our prior
      acquisitions.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>Financing
      Activities </em></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">During
      the fiscal ten months ended July 31, 2006 and the fiscal years ended
      September&#160;30, 2005 and 2004, we financed our working capital requirements
      primarily through short-term debt. In March 2005, we entered into a short term
      credit facility with Sand Hill Finance, LLC whereby we pledged certain
      receivables and received an 80% advance against these receivables with the
      additional 20% being received upon collection of the receivable. This credit
      facility carried 1.7% interest per month and certain fees and was terminated
      subsequent to the successful completion of the April 2006 private placement
      financing.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Net
      cash
      provided by financing activities was $2,080&#160;for the fiscal ten months ended
      July 31, 2006, which as stated above, was primarily provided by the private
      placement of short-term debt of $2,025 offset by $367 in associated fees. The
      net cash provided by financing activities in the ten months ended July 31,
      2005
      of $338 was primarily provided by the Sand Hill Finance LLC credit facility
      described above.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      short-term notes have a one-year term and are payable on April 20, 2007. If
      we
      are unsuccessful in completing this offering, and if we are unable to extend
      the
      maturity of these obligations, we may be forced to raise additional funds to
      pay
      them through the issuance of additional debt or equity securities. </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Particularly
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    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
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      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">35</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
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        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">
        </div>
      </div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">history
      and losses incurred, there can be no assurance that we will be able to obtain
      the necessary additional capital on a timely basis, on acceptable terms or
      at
      all. In any of such events, our business prospects, financial condition and
      results of operations would be materially and adversely affected. As a result
      of
      any such financing, the holders of our common stock may experience substantial
      dilution.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">If
      we are
      unable to increase our revenues and decrease our expenses, we will need to
      raise
      additional funds to finance our future capital needs. We may need additional
      financing earlier than we anticipate. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">We
      currently do not have any variable interest entities. We do not have any
      relationships with unconsolidated entities or financial partnerships, such
      as
      entities often referred to as structured finance or special purpose entities,
      which would have been established for the purpose of facilitating off-balance
      sheet arrangements or other contractually narrow or limited purposes. We are,
      therefore, not materially exposed to any financing, liquidity, market or credit
      risk that could arise if we had engaged in such relationships. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>Capital
      Resources and Liquidity Outlook </em></strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">We
      have
      been dependent upon raising private capital for short and long-term cash needs.
      In March 2005, we obtained a $500</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      credit
      line under which we could borrow up to 80% of our eligible outstanding accounts
      receivable. In connection with this credit line, the lender obtained a first
      priority security interest in all of our assets. This line of credit was
      increased to $750 on September 12, 2005 and was terminated on June 30, 2006
      with
      the proceeds of the April 2006 private placement financing described above.
      </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>Inflation</em></strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">We
      believe that the relatively moderate rates of inflation in recent years have
      not
      had a significant impact on our operations. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>Off-Balance
      Sheet Arrangements </em></strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">We
      do not
      have any off-balance sheet arrangements, financings or other relationships
      with
      unconsolidated entities or other persons. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>Contractual
      Obligations </em></strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><a name="eolPage36"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">We
      lease
      our corporate headquarters in Woburn, Massachusetts. We also lease facilities
      in
      New York, New York; Washington, D.C.; and Bangalore, India. </font></a></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Our
      other
      purchase obligations include certain equipment acquired under capitalized lease
      agreements that begin to expire in fiscal year 2009. We have no contractual
      obligations extending beyond five years. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      following summarizes our long-term contractual obligations as of July&#160;31,
      2006: </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;
      </font></div>
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          <tr bgcolor="white">
            <td align="justify" valign="top" width="25%">
              <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
              <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Payment
                Obligations by Year</strong></font></div>
            </td>
            <td align="left" valign="bottom" width="1%">&#160;</td>
            <td align="left" valign="bottom" width="1%">&#160;</td>
            <td valign="bottom" width="6%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Remainder</strong></font></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>FY
                2006</strong></font></div>
            </td>
            <td align="left" valign="top" width="1%">&#160;</td>
            <td align="left" valign="bottom" width="1%">&#160;</td>
            <td valign="bottom" width="6%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>FY
                07</strong></font></div>
            </td>
            <td align="left" valign="bottom" width="1%">&#160;</td>
            <td align="left" valign="bottom" width="1%">&#160;</td>
            <td valign="bottom" width="6%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>FY
                08</strong></font></div>
            </td>
            <td align="left" valign="bottom" width="1%">&#160;</td>
            <td align="left" valign="bottom" width="1%">&#160;</td>
            <td valign="bottom" width="6%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>FY
                09</strong></font></div>
            </td>
            <td align="left" valign="bottom" width="1%">&#160;</td>
            <td align="left" valign="bottom" width="1%">&#160;</td>
            <td colspan="3" valign="bottom" width="6%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>FY
                10</strong></font></div>
            </td>
            <td width="1%">&#160;</td>
            <td align="left" valign="bottom" width="1%">&#160;</td>
            <td colspan="3" valign="bottom" width="6%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>FY
                11</strong></font></div>
            </td>
            <td align="left" valign="bottom" width="1%">&#160;</td>
            <td align="left" valign="bottom" width="1%">&#160;</td>
            <td colspan="2" valign="bottom" width="6%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Totals</strong></font></div>
            </td>
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            <td align="justify" valign="top" width="25%">
              <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Operating
                leases </font></div>
            </td>
            <td align="left" valign="bottom" width="1%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;
                </font></div>
            </td>
            <td align="left" valign="bottom" width="1%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$
                </font></div>
            </td>
            <td align="right" valign="bottom" width="6%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">80
                </font></div>
            </td>
            <td align="left" valign="top" width="1%">&#160;</td>
            <td align="left" valign="bottom" width="1%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$
                </font></div>
            </td>
            <td align="right" valign="bottom" width="6%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">259
                </font></div>
            </td>
            <td align="left" valign="bottom" width="1%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;
                </font></div>
            </td>
            <td align="left" valign="bottom" width="1%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$
                </font></div>
            </td>
            <td align="right" valign="bottom" width="6%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">234</font></div>
            </td>
            <td align="left" valign="bottom" width="1%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;
                </font></div>
            </td>
            <td align="left" valign="bottom" width="1%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$
                </font></div>
            </td>
            <td align="right" valign="bottom" width="6%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">237
                </font></div>
            </td>
            <td align="left" valign="bottom" width="1%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;
                </font></div>
            </td>
            <td align="left" valign="bottom" width="1%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$
                </font></div>
            </td>
            <td align="right" colspan="3" valign="bottom" width="6%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">239
                </font></div>
            </td>
            <td width="1%">&#160;</td>
            <td align="left" valign="bottom" width="1%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$
                </font></div>
            </td>
            <td align="right" colspan="3" valign="bottom" width="6%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">230
                </font></div>
            </td>
            <td align="left" valign="bottom" width="1%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;
                </font></div>
            </td>
            <td align="left" valign="bottom" width="1%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$
                </font></div>
            </td>
            <td align="right" colspan="2" valign="bottom" width="6%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">1,279
                </font></div>
            </td>
          </tr>
          <tr>
            <td align="justify" valign="top" width="25%">
              <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Capital
                lease obligations</font></div>
            </td>
            <td align="left" valign="bottom" width="1%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;
                </font></div>
            </td>
            <td align="left" valign="bottom" width="1%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;
                </font></div>
            </td>
            <td align="right" valign="bottom" width="6%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">11
                </font></div>
            </td>
            <td align="left" valign="top" width="1%">&#160;</td>
            <td align="left" valign="bottom" width="1%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;
                </font></div>
            </td>
            <td align="right" valign="bottom" width="6%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">66
                </font></div>
            </td>
            <td align="left" valign="bottom" width="1%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;
                </font></div>
            </td>
            <td align="left" valign="bottom" width="1%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;
                </font></div>
            </td>
            <td align="right" valign="bottom" width="6%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">67
                </font></div>
            </td>
            <td align="left" valign="bottom" width="1%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;
                </font></div>
            </td>
            <td align="left" valign="bottom" width="1%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;
                </font></div>
            </td>
            <td align="right" valign="bottom" width="6%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">40
                </font></div>
            </td>
            <td align="left" valign="bottom" width="1%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;
                </font></div>
            </td>
            <td align="left" valign="bottom" width="1%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;
                </font></div>
            </td>
            <td align="right" colspan="3" valign="bottom" width="6%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">13</font></div>
            </td>
            <td width="1%">&#160;</td>
            <td align="left" valign="bottom" width="1%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;
                </font></div>
            </td>
            <td align="right" colspan="3" valign="bottom" width="6%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">1</font></div>
            </td>
            <td align="left" valign="bottom" width="1%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;
                </font></div>
            </td>
            <td align="left" valign="bottom" width="1%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;
                </font></div>
            </td>
            <td align="right" colspan="2" valign="bottom" width="6%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">198
                </font></div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td align="justify" valign="top" width="25%">
              <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Short-term
                debt (including interest)</font></div>
            </td>
            <td align="left" valign="bottom" width="1%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;
                </font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;
                </font></div>
            </td>
            <td align="right" valign="bottom" width="6%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">47</font></div>
            </td>
            <td align="left" valign="top" width="1%">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;
                </font></div>
            </td>
            <td align="right" valign="bottom" width="6%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2,991
                </font></div>
            </td>
            <td align="left" valign="bottom" width="1%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;
                </font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;
                </font></div>
            </td>
            <td align="right" valign="bottom" width="6%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8212;</font></div>
            </td>
            <td align="left" valign="bottom" width="1%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;
                </font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;
                </font></div>
            </td>
            <td align="right" valign="bottom" width="6%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8212;</font></div>
            </td>
            <td align="left" valign="bottom" width="1%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;
                </font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;
                </font></div>
            </td>
            <td align="right" colspan="3" valign="bottom" width="6%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8212;</font></div>
            </td>
            <td width="1%">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;
                </font></div>
            </td>
            <td align="right" colspan="3" valign="bottom" width="6%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8212;</font></div>
            </td>
            <td align="left" valign="bottom" width="1%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;
                </font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;
                </font></div>
            </td>
            <td align="right" colspan="2" valign="bottom" width="6%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">3,038
                </font></div>
            </td>
          </tr>
          <tr>
            <td align="justify" valign="top" width="25%" style="border-bottom: #ffffff solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Total
                </font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;
                </font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$
                </font></div>
            </td>
            <td align="right" valign="bottom" width="6%" style="border-bottom: black double;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">138</font></div>
            </td>
            <td align="left" valign="top" width="1%" style="border-bottom: #ffffff solid;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$
                </font></div>
            </td>
            <td align="right" valign="bottom" width="6%" style="border-bottom: black double;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">3,316</font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;
                </font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$
                </font></div>
            </td>
            <td align="right" valign="bottom" width="6%" style="border-bottom: black double;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">301
                </font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;
                </font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$
                </font></div>
            </td>
            <td align="right" valign="bottom" width="6%" style="border-bottom: black double;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">277
                </font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;
                </font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$
                </font></div>
            </td>
            <td align="right" colspan="3" valign="bottom" width="6%" style="border-bottom: black double;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">252
                </font></div>
            </td>
            <td width="1%">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$
                </font></div>
            </td>
            <td align="right" colspan="3" valign="bottom" width="6%" style="border-bottom: black double;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">231</font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;
                </font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$
                </font></div>
            </td>
            <td align="right" colspan="2" valign="bottom" width="6%" style="border-bottom: black double;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">4,515
                </font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Recent
      Accounting Requirements</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><a name="FIS_MARKET_RISK"/><a name="D10K_HTM_TX25080_10"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;In
      September 2006, the SEC staff issued Staff Accounting
      Bulletin&#160;No.&#160;108, </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>Considering
      the Effects of Prior Year Misstatements when Quantifying Misstatements in
      Current Year Financial Statements</em></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      (&#8220;SAB
      108&#8221;). SAB&#160;108 was issued in order to eliminate the diversity of practice
      surrounding how public companies quantify financial statement misstatements.
      Traditionally, there have been two widely-recognized methods for quantifying
      the
      effects of financial statement misstatements: the &#8220;roll-over&#8221; method and the
&#8220;iron curtain&#8221; method. The roll-over method </font></a></div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 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="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">36</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <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="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">focuses
      primarily on the impact of a misstatement on the income statement&#160;&#8212;
including the reversing effect of prior year misstatements&#160;&#8212; but its use
      can lead to the accumulation of misstatements in the balance sheet. The
      iron-curtain method, on the other hand, focuses primarily on the effect of
      correcting the period-end balance sheet with less emphasis on the reversing
      effects of prior year errors on the income statement. In SAB&#160;108, the SEC
      staff established an approach that requires quantification of financial
      statement misstatements based on the effects of the misstatements on each of
      a
      company&#8217;s financial statements and the related financial statement disclosures.
      This model is commonly referred to as a &#8220;dual approach&#8221; because it requires
      quantification of errors under both the iron curtain and the roll-over methods.
      We have evaluated SFAS 108 and believe its adoption will not materially impact
      our consolidated financial statements.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;In
      September 2006, the FASB issued SFAS No. 157, </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>Fair
      Value Measurements</em></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      (&#8220;SFAS
      157&#8221;), which defines fair value, establishes a framework for measuring fair
      value in accounting principles generally accepted in the United State of
      America, and expands disclosures about fair value measurements. SFAS 157
      prioritizes the inputs to valuation techniques used to measure fair value into
      a
      hierarchy containing three broad levels. The fair value hierarchy gives the
      highest priority to quoted prices (unadjusted) in active markets for identical
      assets and liabilities (Level 1) and the lowest priority to unobservable inputs
      (Level 3). In some cases, the inputs used to measure fair value might fall
      in
      different levels of the fair value hierarchy. The level in the fair value
      hierarchy within which the fair value measurement in its entirety falls shall
      be
      determined on the lowest level input that is significant to the fair value
      measurement in its entirety. Assessing the significance of a particular input
      to
      the fair value measurement in its entirety requires judgment, considering
      factors specific to the asset or liability. SFAS No. 157 is effective for
      interim and annual financial statements for fiscal years beginning after
      November 15, 2007. Upon initial adoption of SFAS 157, differences between the
      carrying value and the fair value of those instruments shall be recognized
      as a
      cumulative-effect adjustment to the opening balance of retained earnings for
      that fiscal year, and the effect of subsequent adjustments resulting from
      recurring fair measurements shall be recognized in earnings for the period.
      We
      have</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      not
      completed our evaluation of SFAS 157. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;In
      June 2006, the FASB issued FASB Interpretation No.&#160;48, </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>Accounting
      for Uncertainty in Income Taxes&#160;&#8212; an Interpretation of FASB Statement
      No.&#160;109</em></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      (&#8220;FIN&#160;48&#8221;), which clarifies the accounting for uncertainty in tax
      positions. FIN&#160;No.&#160;48 requires that we recognize the impact of a tax
      position in the financial statements, if that position is more likely than
      not
      to be sustained on audit, based on the technical merits of the position. The
      provisions of FIN&#160;48 are effective for fiscal years beginning after
      December 15, 2006, with the cumulative effect, if any, of the change in
      accounting principle recorded as an adjustment to opening retained earnings.
      </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">We
      have
</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">evaluated
      FIN 48 and believes its adoption will not materially impact the consolidated
      financial statements.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Quantitative
      and Qualitative Disclosure about Market Risk</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">We
      do not
      use derivative financial instruments. We place our cash and cash equivalents
      in
      institutions that meet high credit quality standards. Our cash and cash
      equivalents are not subject to significant interest risks due to the short-term
      maturities of these instruments. As of September&#160;30, 2005 and June 30,
      2006, the carrying value of our cash and cash equivalents approximated fair
      value and we have concluded that there is no material market risk exposure.
      Therefore, no quantitative tabular disclosures are required. </font><br></div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 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="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">37</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <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="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>BUSINESS</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Overview</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Bridgeline
      Software is a developer of Web service applications, for which we have received
      several awards, and Web software tools. Examples are (i)
      netEDITOR-pro</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><sup>TM</sup></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">,
      our Web
      content management system and (ii) Orgitecture</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><sup>TM</sup></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">,
      our
      on-demand Web-based platform which provides expandable on-demand modules such
      as
      Relationship Management, eSurvey, eNewsletter, Content Management, eCommerce,
      Event Registration and Integrated Grants Management. Our in-house team of
      Microsoft</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><sup>&#174;</sup></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">-certified
      developers specializes in information architecture and usability engineering,
      Web application development, rich media development, e-Commerce application
      development,&#160;and e-Training application development and search engine
      optimization. We believe that our competitive strength is in being able to
      provide our customers with complete end-to-end solutions to assist them with
      optimizing business processes utilizing Web-based technologies. A description
      of&#160;our Web software tools and Web services is included below.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">We
      have
      more than 70 active customers, including Nomura Securities, The Bank of New
      York, Pfizer, Depository Trust &amp; Clearing Corporation and John Hancock,
      which each comprised approximately 23%, 9%, 6%, 6% and 5% of our revenues,
      respectively, during the ten months ended July 31, 2006.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">We
      have
      received multiple industry related awards. Awards and similar recognition we
      have achieved since 2002 include:</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">
      <div style="DISPLAY: block; MARGIN-LEFT: 72pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1;">
            <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">a
                Standard of Excellence Award and Outstanding Website Awards in the
                Web
                Marking Association&#8217;s WebAward Competition, an annual competition that
                names the best Web applications in 96 industries;
                </font></div>
            </td>
          </tr>

      </table>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1;">
            <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">being
                selected as a finalist for numerous MITX Awards from the Massachusetts
                Innovation &amp; Technology Exchange, which acknowledge the best creative
                and technological accomplishments in interactive technology emerging
                from
                New England; </font></div>
            </td>
          </tr>

      </table>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1;">
            <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">being
                among the winners of several Axiem Awards, an </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">international
                award program created to honor those who produce the best in all
                forms of
                </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">interactive
                technology; and</font></div>
            </td>
          </tr>

      </table>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1;">
            <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;<strong><em>&#160;
              </em></strong></font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">winning
                Bronze and Merit Awards at the One Show Interactive Awards from The
                One
                Club for Art and Copy, Inc., which honor creativity and effectiveness
                in
                global communications in the area of interactive technology.
                </font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">We
      maintain offices twelve miles north of Boston, Massachusetts; in New York,
      New
      York; and in Washington, D.C., as well as a development center in Bangalore,
      India. Our principal executive office is at 10 Sixth Road, Woburn, Massachusetts
      01801, and our telephone number at that location is (781) 376-5555.
</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Market
      Opportunity</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Based
      on
      industry data provided by Harte-Hanks (a data intelligence firm), we believe
      that the&#160;Web development market is rapidly growing and is fragmented.
      Consequently, we believe there is an opportunity for us to expand and
      dramatically enhance our market share by acquiring many such companies, grow
      the
      acquired businesses under the Bridgeline Software name and thereby potentially
      create one of the largest interactive technology companies in North America.
      We
      believe that established yet small Web application development companies have
      the ability to market, sell and install Web-based software tools in their local
      metropolitan markets. In addition, we believe that these companies also have
      customer bases and a niche presence in the local markets in which they operate.
      We believe that by acquiring certain of these companies and applying our
      business practices and efficiencies, we can dramatically accelerate our time
      to
      market in geographic locations other than those in which we now
      operate.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">We
      estimate, based on our experience in having made such acquisitions, that
      compounded annual growth rates of at least 20% per year for each acquired entity
      may be possible. We target certain established Web application development
      companies that we believe have both:</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td style="width: 18pt;">&#160;</td>
            <td style="width: 18pt;">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(1)
                </font></div>
            </td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">the
                complementary technical ability to market, sell, and install Web-based
                software tools in their particular metropolitan market areas;
                and</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td style="width: 18pt;">&#160;</td>
            <td style="width: 18pt;">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(2)
                </font></div>
            </td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">an
                established base of customers with local market presence that can
                potentially accelerate our time to market in geographic areas where
                we do
                not currently operate. </font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 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="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">38</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <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="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
      addition, we believe that even established Web application development companies
      we acquire could improve their profit margins by (1) licensing our web software
      tools to their customer base, (2) reducing development costs by leveraging
      our
      Bangalore, India development center and (3) consolidating marketing, general
      and
      administrative functions at our corporate headquarters in Massachusetts. We
      believe this expansion strategy, by which we grow primarily by acquiring
      profitable operating partner companies, is a key component of our business
      model.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Acquisitions</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Since
      our
      inception, we have consummated the acquisitions of four Web application
      development companies: </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 54pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
                December 2000, we acquired Streamline Communications, a Boston,
                Massachusetts-based company.</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 54pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
                February 2002, we acquired Lead Dog Digital, Inc., a New York, New
                York-based company.</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 54pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
                December 2004, we acquired Interactive Applications, Inc., a Washington,
                D.C.-based company.</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 54pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
                April 2006, we acquired New Tilt, Inc., a Cambridge, Massachusetts-based
                company.</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
      addition, on December 7, 2006, we signed a definitive merger agreement. Under
      this agreement, we intend to acquire all outstanding capital stock of
      Objectware, Inc., an Atlanta, Georgia-based Web application development company.
      </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      terms
      of the proposed acquisition of Objectware, Inc. are described further under
      &#8220;Growth and Expansion Strategy&#8221; beginning on page 50.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>The
      Web Services and Web Tools Marketplace</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>Web
      Services Market</em></strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      word
&#8220;Web&#8221; is shorthand for the TCP/IP (or Transmission Control Protocol / Internet
      Protocol) standard that carries Internet traffic around the world and also
      the
      networking standard for the integration of the corporate enterprise, from the
      manufacturing floor and sales office to the boardroom and across the global
      span
      of the enterprise&#8217;s manufacturing, sales, and service locations. Web design and
      development is no longer just about creating attractive and functional Web
      sites; it has evolved to bear a very practical, commercial importance to many
      companies.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">We
      believe that several ongoing developments have contributed to the complexity
      of
      the Web. Existing client-server applications with connections to resources
      -
      mainframes, minicomputers, and legacy data sources - have been redesigned using
      Web technology. ERP (enterprise resource planning), CRM (customer relationship
      management), SCM (supply chain management) and other enterprise-scale
      applications have been reconfigured as enterprise wide application services
      (Web
      services) with custom portals for each of the various corporate
      departments.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">We
      believe that Web properties and Web applications will continue to increase
      in
      number and complexity. In order to differentiate themselves from competitors,
      we
      expect many companies to increase the use of sophisticated technologies in
      their
      Web sites in order to provide users with an enhanced experience, either with
      content that is graphically enhanced with motion video or with user interfaces
      that provide the look and feel of a desktop application without constant
      interaction with servers. We believe the trend toward increases in the use
      of
      sophisticated technology could accelerate if companies have access to tools that
      make the development of such client user interfaces easier and make Web site
      development an integral part of the broader information technology (&#8220;IT&#8221;)
      development life cycle. </font><br></div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 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="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">39</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <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="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">International
      Data Corporation (IDC) estimates that the number of Internet users continues
      to
      grow substantially, especially in emerging economies. According to IDC
      estimates, in the next four years, 400 million new users will come online and
      commerce will double. By the end of 2006, IDC estimates that 50% of Internet
      households will be broadband and less than 5% of total commerce will be
      conducted online.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">IDC
      estimates spending on Web services software was $2.33 billion in 2004, more
      than
      doubling from the prior year. With application developers continuing to enable
      and introduce more native Web service solutions, and a market for hosted
      services unfolding, IDC believes that applications will continue to represent
      a
      significant growth area for years to come. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Annual
      investments in Web services-based technologies are increasing. IDC&#8217;s Web
      Services Total Opportunity Model estimates that worldwide companies spent
      approximately $4.11 billion on Web services software in 2005, nearly double
      the
      amount spent in the prior year. Because Web services still represent an emerging
      market, growth rates appear high, but this volume represented only 2% of the
      total worldwide software market in 2005. The model further forecasts that
      worldwide spending will reach close to $15 billion by 2009. The chart below
      represents IDC&#8217;s 2004 to 2009 projections for Web services revenue in North
      America; IDC estimates that the North American market share consistently remains
      greater than 55% of the world wide spending.&#160;</font><br>&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><img src="p40graph_14663.jpg" alt="GRAPH"></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">IDC
      identifies the following trends influencing the level of spending for Web
      services technology:</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Many
                of the existing Web applications were developed from 1999 to 2003,
                utilizing older Web development technologies such as HTML. The Web
                applications developed were limited and did not provide significant
                operational efficiencies. Since 1999, there have been technological
                advancements in dynamic Web logic, open source standards, and broadband
                technologies. We believe these technological advancements combined
                with a
                resurgence in information technology spending will fuel strong investments
                towards redeveloping legacy Web
                applications.</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Many
                organizations will likely continue to experiment and expand their
                use of
                Web services by utilizing their existing base of technologies until
                volume
                and levels of complexity force review and investment, in particular
                for
                service-oriented management
                solutions.</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 135pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">A
                heavy influence on the timing and amounts of when organizations may
                determine to invest relates to the waves of major versions released
                by key
                vendors. For example, organizations may determine to wait until Microsoft
                meets market commitments on its Longhorn releases, and SAP customers
                may
                be interested in investing as prior versions of software are retired
                from
                support.</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 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="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">40</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <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="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
                conversion of software pricing models from traditional license models
                to
                more subscription-oriented methods will influence the rate of growth
                and
                overall size of the market, especially in the context of hosted
                applications and service, creating a normalizing
                effect.</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">According
      to IDC, one of the larger trends in the North American Web services market
      is
      the resurrection of the application service provider (&#8220;ASP&#8221;) model, empowered
      and enhanced via Web services standards and technologies. Our subscription-based
      Orgitecture</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><sup>TM</sup></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      Web
      platform provides customers with an integrated suite of on-demand Web-based
      tools designed to maximize organizational effectiveness, streamline Web site
      management and reduce operating costs.</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      See
&#8220;Products and Services - </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Orgitecture</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><sup>TM</sup></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">-
      </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Modular
      On-Demand Web Tools,&#8221; below.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">According
      to IDC, the Web services applications marketplace is expected to show the most
      significant growth during the next three years, originating from the least
      of
      the three primary software markets, to reach $5.13 billion by 2009. In 2005,
      this specialized marketplace represented less than 1% of the worldwide
      applications software market. Yet by 2009, it is expected to increase to more
      than 5% of the worldwide applications software market. The chart below
      represents IDC&#8217;s 2006 to 2009 projections for total Web services revenue in
      North America as well as our estimate, based on information from IDC, of Web
      services revenue by primary category. IDC estimates that the North American
      market share will consistently remain greater than 55% of the worldwide
      spending.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center">
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div><img src="p41graph_14663.jpg" alt="GRAPH"></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>The
      Content Management Market</em></strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">An
      organization&#8217;s Web properties (Internet, intranet, and extranets) can be among
      its most valuable assets. To maintain the value of these assets, the content
      within the sites must be current, accurate and dynamic. Product features,
      prices, investor information, press releases, customer communications, employee
      communications, and other content need frequent updating. These ongoing editing
      requirements can be time-consuming and costly. As a result, many organizations
      fall behind on content updates, greatly reducing the effectiveness of their
      Web
      properties. We believe that the combination of these critical communications
      requirements with heightened compliance requirements will result in a high
      demand for powerful, easy-to-use Web content management systems that have
      integrated work flow controls. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">During
      the economic downturn in 2000, many companies de-emphasized Web content
      management for their Web properties, and, instead, focused their attention
      on
      cost containment and internal efficiency. We believe, however, that companies
      are again turning to Web content management to support their growth strategies,
      such as selling products via the Web and creating or supporting new products
      and
      services through the delivery of content.</font><br></div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 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="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">41</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <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="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">During
      the downturn, we believe many chief information officers interested in Web
      content management decided their custom-built Web sites were sufficient to
      meet
      their business objectives and postponed replacing them with Web content
      management systems. Based on information provided in a report released by
      Forrester Research in February 2006, we believe many chief information officers
      and architecture groups are revisiting their past enterprise content management
      strategies and are planning to replace their custom Web sites with Web content
      management systems during the next 18 months. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">We
      believe many of the new systems being planned will be second-generation Web
      sites, </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>i.e</em></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">.,
      they
      will support and synchronize complex Web environments consisting of multiple
      Web
      sites housed in difference physical locations. The newer systems will be
      required to manage changes to code and to distribute content and code from
      multiple Web content management vendors within a network of Web
      sites.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      chart
      below projects the North American revenues derived from licensed Web content
      management systems. The projections exclude other service revenue that can
      also
      be derived from training, consulting, and system integration.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>N.
      American Content Management Software Forecast</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><img src="p42graph_14663.jpg" alt="GRAPH"></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
    <div align="center">
      <table bgcolor="white" cellpadding="0" cellspacing="0" width="100%">

          <tr bgcolor="white">
            <td width="60%">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">&#160;</div>
            </td>
            <td width="40%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Source:
                </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">IDC,
                May 2006</font>&#160;</div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">We
      believe that a new class of applications is now expanding that combines data
      and
      content in support of business processes or new content-related products, and,
      accordingly, a growing number of companies have now prototyped or piloted these
      applications and are looking to expand them. Examples of content-related
      applications include a restaurant that plans to use digital content instead
      of
      traditional photographs to show food items, a hotel that using its Web site
      as
      an extension of its concierge service, or an automotive manufacturer that uses
      its Web site for customers to buy, service, maintain, and track payments for
      their vehicles.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">IDC
      reports that a growing number of companies are turning their attention to
      digital assets such as digital photographs, graphics, and logos. In certain
      cases, organizations need a specialized digital asset management product to
      support high volumes of digital assets, searching for assets based on the
      content itself - in addition to metadata, displaying thumbnails, and managing
      video and audio. IDC states that a number of companies are using their Web
      content management systems to manage digital assets rather than buying a
      specialized digital asset management product and expects this trend to
      increase&#160;in 2006 and beyond. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>The
      Web Analytics Tool Market</em></strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Web
      analytics, the measurement of the behavior of visitors to a website, generally
      focus on a single Web site or an individual visiting a single Web site rather
      than the surfing habits of individuals as they move from site to site.
</font></div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 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="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">42</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <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="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Site-independent
      analytics can be used to build a file of total surfing behavior for panels
      of
      known or anonymous individuals for marketing personalization. Web analytics
      provide real-time, actionable reporting that measures the effectiveness of
      Web
      sites and on-line marketing initiatives. Web analytics tools identify and track
      the factors that uniquely affect a Web sites success, providing insight needed
      to optimize marketing efforts and drive company online business
      success.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">IDC
      estimates there are approximately 8.4 million active Web sites globally; 3.1
      million are classified as public Web sites (</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>i.e</em></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">.,
      a Web
      site that offers content that is freely accessible to the general public).
      We
      believe that over the past five years Web sites have evolved from being
      brochure-ware type Web sites to highly functional Web applications.
      Increasingly, organizations are demanding statistical data from their Web
      applications fueling a growing Web analytics market. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">According
      to IDC, on-demand Web analytics constitute an increasing proportion of new
      business among the larger vendors. We believe that this growth constitutes
      penetration into previously installation-only verticals, such as financial
      institutions. In addition, we believe that the on-demand implementation short
      circuits much of the negotiation process that marketers would otherwise have
      to
      conduct with their IT departments. An interesting side effect of the on-demand
      business model is the ability to glean information on actual adoption and
      feature usage far beyond the limits of focus groups, labs, and survey
      questionnaires.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">According
      to IDC, the Web analytics market is a growing market expected to reach more
      than
      $600 million by the end of 2010. (See chart below.)</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Worldwide
      Web Analytics Software Applications Forecast</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><img src="p43graph_14663.jpg" alt="GRAPH"></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div align="center">
      <table bgcolor="white" cellpadding="0" cellspacing="0" width="100%">

          <tr bgcolor="white">
            <td width="60%">&#160;</td>
            <td width="40%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Source:
              <font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">IDC,
              June 2006</font></font>&#160;</td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">We
      are
      currently developing an on-Demand Web analytics software tool. We currently
      expect to launch and introduce this native .NET on-Demand Web analytics product
      to our customer base in early calendar 2007.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Products
      and Services</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>Web
      Development Services</em></strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">We
      provide an explanation of each term below. By providing scalable Web software
      tools with award-winning Web development capabilities, we provide our customers
      with complete solutions that optimize business processes through Web-based
      technologies. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">We
      believe this strategy enhances our competitive advantage by creating a stronger
      relationship with our customer base, creating and maintaining a repeatable
      business model. </font><br></div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 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="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">43</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <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="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>Information
      Architecture</em></strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Information
      architecture is a design methodology focused on structuring information to
      ensure that users can find the appropriate data and complete their desired
      transactions within a Web site or a Web application. Understanding users and
      the
      context in which they will be using a Web application is core&#160;information
      architecture. Information architects try to put themselves in the position
      of a
      typical application&#8217;s user to better understand a user&#8217;s characteristics,
      behaviors, intentions and motivations. At the same time, the information
      architect develops an understanding of a Web application&#8217;s functionality and
      data structures. The understanding of these components enables the architect
      to
      make more educated decisions about the end user and then translate those
      decisions into site maps, wire frames and clickable prototypes.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Information
      architecture forms the foundation of a Web application&#8217;s usability. The extent
      to which a Web application is user-friendly and is widely adopted by a user
      base
      is primarily dependent on the success of the information architecture.
      Information architecture defines how well users can navigate through a Web
      site
      or application and how easily they can find the desired information or function.
      As Web application development becomes more standard and commoditized,
      information architecture will increase as a differentiator for application
      developers.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">We
      provide information architecture for most of the Web applications we develop.
      </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>Usability
      Engineering </em></strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      Web
      was originally conceived as a &#8220;hypertextual&#8221; information space, in which users
      could store data through computer programs that allow other users to create
      and
      link fields of information at will and to retrieve the data nonsequentially.
      The
      development of increasingly sophisticated user interfaces and applications,
      however, has fostered the Web&#8217;s use as a remote software interface. This dual
      nature has led to much confusion, as user experience has been mixed. Today,
      usability engineering is a critical component towards developing any successful
      Web-based application.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">We
      believe that a majority of Internet users leave a Web site after viewing the
      first page. A Web property (Internet Web site, intranet site, or extranet site)
      has one chance to make a first impression on a potential user. By integrating
      usability into traditional Web development life cycles, we believe our usability
      engineers can significantly enhance a user experience. Our usability
      professionals provide the following:</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Usability
                audits</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Information
                architecture</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Process
                analysis and optimization</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#160;&#183;&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Interface
                design</font></div>
            </td>
          </tr>

      </table>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="FONT-FAMILY: Symbol">&#183;&#160;&#160;
</font></font></td>
            <td><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">User
              testing</font></td>
          </tr>

      </table>
    </div>
    <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Our
      systematic and user-centered approach to Web development focuses on developing
      Web properties that are intuitive, accessible, engaging, and effective. Our
      goal
      is to produce a net effect of increased traffic, improved visitor retention,
      increased user productivity, reduced user error, lower support cost, and reduced
      long-term development cost. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>Web
      Application Development</em></strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Our
      in-house team of Microsoft</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><sup>&#174;</sup></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">-certified
      developers develops award-winning custom Web applications. These Web
      applications include business-to-business Web properties such as broker-dealer
      extranets, employee intranets, case management systems, eRecruiting
      applications, on-line performance evaluation systems, and dynamic eCommerce
      sites. Our development teams utilize programming tools such as ASP, .NET, HTML,
      XML, Cold Fusion, Java Script, CGI/Perl, and Flash. Our Web development
      expertise includes:</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Internet
                sites</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Intranet
                sites</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div>&#160;</div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 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="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">44</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="2">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">
        </div>
      </div>
      <div>
        <div>&#160;</div>
        <div>
          <table cellpadding="0" cellspacing="0" id="list" width="100%">

              <tr valign="top" style="line-height: 1.25;">
                <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
                <td>
                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Extranet
                    sites</font></div>
                </td>
              </tr>

          </table>
        </div>
        <div>
          <table cellpadding="0" cellspacing="0" id="list" width="100%">

              <tr valign="top" style="line-height: 1.25;">
                <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
                <td>
                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">eCommerce</font></div>
                </td>
              </tr>

          </table>
        </div>
        <div>
          <table cellpadding="0" cellspacing="0" id="list" width="100%">

              <tr valign="top" style="line-height: 1.25;">
                <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
                <td>
                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Database
                    development</font></div>
                </td>
              </tr>

          </table>
        </div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      </div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Our
      developers are proficient in C, C++, J2EE and Microsoft .NET development
      frameworks for back-end integration. We use these and other tools to integrate
      with back-end databases (SQL, Oracle, DB/2, mySQL), application servers
      (IIS/MTS, Oracle, WebSphere, Apache/Tomcat, J2EE servers, Sun), Web services
      and
      legacy systems. While our front-end design teams provide the appropriate look
      and feel for the display of the data, it is the job of the back-end teams to
      ensure that the data is available to the front-end systems. Depending on
      business requirements and goals for the Web application, our technical design
      teams employ data caching, parallelism, threading and other techniques to ensure
      that the data is made available to the front-end in the most efficient and
      reliable manner.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">We
      develop Web applications utilizing our own Web software tools such as
      netEDITOR</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><sup>&#174;</sup></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      or
      Orgitecture</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><sup>TM</sup></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">,
      providing a complete end to end Web-based solution. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>Rich
      Media Development</em></strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Rich
      media is a combination of interactive digital media such as video, audio, and
      animation that often includes user interaction. Rich media with its movement,
      sound and emotive quality provides designers with a tool set more powerful
      than
      text and graphics alone. Its dynamic movement and sound is compelling and
      engaging to users. The more emotive a message, the more appropriate rich media
      is for communicating it.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Rich
      media impact on the Web is much wider than online advertising. E-Training
      applications often use animations to convey processes more effectively than
      text
      and diagrams. Rich media content and rich media interactions are becoming more
      common in Web applications user interfaces and when used appropriately provide
      a
      richer user experience.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">We
      develop custom rich media applications such as sales training, product launches,
      and enhanced corporate communication via the Web. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>e-Training&#160;Applications</em></strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">We
      believe e-Training is both a valuable tool for employee development and to
      enhance and extend relationships with customers. We believe effective e-Training
      solutions must go beyond formatting existing content to fit on a computer
      screen. Our experience in developing e-Training applications helps to improve
      employee productivity, internal communication and comprehension and
      retention.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Our
      e-Training applications combine video, audio, animation, and interactive quiz
      elements, all supported by a strong technical back-end, allowing customers
      to
      enjoy benefits such as:</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Flexibility:
                accessibility via Internet, intranet, or
                extranets</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Savings:
                reduced training costs and related
                expenses</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Convenience:
                24/7 availability at the user&#8217;s
                discretion</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Longevity:
                post-learning usage of updatable
                resources</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>Web
      </em></strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>Content
      Management Software</em></strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Most
      companies outsource Web development, while content such as text, graphics,
      and
      rich media is generally developed in-house. However, our experience suggests
      that most organizations are not adept at Web content publishing and Web content
      managing. Content management and content publishing can be very complex and
      costly when there is a large volume of content produced by multiple contributors
      throughout an organization. We believe that for many companies, developing
      internal support for Web content publishing is challenging and without proper
      management and centralization of Web production, these companies may encounter
      production delays and increased costs. </font></div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 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="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">45</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <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="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Furthermore,
      the volume of content changes on a Web site can be variable, causing
      unpredictable variances in the workload for Web resources, often resulting
      in
      serious bottlenecks in content publishing. We believe that regardless of whether
      the content is managed internally or outsourced, the total cost of ownership
      for
      Web applications will continue to increase. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">We
      have
      developed a software solution to the content management challenge. Our
      proprietary content management software solutions, netEDITOR</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><sup>&#174;</sup></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      and
      netEDITOR-</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>pro</em></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><sup>TM</sup></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">,
      provide
      non-technical users the ability to create, edit, and publish content via an
      easy
      to use, browser-based interface at a lower cost than most commercial solutions.
      These products are suitable for both simple and complex content management
      requirements. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      image
      below is a sample screen shot of the netEDITOR-pro&#8217;s easy to use
      interface.</font><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><img src="p46image_14663.jpg" alt="GRAPHIC"></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Workflow
      is an important feature of netEDITOR</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><sup>&#174;</sup></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">.
      Multiple levels of approval ensure that content is always reviewed and approved
      before it gets published. Customers can easily build either serial or parallel
      custom workflow processes within the system for individuals or groups in order
      to meet specific organizational needs. E-mail helps facilitate this process
      by
      notifying participants of any pending action that is required.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Anyone
      with basic computer knowledge should easily be able to configure the workflow
      within netEDITOR for a complex, larger organization that has strict regulatory
      policies or a simple, single person environment.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      following workflow and user/group rights can be implemented out of the box
      using
      netEDITOR</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><sup>&#174;</sup></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      :</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Editors:
                Have rights to contribute content in identified areas of the
                site.</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Approvers:
                Responsible for reviewing and either approving or rejecting content
                for
                particular areas of the site.</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Publishers:
                Ultimately responsible for final review and publishing of content.
                These
                users can post content to the live
                site.</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Administrators:
                Responsible for administration of the system. Administrators have
                the
                ability to add/modify/delete users, groups, permissions, content
                sections,
                site structure, and content
                workflow.</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      chart
      below shows an example of author, approver and publisher roles as the building
      blocks of any workflow:</font></div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 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="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">46</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <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="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><img src="p47graph01_14663.jpg" alt="GRAPHIC"></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: -0.35pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Our
      netEDITOR product offers core content management functionality that we believe
      many companies need in a software package that is easy to implement and
      maintain. We have eliminated the complexity of content management and offer
      the
      software at what we believe is a competitive cost to companies that are $100
      million in size or larger. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: -0.35pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Our
      selling price points are competitive with solutions that cost as much as two
      to
      ten times the cost of netEDITOR</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><sup>-</sup></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">pro</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><sup>TM</sup></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      and take
      two to four times as long to implement. We believe that our competitors&#8217;
products are complex and are not as easily implemented by the customer&#8217;s
      technology support organizations. We believe netEDITOR</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><sup>&#160;</sup></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">offers
      the customer the best possible return on investment among the leading content
      management solutions available in the marketplace.</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 9pt">&#160;</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: -0.35pt" align="justify">&#160;</div>
    <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>Orgitecture</em></strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><sup><strong>TM</strong></sup></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>
      -
</em></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>Modular
      On-Demand Web Tools</em></strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Our
      Orgitecture</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><sup>TM</sup></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      platform
      provides customers with an integrated suite of on-demand Web-based tools
      designed to maximize organizational effectiveness, streamline Web site
      management and reduce operating costs. Orgitecture offers the stability,
      reliability and economies of scale of a subscription-based service, along with
      the flexibility of a fully customized enterprise solution.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Developed
      on open source standards, Orgitecture facilitates the development and deployment
      of complex Web properties. Web solutions developed on Orgitecture are modular
      by
      design, so customers can add functionality as their needs evolve. Every
      Orgitecture Web site is customized by our developers to meet the unique needs
      of
      its end users. </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Software
      modules include: Web content management,</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>&#160;</strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">logic-based
      survey tools, discussion boards, resource libraries, calendaring, email
      newsletters, user management, and online registration.&#160;</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><img src="p47graph02_14663.jpg" alt="GRAPH"></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>Relationship
      Management Module:</em></strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">We
      believe that the more a customer knows about the history of its relationships
      with those involved in its business operations, the more effective its
      communications will be</font></div>
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        <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">47</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
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        </div>
      </div>
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        </div>
      </div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;Orgitecture&#8217;s
      relationship management module enables organizations to capture, track, manage
      and analyze key constituent information, including contact and demographic
      data,
      billing records, professional interests, event attendance, and other relevant
      data. The relationship management module can also be integrated with
      Orgitecture&#8217;s content management module to drive the delivery of personalized
      content.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>Web
      Content Management Module:</em></strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      A Web
      site can be among an organization&#8217;s most valuable assets. In order to properly
      maintain the value of that asset, the content within the site must be current
      and accurate. Program updates, policy alerts, press releases, member
      communications, donor communication and other content require frequent updating.
      Orgitecture is a browser-based content management module that gives a customer
      control over its site without requiring coding or technical expertise. A
      customer needs only a standard Web browser to change site content quickly,
      eliminating reliance on a dedicated technical webmaster. With built-in support
      for workflow processes, image management, document management and group
      security, Orgitecture&#8217;s Content Management Module allows the responsibility for
      site management to be distributed as needed to a customer&#8217;s program,
      communications and to administrative or executive staff.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>eSurvey
      Module:</em></strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>&#160;</strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      We
      believe the Internet is the single most effective way to capture information
      and
      metrics regarding key constituents. With Orgitecture&#8217;s highly configurable
      eSurvey module, customers can capture, measure and analyze time-sensitive
      information gleaned from their target audiences. Online surveys can be created,
      modified and deployed within minutes - all using a simple Web
      interface.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>eNewsletter
      Module: </em></strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">We
      believe that effective email outreach and eNewsletters can significantly
      increase the traffic to a customer&#8217;s Web site. Our eNewsletter module allows for
      the dissemination of information from customer Web sites. The module can be
      seamlessly integrated with Orgitecture&#8217;s content and relationship management
      modules, so that customers can send targeted newsletters to key constituents
      -
      by region, interest area, membership status and other criteria. eNewsletter
      templates are aligned with the look and feel of a customer&#8217;s Web site and linked
      directly to its content to ensure a consistent user experience.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>eCommerce
      Module:</em></strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      We
      believe that the amount spent purchasing products on-line or making on-line
      donations has more than doubled over the past few years. We believe
      organizations that have well executed online initiatives can encourage their
      customers or contributors to purchase products online or make online donations.
      Orgitecture&#8217;s eCommerce module contains sophisticated shopping cart tools and
      provides customers with secure transaction capabilities, reliable order
      processing and fulfillment, receipt generation and inventory
      control.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>Event
      Registration Module:</em></strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      We
      believe that face-to-face events deliver the greatest return on investment
      in
      marketing, while strengthening customer and vendor relationships. The cost
      of
      managing and organizing events can be significantly reduced through effective
      online event management tools. Customers have the ability to streamline
      administrative processes with Orgitecture&#8217;s Event Registration Management
      module. Customers set up either free or paid events using a secure portal that
      integrates with a customer&#8217;s Internet merchant account. Through this module,
      customers can track registrations, request RSVPs, send reminders and manage
      attendance. This module can also be seamlessly integrated with Orgitecture&#8217;s
      Relationship Management system to pre-populate registrants&#8217; data and track
      attendance.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>Integrated
      Grants Management Module:</em></strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>&#160;</strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Using
      the
      Web for grants management can significantly reduce workload, minimize redundancy
      and streamline key business processes. For grantmaking foundations, the
      Orgitecture platform supports integrated grants management - from eligibility
      screening and online application processing to grantee reporting. We can help
      organizations and foundations capture data on the Web and integrate it with
      their existing grants management systems. Similarly, we can integrate a
      customer&#8217;s internal systems with its Web site to ensure that relevant and timely
      grants data is easily accessible and searchable online.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>New
      Software Development Initiative</em></strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Our
      current Web software tools, netEDITOR</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><sup>&#174;</sup></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      and
      Orgitecture</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><sup>TM</sup></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      are
      written in two different code bases and have limited scalability. We have begun
      to develop a new Web software product platform that will unite these two
      products into one framework which will allow for significantly enhanced
      scalability. </font><br></div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
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        </div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">48</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <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="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Business
      processes, regardless of industry or vertical market, fall into common
      categories. For example, all companies must deal with issues surrounding
      security, workflow, version control and user management. While the processes
      of
      individual entities may vary they can generally be classified in their simplest
      form as mentioned above. We are creating an ASP.NET 2.0-based application
      development framework based on these common classifications. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">This
      development framework will include software components to support security,
      workflow, version control and user management, and will empower companies or
      developers to create Internet-based applications with advanced business logic,
      state-of-the-art graphical user interfaces and improved quality all in a shorter
      timeframe with less coding that was is now typically required. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      development framework will allow us to build custom Web applications based
      on
      analyzing and optimizing our customer&#8217;s business processes and then map the
      results to a common software component solution. While we believe that is a
      very
      powerful concept by itself, the real synergies come together when we launch
      our
      product suite built on this framework. To support our customer base&#8217;s Web
      related initiatives, the product suites in development will
      include:</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Content
                management suite&#160;</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Web
                analytics suite </font></div>
            </td>
          </tr>

      </table>
    </div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Online
                marketing suite </font></div>
            </td>
          </tr>

      </table>
    </div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Asset
                and document management suite </font></div>
            </td>
          </tr>

      </table>
    </div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Training
                suite</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Grants
                management suite</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Commerce
                <font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">suite</font></font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">While
      each product suite will be used as a stand-alone solution, each product will
      utilize our common underlying framework. This means once a customer has a
      product suite installed (which requires that the entire framework be installed
      as well), any of the other product suites could be integrated quickly,
      efficiently, and cost effectively. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">To
      accommodate different customer preferences, the framework, custom applications
      built on the framework and the product suite will be deployable as a stand-alone
      system (</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>i.e</em></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">.,
      installed at a client site) or hosted in an application service provider model
      (</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>i.e</em></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">.,
      within
      our managed services).</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">We
      expect
      to release the new platform and our first Web product suites in the spring
      of&#160;2007.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>Development
      Center in Bangalore, India</em></strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
      2003,
      we formed a wholly owned subsidiary, Bridgeline Software, Pvt. Ltd., as our
      software development center located in Bangalore, India. Bangalore, India is
      an
      emerging global center for software development activities and IT services.
      This
      technologically rich region allows us to hire talented Web application
      developers and software engineers at comparatively lower compensation rates.
      This offshore development center reduces our Web application development cost,
      improves development productivity, increases profit margins and our overall
      competitiveness in the area of Web services. By working with our own employees
      in India rather than outsourcing the software development work, we have greater
      control over the quality of work and are able to set the priorities of the
      group. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
      addition to assembling a quality Web Services programming team, our India
      operation has a dedicated research and development team of engineers that
      focuses exclusively on the continued development of the netEDITOR</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><sup>&#174;</sup></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">,
      Orgitecture</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><sup>TM</sup></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">,
      and
      future native .Net Web software tools.</font><br></div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 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="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">49</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <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="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Customers</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">We
      primarily serve five vertical markets that we believe have a history of
      investing in IT enhancements and initiatives. These vertical markets are:
</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Financial
                services</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Life
                sciences </font></div>
            </td>
          </tr>

      </table>
    </div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">High
                technology</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Foundations
                and non profit organizations</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Federal
                and state government agencies</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Our
      business development teams and marketing resources focus our efforts on middle
      market and large organizations (</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>i.e</em></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">.,
      $100
      million and higher in annual revenues, or organizations that have over 500
      full-time employees). </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">We
      have
      more than 70 active customers including companies such as Nomura Securities,
      The
      Bank of New York, Pfizer, Depository Trust &amp; Clearing Corporation and John
      Hancock, comprising approximately 23%, 9%, 6%, 6% and 5% of our revenues,
      respectively, for the ten months ended July 31, 2006.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Growth
        and Expansion Strategy</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">We
        believe that the Web services/Web tools industry is a rapidly growing fragmented
        marketplace that presents significant consolidation opportunities. According
        to
        Harte-Hanks (a data intelligence firm), there are over 2,000 Web development
        companies in North America. Many of these entities are profitable, with annual
        revenues between $1 million and $5 million.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">As
        we
        develop additional Web-based scalable product solutions, we believe our North
        America geographical expansion will allow us to leverage our products, rapidly
        increase our customer base, and enhance our market position. We currently
        have
        sales and implementation teams in Boston, Massachusetts, New York, New York,
        and
        Washington, D.C. (with Atlanta, Georgia pending). We believe each major
        metropolitan market selected is poised to grow. We plan to implement two
        expansion initiatives over the next several years:</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Organic
        Growth - </strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Over
        the
        last three years, our current locations have experienced 26% organic growth
        on
        average each year. We project our organic growth on average will be at least
        20%
        per year in our geographical regions once we are established in each such
        geographical region. We have defined sales and marketing activities to help
        enhance organic growth opportunities. Some of these activities are:</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 54pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>Four
        phase selling system:</em></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
        We use
        an accountable, strategic engagement process developed specifically for target
        companies that require a mature professional approach. We believe it is critical
        to qualify each opportunity and to assure our skill set and tools match up
        well
        with the customer&#8217;s needs. An essential part of every engagement, we believe our
        Four Phase Engagement Process:</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 54pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 90pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">streamlines
                our customer qualification process</font></div>
            </td>
          </tr>

      </table>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 90pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">strengthens
                our relationship with our customer</font></div>
            </td>
          </tr>

      </table>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 90pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">ensures
                our skill set and tools match the customer&#8217;s
                needs</font></div>
            </td>
          </tr>

      </table>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 90pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">results
                in the submission of accurate proposals</font></div>
            </td>
          </tr>

      </table>
      <div style="DISPLAY: block; MARGIN-LEFT: 54pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 54pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>Organic
        growth from existing customer base: </em></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">We
        have
        specific programs that consistently market Bridgeline Software&#8217;s brand,
        services, and web software tools. Our business development professionals
        seek
        ongoing business opportunities within our customer base and within other
        operating divisions or subsidiaries of our existing customer base each
        month.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 54pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 54pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>New
        customer acquisition</em></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">:
        In the
        geographies we operate, we identify target customers </font></div>
    </div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 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="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">50</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <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="DISPLAY: block; MARGIN-LEFT: 54pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">within
          our vertical expertise (financial services, life sciences, high technology,
          foundations, and government). Our business development professionals develop
          an
          annual territory plan identifying various strategies to engage our target
          customers.</font></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 54pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 54pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>Customer
          retention programs:</em></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
          We use
          our own email marketing capabilities when marketing to our customer base.
          We
          email eNewsletters, internally generated whitepapers, and Company announcements
          to our customers, in addition we host educational on-line seminars on a
          regular
          basis.</font></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 54pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 54pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>New
          lead generation programs:</em></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
          We
          generate targeted leads and new business opportunities by leveraging a
          combination of on-line marketing and third party telemarketing services.
          We
          receive leads by maximizing our search engine optimization of our web site.
          Through our web site, we provide various educational white papers and promote
          upcoming on-line seminars. We also pay for banner advertisements on various
          independent newsletters, linked to our web site. We also participate and
          exhibit
          at targeted events to generate new leads.</font></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Acquisitions
          -</strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
          We plan
          to continue to acquire small, established Web development companies in
          various
          geographical locations in North America. We expect that each of the acquired
          companies will have the same core development expertise as we do, will
          have a
          complementary customer base to market our Web software tools, and will
          be a
          profitably run business. We anticipate that this strategy will enhance
          our time
          to market and </font></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">our
          customer base, and will reduce local market entry risk. </font></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">We
          target
          profitable Web development companies with annual revenues of at least $2.5
          million. We believe that by merging with us, these companies could benefit
          from:</font></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
        <div>
          <table cellpadding="0" cellspacing="0" id="list" width="100%">

              <tr valign="top" style="line-height: 1.25;">
                <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
                <td>
                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Differentiation
                    by marketing our content management software, netEDITOR</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><sup>&#174;</sup></font></div>
                </td>
              </tr>

          </table>
        </div>
        <div>
          <table cellpadding="0" cellspacing="0" id="list" width="100%">

              <tr valign="top" style="line-height: 1.25;">
                <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
                <td>
                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Differentiation
                    by marketing our on-demand Web tools from the Orgitecture</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><sup>TM</sup></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
                    platform</font></div>
                </td>
              </tr>

          </table>
        </div>
        <div>
          <table cellpadding="0" cellspacing="0" id="list" width="100%">

              <tr valign="top" style="line-height: 1.25;">
                <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
                <td>
                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Improved
                    margins by selling and licensing our Web software tools mentioned
                    above</font></div>
                </td>
              </tr>

          </table>
        </div>
        <div>
          <table cellpadding="0" cellspacing="0" id="list" width="100%">

              <tr valign="top" style="line-height: 1.25;">
                <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
                <td>
                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Improved
                    margins by utilizing our development center in Bangalore,
                    India</font></div>
                </td>
              </tr>

          </table>
        </div>
        <div>
          <table cellpadding="0" cellspacing="0" id="list" width="100%">

              <tr valign="top" style="line-height: 1.25;">
                <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
                <td>
                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Improved
                    sales by being a part of a larger
                    company</font></div>
                </td>
              </tr>

          </table>
        </div>
        <div>
          <table cellpadding="0" cellspacing="0" id="list" width="100%">

              <tr valign="top" style="line-height: 1.25;">
                <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
                <td>
                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Improved
                    sales by adopting our 4-phase sales
                    methodology</font></div>
                </td>
              </tr>

          </table>
        </div>
        <div>
          <table cellpadding="0" cellspacing="0" id="list" width="100%">

              <tr valign="top" style="line-height: 1.25;">
                <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
                <td>
                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Improved
                    internal controls and reporting</font></div>
                </td>
              </tr>

          </table>
        </div>
        <div>
          <table cellpadding="0" cellspacing="0" id="list" width="100%">

              <tr valign="top" style="line-height: 1.25;">
                <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
                <td>
                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Reduced
                    expense (centralized G&amp;A, R&amp;D, HR, legal, and
                    marketing)</font></div>
                </td>
              </tr>

          </table>
        </div>
        <div>
          <table cellpadding="0" cellspacing="0" id="list" width="100%">

              <tr valign="top" style="line-height: 1.25;">
                <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
                <td>
                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Liquidity
                    for their shareholders </font></div>
                </td>
              </tr>

          </table>
        </div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      </div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Our
      proposed strategy is to acquire an entity at a discount to public company
      trading multiples at a purchase price consisting of cash at closing, contingent
      earn-out payments payable upon the attainment of post-closing performance
      milestones, and our common stock.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>Historical
      Acquisitions</em></strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: -0.35pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Streamline
      Communications, Inc.</strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      - A
      Boston, Massachusetts-based Web application development company, acquired in
      December 2000.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: -0.35pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Lead
      Dog Digital, Inc.</strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      - A New
      York, New York-based Web application development company, acquired in February
      2002.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: -0.35pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Interactive
      Applications Group, Inc. (&#8220;iapps&#8221;</strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><sup>&#174;</sup></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>)</strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      - A
      Washington, D.C.-based Web application development company, acquired in December
      2004.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: -0.35pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>New
      Tilt, Inc.</strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      - A
      Cambridge, Massachusetts-based Web application development company, acquired
      in
      April 2006.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: -0.35pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: -0.35pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>Pending
      Acquisition - Objectware</em></strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: -0.35pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">On
      December 7, 2006, we signed a definitive merger agreement, under which we intend
      to acquire all </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 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="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">51</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="2">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">
        </div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">outstanding
          capital stock of Objectware, Inc., an Atlanta, Georgia-based company that
          </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">specializes
          in Web application development, Web design, wireless application development,
          search engine optimization and providing managed Web services to customers.
          </font></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">We
          believe that Objectware meets all of the criteria we have established for
          strategic acquisitions. </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Objectware
          </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">is
          a
          leader in marketing, selling and installing Web-based software tools in
          the
          Atlanta metropolitan area. Objectware has an established base of customers,
          which may benefit from our Web software tools and services. We also believe
          that
          Objectware will be able to enhance its operating margins over time by leveraging
          our Bangalore, India development center and consolidating its marketing,
          general
          and administrative functions at our corporate headquarters. </font></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>Objectware&#8217;s
          Customers</em></font></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Objectware
          has over 75 active customers, including&#160;Cingular Wireless,&#160;Stryker,
          Best Buy,&#160; Sephora, Turner Broadcast Systems, Delta Airlines, and the
          Georgia Lottery. </font></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>Objectware&#8217;s
          Services</em></font></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>Web
          Application Development</em></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">.
          </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Objectware&#8217;s
          Web applications include business-to-business Web properties such as eCommerce
          sites, Web-based handheld applications, and corporate Web sites. Objectware&#8217;s
          development teams use programming tools such as .NET, Java, ASP, HTML,
          and XML.
          Objectware&#8217;s Web development expertise includes the development of Internet,
          Intranet, Extranet, and eCommerce web applications. </font></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>Custom
          Wireless Applications.</em></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
          Objectware is addressing what it believes to be is a developing trend
</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">in
          wireless telecommunications: Internet connectivity and database interaction
          through handheld devices. </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Through
          strategic relationships with </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Palm</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">,
          </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Symbol</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">,
          </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Synchrologic</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
          and
</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Microsoft</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">,
          Objectware&#8217;s mobile computing projects include: </font></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
        <div>
          <table cellpadding="0" cellspacing="0" id="list" width="100%">

              <tr valign="top" style="line-height: 1.25;">
                <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
                <td>
                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Handheld
                    medical applications that assist doctors in selecting necessary
                    procedures
                    to comply with insurance carrier
                    policies;</font></div>
                </td>
              </tr>

          </table>
        </div>
        <div>
          <table cellpadding="0" cellspacing="0" id="list" width="100%">

              <tr valign="top" style="line-height: 1.25;">
                <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
                <td>
                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">A
                    courier order processing system with proof-of-delivery software
                    running on
                    handheld devices;</font></div>
                </td>
              </tr>

          </table>
        </div>
        <div>
          <table cellpadding="0" cellspacing="0" id="list" width="100%">

              <tr valign="top" style="line-height: 1.25;">
                <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
                <td>
                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Integrating
                    Palm&#8217;s Web Clipping technology into online billing software; and
                    </font></div>
                </td>
              </tr>

          </table>
        </div>
        <div>
          <table cellpadding="0" cellspacing="0" id="list" width="100%">

              <tr valign="top" style="line-height: 1.25;">
                <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
                <td>
                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Web-based
                    software that delivers information from the Web to Web-compatible
                    phones.</font></div>
                </td>
              </tr>

          </table>
        </div>
        <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>Search
          Engine Optimization (SEO). </em></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Objectware&#8217;s</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
          helps
          customers maximize the effectiveness of their online marketing activities
          to
          ensure that their sites can be exposed to the potential customers that
          use
          search engines to locate products and services. Objectware&#8217;s SEO services
          include:</font></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      </div>
    </div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>Competitive
                Analysis</em></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
                -
                Performing searches to determine what Web sites in the customer&#8217;s industry
                are in the top positions of search engines and determining how to
                position
                its customer&#8217;s Web sites ahead of them;
</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>Website
                Review</em></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
                -
                Reviewing and restructuring its customer&#8217;s Web site&#8217;s graphics, content
                and architecture to ensure proper configuration for search engines;
                </font></div>
            </td>
          </tr>

      </table>
    </div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>Keyword
                Generation</em></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
                -
                Developing keyword phrases based on information gathered during client
                surveys and competitive analysis; </font></div>
            </td>
          </tr>

      </table>
    </div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>Proprietary
                Leading Page Technology</em></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
                -
                Employing proprietary techniques to improve its customers&#8217; visibility on
                the Web; </font></div>
            </td>
          </tr>

      </table>
    </div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>Ongoing
                Registration</em></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
                -
                Performing initial registrations and routine re-registrations with
                multiple search engines and directories;
</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>Monthly
                Reports</em></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
                -
                Providing customers with monthly reports detailing and explaining
                their
                traffic and rankings with the major search engines;
                and</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>Maintenance
                and Monitoring</em></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
                -
                Performing continual monthly reviews and adjustments to keep customers&#8217;
                Web sites at the top of the search
                engines.</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>Managed
      Services. </em></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Objectware
      </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">provides
      fully managed hosting services for its customers&#8217; Web
      applications.&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font><br>&#160;</div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 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="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">52</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <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="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Objectware&#8217;s
          hosting facility includes dedicated in-house production and development
          servers,
          as well as a dedicated 24-hour monitored co-location facility for mission
          critical applications. Objectware believes that it provides its customers&#8217;
applications with a highly secure, climate-controlled environment, with
          multiple
          power sources, redundant Internet connectivity and 24-hour monitoring and
          management. </font></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>Objectware&#8217;s
          Web Software Tools</em></font></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>Content
          Management System. </em></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Objectware
          offers an integrated content management system (CMS) that allows businesses
          and
          organizations to maintain a more dynamic, up-to-date Web presence without
          relying on outside Web services vendors or their internal IT personnel.
          </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Using
          CMS, customers can publish content, images, documents, product information,
          service descriptions, press releases, e-newsletters, event calendars, surveys
          and other information on their Web sites. </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">CMS
          is
          designed for non-technical users so that Web site content can be developed
          and
          maintained by sales, marketing, human resources or other personnel. </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>Custom
          eCommerce. </em></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Objectware
          offers solutions to customers that sell products and services over the
          Internet
          to allow them to personalize product offerings, improve their marketing
          effectiveness and offer value-added services to their own clients. Objectware&#8217;s
          solutions are custom-designed for each client.</font></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>eMail
          Marketing and Management Tool. </em></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Objectware&#8217;s
          email marketing services tool allows customers to expand their client base
          and
          provide a cost-effective method of communicating with existing clients,
          partners
          and associates. The tool allows companies to: </font></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
        <div>
          <table cellpadding="0" cellspacing="0" id="list" width="100%">

              <tr valign="top" style="line-height: 1.25;">
                <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
                <td>
                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Promote
                    existing products and services; </font></div>
                </td>
              </tr>

          </table>
        </div>
        <div>
          <table cellpadding="0" cellspacing="0" id="list" width="100%">

              <tr valign="top" style="line-height: 1.25;">
                <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
                <td>
                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Announce
                    new products and services; </font></div>
                </td>
              </tr>

          </table>
        </div>
        <div>
          <table cellpadding="0" cellspacing="0" id="list" width="100%">

              <tr valign="top" style="line-height: 1.25;">
                <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
                <td>
                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Pitch
                    specials and broadcast promotions; </font></div>
                </td>
              </tr>

          </table>
        </div>
        <div>
          <table cellpadding="0" cellspacing="0" id="list" width="100%">

              <tr valign="top" style="line-height: 1.25;">
                <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
                <td>
                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Publicize
                    company news and achievements; and </font></div>
                </td>
              </tr>

          </table>
        </div>
        <div>
          <table cellpadding="0" cellspacing="0" id="list" width="100%">

              <tr valign="top" style="line-height: 1.25;">
                <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
                <td>
                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Enhance
                    branding by staying in touch with clients and partners.
                    </font></div>
                </td>
              </tr>

          </table>
        </div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>Objectware&#8217;s
          Intellectual Property</em></font></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Objectware
          claims common law trademark rights in the name and logo &#8220;Objectware&#8221; and has
          registered the trademark &#8220;Projectware&#8221; with the United States Patent and
          Trademark Office. Objectware currently holds no patents. Objectware owns
          the
          domain name &#8220;Objectwareinc.com.&#8221; In addition, Objectware&#8217;s intellectual property
          consists of proprietary software, licensed software and
          know-how.</font></div>
      </div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>Objectware&#8217;s
      Competition</em></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Objectware
      targets and services the same markets that we do. Accordingly, Objectware
      encounters the same intensely competitive environment in which we operate.
      See
&#8220;Competition&#8221; below.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>Terms
      of the Acquisition</em></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">We
      intend
      to acquire Objectware shortly before completing this offering. The consideration
      for the acquisition of Objectware will be paid to Objectware&#8217;s sole stockholder,
      Erez M. Katz, and will consist of </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(i)
      $2,500,000 in cash, (ii) shares of our common stock having a value (based on
      the
</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">initial
      public offering price of our shares in this offering)</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      of
      $2,700,000 and (iii) deferred purchase price of up to $1,800,000, payable in
      cash and stock quarterly over the three years after we acquire Objectware,
      contingent upon Objectware generating positive earnings before interest, taxes
      and depreciation and amortization of at least $250,000 per calendar quarter
      during the 12 consecutive calendar quarters following this offering. In no
      event, however, will we issue shares to Mr. Katz in connection with this
      acquisition which would result in ownership by Mr. Katz of more than 19.9%
      of
      the total issued and outstanding shares of our common stock without the prior
      approval of our shareholders. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      acquisition of Objectware will close in escrow shortly before the completion
      of
      this offering. Prior to the completion of this offering all closing
      documentation other than the cash and stock consideration will be deposited
      with
      the escrow agent. Once this offering is completed, we will deposit the cash
      and
      stock consideration with the escrow agent. Upon receipt of the cash and stock
      consideration the escrow agent will release all closing materials to the parties
      in accordance with the terms of the escrow agreement. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">We
      expect
      that all current employees of Objectware will continue as employees after its
      acquisition by us. As a condition to closing, Mr. Katz will enter into an
      employment agreement with us under which he agrees, among other things, not
      to
      compete with our business for a period of up to 12 months after he ceases to
      be
      employed by us. See &#8220;Management - Employment Agreements.&#8221; Our merger agreement
      with Objectware separately prohibits Mr. Katz from competing with us for a
      period of three years after the closing of the acquisition. In addition each
      of
      Objectware&#8217;s employees will be requested to sign our standard confidentiality
      and noncompete agreement, which would prevent them from competing with our
      business for a period of 12 months after they cease to be employed by us. The
      agreement also contains certain additional provisions that are customary to
      the
      agreements of this nature.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
      connection with&#160;the acquisition, Mr. Katz and Objectware have agreed to
      cooperate with us and the underwriters in completing this public offering,
      including assisting us with, and providing any materials necessary in, the
      preparation of the registration statement of which this prospectus forms a
      part.
      Mr. Katz and we have agreed to indemnify each other for any losses incurred
      as a
      result of breaches by the other of any of its/his agreements, representations
      or
      warranties, subject to certain exceptions and limitations.</font></div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 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="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">53</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <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="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">
      <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: -36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: -0.35pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Competition</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        market for our products is intensely competitive, subject to rapid technological
        change and is significantly affected by new product introductions and other
        market activities of industry participants. We expect competition to persist
        and
        intensify in the future. Sources of competition include in-house development
        efforts by potential customers or partners; other vendors of software that
        directly address enterprise content management solutions; and developers
        of
        point solution software that address only certain technology components of
        the
        solution set that we provide. </font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Many
        of
        our competitors have longer operating histories and significantly greater
        financial, technical, marketing and other resources than we do and thus may
        be
        able to respond more quickly to new or changing opportunities, technologies
        and
        customer requirements. Also, many current and potential competitors have
        wider
        name recognition and more extensive customer bases that could be leveraged,
        thereby gaining market share to our detriment. Such competitors may be able
        to
        undertake more extensive promotional activities, adopt more aggressive pricing
        policies, and offer more attractive terms to purchasers than we can. In
        addition, current and potential competitors have established or may establish
        cooperative relationships among themselves or with third parties to enhance
        their products. Accordingly, it is possible that new competitors or alliances
        among competitors may emerge and rapidly </font>acquire significant market
        share. A representative sample of our competitors includes:</div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Website
                Pros, Inc. - provides Web site development and consulting services
                focused
                on enabling small to medium-sized enterprises to establish, maintain
                and
                promote their presence on the
                Internet.</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">FileNet
                Corporation - develops enterprise content management, collaborative
                commerce and business process management
                solutions</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">aQuantive,
                Inc. - provides Web application development and marketing resources
                to
                marketing and advertising
                professionals.</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Vignette
                Corporation - provides Web applications and content and document
                management solutions.</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">WebSideStory,
                Inc. - provides software to collect, process, store and analyze Web
                user
                behavior.</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Agency.com
                Ltd. - develops Web application development solutions.
                </font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Intellectual
      Property</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">We
      have
      no issued patents and have not applied for patent protection in any
      jurisdictions. We rely upon copyrights, trademarks, trade secrets,
      confidentiality agreements, proprietary know-how and continuing technological
      innovation to remain competitive. We require all employees and consultants
      to
      execute a non-disclosure, non-compete and technology transfer agreement upon
      hire. We continue to seek ways to protect our proprietary technology and trade
      secrets. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">We
      have
      registered the trademarks &#8220;Bridgeline,&#8221; &#8220;iapps&#8221; and &#8220;netEDITOR&#8221; with the United
      States Patent and Trademark Office. We claim common law rights in the trademark
      &#8220;Orgitecture&#8221; and &#8220;netEDITOR-pro.&#8221; </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Properties</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Our
      headquarters are located twelve miles north of Boston, Massachusetts at 10
      Sixth
      Road, Woburn, Massachusetts 01801. This office also serves as our New England
      business unit. The following table lists our offices:</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div align="left">
      <table cellpadding="0" cellspacing="0" width="100%">

          <tr>
            <td valign="top" width="33%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><u>Location</u></strong></font></div>
            </td>
            <td valign="top" width="33%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><u>Address</u></strong></font></div>
            </td>
            <td valign="top" width="33%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><u>Size</u></strong></font></div>
            </td>
          </tr>
          <tr>
            <td align="justify" valign="top" width="33%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Woburn,
                Massachusetts</font></div>
            </td>
            <td align="left" valign="top" width="33%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">10
                Sixth Road </font></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Woburn,
                Massachusetts 01801</font></div>
            </td>
            <td align="justify" valign="top" width="33%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">9,335
                square feet, professional office space</font></div>
            </td>
          </tr>
          <tr>
            <td align="justify" valign="top" width="33%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Cambridge,
                Massachusetts</font>&#160;</div>
            </td>
            <td align="justify" valign="top" width="33%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">36-38
                Cameron Avenue</font></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Cambridge,
                MA 02140</font></div>
            </td>
            <td align="justify" valign="top" width="33%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">5,000
                square feet, professional office space</font>&#160;</div>
            </td>
          </tr>
          <tr>
            <td align="justify" valign="top" width="33%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">New
                York, New York</font></div>
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            <td align="justify" valign="top" width="33%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">104
                West 40</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><sup>th</sup></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
                Street</font></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">New
                York, New York 10018</font></div>
            </td>
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              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">4,400
                square feet, professional office space</font></div>
            </td>
          </tr>
          <tr>
            <td align="justify" valign="top" width="33%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Washington,
                D.C.</font></div>
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            <td align="justify" valign="top" width="33%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2639
                Connecticut Ave., NW</font></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Washington,
                D.C. 20008</font></div>
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              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">9,383
                square feet, professional office space</font></div>
            </td>
          </tr>
          <tr>
            <td align="justify" valign="top" width="33%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Bangalore,
                India</font></div>
            </td>
            <td align="justify" valign="top" width="33%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">71
                Sona Towers, West Wing</font></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Millers
                Rd., Bangalore 560 052</font></div>
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              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">7,800
                square feet, professional office space</font></div>
            </td>
          </tr>
          <tr>
            <td align="justify" valign="top" width="33%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Norcross,
                Georgia*</font></div>
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            <td align="justify" valign="top" width="33%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">5555
                Triangle Parkway</font></div>
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                Georgia 30092</font></div>
            </td>
            <td align="justify" valign="top" width="33%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">7068
                square feet, professional office space</font></div>
            </td>
          </tr>
          <tr>
            <td align="justify" valign="top" width="33%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Reston,
                Virginia*</font></div>
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            <td align="justify" valign="top" width="33%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">11440
                Commerce Park Drive, Suite 502</font></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Reston,
                VA 20191</font></div>
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            <td align="justify" valign="top" width="33%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">1,413
                square feet, professional office
                space</font></div>
            </td>
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      </table>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">*assuming
      that we complete the acquisition of Objectware, Inc.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Employees</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">We
      have
      85 full-time employees (including 40 employees in our Bangalore, India location)
      and no unionized employees. The full-time employees include 59 that are in
      Web
      application/product development, 11 in sales and marketing, and 15 in general
      and administrative departments. We consider our relations with our employees,
      independent contractors and vendors to be good.</font><br></div>
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        </div>
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      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">54</font></div>
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      that we complete the acquisition of Objectware, we would have an additional
      28
      full-time employees, none which are unionized employees, including 22 in Web
      application/product development, three in sales and marketing, and three in
      general and administrative departments. </font></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Legal
      Proceedings</strong></font></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">From
      time
      to time we may become involved in litigation relating to claims arising from
      its
      ordinary course of business. </font></div>
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      August
      29, 2006, the Cambridge Group, Ltd. filed a claim against us in Superior Court
      of Massachusetts. The Cambridge Group alleges we owe them a total of $28,575
      in
      fees, including interest and legal expenses. We believe we have paid all amounts
      owed by us to the Cambridge Group and that no further payments are due. We
      intend to contest the Cambridge Group&#8217;s claims.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
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      than as described above, we are not party to any current litigation and we
      believe that there are no claims or actions pending or threatened against
      us.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 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="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">55</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
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        </div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>MANAGEMENT</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;&#160;&#160;&#160;
      The following table sets forth information regarding our directors and executive
      officers: </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
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              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
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            <td width="2%" style="border-bottom: medium none;">&#160;</td>
            <td colspan="2" valign="bottom" width="12%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
            </td>
            <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
            <td colspan="2" valign="bottom" width="36%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
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            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
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              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Thomas
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            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
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            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
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              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">Chairman,
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            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
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            <td align="left" valign="bottom" width="35%">&#160;</td>
            <td width="2%">&#160;</td>
            <td align="left" valign="bottom" width="1%">&#160;</td>
            <td align="right" valign="bottom" width="11%">&#160;</td>
            <td align="left" valign="bottom" width="2%">&#160;</td>
            <td align="left" valign="bottom" width="1%">&#160;</td>
            <td align="right" valign="bottom" width="35%">&#160;</td>
            <td align="left" valign="bottom" width="1%">&#160;</td>
          </tr>
          <tr>
            <td align="left" valign="bottom" width="35%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">William
                Coldrick </font></div>
            </td>
            <td width="2%" style="border-bottom: medium none;">
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
            </td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
              <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">64</font></div>
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            <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
            </td>
            <td align="right" valign="bottom" width="35%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">Director
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            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px">&#160;</div>
            </td>
          </tr>
          <tr>
            <td align="left" valign="bottom" width="35%">&#160;</td>
            <td width="2%">&#160;</td>
            <td align="left" valign="bottom" width="1%">&#160;</td>
            <td align="right" valign="bottom" width="11%">&#160;</td>
            <td align="left" valign="bottom" width="2%">&#160;</td>
            <td align="left" valign="bottom" width="1%">&#160;</td>
            <td align="right" valign="bottom" width="35%">&#160;</td>
            <td align="left" valign="bottom" width="1%">&#160;</td>
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          <tr>
            <td align="left" valign="bottom" width="35%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Kenneth
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            <td width="2%" style="border-bottom: medium none;">
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
            </td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
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            <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
            </td>
            <td align="right" valign="bottom" width="35%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">Director
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            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px">&#160;</div>
            </td>
          </tr>
          <tr>
            <td align="left" valign="bottom" width="35%">&#160;</td>
            <td width="2%">&#160;</td>
            <td align="left" valign="bottom" width="1%">&#160;</td>
            <td align="right" valign="bottom" width="11%">&#160;</td>
            <td align="left" valign="bottom" width="2%">&#160;</td>
            <td align="left" valign="bottom" width="1%">&#160;</td>
            <td align="right" valign="bottom" width="35%">&#160;</td>
            <td align="left" valign="bottom" width="1%">&#160;</td>
          </tr>
          <tr>
            <td align="left" valign="bottom" width="35%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Robert
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            </td>
            <td width="2%" style="border-bottom: medium none;">
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
            </td>
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            <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">
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            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
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            <td align="right" valign="bottom" width="35%" style="border-bottom: medium none;">
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            <td align="left" valign="bottom" width="2%">&#160;</td>
            <td align="left" valign="bottom" width="1%">&#160;</td>
            <td align="right" valign="bottom" width="35%">&#160;</td>
            <td align="left" valign="bottom" width="1%">&#160;</td>
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            <td align="left" valign="bottom" width="35%" style="border-bottom: medium none;">
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            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            <td align="right" valign="bottom" width="35%" style="border-bottom: medium none;">
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                Vice President, Treasurer, Corporate Secretary and Chief Financial
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            <td align="left" valign="bottom" width="35%">&#160;</td>
            <td width="2%">&#160;</td>
            <td align="left" valign="bottom" width="1%">&#160;</td>
            <td align="right" valign="bottom" width="11%">&#160;</td>
            <td align="left" valign="bottom" width="2%">&#160;</td>
            <td align="left" valign="bottom" width="1%">&#160;</td>
            <td align="right" valign="bottom" width="35%">&#160;</td>
            <td align="left" valign="bottom" width="1%">&#160;</td>
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            <td align="left" valign="bottom" width="35%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Brett
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            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
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            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            <td align="right" valign="bottom" width="35%" style="border-bottom: medium none;">
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          <tr>
            <td align="left" valign="top" width="4%">
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            <td align="left" valign="top" width="4%">
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            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
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            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
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            <td align="left" valign="bottom" width="35%">&#160;</td>
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            <td align="left" valign="bottom" width="1%">&#160;</td>
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            <td align="left" valign="bottom" width="2%">&#160;</td>
            <td align="left" valign="bottom" width="1%">&#160;</td>
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            <td align="left" valign="bottom" width="1%">&#160;</td>
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              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Michelle
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            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
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            <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            <td align="right" valign="bottom" width="35%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">Executive
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            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
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            <td align="left" valign="bottom" width="35%">&#160;</td>
            <td width="2%">&#160;</td>
            <td align="left" valign="bottom" width="1%">&#160;</td>
            <td align="right" valign="bottom" width="11%">&#160;</td>
            <td align="left" valign="bottom" width="2%">&#160;</td>
            <td align="left" valign="bottom" width="1%">&#160;</td>
            <td align="right" valign="bottom" width="35%">&#160;</td>
            <td align="left" valign="bottom" width="1%">&#160;</td>
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            <td align="left" valign="bottom" width="35%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Babu
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            <td width="2%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
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            <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            <td align="right" valign="bottom" width="35%" style="border-bottom: medium none;">
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            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
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          <tr>
            <td align="left" valign="bottom" width="35%">&#160;</td>
            <td width="2%">&#160;</td>
            <td align="left" valign="bottom" width="1%">&#160;</td>
            <td align="right" valign="bottom" width="11%">&#160;</td>
            <td align="left" valign="bottom" width="2%">&#160;</td>
            <td align="left" valign="bottom" width="1%">&#160;</td>
            <td align="right" valign="bottom" width="35%">&#160;</td>
            <td align="left" valign="bottom" width="1%">&#160;</td>
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            <td align="left" valign="bottom" width="35%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Miles
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            <td width="2%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
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            <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            <td align="right" valign="bottom" width="35%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">President
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            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
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          <tr>
            <td align="left" valign="bottom" width="35%">&#160;</td>
            <td width="2%">&#160;</td>
            <td align="left" valign="bottom" width="1%">&#160;</td>
            <td align="right" valign="bottom" width="11%">&#160;</td>
            <td align="left" valign="bottom" width="2%">&#160;</td>
            <td align="left" valign="bottom" width="1%">&#160;</td>
            <td align="right" valign="bottom" width="35%">&#160;</td>
            <td align="left" valign="bottom" width="1%">&#160;</td>
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          <tr>
            <td align="left" valign="bottom" width="35%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Peter
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            <td width="2%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">47</font></div>
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            <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            <td align="right" valign="bottom" width="35%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">Executive
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            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
          </tr>
          <tr>
            <td align="left" valign="bottom" width="35%">&#160;</td>
            <td width="2%">&#160;</td>
            <td align="left" valign="bottom" width="1%">&#160;</td>
            <td align="right" valign="bottom" width="11%">&#160;</td>
            <td align="left" valign="bottom" width="2%">&#160;</td>
            <td align="left" valign="bottom" width="1%">&#160;</td>
            <td align="right" valign="bottom" width="35%">&#160;</td>
            <td align="left" valign="bottom" width="1%">&#160;</td>
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          <tr>
            <td align="left" valign="bottom" width="35%" style="border-bottom: medium none;">
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            <td width="2%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
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            <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            <td align="right" valign="bottom" width="35%" style="border-bottom: medium none;">
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            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
          </tr>
          <tr>
            <td align="left" valign="bottom" width="35%">&#160;</td>
            <td width="2%">&#160;</td>
            <td align="left" valign="bottom" width="1%">&#160;</td>
            <td align="right" valign="bottom" width="11%">&#160;</td>
            <td align="left" valign="bottom" width="2%">&#160;</td>
            <td align="left" valign="bottom" width="1%">&#160;</td>
            <td align="right" valign="bottom" width="35%">&#160;</td>
            <td align="left" valign="bottom" width="1%">&#160;</td>
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          <tr>
            <td align="left" valign="bottom" width="35%" style="border-bottom: medium none;">
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            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">32</font></div>
            </td>
            <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            <td align="right" valign="bottom" width="35%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">Senior
                Vice President of Business Development, New York</font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
          </tr>
          <tr>
            <td align="left" valign="bottom" width="35%">&#160;</td>
            <td width="2%">&#160;</td>
            <td align="left" valign="bottom" width="1%">&#160;</td>
            <td align="right" valign="bottom" width="11%">&#160;</td>
            <td align="left" valign="bottom" width="2%">&#160;</td>
            <td align="left" valign="bottom" width="1%">&#160;</td>
            <td align="right" valign="bottom" width="35%">&#160;</td>
            <td align="left" valign="bottom" width="1%">&#160;</td>
          </tr>
          <tr>
            <td align="left" valign="bottom" width="35%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">David
                Goldsmith</font></div>
            </td>
            <td width="2%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">45</font></div>
            </td>
            <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            <td align="right" valign="bottom" width="35%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">Vice
                President of Business Development, iapps</font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
          </tr>
          <tr>
            <td align="left" valign="bottom" width="35%">&#160;</td>
            <td width="2%">&#160;</td>
            <td align="left" valign="bottom" width="1%">&#160;</td>
            <td align="right" valign="bottom" width="11%">&#160;</td>
            <td align="left" valign="bottom" width="2%">&#160;</td>
            <td align="left" valign="bottom" width="1%">&#160;</td>
            <td align="right" valign="bottom" width="35%">&#160;</td>
            <td align="left" valign="bottom" width="1%">&#160;</td>
          </tr>
          <tr>
            <td align="left" valign="bottom" width="35%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Jenny
                Quinn</font></div>
            </td>
            <td width="2%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">43</font></div>
            </td>
            <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            <td align="right" valign="bottom" width="35%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">Senior
                Vice President of Business Development, New England</font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
          </tr>
          <tr>
            <td align="left" valign="bottom" width="35%">&#160;</td>
            <td width="2%">&#160;</td>
            <td align="left" valign="bottom" width="1%">&#160;</td>
            <td align="right" valign="bottom" width="11%">&#160;</td>
            <td align="left" valign="bottom" width="2%">&#160;</td>
            <td align="left" valign="bottom" width="1%">&#160;</td>
            <td align="right" valign="bottom" width="35%">&#160;</td>
            <td align="left" valign="bottom" width="1%">&#160;</td>
          </tr>
          <tr>
            <td align="left" valign="bottom" width="35%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">William
                Matteson</font></div>
            </td>
            <td width="2%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">60</font></div>
            </td>
            <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            <td align="right" valign="bottom" width="35%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">Vice
                President of Merger Integration</font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Board
      of Directors</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;&#160;&#160;&#160;
      </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Our
      Board
      of Directors oversees our business affairs and monitors the performance of
      our
      management. Our Board of Directors currently consists of four members who are
      divided into three classes. Each year shareholders elect the members of one
      of
      the three classes to three year staggered terms. The terms of our Class&#160;I
      Director (Mr.&#160;Hegarty), Class&#160;II Director (Mr.&#160;Galaznik) and
      Class&#160;III Directors (Messrs. Massie and </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Coldrick</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)
      expire
      in 2007, 2008 and 2009, respectively. Each director and executive officer will
      hold office until his successor is duly elected and qualified, until his
      resignation or until he shall be removed in the manner provided by our Amended
      and Restated By-laws. All officers serve at the discretion of the Board and
      are
      elected annually at the annual meeting of our Board held after each annual
      meeting of shareholders. Our Board of directors has determined that all
      directors (other than Mr. Massie) are independent within the meaning of that
      term as defined by the Nasdaq Stock Market.</font><br></div>
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        <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">56</font></div>
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          <hr style="COLOR: black" noshade size="2">
        </div>
      </div>
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        <div id="GLHDR" style="WIDTH: 100%" align="right">
        </div>
      </div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Below
      are
      descriptions of the backgrounds of our executive officers and directors and
      their principal occupation for at least the last five years:</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Thomas
      Massie </strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Mr.
      Massie has served as our Chairman, President and Chief Executive Officer since
      our inception in late 2000.</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>&#160;</strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Prior
      to
      founding Bridgeline, Mr. Massie founded and took public two technology
      companies. From 1991 to 2000, Mr. Massie was the founder, Chairman of the Board
      and Chief Executive Officer of Focus Enhancements, a publicly held developer
      of
      proprietary video conversion ASIC chip technology that had global distribution
      and technology alliances with companies such as Intel, Microsoft, Apple
      Computer, Thompson, Philips, SONY, Nokia, and Zenith. Mr. Massie led Focus
      Enhancements from concept to a public market capitalization of $230 million.
      From 1986 to 1991, Mr. Massie was the founder and Chairman of the Board of
      Mass
      Microsystems, a publicly held developer of proprietary multimedia products,
      which was acquired by Ramtek in 1991. Mr. Massie led Mass Microsystems from
      inception to a public market capitalization in excess of $75 million. Since
      2002, Mr. Massie has been a member of the Board of Directors of MapInfo
      Corporation, a publicly held global company that develops location intelligence
      software solutions, for which he is the Chairman of its Corporate Governance
      Committee and a member of its Audit and Compensation Committees. From 1997
      to
      2005, Mr. Massie was a co-owner and a member of the Board of Directors of The
      Hockey Academy, a private hockey-program management company. Mr. Massie was
      a
      decorated non-commissioned officer in the U.S. Army, 101st Airborne
      Division.</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>William
      Coldrick</strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      Mr.
      Coldrick has served as a Director since our inception. He is also a principal
      of
      Enterprise Development Partners, a consulting firm he founded in 1998 that
      serves emerging growth companies. Since 1993, Mr. Coldrick has served as Vice
      Chairman of the Board of Focus Enhancements. Since 1996 he has been a director
      of Advanced Electronics Support Products. From 1996 to 1998, he was Vice
      President and General Manager of Worldwide Channel Operations for the Computer
      Systems Division of Unisys Corp. From 1982 to 1991, Mr. Coldrick held several
      senior management positions at Apple Computer. In his last position at Apple
      as
      Senior Vice President of U.S. Sales, he was responsible for managing all sales,
      support, service, distribution and channel activities for the United States.
      Before joining Apple, Mr. Coldrick spent fourteen years with Honeywell
      Information Systems, where he held several positions, including regional
      marketing director. He holds a B.A. degree in marketing from Iona College in
      New
      Rochelle, New York.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Kenneth
      Galaznik</strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      Mr.
      Galaznik began serving as a Director in August 2006. Since February 2005, Mr.
      Galaznik has been the Senior Vice President, Chief Financial Officer and
      Treasurer of American Science and Engineering, Inc., a publicly held supplier
      of
      X-ray inspection and screening systems. From August 2002 until February 2005,
      Mr. Galaznik was Vice President of Finance of American Science and Engineering,
      Inc. Prior to joining that company, he served as Vice President of Finance
      at
      Spectro Analytical Instruments, Inc. and has more than 25 years of experience
      in
      accounting and finance positions in manufacturing and real estate development
      entities. Mr. Galaznik holds a B.B.A. degree in accounting from The University
      of Houston.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Robert
      Hegarty</strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      Mr.
      Hegarty began serving as a Director in September 2006. Since 1999, Mr. Hegarty
      has been Managing Director of TowerGroup Securities &amp; Investments Group, a
      capital markets and investment and wealth management firm owned by MasterCard
      International. Before joining TowerGroup in 1999, Mr. Hegarty was vice president
      of trading systems at Putnam Investments in Boston, Massachusetts and was
      employed by Fidelity Investments in Boston for eight years, during which he
      served as vice president of technology of the institutional broker-dealer arm
      of
      Fidelity Investments and Fidelity Capital Markets. </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Mr.
      Hegarty holds an M.B.A. degree in finance and marketing from Babson College
      and
      a B.S. degree in computer science from North Adams State College. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Gary
      Cebula </strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Mr.
      Cebula has served as our Executive Vice President, Chief Financial Officer,
      Treasurer, and Corporate Secretary</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>&#160;</strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">since
      our
      inception. </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">From
      1998
      to 2000, Mr. Cebula was Vice President of Finance, Administration and Treasurer
      of Focus Enhancements, a publicly held developer of proprietary video conversion
      ASIC chip technology that had global distribution and technology alliances
      with
      companies such as Intel, Microsoft, Apple Computer, Thompson, Philips, SONY,
      Nokia, and Zenith. Mr. Cebula was a key contributor to Focus&#8217; strategic
      initiatives, spurring a market capitalization growth from $45 million to $230
      million during his tenure. Focus merged with Silicon Valley-based Videonics
      in
      2000. From 1996 to 1998, Mr. Cebula was Chief Financial Officer of Hanold
      Holding Corporation, a manufacturer and distributor of educational products
      and
      services. From 1986 to 1996 he was Corporate Controller of Continental
      Resources, then a $125 million value-added reseller of computer peripherals
      and
      system integration services. A graduate of General Electric&#8217;s Financial
      Management Program, Mr. </font></div>
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        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="2">
        </div>
      </div>
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        <div id="GLHDR" style="WIDTH: 100%" align="right">
        </div>
      </div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Cebula
      earned a B.S. degree in accounting and an M.S. degree in taxation from Bentley
      College.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Brett
      Zucker</strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      Mr.
      Zucker was the Director of Development and Delivery for Lead Dog Digital, Inc.,
      a custom Web development company we acquired in February 2002, and has served
      as
      our Executive Vice President and General Manager, New York, and since January
      1,
      2006, as our Chief Technical Officer. Prior to joining Lead Dog Digital in
      September 2000, Mr. Zucker served as Senior Producer at AppNet, where he was
      responsible for managing a team of project managers working on a wide range
      of
      custom development projects. Mr. Zucker holds a B.S. degree in Electrical
      Engineering from Cornell University and an M.B.A. degree from Harvard Business
      School.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Below
      are
      descriptions of the backgrounds of certain of our key employees:</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Michael
      Matteo</strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      Mr.
      Matteo has served as our Executive Vice President and General Manager for our
      New York region since September 2006. From our February 2002 acquisition of
      Lead
      Dog Digital to April 2005, Mr. Matteo served as our Senior Vice President,
      operating out of our New York City office. In addition, Mr. Matteo was a member
      of our Board of Directors from February 2002 until December 2006. From May
      2005
      until October 2006, Mr. Matteo was the Chief Operating Officer of Telecom
      Infrastructure Corp., a privately held firm headquartered in New York City.
      Prior to our February 2002 acquisition, Mr. Matteo served as Lead Dog Digital&#8217;s
      Chief Executive Officer. Prior to joining Lead Dog Digital, most of Mr. Matteo&#8217;s
      career was spent working for AT&amp;T in strategy, development, deployment and
      maintenance of complex information systems. Mr. Matteo earned an M.B.A. degree
      from the Wharton Business School and a B.A. degree in both Computer Science
      and
      Management Science from the State University of New York.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Michelle
      Chambers</strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      Ms.
      Chambers has served as our Executive Vice President and General Manager for
      the
      New England region since April 2006. Prior to joining our company, Ms. Chambers
      was President and co-founder of New Tilt, a Web application development and
      Internet strategy company, where she was responsible for sales and marketing
      as
      well as the strategic direction of the company. We acquired New Tilt in April
      2006. Ms. Chambers earned a B.A. degree in Journalism and English from Michigan
      State University. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Babu
      Subramanian</strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      Mr.
</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Subramanian</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      has
      served as our </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Executive
      Vice President and General Manager of our Bridgeline Software, Pvt. Ltd.
      subsidiary in Bangalore, India since 2006.</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      Prior to
      joining Bridgeline, Mr. </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Subramanian</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      was the
      co-founder and Managing Director of Merindus, the Indian arm of Indus
      Consultancy Services, NJ from 2002 until 2006. Prior to joining Merindus, from
      2000 until 2002 Mr. </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Subramanian</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      was
      Director-Projects in Lisle Technology Partners, Bangalore, India, where he
      was
      responsible for building technology for companies in the United States and
      India. Prior to joining Lisle, from 1998 until 2000 Mr. </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Subramanian</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      was
      Group Head in Sonata Software Limited, Bangalore, where he was responsible
      for
      delivery of projects in Groupware, Mobile computing and eBusiness. Prior to
      Sonata, Mr. </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Subramanian</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      was
      Center Head of the India center of the Netherlands-based Wisdom Information
      Consultants, which specialized in Internet and intranet applications. Mr.
      Subramanian holds a Master of Technology degree with specialization in Computer
      Science from Indian Institute of </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Science
      in Bangalore, India and a Bachelor of Engineering degree in Electronics and
      Communication from Regional Engineering College, now known as National Institute
      of Technology, in Tiruchirappalli, India.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Miles
      Fawcett</strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      Miles
      Fawcett founded Interactive Applications Group, Inc. (iapps</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><sup>&#174;</sup></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)
      in
      1994, a company which develops and offers nonprofit organizations a new
      generation of communication tools, and which we acquired in 2004. As President
      of our iapps division, Mr. Fawcett oversees its direction, including strategic
      planning, and operational management. In addition Mr. Fawcett is a member of
      our
      Executive Committee and Product Development Committee. Mr. Fawcett serves on
      the
      board of </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Men
      Can
      Stop Rape</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      and is a
      judge in the Nonprofit and Government category for the </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Computerworld
      Smithsonian Awards</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">.
      Mr.
      Fawcett graduated from the Park School of Communications at Ithaca College,
      and
      served two years on the faculty of American University Graduate School of
      Communications.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Peter
      Winslow</strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      Mr.
      Winslow is our Executive Vice President of Human Resources. From 2003 to July
      2006, Mr. Winslow was our Vice President of Marketing. From 2001 to 2003 Mr.
      Winslow was a principal of Top Gun Arena Management, Inc., a sports facility
      development and management company. From 1990 to 2001 Mr. Winslow was the New
      England Regional Business Manager for The Orvis Company, Inc. Mr. Winslow
      graduated from the School for the Museum of Fine Arts and holds a B.A. degree
      from Tufts University.</font><br></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Donna
      </strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Tramontozzi
      </strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Ms.
      </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Tramontozzi
      </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">is
      our
      Executive Vice President of Business Strategy. Prior to joining our company,
      Ms.
</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Tramontozzi
      </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">was
      co-founder and Chief Strategy Officer of New Tilt, where she was responsible
      for
      providing vision and thought leadership to the planning, design and delivery
      teams. We acquired New Tilt April 2006. Ms. </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Tramontozzi
      </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">received
      a B.A. degree in English and Secondary Education from Boston
      College.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Robert
      Seeger </strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Mr.
      Seeger is Senior Vice President of Business Development for our New York region.
      Mr. Seeger was the Vice President of Business Development for Lead Dog Digital,
      a custom Web development company that we acquired in February 2002. Prior to
      joining Lead Dog Digital, Mr. Seeger worked for Western Industries, Inc. where
      he was commissioned with opening their New York Office. Mr. Seeger is a graduate
      of Rutgers University where he majored in Business and was captain of The
      Rutgers University football team.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>David
      Goldsmith </strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">As&#160;Vice
      President of Business Development for our iapps division, Mr. Goldsmith oversees
      iapps&#8217; business strategy, including business development and strategic
      partnerships. Mr. Goldsmith also consults with iapps customers on knowledge
      management, community building and online communications strategies. Mr.
      Goldsmith joined iapps in April 1997 after seven years with HandsNet, the first
      online network in the United States designed exclusively for nonprofit
      organizations working on issues of social and economic justice. Mr. Goldsmith
      holds a B.A. degree in Political Ecology from Huxley College of Environmental
      Studies at Western Washington University.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Jenny
      Quinn </strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Ms.
      Quinn
      is Senior Vice President of Business Development, for our New England region.
      Ms. Quinn has over 20 years experience as an account manager or sales executive
      for technology solutions and services firms. Prior to joining our company,
      Ms.
      Quinn was responsible for New Tilt&#8217;s business development. We acquired New Tilt
      in April 2006. Ms. Quinn holds a B.A. degree from Dartmouth
      College.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>William
      Matteson </strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Mr.
      Matteson is our Vice President of Merger Integration, and is responsible for
      the
      integration of new companies that we acquire. Prior to his current position,
      he
      was our Vice President of Business Development for New England, having joined
      our company at its inception. From 1995 to 2000, Mr. Matteson was President,
      chief executive officer and co-founder of Streamline Communications, a
      Boston-based Web development company that we acquired in 2000. Mr. Matteson
      received a B.A. degree in English from Brown University.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">All
      of
      our executive officers and key employees devote their full-time attention to
      our
      business. No director or executive officer is related to any other of our
      directors</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      or
      executive officers, and there are no arrangements or understandings between
      a
      director and any other person that such person will be elected as a director.
      There are no material proceedings to which any director, director nominee,
      executive officer or affiliate of our company, any owner of record or
      beneficially of more than five percent of any class of voting securities of
      our
      subsidiaries or our company, or any associate of any such director, officer,
      affiliate or security holder is a party adverse to us.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Directors&#8217;
      and Officers&#8217;</strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Insurance</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Though
      we
      do not maintain directors&#8217; and officers&#8217; liability insurance as of the date of
      this prospectus, we expect to obtain such a policy, with limits of
      $3&#160;million, shortly after the completion of this offering.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Board
      Committees</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;&#160;&#160;&#160;
      </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Our
      Board
      has designated three standing committees: the Audit Committee, the Compensation
      Committee and the Nominating and Governance Committee.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>Audit
      Committee.</em></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      The
      Audit Committee assists the Board in the oversight of the audit of our
      consolidated financial statements and the quality and integrity of its
      accounting, auditing and financial reporting processes. The Audit Committee
      is
      responsible for making recommendations to the Board concerning the selection
      and
      engagement of independent registered public accountants and for reviewing the
      scope of the annual audit, audit fees, results of the audit and auditor
      independence. The Audit Committee also reviews and discusses with management
      and
      the Board such matters as accounting policies, internal accounting controls
      and
      procedures for preparation of financial statements. Our Audit Committee is
      comprised of Messrs. Galaznik (Chair), Coldrick and</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      Hegarty</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">.
      Our
      Board has determined that each of the members of the Audit Committee meets
      the
      criteria for independence under the standards provided by the Nasdaq Stock
      Market. A copy of the Audit Committee Charter is filed as an exhibit to the
      registration statement of which this prospectus is a part.</font><br></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>Audit
      Committee Financial Expert.</em></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      Our
      Board has also determined that Mr.&#160;Galaznik qualifies as an &#8220;audit
      committee financial expert&#8221; as defined under Item&#160;401(e) of
      Regulation&#160;S-B. Mr.&#160;Galaznik is &#8220;independent&#8221; under Rule&#160;10A-3
      under the Securities Act. A copy of the Audit Committee Charter is filed as
      an
      exhibit to the registration statement of which this prospectus is a
      part.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;&#160;&#160;&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>&#160;</em></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>Compensation
      Committee.</em></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      The
      Compensation Committee evaluates the performance of our senior executives,
      considers the design and competitiveness of our compensation plans, reviews
      and
      approves senior executive compensation and administers our equity compensation
      plans. In addition, the Committee also conducts reviews of executive
      compensation to ensure compliance with Section&#160;162(m) of the Internal
      Revenue Code of 1986, as amended. Our Compensation Committee is comprised of
      Messrs. </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Hegarty</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      (Chair)
      and Coldrick, both of whom are independent directors. A copy of the Compensation
      Committee Charter is filed as an exhibit to the registration statement of which
      this prospectus is a part.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;&#160;&#160;&#160;</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>Nominating
      and Governance Committee.</em></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      The
      Nominating and Governance Committee identifies candidates for future Board
      membership and proposes criteria for Board candidates and candidates to fill
      Board vacancies, as well as a slate of directors for election by the
      shareholders at each annual meeting. The Nominating and Governance Committee
      also annually assesses and reports to the Board on Board and Board Committee
      performance and effectiveness and reviews and makes recommendations to the
      Board
      concerning the composition, size and structure of the Board and its committees.
      Messrs. Coldrick (Chair), Galaznik and </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Hegarty</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">,
      all of
      whom are independent directors, are the members of the Nominating and Governance
      Committee.</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>&#160;
      </em></strong>A copy of the Nominating and Governance&#160;Committee Charter is
      filed as an exhibit to the registration statement of which this prospectus
      is a
      part.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Code
      of Ethics</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Our
      Board
      has adopted a Code of Ethics within the meaning of Item&#160;406(b) of
      Regulation&#160;S-B of the Securities Act that applies to all of our officers
      and employees, including our principal executive officer, principal financial
      officer, principal accounting officer or controller, or persons performing
      similar functions. Our Code of Ethics codifies the business and ethical
      principles that govern our business. A copy of the Code of Ethics is filed
      as an
      exhibit to the registration statement of which this prospectus is a
      part.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      Code
      of Ethics is designed to deter wrongdoing and to promote:</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Honest
                and ethical conduct, including the ethical handling of actual or
                apparent
                conflicts of interest between personal and professional
                relationships;</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Full,
                fair, accurate, timely, and understandable disclosure in reports
                and
                documents that we file with, or submit to, the SEC and in other public
                communications made by us</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">;</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Compliance
                with applicable governmental laws, rules and regulations</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">;</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
                prompt internal reporting of violations of the ethics code to an
                appropriate person or persons identified in the
                code;&#160;and</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Accountability
                for adherence to the Code of Ethics</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">.</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><a name="page_0_1_61"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Compensation
      Committee Interlocks and Insider Participation</strong></font></a></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;&#160;&#160;&#160;
      </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">None
      of
      our executive officers served:</font><br></div>
    <div>&#160;</div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">as
                a member of the compensation committee of another entity which has
                had an
                executive officer who has served on our compensation
                committee;</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">as
                a director of another entity which has had an executive officer who
                has
                served on our compensation
                committee;&#160;or</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">as
                a member of the compensation committee of another entity which has
                had an
                executive officer who has served as one of our directors</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">.</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Underwriters&#8217;
      Board Rights</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Pursuant
      to the underwriting agreement relating to this offering, we have agreed, for
      a
      period of no less than two&#160;years, to engage a designee of the
      representative of the underwriters, mutually agreed upon by us and the
      underwriters, as an advisor to the Board. This advisor may attend Board
      meetings, receive all notices and other </font></div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 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="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">60</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <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="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">correspondence
      and communications sent by us to members of our Board and receive compensation
      equal to the highest compensation of our non-employee directors, excluding
      the
      chairs of our standing committees. In addition, the advisor is entitled to
      receive reimbursement for all costs incurred in attending Board or committee
      meetings including food, lodging and transportation. The advisor will have
      none
      of the duties, rights or powers of a director. Stephan Stein, Chief Operating
      Officer of Joseph Gunnar &amp; Co., LLC, has been appointed as the
      designee.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Director
      Compensation</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
      the
      last fiscal year, none of our existing directors were compensated for their
      Board service. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Our
      Board
      recently adopted the following compensation policy for our non-management
      directors:</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>Stock
      Grants.</em></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      Outside
      directors will each receive annual grants of options to purchase 10,000 shares
      of our common stock at an exercise price equal to the fair market value of
      the
      shares on the date of grant. The options will be granted in each year on the
      date of the annual meeting of stockholders. The options shall vest over three
      years in equal installments on the anniversary of grant. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>Cash
      Compensation.</em></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      Each
      outside directors will be compensated $1,500&#160;for each meeting such director
      attends, whether in person or by telephone conference call.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>Committee
      Chair Bonus.</em></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      The
      Chair of our Audit Committee will receive an additional annual fee of $5,000.
      The Chairs of our Compensation Committee and Nominating and Corporate Governance
      Committee will each receive an additional annual fee of $2,500. These fees
      will
      be payable in lump sums in advance. Other directors who serve on our standing
      committees will not receive additional compensation for their committee
      services.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>Travel
      Expenses.</em></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      All
      directors will be reimbursed for their reasonable out of pocket expenses
      associated with attending meetings. For domestic travel, only coach airfare
      will
      be reimbursed; for international travel we will reimburse for business
      class.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Indemnification
      and Limitation of Director and Officer Liability</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Our
      organizational documents contain provisions indemnifying our directors and
      officers to the fullest extent permitted by law. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
      addition, as permitted by Delaware law, our Amended and Restated Certificate
      of
      Incorporation (which will become effective shortly before the completion of
      this
      offering) will provide that no director will be liable to us or our shareholders
      for monetary damages for breach of certain fiduciary duties as a director.
      The
      effect of this provision will be to restrict our rights and the rights of our
      shareholders in derivative suits to recover</font><a name="page_0_1_62"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      monetary
      damages against a director for breach of certain fiduciary duties as a director,
      except that a director will be personally liable for:</font></a></div>
    <div>&#160;</div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">any
                breach of the director&#8217;s duty of loyalty to us or our
                shareholders;</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">acts
                or omissions not in good faith or which involve intentional misconduct
                or
                a knowing violation of law</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">;</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">the
                payment of dividends or the redemption or purchase of stock in violation
                of Delaware law;&#160;or</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">any
                transaction from which the director derived an improper personal
                benefit.</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">At
      present, there is no pending litigation or proceeding involving any of our
      directors, officers, employees or agents where indemnification will be required
      under Delaware law. We are not aware of any threatened litigation or proceeding
      that might result in a claim for such indemnification.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Commission
      Position on Indemnification for Securities Act Liabilities</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Insofar
      as indemnification for liabilities arising under the Securities Act may be
      permitted to our directors, officers and controlling persons pursuant to the
      foregoing provisions, or otherwise, we have been advised that in the opinion
      of
      the Securities and Exchange Commission such indemnification is against public
      policy as expressed in the Securities Act and is, therefore,
      unenforceable.</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>&#160;</strong></font></div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 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="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">61</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <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="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>EXECUTIVE
      COMPENSATION</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      following table and discussions summarize all plan and non-plan compensation
      earned by or paid to our Chief Executive Officer and our three other most highly
      compensated executive officers for our last three completed fiscal years (the
      &#8220;named executive officers&#8221;). </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>SUMMARY
      COMPENSATION TABLE</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
    <div>
      <table cellpadding="0" cellspacing="0" width="100%">

          <tr>
            <td align="left" valign="middle" width="20%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
            </td>
            <td align="left" valign="middle" width="1%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
            </td>
            <td align="left" colspan="27" valign="middle" width="36%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
            </td>
            <td colspan="8" valign="middle" width="16%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Long
                  Term Compensation</strong></font></div>
              </div>
            </td>
          </tr>
          <tr>
            <td align="left" valign="middle" width="20%" style="border-bottom: #ffffff solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
            </td>
            <td align="left" valign="middle" width="1%" style="border-bottom: #ffffff solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
            </td>
            <td colspan="26" valign="middle" width="33%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Annual
                Compensation</strong></font></div>
            </td>
            <td align="left" valign="middle" width="3%" style="border-bottom: #ffffff solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
            </td>
            <td colspan="8" valign="middle" width="16%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Awards</strong></font></div>
              </div>
            </td>
            <td align="left" colspan="2" valign="middle" width="1%" style="border-bottom: #ffffff solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
            </td>
          </tr>
          <tr>
            <td align="left" valign="middle" width="20%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
            </td>
            <td align="left" valign="middle" width="1%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
            </td>
            <td colspan="26" valign="middle" width="33%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
            </td>
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              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
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            <td align="left" valign="middle" width="1%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
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              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
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              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
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            <td align="left" valign="middle" width="2%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
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            <td align="left" colspan="2" valign="middle" width="1%">
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          <tr>
            <td align="left" valign="middle" width="20%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
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            <td align="left" valign="middle" width="1%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
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            <td align="left" colspan="4" valign="middle" width="6%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
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            <td align="left" colspan="3" valign="middle" width="1%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
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            <td align="left" valign="middle" width="1%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
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            <td align="left" colspan="2" valign="middle" width="1%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
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            <td colspan="6" valign="middle" width="7%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Bonus</strong></font></div>
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            <td align="left" valign="middle" width="1%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
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            <td align="left" valign="middle" width="1%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
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            <td colspan="4" valign="middle" width="9%">
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              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
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            <td colspan="3" valign="middle" width="6%">
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            <td align="left" valign="middle" width="1%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
            </td>
            <td align="left" valign="middle" width="2%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
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            <td colspan="3" valign="middle" width="8%">
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            <td align="left" valign="middle" width="1%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
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            <td align="left" valign="middle" width="20%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Name
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            <td align="left" valign="middle" width="1%" style="border-bottom: #ffffff solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
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              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
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            <td align="left" colspan="3" valign="middle" width="1%" style="border-bottom: #ffffff solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
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            <td colspan="4" valign="middle" width="7%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>($)</strong></font></div>
            </td>
            <td align="left" valign="middle" width="1%" style="border-bottom: #ffffff solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
            </td>
            <td align="left" colspan="2" valign="middle" width="1%" style="border-bottom: #ffffff solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
            </td>
            <td colspan="6" valign="middle" width="7%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>($)</strong></font></div>
            </td>
            <td align="left" valign="middle" width="1%" style="border-bottom: #ffffff solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
            </td>
            <td align="left" valign="middle" width="1%" style="border-bottom: #ffffff solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
            </td>
            <td colspan="4" valign="middle" width="9%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>($)</strong></font></div>
            </td>
            <td align="left" valign="middle" width="3%" style="border-bottom: #ffffff solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
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            <td colspan="3" valign="middle" width="6%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>($)</strong></font></div>
            </td>
            <td align="left" valign="middle" width="1%" style="border-bottom: #ffffff solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
            </td>
            <td align="left" valign="middle" width="2%" style="border-bottom: #ffffff solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
            </td>
            <td colspan="3" valign="middle" width="8%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>(#)</strong></font></div>
            </td>
            <td align="left" valign="middle" width="1%" style="border-bottom: #ffffff solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
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          <tr>
            <td valign="bottom" width="20%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
            </td>
            <td align="left" valign="bottom" width="1%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
            </td>
            <td colspan="3" valign="bottom" width="5%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
            </td>
            <td align="left" valign="bottom" width="1%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
            </td>
            <td align="left" colspan="3" valign="bottom" width="1%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
            </td>
            <td colspan="4" valign="bottom" width="7%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
            </td>
            <td align="left" valign="bottom" width="1%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
            </td>
            <td align="left" colspan="2" valign="bottom" width="1%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
            </td>
            <td colspan="6" valign="bottom" width="7%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
            </td>
            <td align="left" valign="bottom" width="1%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
            </td>
            <td align="left" valign="bottom" width="1%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
            </td>
            <td colspan="4" valign="bottom" width="9%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
            </td>
            <td align="left" valign="bottom" width="3%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
            </td>
            <td colspan="3" valign="bottom" width="6%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
            </td>
            <td align="left" valign="bottom" width="1%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
            </td>
            <td align="left" valign="bottom" width="2%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
            </td>
            <td colspan="3" valign="bottom" width="8%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
            </td>
            <td align="left" valign="bottom" width="1%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
            </td>
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          <tr>
            <td align="left" valign="top" width="20%">
              <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Thomas
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            <td align="left" valign="bottom" width="1%">&#160;</td>
            <td align="left" valign="bottom" width="1%">&#160;</td>
            <td align="right" colspan="2" valign="bottom" width="5%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2006</font></div>
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            <td align="left" valign="bottom" width="1%">&#160;</td>
            <td align="left" colspan="3" valign="bottom" width="1%">&#160;</td>
            <td align="left" valign="bottom" width="1%">&#160;</td>
            <td align="right" colspan="3" valign="bottom" width="6%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">150,000</font></div>
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            <td align="left" valign="bottom" width="1%">&#160;</td>
            <td align="left" colspan="2" valign="bottom" width="1%">&#160;</td>
            <td align="left" colspan="2" valign="bottom" width="1%">&#160;</td>
            <td align="right" colspan="4" valign="bottom" width="6%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">50,000</font></div>
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            <td align="left" valign="bottom" width="1%">&#160;</td>
            <td align="left" valign="bottom" width="1%">&#160;</td>
            <td align="left" valign="bottom" width="1%">&#160;</td>
            <td align="right" colspan="3" valign="bottom" width="7%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">20,272</font></div>
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            <td align="left" valign="bottom" width="3%">
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            <td align="left" valign="bottom" width="2%">&#160;</td>
            <td align="right" colspan="2" valign="bottom" width="4%">&#160;</td>
            <td align="left" valign="bottom" width="1%">&#160;</td>
            <td align="left" valign="bottom" width="2%">&#160;</td>
            <td align="left" valign="bottom" width="1%">&#160;</td>
            <td align="right" colspan="2" valign="bottom" width="7%">&#160;</td>
            <td align="left" valign="bottom" width="1%">&#160;</td>
          </tr>
          <tr>
            <td align="left" valign="top" width="20%">
              <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
            </td>
            <td align="left" valign="bottom" width="1%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
            </td>
            <td align="left" valign="bottom" width="1%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
            </td>
            <td align="right" colspan="2" valign="bottom" width="5%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2005</font></div>
            </td>
            <td align="left" valign="bottom" width="1%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
            </td>
            <td align="left" colspan="3" valign="bottom" width="1%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
            </td>
            <td align="left" valign="bottom" width="1%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
            </td>
            <td align="right" colspan="3" valign="bottom" width="6%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">150,000</font></div>
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            <td align="left" valign="bottom" width="1%">&#160;</td>
            <td align="left" valign="bottom" width="1%">&#160;</td>
            <td align="right" colspan="3" valign="bottom" width="7%">&#160;</td>
            <td align="left" valign="bottom" width="3%">&#160;</td>
            <td align="left" valign="bottom" width="2%">&#160;</td>
            <td align="right" colspan="2" valign="bottom" width="4%">&#160;</td>
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            <td align="left" valign="bottom" width="2%">&#160;</td>
            <td align="left" valign="bottom" width="1%">&#160;</td>
            <td align="right" colspan="2" valign="bottom" width="7%">&#160;</td>
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              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
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              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
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              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
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            <td align="left" colspan="2" valign="bottom" width="1%">&#160;</td>
            <td align="left" colspan="2" valign="bottom" width="1%">&#160;</td>
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            <td align="left" valign="bottom" width="1%">&#160;</td>
            <td align="left" valign="bottom" width="1%">&#160;</td>
            <td align="right" colspan="3" valign="bottom" width="7%">&#160;</td>
            <td align="left" valign="bottom" width="3%">&#160;</td>
            <td align="left" valign="bottom" width="2%">&#160;</td>
            <td align="right" colspan="2" valign="bottom" width="4%">&#160;</td>
            <td align="left" valign="bottom" width="1%">&#160;</td>
            <td align="left" valign="bottom" width="2%">&#160;</td>
            <td align="left" valign="bottom" width="1%">&#160;</td>
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              <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
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              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
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              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
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            <td align="left" valign="bottom" width="1%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
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            <td align="left" valign="middle" width="1%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
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              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
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            <td align="left" valign="bottom" width="1%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
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            <td align="left" valign="middle" width="1%">&#160;</td>
            <td align="left" colspan="2" valign="middle" width="1%">&#160;</td>
            <td align="left" colspan="2" valign="bottom" width="1%">&#160;</td>
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            <td align="left" valign="middle" width="1%">&#160;</td>
            <td align="left" valign="bottom" width="1%">&#160;</td>
            <td align="right" colspan="3" valign="bottom" width="7%">&#160;</td>
            <td align="left" valign="middle" width="3%">&#160;</td>
            <td align="left" valign="bottom" width="2%">&#160;</td>
            <td align="right" colspan="2" valign="bottom" width="4%">&#160;</td>
            <td align="left" valign="middle" width="1%">&#160;</td>
            <td align="left" valign="middle" width="2%">&#160;</td>
            <td align="left" valign="bottom" width="1%">&#160;</td>
            <td align="right" colspan="2" valign="bottom" width="7%">&#160;</td>
            <td align="left" valign="middle" width="1%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
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            <td align="left" valign="bottom" width="1%">&#160;</td>
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            <td align="left" valign="middle" width="1%">&#160;</td>
            <td align="left" colspan="3" valign="middle" width="1%">&#160;</td>
            <td align="left" valign="bottom" width="1%">&#160;</td>
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            <td align="left" valign="middle" width="1%">&#160;</td>
            <td align="left" colspan="2" valign="middle" width="1%">&#160;</td>
            <td align="left" colspan="2" valign="bottom" width="1%">&#160;</td>
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            <td align="left" valign="middle" width="1%">&#160;</td>
            <td align="left" valign="bottom" width="1%">&#160;</td>
            <td align="left" colspan="3" valign="bottom" width="7%">&#160;</td>
            <td align="left" valign="middle" width="3%">&#160;</td>
            <td align="left" valign="bottom" width="2%">&#160;</td>
            <td align="left" colspan="2" valign="bottom" width="4%">&#160;</td>
            <td align="left" valign="middle" width="1%">&#160;</td>
            <td align="left" valign="middle" width="2%">&#160;</td>
            <td align="left" valign="bottom" width="1%">&#160;</td>
            <td align="left" colspan="2" valign="bottom" width="7%">&#160;</td>
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              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
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            <td align="left" valign="bottom" width="1%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
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            <td align="left" valign="bottom" width="1%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
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            <td align="left" colspan="3" valign="bottom" width="1%">
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            <td align="left" valign="bottom" width="1%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
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            <td align="left" valign="bottom" width="1%">&#160;</td>
            <td align="left" colspan="2" valign="bottom" width="1%">&#160;</td>
            <td align="left" colspan="2" valign="bottom" width="1%">&#160;</td>
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            <td align="left" valign="bottom" width="1%">&#160;</td>
            <td align="left" valign="bottom" width="1%">&#160;</td>
            <td align="left" valign="bottom" width="1%">&#160;</td>
            <td align="right" colspan="3" valign="bottom" width="7%">&#160;</td>
            <td align="left" valign="bottom" width="3%">&#160;</td>
            <td align="left" valign="bottom" width="2%">&#160;</td>
            <td align="right" colspan="2" valign="bottom" width="4%">&#160;</td>
            <td align="left" valign="bottom" width="1%">&#160;</td>
            <td align="left" valign="bottom" width="2%">&#160;</td>
            <td align="left" valign="bottom" width="1%">&#160;</td>
            <td align="right" colspan="2" valign="bottom" width="7%">
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            <td align="left" valign="bottom" width="1%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
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          <tr>
            <td align="left" valign="top" width="20%">&#160;</td>
            <td align="left" valign="bottom" width="1%">&#160;</td>
            <td align="left" valign="bottom" width="1%">&#160;</td>
            <td align="right" colspan="2" valign="bottom" width="5%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2004</font></div>
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            <td align="left" valign="bottom" width="1%">&#160;</td>
            <td align="left" colspan="3" valign="bottom" width="1%">&#160;</td>
            <td align="left" valign="bottom" width="1%">&#160;</td>
            <td align="right" colspan="3" valign="bottom" width="6%">
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            <td align="right" colspan="3" valign="bottom" width="7%">&#160;</td>
            <td align="left" valign="bottom" width="3%">&#160;</td>
            <td align="left" valign="bottom" width="2%">&#160;</td>
            <td align="right" colspan="2" valign="bottom" width="4%">&#160;</td>
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            <td align="left" valign="bottom" width="2%">&#160;</td>
            <td align="left" valign="bottom" width="1%">&#160;</td>
            <td align="right" colspan="2" valign="bottom" width="7%">&#160;</td>
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            <td align="left" colspan="2" valign="bottom" width="1%">&#160;</td>
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            <td align="left" valign="middle" width="1%">&#160;</td>
            <td align="left" valign="bottom" width="1%">&#160;</td>
            <td align="right" colspan="3" valign="bottom" width="7%">&#160;</td>
            <td align="left" valign="middle" width="3%">&#160;</td>
            <td align="left" valign="bottom" width="2%">&#160;</td>
            <td align="right" colspan="2" valign="bottom" width="4%">&#160;</td>
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            <td align="left" valign="middle" width="2%">&#160;</td>
            <td align="left" valign="bottom" width="1%">&#160;</td>
            <td align="right" colspan="2" valign="bottom" width="7%">&#160;</td>
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            <td align="left" valign="middle" width="1%">&#160;</td>
            <td align="left" valign="bottom" width="1%">&#160;</td>
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            <td align="left" colspan="2" valign="bottom" width="1%">&#160;</td>
            <td align="right" colspan="4" valign="bottom" width="6%">
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            <td align="left" valign="middle" width="1%">&#160;</td>
            <td align="left" valign="middle" width="1%">&#160;</td>
            <td align="left" valign="bottom" width="1%">&#160;</td>
            <td align="right" colspan="3" valign="bottom" width="7%">&#160;</td>
            <td align="left" valign="middle" width="3%">&#160;</td>
            <td align="left" valign="bottom" width="2%">&#160;</td>
            <td align="right" colspan="2" valign="bottom" width="4%">&#160;</td>
            <td align="left" valign="middle" width="1%">&#160;</td>
            <td align="left" valign="middle" width="2%">&#160;</td>
            <td align="left" valign="bottom" width="1%">&#160;</td>
            <td align="right" colspan="2" valign="bottom" width="7%">
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            <td align="left" valign="middle" width="1%">&#160;</td>
            <td align="left" valign="bottom" width="1%">&#160;</td>
            <td align="right" colspan="2" valign="bottom" width="5%">
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            <td align="left" colspan="3" valign="middle" width="1%">&#160;</td>
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            <td align="right" colspan="3" valign="bottom" width="6%">
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            <td align="left" valign="middle" width="1%">&#160;</td>
            <td align="left" colspan="2" valign="middle" width="1%">&#160;</td>
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            <td align="left" valign="middle" width="1%">&#160;</td>
            <td align="left" valign="middle" width="1%">&#160;</td>
            <td align="left" valign="bottom" width="1%">&#160;</td>
            <td align="right" colspan="3" valign="bottom" width="7%">&#160;</td>
            <td align="left" valign="middle" width="3%">&#160;</td>
            <td align="left" valign="bottom" width="2%">&#160;</td>
            <td align="right" colspan="2" valign="bottom" width="4%">&#160;</td>
            <td align="left" valign="middle" width="1%">&#160;</td>
            <td align="left" valign="middle" width="2%">&#160;</td>
            <td align="left" valign="bottom" width="1%">&#160;</td>
            <td align="right" colspan="2" valign="bottom" width="7%">&#160;</td>
            <td align="left" valign="middle" width="1%">&#160;</td>
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            <td align="left" colspan="40" valign="middle" width="73%">
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
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      (whether or not in tandem with Stock Appreciation Rights (&#8220;SARs&#8221;)) and
      freestanding SARs made during the fiscal year ended September 30, 2006 to each
      of the named executive officers specified below:</font></div>
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    <div>&#160;</div>
    <div align="left">
      <table cellpadding="0" cellspacing="0" id="ftable" width="100%">

          <tr>
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            <td width="2%" style="border-bottom: #ffffff solid;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
            <td align="right" valign="bottom" width="10%" style="border-bottom: black thin solid;">
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                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center">
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            <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
            <td align="right" valign="bottom" width="10%" style="border-bottom: black thin solid;">
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                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center">
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            <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff solid;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
            <td align="right" valign="bottom" width="10%" style="border-bottom: black thin solid;">
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                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Exercise
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            <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff solid;">&#160;</td>
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            </td>
          </tr>
          <tr>
            <td align="left" valign="bottom" width="49%" style="border-bottom: medium none;">
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            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            <td align="right" valign="bottom" width="10%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman">&#8212;</font></font></div>
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            <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            <td align="right" valign="bottom" width="10%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman">&#8212;</font></font></div>
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            <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            <td align="right" valign="bottom" width="10%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman">&#8212;</font></font></div>
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            <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
            <td align="right" colspan="12" valign="bottom" width="10%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman">&#8212;</font></font></div>
              </div>
            </td>
          </tr>
          <tr>
            <td align="left" valign="bottom" width="49%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Gary
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            </td>
            <td width="2%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            <td align="right" valign="bottom" width="10%" style="border-bottom: medium none;">
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            <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            <td align="right" valign="bottom" width="10%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">24.4</font></div>
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            <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
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            <td align="right" valign="bottom" width="10%" style="border-bottom: medium none;">
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            <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
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            </td>
          </tr>
          <tr>
            <td align="left" valign="bottom" width="49%" style="border-bottom: medium none;">
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            </td>
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            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            <td align="right" valign="bottom" width="10%" style="border-bottom: medium none;">
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            <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            <td align="right" valign="bottom" width="10%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">24.4</font></div>
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            <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
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            <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
            <td align="right" colspan="12" valign="bottom" width="10%" style="border-bottom: medium none;">
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                Seeger</font></div>
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            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            <td align="right" valign="bottom" width="10%" style="border-bottom: medium none;">
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            <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            <td align="right" valign="bottom" width="10%" style="border-bottom: medium none;">
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            <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
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            <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      following table sets forth certain information concerning the number and value
      of unexercised options held by each of the named executive officers at September
      30, 2006.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="left">
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      </div>
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      <div id="HDR">
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        </div>
      </div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center">&#160;&#160;</div>
    <div align="left">
      <table cellpadding="0" cellspacing="0" id="ftable" width="100%">

          <tr>
            <td align="left" valign="bottom" width="43%">&#160;</td>
            <td align="right" colspan="5" valign="bottom" width="26%">&#160;</td>
            <td align="left" valign="bottom" width="2%">&#160;</td>
            <td align="right" colspan="5" valign="bottom" width="25%">
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          <tr>
            <td align="left" valign="bottom" width="43%">&#160;</td>
            <td align="right" colspan="5" valign="bottom" width="26%">
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            <td align="left" valign="bottom" width="2%">&#160;</td>
            <td align="right" colspan="5" valign="bottom" width="25%">
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            </td>
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          <tr>
            <td align="left" valign="bottom" width="43%">&#160;</td>
            <td align="right" colspan="5" valign="bottom" width="26%">
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                Options at</strong></font>&#160;</div>
            </td>
            <td align="left" valign="bottom" width="2%">&#160;</td>
            <td align="right" colspan="5" valign="bottom" width="25%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Options
                at</strong></font>&#160;</div>
            </td>
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          <tr>
            <td align="left" valign="bottom" width="43%" style="border-bottom: #ffffff solid;">&#160;</td>
            <td align="right" colspan="5" valign="bottom" width="26%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>September
                30, 2006</strong></font>&#160;</div>
            </td>
            <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff solid;">&#160;</td>
            <td align="right" colspan="5" valign="bottom" width="25%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>September
                30, 2006 (1)</strong></font>&#160;</div>
            </td>
          </tr>
          <tr>
            <td align="left" valign="bottom" width="43%" style="border-bottom: #ffffff solid;">&#160;</td>
            <td align="right" colspan="2" valign="bottom" width="12%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Exercisable</strong></font>&#160;</div>
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            <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff solid;">&#160;</td>
            <td align="right" colspan="2" valign="bottom" width="12%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Unexercisable</strong></font>&#160;</div>
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            <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff solid;">&#160;</td>
            <td align="right" colspan="2" valign="bottom" width="12%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Exercisable</strong></font>&#160;</div>
            </td>
            <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff solid;">&#160;</td>
            <td align="right" colspan="2" valign="bottom" width="11%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Unexercisable</strong></font>&#160;</div>
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          <tr>
            <td align="left" valign="bottom" width="43%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Thomas
                Massie</font></div>
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            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">40,000</font></div>
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            <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman">&#8212;</font></font></div>
              </div>
            </td>
            <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
            </td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">119,981</font></div>
            </td>
            <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
            </td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">-
                0 -</font></div>
            </td>
          </tr>
          <tr>
            <td align="left" valign="bottom" width="43%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Gary
                Cebula</font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">65,000</font></div>
            </td>
            <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">66,667</font></div>
            </td>
            <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
            </td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">157,481</font></div>
            </td>
            <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
            </td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">116,667</font></div>
            </td>
          </tr>
          <tr>
            <td align="left" valign="bottom" width="43%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Brett
                Zucker</font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">82,283</font></div>
            </td>
            <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">66,667</font></div>
            </td>
            <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
            </td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">225,410</font></div>
            </td>
            <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
            </td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">116,667</font></div>
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          </tr>
          <tr>
            <td align="left" valign="bottom" width="43%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Robert
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            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">68,164</font></div>
            </td>
            <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">33,333</font></div>
            </td>
            <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
            </td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">197,390</font></div>
            </td>
            <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
            </td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">58,333</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>__________________________</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 18pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(1)&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Options
                are &#8220;in the money&#8221; if the market value of the shares covered thereby is
                greater than the option exercise price. There was no public trading
                market
                for our common stock as of September 30, 2006. The value of unexercised
                &#8220;in the Money&#8221; options at September 30, 2006 are determined by multiplying
                the number of shares underlying the options by the difference between
                the
                initial public offering price of $5.50 per share and the per share
                option
                exercise price. </font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Employment
      Agreements, Termination of Employment and Change-In-Control
      Arrangements</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>Thomas
      Massie</em></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">We
      have
      entered into an employment agreement with Thomas Massie, our Chief Executive
      Officer, to provide executive management services. The agreement had an initial
      term of three years commencing on October 1, 2001 and was renewed in 2004 for
      another three-year term. The term of the agreement is automatically extended
      so
      that it always has an effective period of three years. For all services rendered
      to us, Mr. Massie is compensated in the form of initial base salary in the
      amount of $150,000 and an annual contingent bonus of at least $50,000, payable
      based upon goals mutually agreed upon by Mr. Massie and our Board of Directors.
      Both the annual salary and bonus are subject to periodic review and adjustment
      by our Board. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">This
      agreement may be terminated by (i) us, in the event of Mr. Massie&#8217;s death,
      resignation, retirement or disability, or for or without cause, or (ii) Mr.
      Massie for good reason. In the event that Mr. Massie is terminated by us without
      cause or Mr. Massie resigns for good reason, he is entitled to receive severance
      payments equal to the greater of: (a) three years&#8217; total compensation, including
      bonus amounts, or (b) $1 million.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 18pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>Named
      Executive Officers and Key Employees</em></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">We
      have
      entered into an employment agreement with each of our named executive officers
      and certain of our key employees, each for an initial term of one year. The
      term
      of each agreement automatically renews for successive periods of one year each
      unless terminated under the agreement. Each agreement sets forth the officer&#8217;s
      or employee&#8217;s initial base salary and annual contingent bonus. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Each
      agreement may be terminated by (i) us, in the event of the officer&#8217;s or
      employee&#8217;s death, resignation, retirement, or disability, or for or without
      cause, or (ii) by the officer officer&#8217;s or employee for good reason. In the
      event that the officer or employee is terminated by us without cause or if
      the
      officer or employee terminates his employment for good reason, he is entitled
      to
      receive severance payments equal to six months&#8217; salary plus the quarterly bonus
      paid to him for the two quarters immediately prior to the termination.
</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Each
      of
      these employment agreements also contains non-competition, confidentiality,
      indemnification and other terms and provisions customary for agreements of
      this
      nature. The foregoing is a summary of the material terms and provisions of
      the
      employment agreements with our named executive officers</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      and key
      employee&#8217;s. Copies of the agreements with our named executive
      officers</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      are
      filed as exhibits to the registration statement of which this prospectus is
      a
      part.</font></div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 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="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">63</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <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="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>Proposed
      Employment Agreement with Erez M. Katz</em></font></div>
    <div>&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Upon
      closing of the Objectware acquisition, we intend to enter into an employment
      agreement with Mr. Katz, the sole shareholder of Objectware, pursuant to which
      Mr. Katz will serve as our as Executive Vice President and General Manager
      for
      our Atlanta business unit. The initial term of the agreement will be for one
      year and will automatically renew for successive periods of one year each unless
      terminated under the agreement. The agreement sets forth Mr. Katz&#8217; initial base
      salary of $150,000 and annual contingent bonus of up to $100,000. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      agreement may be terminated by (i) us, in the event of Mr. Katz&#8217; death,
      resignation, retirement, or disability, or for or without cause, or (ii) by
      Mr.
      Katz for good reason. In the event that Mr. Katz&#8217; employment is terminated by us
      without cause or if Mr. Katz terminates his employment for good reason, (i)
      prior to the completion of three years from the initial date of the employment
      agreement, he is entitled to a severance payment of $750,000, or (ii) after
      the
      completion of three years from the initial date of the employment agreement,
      he
      is entitled to receive severance payments equal to twelve months&#8217; salary plus
      the quarterly bonus paid to him for the four quarters immediately prior to
      the
      termination. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">This
      employment agreement also contains non-competition, confidentiality,
      indemnification and other terms and provisions customary for agreements of
      this
      nature. The foregoing is a summary of the material terms and provisions of
      the
      employment agreement with Mr. Katz</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">.
      A copy
      of this agreement is</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      filed as
      an exhibit to the registration statement of which this prospectus is a
      part.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Amended
      and Restated Stock Incentive Plan</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Our
      Amended and Restated Stock Incentive Plan, originally adopted in 2000 and
      amended and restated in August 2006, allows us to grant options and other forms
      of stock-based compensation to our officers, directors, employees and outside
      consultants and advisors. We have developed this Plan to align the interests
      of
      (i)&#160;employees, (ii)&#160;non-employee Board members, and
      (iii)&#160;consultants and key advisors with the interests of our shareholders
      and to provide incentives for these persons to exert maximum efforts for our
      success and to encourage them to contribute materially to our
      growth.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      Plan
      is not subject to the provisions of the Employment Retirement Income Security
      Act, as amended (&#8220;ERISA&#8221;), and is not a &#8220;qualified plan&#8221; within the meaning of
      Section&#160;401 of the Internal Revenue Code, as amended (the &#8220;Code&#8221;). The Plan
      is administered by our Compensation Committee which has exclusive discretion
      to
      select the participants who will receive awards under the Plan and to determine
      the type, size and terms of each award.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>Shares
      Subject to the Plan.</em></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      We may
      issue up to 1,400,000&#160;shares under the Plan, subject to adjustment to
      prevent dilution from stock dividends, stock splits, recapitalization or similar
      transactions. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>Administration
      of the Plan. </em></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      Plan
      is administered by the Compensation Committee. Except for certain
      non-discretionary option grants to certain of our directors described below,
      the
      Compensation Committee selects the individuals to whom options and awards are
      granted and determines the option exercise price and other terms of each award,
      subject to the provisions of the Plan.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>Awards
      under the Plan.</em></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      Under
      the Plan, the Compensation Committee may grant awards in the form of incentive
      stock options, as defined in Section&#160;422 of the Code, options which do not
      so qualify, stock awards, performance share awards and stock appreciation
      rights. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>Options.</em></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      The
      duration of any option shall be within the sole discretion of the Compensation
      Committee; provided, however, that any incentive stock option granted to a
      10%
      or less stockholder or any nonqualified stock option shall, by its terms, be
      exercised within 10&#160;years after the date the option is granted and any
      incentive stock option granted to a greater than 10% stockholder shall, by
      its
      terms, be exercised within five years after the date the option is granted.
      The
      exercise price of all options will be determined by the Compensation Committee;
      provided, however, that the exercise price of an option (including incentive
      stock options or nonqualified stock options) will be equal to, or greater than,
      the fair market value of a share of our stock on the date the option is granted
      and further provided that incentive stock options may not be granted to an
      employee who, at the time of grant, owns stock </font></div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
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        </div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">64</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <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="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">possessing
      more than 10% of the total combined voting power of all classes of our stock
      or
      any parent or subsidiary, as defined in section&#160;424 of the Code, unless the
      price per share is not less than 110% of the fair market value of our stock
      on
      the date of grant.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      Plan
      provides that each director who is not an employee of Bridgeline, on the date
      of
      each annual meeting or special meeting in lieu thereof, shall automatically
      receive a grant of a non-statutory option for the purchase of 10,000 shares
      of
      Common Stock. Such option shall vest over three years on the anniversary of
      the
      date of grant at a rate of 33.33% per year until fully vested.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><a name="page_0_1_66"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>Termination
      of Employment.</em></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      Unless
      the Compensation Committee provides otherwise in the terms of an option
      agreement, if the employment or service of a participant is terminated, options
      granted to such participant prior to August 18, 2006 will immediately cease
      to
      be exercisable and any options granted after that date will cease to be
      exercisable (i) immediately if the participant&#8217;s employment or service is
      terminated for cause or (ii) up to three (3) months after the participant&#8217;s
      employment or service is terminated without cause.</font></a></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>Termination
      or Amendment of the Plan.</em></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      Our
      Board of Directors may at any time terminate the Plan or make such amendments
      thereto as it deems advisable, without action on the part of our shareholders
      unless their approval is required under the law. However, no termination or
      amendment will, without the consent of the individual to whom any option has
      been granted, affect or impair the rights of such individual. Under
      Section&#160;422(b)(2) of the Code, no incentive stock option may be granted
      under the Plan more than ten years from the date the Plan was amended and
      restated or the date such amendment and restatement was approved by our
      shareholders, whichever is earlier.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><a name="gmnh115"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Lead
      Dog Digital, Inc. 2001 Stock Option Plan</strong></font></a></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">As
      part
      of our acquisition of Lead Dog Digital, Inc. in February 2002, we assumed the
      Lead Dog Digital, Inc. 2001 Stock Option Plan. There are currently options
      to
      purchase a total of 98,731 shares of our common stock outstanding under this
      plan. We are not granting new options under this plan. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      Lead
      Dog Digital plan is not subject to the provisions of ERISA and is not a
&#8220;qualified plan&#8221; within the meaning of Section&#160;401 of the Code. The plan is
      administered by our Compensation Committee which has exclusive discretion to
      select the participants who will receive awards under the plan and to determine
      the type, size and terms of each award.</font><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>CERTAIN
      RELATIONSHIPS AND RELATED TRANSACTIONS</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>Loan
      Agreements</em></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
      September 2002, we issued two convertible term notes to Thomas Massie, our
      President and Chief Executive Officer, in the aggregate principal amount of
      $312,000, pursuant to which we borrowed money from Mr. Massie from time to
      time.
      Our obligations under these notes were terminated as of September 7, 2006,
      and
      we have no further obligations to Mr. Massie under these notes.&#160; A security
      agreement pursuant to which we granted Mr. Massie a security interest in certain
      assets to secure repayment of these notes has also been terminated.
</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>Participation
      in Private Placement</em></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Mr.
      Massie and Mr. Coldrick each purchased one unit in our April 2006 private
      placement for $100,000. Mr. Seeger purchased one-half of one unit in our April
      2006 private placement for $50,000. </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      terms
      of these transactions were identical to the terms on which all other investors
      participated. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Based
      on
      its services as placement agent for our April 2006 private placement, Joseph
      Gunnar &amp; Co., LLC (&#8220;Gunnar&#8221;) received the cash and equity compensation
      described below:</font></div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 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="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">65</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <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="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div>
      <table bgcolor="white" cellpadding="0" cellspacing="0" id="ftable" width="100%">

          <tr bgcolor="white">
            <td align="left" valign="bottom" width="57%" style="border-bottom: black thin solid;"><strong><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Private
              Placement</font></strong>&#160;</td>
            <td width="2%" style="border-bottom: #ffffff solid;">&#160;</td>
            <td colspan="2" valign="bottom" width="12%" style="border-bottom: black thin solid;">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><strong><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Cash
                Fee</font></strong></div>
            </td>
            <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff solid;">&#160;</td>
            <td colspan="2" valign="bottom" width="12%" style="border-bottom: black thin solid;">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><strong><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Number
                of Warrants</font></strong></div>
            </td>
            <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff solid;">&#160;</td>
            <td colspan="2" valign="bottom" width="11%" style="border-bottom: black thin solid;">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><strong><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Exercise
                Price</font></strong></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff solid;">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td align="left" valign="bottom" width="57%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">April
              <font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2006
              Private Placement</font></font></td>
            <td width="2%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
              <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
            </td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
              <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">280,000</font></div>
            </td>
            <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">
              <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman"><sup>(1)</sup></font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
              <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">112,000</font></div>
            </td>
            <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><sup>(2)</sup></font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
          </tr>

      </table>
    </div>
    <div align="left">
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td style="width: 18pt;">&#160;</td>
            <td style="width: 18pt;">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(1)</font></div>
            </td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Does
                not include amounts paid by us to Gunnar as reimbursement for
                out-of-pocket expenses in connection with the 2006 private placement
                or
                for fees of Gunnar&#8217;s counsel.</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td style="width: 18pt;">&#160;</td>
            <td style="width: 18pt;">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(2)
                </font></div>
            </td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Exercise
                price is equal to the offering price of our common stock in this
                offering.
                </font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">We
      have
      entered into a Business Combination Services Agreement effective October 1,
      2005
      with Gunnar, pursuant to which Gunnar provides us with certain advisory services
      concerning potential acquisitions and transactions. The term of the agreement
      is
      for one year with automatic one-year renewals until either party elects not
      to
      renew and provides 90 days&#8217; written notice prior to the commencement of the next
      renewal period or after the consummation of two business combinations during
      any
      term. During the term and any renewal periods, we are required to pay cash
      advances against success fees in the initial amount of $7,500 per month, which
      amount increased to $10,000 per month in May 2006, and will increase to $15,000
      per month upon the completion of this offering. As compensation for its
      services, we are obligated to pay Gunnar, at the closing of a business
      combination (</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>i.e</em></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">.,
      a
      merger, acquisition, sale or joint venture), a success fee equal to six percent
      of the total value of all cash, securities or other property paid in connection
      with the transaction. The success fee for each business combination consummated
      during the initial term or a renewal period is a minimum of $125,000 and a
      maximum of $375,000, net of the cash advances paid to Gunnar during the
      applicable period. We are also obligated to reimburse Gunnar for reasonable
      expenses incurred in connection with providing the advisory
      services.</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      This
      agreement also contains exclusivity, indemnification and other terms and
      provisions customary for agreements of this nature. The foregoing is a summary
      of the material terms and provisions of this agreement, a copy of which is
      filed
      as an exhibit to the registration statement of which this prospectus is a
      part.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 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="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">66</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <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="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><a name="gmnh116"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>SECURITY
      OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT</strong></font></a></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      following table sets forth as of October 31, 2006, the beneficial ownership
      of
      our common stock, as adjusted for this offering, by (i)&#160;each person or
      group of persons known to us to beneficially own more than 5% of the outstanding
      shares of our common stock, (ii)&#160;each of our directors and named executive
      officers and (iii)&#160;all of our executive officers and directors as a
      group.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Except
      as
      indicated in the footnotes to the table below, each shareholder named in the
      table has sole voting and investment power with respect to the shares shown
      as
      beneficially owned by such shareholder.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Beneficial
      ownership is determined in accordance with Rule&#160;13d-3 under the Securities
      Exchange Act of 1934, as amended. In computing the number of shares beneficially
      owned by a person or a group and the percentage ownership of that person or
      group, shares of our common stock subject to options or warrants currently
      exercisable or exercisable within 60&#160;days after October 31, 2006 are deemed
      outstanding, but are not deemed outstanding for the purpose of computing the
      percentage ownership of any other person. The following table assumes
      (i)</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      7,263,833 </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">shares
      of
      common stock are outstanding after closing of this offering based on shares
      of
      our common stock outstanding as of the date of this prospectus as calculated
      above, and (ii)&#160;no exercise of the over-allotment option. Unless otherwise
      indicated, the address of each individual named below is our address,
</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">10
      Sixth
      Road, Woburn, Massachusetts 01801</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div align="left">
      <table border="0" cellpadding="0" cellspacing="0" id="ftable" width="100%">

          <tr>
            <td align="left" valign="bottom" width="55%" style="border-bottom: #ffffff solid;">&#160;</td>
            <td width="2%" style="border-bottom: #ffffff solid;">&#160;</td>
            <td align="left" colspan="2" valign="bottom" width="12%" style="border-bottom: #ffffff solid;">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center">&#160;<font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Number
                of Shares</strong></font></div>
            </td>
            <td align="left" valign="bottom" width="4%" style="border-bottom: #ffffff solid;">&#160;</td>
            <td align="left" colspan="5" valign="bottom" width="26%" style="border-bottom: black thin solid;">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Percentage
                of</strong></font></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Outstanding
                Shares Owned</strong></font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff solid;">&#160;</td>
          </tr>
          <tr>
            <td align="left" valign="bottom" width="55%">&#160;</td>
            <td width="2%">&#160;</td>
            <td align="left" colspan="2" valign="bottom" width="12%">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center">&#160;<font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>of
                Common Stock</strong></font></div>
            </td>
            <td align="left" valign="bottom" width="4%">&#160;</td>
            <td align="left" colspan="2" valign="bottom" width="12%">&#160;</td>
            <td align="left" valign="bottom" width="2%">&#160;</td>
            <td align="left" colspan="2" valign="bottom" width="12%">&#160;</td>
            <td align="left" valign="bottom" width="1%">&#160;</td>
          </tr>
          <tr>
            <td align="left" valign="bottom" width="55%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Name
                and Address of Beneficial Owner</strong></font>&#160;</div>
            </td>
            <td width="2%" style="border-bottom: #ffffff solid;">&#160;</td>
            <td align="left" colspan="2" valign="bottom" width="12%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Beneficially
                Owned</strong></font>&#160;</div>
            </td>
            <td align="left" valign="bottom" width="4%" style="border-bottom: #ffffff solid;">&#160;</td>
            <td align="left" colspan="2" valign="bottom" width="12%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Before
                Offering</strong></font>&#160;</div>
            </td>
            <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff solid;">&#160;</td>
            <td align="left" colspan="2" valign="bottom" width="12%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>After
                Offering (1)</strong></font>&#160;</div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff solid;">&#160;</td>
          </tr>
          <tr>
            <td align="left" valign="bottom" width="55%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Thomas
                Massie </font></div>
            </td>
            <td width="2%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">916,667
                </font></div>
            </td>
            <td align="left" valign="bottom" width="4%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(2<font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">21.2<font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">%</font></font></div>
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            <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">
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            <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px">&#160;</div>
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            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
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            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
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            <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px">&#160;</div>
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            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">&#160;
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            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">220,188
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            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
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            <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px">&#160;</div>
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            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
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            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">483,056
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            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
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            <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px">&#160;</div>
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            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">&#160;
                6.4<font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">%</font></font></div>
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            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px">&#160;</div>
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          </tr>
          <tr>
            <td align="left" valign="bottom" width="55%" style="border-bottom: medium none;">
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            <td width="2%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">472,297
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            <td align="left" valign="bottom" width="4%" style="border-bottom: medium none;">
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            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">10.8<font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">%</font></font></div>
            </td>
            <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px">&#160;</div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">&#160;
                6.2<font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">%</font></font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px">&#160;</div>
            </td>
          </tr>
          <tr>
            <td align="left" valign="bottom" width="55%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">All
                executive officers and directors as a group
                (7&#160;persons)</font></div>
            </td>
            <td width="2%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">1,523,863
                </font></div>
            </td>
            <td align="left" valign="bottom" width="4%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(9<font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">33.4<font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">%</font></font></div>
            </td>
            <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px">&#160;</div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">19.4
                <font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">%</font></font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px">&#160;</div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 18pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(1)&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
                percentages assume the issuance of 300,000 shares of common stock
                upon the
                exercise of the Underwriters&#8217; Warrants which would be issued upon the sale
                of the shares in this offering. </font></div>
            </td>
          </tr>

      </table>
    </div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 18pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(2)&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Includes
                options to purchase 6,667 shares of common stock at an exercise price
                of
                $0.003 per share and 33,333 shares of common stock at an exercise
                price of
                $3.00 per share. Includes a warrant to purchase 10,000 shares of
                common
                stock at an exercise price of $.001 per
                share.</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 18pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(3)&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Includes
                an option to purchase 5,556 shares of common stock at an exercise
                price of
                $3.75 per share.</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 18pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(4)&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Includes
                options to purchase 6,667 shares of common stock at an exercise price
                of
                $0.003 per share, 25,000 shares of common stock at an exercise price
                of
                $3.00 per share and 33,333 shares of common stock at an exercise
                price of
                $3.75 per share. </font></div>
            </td>
          </tr>

      </table>
    </div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 18pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(5)&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Includes
                options to purchase 1,820 shares of common stock at an exercise price
                of
                $0.3573 per share, 16,797 shares of common stock at an exercise price
                of
                $1.0797 per share, 33,333 shares of common stock at an exercise price
                of
                $3.00 per share, and 33,333 shares of common stock at an exercise
                price of
                $3.75 per share.</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 18pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(6)&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Includes
                options to purchase 4,167 shares of common stock at an exercise price
                of
                $0.003 per share, 13,997 shares of common stock at an exercise price
                of
                $1.0716 per share, 33,333 shares of common stock at an
                exercise</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div>
    </div>
    <div>&#160;</div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 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="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">67</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="2">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">
        </div>
      </div>
      <div>&#160;</div>
      <div>
        <table cellpadding="0" cellspacing="0" id="list" width="100%">

            <tr valign="top" style="line-height: 1.25;">
              <td align="right" style="width: 18pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td>
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">price
                  of $3.00 per share and 16,667 shares of common stock at an exercise
                  price
                  of $3.75 per share. Includes a warrant to purchase 5,000 shares
                  of common
                  stock at an exercise price of $.001 per
                  share.</font></div>
              </td>
            </tr>

        </table>
      </div>
    </div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 18pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(7)&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Includes
                options to purchase 6,389 shares of common stock at an exercise price
                of
                $3.75 per share.</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 18pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(8)&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Includes
                warrants to purchase 104,899 shares of common stock at an exercise
                price
                of $3.75 per share (the vested portion of one warrant grant to purchase
                31,667 shares) and $4.68 per share (the vested portion of two warrant
                grants to purchase 73,232 shares).</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Fin
                Net, LLC</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8217;s
                address is 33 Broad Street, Boston, MA
                02114.</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 18pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(9)&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Includes
                options to purchase 264,003 shares of common
                stock.</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 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="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">68</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <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="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>DESCRIPTION
      OF CAPITAL STOCK </strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      following is a description of our capital stock as set forth in our proposed
      Amended and Restated Certificate of Incorporation and Amended and Restated
      By-laws, which have been filed with the SEC as exhibits to the registration
      statement of which this prospectus is a part. Our Amended and Restated
      Certificate of Incorporation will become effective shortly before </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">the
      completion of this offering</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">.
      The
      description below assumes that the Amended and Restated Certificate of
      Incorporation has become effective.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>General</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Our
      authorized capital stock consists of 20,000,000&#160;shares of common stock, par
      value $.001&#160;per share, and 1,000,000&#160;shares of preferred stock, par
      value $.001 per share. As of October 31, 2006, there were 4,273,833 shares
      of
      common stock held by 70 shareholders of record. Upon completion of this
      offering, </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">7,273,833
      </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">shares
      of
      common stock will be issued and outstanding (including the 3,000,000&#160;shares
      of common stock issued in this offering, assuming no exercise of the
      underwriters&#8217; over-allotment option). There are no shares of preferred stock
      outstanding. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Common
      Stock</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>Voting
      Rights. </em></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      holders of common stock are entitled to one vote per share on all matters.
      The
      common stock does not have cumulative voting rights, which means that holders
      of
      the shares of common stock with a majority of the votes to be cast for the
      election of directors can elect all directors then being elected.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>Dividends.</em></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      Each
      share of common stock has an equal and ratable right to receive dividends to
      be
      paid from our assets legally available therefore when, as and if declared by
      our
      Board of Directors. We do not anticipate paying cash dividends on the common
      stock in the foreseeable future. See &#8220;Dividend Policy&#8221; on page 18.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>Liquidation.</em></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      In the
      event we dissolve, liquidate or wind up, the holders of common stock are
      entitled to share equally and ratably in the assets available for distribution
      after payments are made to our creditors and to</font><a name="page_0_1_70"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      the
      holders of any outstanding preferred stock we may designate and issue in the
      future with liquidation preferences greater than those of the common
      stock.</font></a></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>Other.</em></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      The
      holders of shares of our common stock have no preemptive, subscription or
      redemption rights and are not liable for further call or assessment. All of
      the
      outstanding shares of common stock are, and the shares of common stock offered
      hereby will be, fully paid and nonassessable. Prior to the date of this
      prospectus, there has been no established public trading market for the common
      stock.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Preferred
      Stock</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Our
      Board
      of Directors is authorized, without further shareholder action, to divide any
      or
      all shares of our authorized preferred stock into series and to fix and
      determine the designations, preferences and relative participating, optional
      or
      other dividend rights, liquidation preferences, redemption rights and conversion
      or exchange privileges. Our Board of Directors has no plans, agreements or
      understandings for the issuance of any shares of preferred stock.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Common
      Stock Warrants</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">We
      currently have outstanding warrants to purchase an aggregate of 618,269 shares
      of our common stock at a weighted average exercise price of $2.71 per
      share.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
      April
      2006, in connection with our private placement of promissory notes, we issued
      to
      the purchasers of those notes warrants to purchase an aggregate of 280,000
      shares of our common stock at an exercise price of $.001 per share. The warrants
      have a five-year term. We have authorized and reserved for issuance the shares
      of common stock issuable upon exercise of the warrants. </font></div>
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        <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">69</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
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        </div>
      </div>
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      </div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
      April
      2006, in connection with that private placement, we issued to Joseph Gunnar
      &amp; Co., LLC, our placement agent, warrants to purchase an aggregate of
      112,000 shares of our common stock at an exercise price equal to the offering
      price of our common stock in this offering. The warrants have a five-year term.
      We have authorized and reserved for issuance the shares of common stock issuable
      upon exercise of the warrants. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
      November 2005 we issued warrants to purchase 72,527 shares of our common stock
      to Fin Net, LLC as compensation for investment banking services in connection
      with the acquisition of iapps. The warrants have an exercise price of $4.68
      per
      share and a five-year term.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
      August
      2005 we issued warrants to purchase 57,207 shares of our common stock to
      designated employees or affiliates of Winslow, Evans &amp; Crocker (&#8220;WEC&#8221;) as
      compensation for investment banking services in connection with private equity
      offerings. The warrants have an exercise price of $4.68 per share and a
      five-year term.</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>&#160;</em></strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
      March
      2005 we issued warrants to purchase 3,200 shares of our common stock to Sand
      Hill Finance, LLC pursuant to a financing agreement dated March 29, 2005. The
      warrants have an exercise price of $4.68 per share and a five-year
      term.</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>&#160;</em></strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
      June
      2004 we issued warrants to purchase 36,667 shares of our common stock to
      designated employees or affiliates of WEC as compensation for investment banking
      services in connection with private equity offerings. The warrants have an
      exercise price of $3.75 per share and a five-year term.</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>&#160;</em></strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
      January 2004 we issued warrants to purchase 31,667 shares of our common stock
      to
      Fin Net, LLC as compensation for investment banking services in connection
      with
      private equity offerings. The warrants have an exercise price of $3.75 per
      share
      and a five-year term.</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>&#160;</em></strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
      January 2004 we also issued warrants to purchase 1,667 shares of our common
      stock to WEC as compensation for investment banking services in connection
      with
      private equity offerings. The warrants have an exercise price of $3.75 per
      share
      and a five-year term.</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>&#160;</em></strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
      May
      2002 we issued warrants to purchase 16,667 shares of our common stock to WEC,
      and warrants to purchase 16,667 shares of our common stock to designated
      employees or affiliates of WEC, as compensation for investment banking services
      in connection with private equity offerings. The warrants have an exercise
      price
      of $3.75 per share and a five-year term.</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>&#160;</em></strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      warrant exercise price and the number of shares of common stock purchased upon
      exercise of the warrants are subject to adjustment in the event of, among other
      events, a stock dividend on, or a subdivision, recapitalization or
      reorganization of, the common stock, or the merger or consolidation of us with
      or into another corporation or business entity.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">We
      are
      not required to issue any fractional shares of common stock upon the exercise
      of
      the warrants or upon the occurrence of adjustments pursuant to anti-dilution
      provisions. We will pay to holders of fractional shares an amount equal to
      the
      cash value of such fractional shares based upon the then-current market price
      of
      a share of common stock.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Underwriters&#8217;
      Warrants</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">One
      underwriters&#8217; warrant will entitle the holder to purchase one share of common
      stock at an exercise price equal to 125% of the offering price of our common
      stock beginning on the date which is six months after the date of this
      prospectus and ending on the date which is five years after the date of this
      prospectus. The warrants will be issued pursuant to the terms of a warrant
      agreement between the warrant agent, Joseph Gunnar &amp; Co., LLC and us. We
      have authorized and reserved for issuance the shares of common stock issuable
      upon exercise of the warrants. The warrants are exercisable to purchase a total
      of 300,000 shares of our common stock.</font></div>
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      </div>
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      </div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      warrant exercise price and the number of shares of common stock purchased upon
      exercise of the warrants are subject to adjustment in the event of, among other
      events, a stock dividend on, or a subdivision, recapitalization or
      reorganization of, the common stock, or the merger or consolidation of us with
      or into another corporation or business entity.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">We
      are
      not required to issue any fractional shares of common stock upon the exercise
      of
      warrants or upon the occurrence of adjustments pursuant to anti-dilution
      provisions. We will pay to holders of fractional shares an amount equal to
      the
      cash value of such fractional shares based upon the then-current market price
      of
      a share of common stock.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      warrants may be exercised upon surrender of the certificate representing such
      warrants on or prior to the expiration date of such warrants at the offices
      of
      the warrant agent with the form of &#8220;Election to Purchase&#8221; on the reverse side of
      the warrant certificate completed and executed as indicated, accompanied by
      payment of the full exercise price in cash or by official bank or certified
      check payable to the order of us for the number of warrants being exercised.
      Shares of common stock issued upon exercise of warrants for which payment has
      been received in accordance with the terms of the warrants will be fully paid
      and nonassessable. The warrants do not confer on the warrant holder any voting
      or other rights of our shareholders.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Registration
      Rights</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">After
      the
      closing of this offering, the holders of 796,667 shares of our common stock
      will
      be entitled to certain piggyback registration rights with respect to the
      registration of the securities being offered under the Securities Act. If we
      register any securities for public sale for the benefit of any member of our
      management team or any stockholder who acquired the shares in connection with
      the sale of their business to Bridgeline, other than for this offering or
      pursuant to a registration statement on Form S-4 or S-8 relating to Bridgeline
      securities issued in connection with any business combination involving
      Bridgeline or shares issuable in connection with any stock option or employee
      benefit plan, the holders of these shares will have the right to include their
      shares in the registration statement. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Lock-up</strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Restrictions</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">All
      of
      our shareholders and our directors and officers who own any of our securities,
      including warrants and options, have agreed in writing not to sell, transfer
      or
      otherwise dispose of our common stock or any securities exercisable for or
      convertible into our common stock owned by them for a period of at least six
      months after the effective date of the registration statement of which this
      prospectus is a part without prior written consent or waiver from the
      underwriters.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><a name="page_0_1_72"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Anti-Takeover
      Provisions</strong></font></a></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Provisions
      of Delaware law and our proposed Amended and Restated Certificate of
      Incorporation and Amended and Restated By-laws could make our acquisition by
      means of a tender offer, a proxy contest or otherwise, and the removal of
      incumbent officers and directors, more difficult. These provisions are expected
      to discourage types of coercive takeover practices and takeover bids and to
      encourage persons seeking to acquire control to first negotiate with us. We
      believe that the benefits of increased protection of our potential ability
      to
      negotiate with the proponent of an unfriendly or unsolicited proposal to acquire
      or restructure us outweighs the disadvantages of discouraging proposals,
      including proposals that are priced above the then current market value of
      our
      common stock, because, among other things, negotiation of these proposals could
      result in an improvement of their terms.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>Delaware
      Law</em></strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">We
      are
      subject to Section&#160;203 of the Delaware General Corporation Law. Under this
      provision, we may not engage in any business combination with any interested
      shareholder for a period of three years following the date the shareholder
      became an interested shareholder, unless:</font></div>
    <div>&#160;</div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">prior
                to that date our Board of Directors approved either the business
                combination or the transaction that resulted in the shareholder becoming
                an interested shareholder;</font></div>
            </td>
          </tr>

      </table>
    </div>
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        <div style="WIDTH: 100%; TEXT-ALIGN: center">
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    </div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">upon
                completion of the transaction that resulted in the shareholder becoming
                an
                interested shareholder, the interested shareholder owned at least
                85% of
                the voting stock outstanding at the time the transaction began;&#160;or
                </font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">on
                or following that date the business combination is approved by our
                Board
                of Directors and authorized at an annual or special meeting of
                shareholders, by the affirmative vote of at least two-thirds of the
                outstanding voting stock that is not owned by the interested
                shareholder.</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 27pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Section&#160;203
      defines &#8220;business combination&#8221; to include:</font></div>
    <div>&#160;</div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">any
                merger or consolidation involving the corporation and the interested
                shareholder;</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">any
                sale, lease, exchange, mortgage, transfer, pledge, or other disposition
                of
                10% or more of the assets of the corporation involving the interested
                shareholder</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">;</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">subject
                to some exceptions, any transaction that results in the issuance
                or
                transfer by the corporation or any of its direct or indirect subsidiaries
                of any stock of the corporation or of any such subsidiary to the
                interested shareholder;&#160;</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">any
                transaction involving the corporation or any of its direct or indirect
                subsidiaries that has the effect of increasing the proportionate
                share of
                the stock of any class or series of the corporation or of any such
                subsidiary beneficially owned by the interested shareholder;
                or</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">the
                receipt by the interested shareholder of the benefit of any loans,
                advances, guarantees, pledges, or other financial benefits provided
                by or
                through the corporation or any direct or indirect majority-owned
                subsidiary.</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
      general, Section&#160;203 defines an &#8220;interested shareholder&#8221; as any entity or
      person who beneficially owns, or an affiliate or associate of the corporation
      that at any time within three years prior to the date of determination of
      interested shareholder status did beneficially own, 15% or more of the
      outstanding voting stock of the corporation, and affiliates and associates
      of
      such person.</font><a name="page_0_1_73"/></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>Certificate
      of Incorporation and By-laws </em></strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Our
      Amended and Restated Certificate of Incorporation and Amended and Restated
      By-laws will contain provisions that could have the effect of discouraging
      potential acquisition proposals or tender offers or delaying or preventing
      a
      change of control of our company. In particular, our Amended and Restated
      Certificate of Incorporation and Amended and Restated By-laws, as applicable,
      will, among other things:</font></div>
    <div>&#160;</div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">provide
                that special meetings of the shareholders may be called only by our
                Chairman of the Board, our President or our Board of
                Directors;</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">establish
                procedures with respect to shareholder proposals and shareholder
                nominations, including requiring that advance written notice of proposals
                and nominations generally must be received at our principal executive
                offices not less than 90 days nor more than 120 days prior to the
                anniversary of the preceding annual meeting of
                shareholders;</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">provide
                that shareholders may not take actions by written consent in lieu
                of an
                annual or special meeting of shareholders;
</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 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="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">72</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="2">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">
        </div>
      </div>
    </div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">do
                not include a provision for cumulative voting in the election of
                directors. Under cumulative voting, a minority shareholder holding
                a
                sufficient number of shares may be able to ensure the election of
                one or
                more directors. The absence of cumulative voting may have the effect
                of
                limiting the ability of minority shareholders to effect changes in
                the
                Board of Directors and, as a result, may have the effect of deterring
                a
                hostile takeover or delaying or preventing changes in control or
                management of our company;</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">provide
                that vacancies on our Board of Directors may be filled by a majority
                of
                directors in office, although less than a quorum, and not by the
                shareholders;</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">provide
                for staggered terms for the members of our Board of Directors. The
                Board
                of Directors is divided into three staggered classes, and each director
                serves a term of three years. At each annual shareholders&#8217; meeting only
                those directors comprising one of the three classes will have completed
                their term and stand for re-election or replacement. In addition,
                our
                Amended and Restated Certificate of Incorporation contains a supermajority
                voting requirement for any amendments of the staggered Board
                provisions;&#160;</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 54pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">require
                an advance notice of any shareholder business before the annual meeting
                of
                our shareholders; and</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">allow
                us to issue without shareholder approval up to 1,000,000&#160;shares of
                preferred stock that could adversely affect the rights and powers,
                including voting rights, of the holders of common stock. In some
                circumstances, this issuance could have the effect of decreasing
                the
                market price of the common stock as well as having the anti-takeover
                effect discussed above</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">These
      provisions are intended to enhance the likelihood of continuity and stability
      in
      the composition of our Board and in the policies formulated by them and to
      discourage certain types of transactions that may involve an actual or
      threatened change of control of our company. These provisions are designed
      to
      reduce our vulnerability to an unsolicited acquisition proposal and to
      discourage certain tactics that may be used in proxy fights. However, these
      provisions could have the effect of discouraging others from making tender
      offers for our shares that could result from actual or rumored takeover
      attempts. These provisions also may have the effect of preventing changes in
      our
      management.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Transfer
      Agent</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">American
      Stock Transfer has been appointed as the transfer agent for our common stock.
      </font><a name="gmnh118"/></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>SHARES
      ELIGIBLE FOR FUTURE SALE</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Upon
      completion of this offering, we will have outstanding </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">7,273,833
      </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">shares
      of
      common stock (including the 3,000,000 shares of common stock issued in this
      offering, and assuming no exercise of the underwriters&#8217; over-allotment) without
      taking into account any options or warrants that may be granted or exercised.
      Upon completion of this offering, we will have options outstanding to purchase
      932,911 shares of common stock and warrants outstanding to purchase 918,269
      shares of common stock (including warrants to purchase 300,000 shares of our
      common stock issued to the underwriters in this offering).</font><a name="page_0_1_74"/></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">All
      of
      our shareholders and our directors and officers who own any of our securities,
      including warrants and options, agreed in writing not to sell, transfer or
      otherwise dispose of our common stock or any securities exercisable for or
      convertible into our common stock owned by them for a period of one year after
      the effective date of the registration statement of which this prospectus is
      a
      part without prior written consent or waiver from the underwriters. As a result
      of these contractual restrictions, notwithstanding possible earlier eligibility
      for sale under the provisions of Rules&#160;144, 144(k) and 701, shares subject
      to lock-up agreements may not be sold until such agreements expire or are waived
      by the underwriters.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Rule&#160;144</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
      general, Rule&#160;144 allows a shareholder (or shareholders whose shares are
      aggregated) who has beneficially owned our shares of common stock for at least
      one year and who files a Form&#160;144 with the SEC to sell within
      any</font></div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 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="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">73</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <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="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">three-month
      period commencing 90&#160;days after the date of this prospectus a number of
      shares of our common stock that does not exceed the greater of: (i)&#160;1% of
      the number of shares of our common stock then outstanding or (ii)&#160;the
      average weekly trading volume of the shares of our common stock during the
      four
      calendar weeks preceding the filing of the Form&#160;144 with respect to such
      sale.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Sales
      under Rule&#160;144, however, are subject to specific manner of sale provisions,
      notice requirements, and the availability of current public information about
      our company. We cannot estimate the number of shares our existing shareholders
      will sell under Rule&#160;144, as this will depend on the market price for our
      shares, the personal circumstances of the shareholders, and other
      factors.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Rule&#160;144(k)</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Under
      Rule&#160;144(k), in general, a shareholder who has beneficially owned shares of
      our common stock for at least two years and who is not deemed to have been
      an
      affiliate of ours at any time during the immediately preceding 90&#160;days may
      sell such shares without complying with the manner of sale provisions, notice
      requirements, public information requirements, or volume limitations of
      Rule&#160;144. Affiliates of our company, however, must always sell pursuant to
      Rule&#160;144, even after the otherwise applicable Rule&#160;144(k) holding
      periods have been satisfied.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Rule&#160;701</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Rule&#160;701
      generally allows a shareholder who purchased our securities pursuant to a
      written compensatory plan or contract and who is not deemed to have been an
      affiliate of our company during the immediately preceding 90&#160;days to sell
      securities in reliance upon Rule&#160;144, but without being required to comply
      with the public information, holding period, volume limitation, or notice
      provisions of Rule&#160;144. Rule&#160;701 also permits our affiliates to sell
      their Rule&#160;701 securities under Rule&#160;144 without complying with the
      holding period requirements of Rule&#160;144.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Upon
      completion of this offering, we intend to file a registration statement on
      Form&#160;S-8 under the Securities Act to register shares of common stock
      reserved for issuance under our Amended and Restated Stock Incentive Plan.
      Persons who are not affiliates, and who receive shares that are registered
      under
      the Form&#160;S-8 registration statement, will be able to resell those shares in
      the public market without restriction under the Securities Act. Such
      registration statement will become effective immediately upon
      filing.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Prior
      to
      this offering, there has been no public market for our securities. Trading
      of
      our common stock is expected to commence following the completion of this
      offering. There can be no assurance that an active trading market will develop
      or continue after the completion of this offering or that the market price
      of
      our common stock will not decline below the initial public offering price.
      No
      prediction can be made as to the effect, if any, that future sales of shares
      of
      common stock, or the availability of shares for future sale, will have on the
      market price prevailing from time to time. Sales of substantial amounts of
      common stock in the public market, or the perception that such sales could
      occur, could adversely affect the prevailing market price of the common stock
      or
      our ability to raise capital through a public offering of our equity
      securities.</font></div>
    <div>&#160;</div>
    <div>&#160;</div>
    <div>&#160;</div>
    <div>&#160;</div>
    <div>&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 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="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">74</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <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="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>UNDERWRITING</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Under
      the
      terms and subject to the conditions contained in an underwriting agreement
      dated
      as of
&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;,
      2006 (the &#8220;Underwriting Agreement&#8221;), the underwriters named below, for whom
      Joseph Gunnar &amp; Co., LLC is acting as representative, have severally agreed
      to purchase, and we have agreed to sell to them, the number of shares of common
      stock set forth in the following table:</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div align="center">
      <table bgcolor="white" border="0" cellpadding="0" cellspacing="0" width="100%">

          <tr bgcolor="white">
            <td width="60%" style="border-bottom: black thin solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Name</strong></font>&#160;</td>
            <td width="4%" style="border-bottom: #ffffff solid;">&#160;</td>
            <td width="20%" style="border-bottom: black thin solid;">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Number
                of Shares</strong></font>&#160;</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td width="60%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Joseph
              Gumnar <font style="DISPLAY: inline; FONT-FAMILY: Times New Roman">&amp;
              </font>Co., LLC</font>&#160;</td>
            <td width="4%">&#160;</td>
            <td width="20%">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;[&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
                ]</font>&#160;</div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td width="60%">&#160;</td>
            <td width="4%">
            </td>
            <td width="20%">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">[&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
                ]</font></div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td width="60%" style="border-bottom: #ffffff solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Total</strong></font></td>
            <td width="4%" style="border-bottom: #ffffff solid;">&#160;</td>
            <td width="20%" style="border-bottom: black double;">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">3,000,000</font>&#160;</div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      underwriters are offering the shares subject to their acceptance of shares
      from
      us and subject to prior sale. The Underwriting Agreement provides that the
      obligations of the several underwriters to pay for and accept delivery of the
      shares offered by this prospectus are subject to the approval of certain legal
      matters by their counsel and to certain other conditions. The underwriters
      are
      obligated to take and pay for all of the shares offered by this prospectus,
      if
      any such shares are taken. However, the underwriters are not required to take
      or
      pay for the shares covered by the underwriters&#8217; over-allotment option described
      below.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      underwriters propose to offer the shares offered hereby to the public at the
      public offering price set forth on the cover of this prospectus. That price
      should not be considered an indication of the actual value of the shares and
      is
      subject to change as a result of market conditions and other factors. The
      underwriters may offer the shares to securities dealers at the price to the
      public less a concession not in excess of
      $&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;per share.
      Securities dealers may re-allow a concession not in excess of
      $&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;per share to
      other dealers. After the shares are released for sale to the public, the
      underwriters may vary this offering price and other selling terms from time
      to
      time. No variation in those terms will change the amount of proceeds to be
      received by us as set forth on the cover page of this prospectus. The public
      offering price of the shares offered hereby was negotiated between us and the
      representatives.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">We
      have
      granted to the underwriters an option, exercisable for 45&#160;days from the
      date of this prospectus, to purchase up to an aggregate of 450,000 additional
      shares at the initial public offering price listed on the cover page of this
      prospectus, less underwriting discounts and commissions. The underwriters may
      exercise this option solely for the purpose of covering over-allotments, if
      any,
      made in connection with the offering of the shares offered by this prospectus.
      To the extent this option is exercised, each underwriter will become obligated,
      subject to limited conditions, to purchase approximately the same percentage
      of
      additional shares as the number listed next to the underwriter&#8217;s name in the
      preceding table bears to the total number of shares listed next to the names
      of
      all underwriters in the preceding table. If the underwriters&#8217; option is
      exercised in full, the total price to the public would be
      $&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;, the total
      underwriters&#8217; discounts and commissions would be
      $&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;, and total
      proceeds to us would be
      $&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Underwriting
      Compensation</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      underwriters will purchase the shares offered hereby at a discount of 9% of
      the
      initial public offering price (or
      $&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;per share).
      We have agreed to pay the representative of the underwriters a non-accountable
      expense allowance equal to 3% of the gross proceeds from the sale of the shares
      offered hereby. Our agreement with the underwriters also provides that we will
      pay all expenses in connection with qualifying the shares for sale under the
      laws of those states as the underwriter may designate and the costs of review
      by
      the NASD of the underwriting arrangements between the underwriters and us.
      We
      have paid $25,000 as an advance against the expense allowance, which will reduce
      the expense allowance payable at the closing of the offering. If this offering
      is not completed, the representative will refund any portion of the $25,000
      that
      exceeds their non-accountable expenses.</font><a name="page_0_1_76"/></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">We
      will
      sell to the managing underwriter in this offering or to its designees, at the
      closing of this offering, a warrant to purchase shares of our common stock
      in an
      amount equal to 10% of the number of shares of common stock issued in connection
      with this offering, not including the over-allotment option. The 5-year warrant
      is exercisable six months following this offering, and may be exercised on
      a
      cashless basis. The warrant is exercisable </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 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="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">75</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <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="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">at
      a
      price per share equal to 125% of the </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">initial
      public offering price of our shares in this offering</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">.
      The
      warrant will be issued pursuant to a definitive warrant agreement containing
      such provisions, including anti-dilution provisions, reasonably satisfactory
      to
      the managing underwriter in one warrant certificate or in such allocated portion
      certificates as may be requested in writing. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">We
      have
      granted the representative of the underwriters the right to have a designee
      present at all meetings of our Board of Directors for a period of two years
      from
      the date of this prospectus. The designee will be entitled to the same notice
      and communications sent by us to our directors and to attend directors&#8217; meetings
      but will not have voting rights. Stephan Stein, Chief Operating Officer of
      Joseph Gunnar &amp; Co., LLC, the lead underwriter in this offering, has been
      appointed as such designee.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">For
      a
      period of two years following the completion of the offering, the representative
      shall have a right of first refusal to serve as our placement agent or managing
      underwriter in future private or public financings.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Stabilization</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      rules
      of the SEC generally prohibit the underwriters from trading in our securities
      on
      the open market during this offering. However, the underwriters are allowed
      to
      engage in certain open market transactions and other activities during this
      offering that may cause the market price of our shares to be above or below
      that
      which would otherwise prevail in the open market. These activities may include
      stabilization, short sales and over-allotments, syndicate covering transactions
      and penalty bids.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Stabilizing
                transactions consist of bids or purchases made by the representative
                for
                the purpose of preventing or slowing a decline in the market price
                of our
                securities while this offering is in
                progress.</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Short
                sales and over-allotments occur when the representative, on behalf
                of the
                underwriters, sells more of our shares than it purchases from us
                in this
                offering. In order to cover the resulting short position, the
                representative may exercise the over-allotment option described above
                or
                may engage in syndicate covering transactions. There is no contractual
                limit on the size of any syndicate covering transaction. The underwriters
                will deliver a prospectus in connection with any such short sales.
                Purchasers of shares sold short by the underwriters are entitled
                to the
                same remedies under the federal securities laws as any other purchaser
                of
                shares covered by the registration
                statement.</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Syndicate
                covering transactions are bids for or purchases of our securities
                on the
                open market by the representative on behalf of the underwriters in
                order
                to reduce a short position incurred by the representative on behalf
                of the
                underwriters.</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">A
                penalty bid is an arrangement permitting the representative to reclaim
                the
                selling concession that would otherwise accrue to an underwriter
                if the
                common stock originally sold by the underwriter was later repurchased
                by
                the representative and therefore was not effectively sold to the
                public by
                such underwriter.</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">If
      the
      underwriters commence these activities, they may discontinue them at any time
      without notice. The underwriters may carry out these transactions on Nasdaq
      or
      otherwise.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Indemnification</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">We
      have
      agreed to indemnify the underwriters against certain civil liabilities,
      including liabilities under the Securities Act, and to contribute to payments
      the underwriters may be required to make in respect of any such
      liabilities.</font><a name="gmnh120"/></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 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="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">76</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <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="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>LEGAL
      MATTERS</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Morse,
      Barnes-Brown &amp; Pendleton, P.C., Waltham, Massachusetts, has acted as our
      counsel in connection with this offering, including with respect to the validity
      of the issuance of the common stock offered in this prospectus. Certain legal
      matters will be passed upon for the underwriters by Cozen O&#8217;Connor,
      Washington,&#160;D.C.</font><a name="gmnh121"/></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>EXPERTS</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      consolidated financial statements of Bridgeline Software, Inc. at September
      30,
      2005 and 2004 and for the years then ended, the financial statements of
      Objectware, Inc. at September 30, 2005 and 2004 and for the years then ended,
      and the financial statements&#160; of New Tilt, Inc. at April 24, 2006 and
      December 31, 2005 and for the period January 1, 2006 to April 24, 2006 and
      for
      the year ended December 31, 2005, included in this prospectus have been audited
      by UHY LLP, independent registered public accounting firm, as set forth in
      its
      reports thereon (which report for Bridgeline Software, Inc. includes an
      explanatory paragraph regarding substantial doubt about Bridgeline Software,
      Inc.&#8217;s ability to continue as a going concern) appearing elsewhere herein, and
      are included in reliance upon such reports given on the authority of said firm
      as experts in accounting and auditing.</font></div><a name="gmnh122"/>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>ADDITIONAL
      INFORMATION</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">We
      have
      filed with the Securities and Exchange Commission a registration statement
      on
      Form&#160;SB-2 under the Securities Act for the shares offered hereby. This
      prospectus, which constitutes a part of the registration statement, does not
      contain all of the information set forth in the registration statement or the
      exhibits and schedules which are part of the registration statement. For
      additional information about us and our securities, we refer you to the
      registration statement and the accompanying exhibits and schedules. Statements
      contained in this prospectus regarding the contents of any contract or any
      other
      documents to which we refer are not necessarily complete. In each instance,
      reference is made to the copy of the contract or document filed as an exhibit
      to
      the registration statement, and each statement is qualified in all respects
      by
      that reference. Copies of the registration statement and the accompanying
      exhibits and schedules may be inspected without charge (and copies may be
      obtained at prescribed rates) at the public reference facility of the SEC at
      Room&#160;1024, 100 F Street, NE, Washington,&#160;D.C. 20549.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">You
      can
      request copies of these documents upon payment of a duplicating fee by writing
      to the Securities and Exchange Commission. You may call the Securities and
      Exchange Commission at 1-800-SEC-0330 for further information on the operation
      of its public reference rooms. Our filings, including the registration
      statement, will also be available to you on the Internet Web site maintained
      by
      the Securities and Exchange Commission at http://www.sec.gov. We intend to
      furnish our shareholders with annual reports containing financial statements
      audited by our independent auditors, and make available to our shareholders
      quarterly reports for the first three quarters of each year containing unaudited
      interim financial statements.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Upon
      completion of this offering, we will become subject to the information and
      reporting requirements of the Exchange Act. As a result, we will file periodic
      reports, proxy statements and other information with the Securities and Exchange
      Commission. The periodic reports, proxy statements and other information we
      will
      file will be available for inspection and copying at the Securities and Exchange
      Commission&#8217;s public reference facilities and the Web site of the Commission
      referenced to above.</font></div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 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="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">77</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <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="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>BRIDGELINE
      SOFTWARE, INC.</strong></font><a name="gmnh123"/></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>INDEX
      TO CONSOLIDATED FINANCIAL STATEMENTS</strong></font><br></div>
    <div>&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">
      <div align="left">
        <table cellpadding="0" cellspacing="0" width="100%">

            <tr>
              <td align="left" valign="top" width="70%">&#160;</td>
              <td align="left" valign="top" width="20%">&#160;</td>
              <td align="left" valign="top" width="10%">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>Page</u></font></div>
              </td>
            </tr>
            <tr>
              <td align="left" valign="top" width="70%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">UNAUDITED
                  COMBINED PRO FORMA CONDENSED FINANCIAL STATEMENTS OF BRIDGELINE
                  SOFTWARE,
                  INC., OBJECTWARE, INC., NEW TILT, INC., <font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">AND
                  INTERACTIVE APPLICATIONS GROUP, INC.:</font></font></div>
              </td>
              <td align="left" valign="top" width="20%">&#160;</td>
              <td align="left" valign="top" width="10%">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="top" width="70%">&#160;</td>
              <td align="left" valign="top" width="20%">&#160;</td>
              <td align="left" valign="top" width="10%">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="top" width="70%">
                <div style="DISPLAY: block; MARGIN-LEFT: 45pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Introduction
                  to Unaudited Combined Pro Forma Condensed Financial
                  Statements</font></div>
              </td>
              <td align="left" valign="top" width="20%">&#160;</td>
              <td align="left" valign="top" width="10%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">F
                  -
                  3</font></div>
              </td>
            </tr>
            <tr>
              <td align="left" valign="top" width="70%">&#160;</td>
              <td align="left" valign="top" width="20%">&#160;</td>
              <td align="left" valign="top" width="10%">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="top" width="70%">
                <div style="DISPLAY: block; MARGIN-LEFT: 45pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Unaudited
                  Combined Pro Forma Condensed Balance Sheet at July 31,
                  2006</font></div>
              </td>
              <td align="left" valign="top" width="20%">&#160;</td>
              <td align="left" valign="top" width="10%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">F
                  -
                  4</font></div>
              </td>
            </tr>
            <tr>
              <td align="left" valign="top" width="70%">&#160;</td>
              <td align="left" valign="top" width="20%">&#160;</td>
              <td align="left" valign="top" width="10%">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="top" width="70%">
                <div style="DISPLAY: block; MARGIN-LEFT: 45pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Unaudited
                  Combined Pro Forma Condensed Statement of Operations for the ten
                  months
                  ended July 31, 2006</font></div>
              </td>
              <td align="left" valign="top" width="20%">&#160;</td>
              <td align="left" valign="top" width="10%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">F
                  -
                  6</font></div>
              </td>
            </tr>
            <tr>
              <td align="left" valign="top" width="70%">&#160;</td>
              <td align="left" valign="top" width="20%">&#160;</td>
              <td align="left" valign="top" width="10%">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="top" width="70%">
                <div style="DISPLAY: block; MARGIN-LEFT: 45pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Unaudited
                  Combined Pro Forma Condensed Statement of Operations for the year
                  ended
                  September 30, 2005</font></div>
              </td>
              <td align="left" valign="top" width="20%">&#160;</td>
              <td align="left" valign="top" width="10%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">F
                  -
                  8</font></div>
              </td>
            </tr>
            <tr>
              <td align="left" valign="top" width="70%">&#160;</td>
              <td align="left" valign="top" width="20%">&#160;</td>
              <td align="left" valign="top" width="10%">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="top" width="70%">
                <div>&#160;</div>
                <div>&#160;</div>
              </td>
              <td align="left" valign="top" width="20%">&#160;</td>
              <td align="left" valign="top" width="10%">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="top" width="70%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">BRIDGELINE
                  SOFTWARE, INC.:</font></div>
              </td>
              <td align="left" valign="top" width="20%">&#160;</td>
              <td align="left" valign="top" width="10%">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="top" width="70%">&#160;</td>
              <td align="left" valign="top" width="20%">&#160;</td>
              <td align="left" valign="top" width="10%">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="top" width="70%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">REPORT
                  OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM</font></div>
              </td>
              <td align="left" valign="top" width="20%">&#160;</td>
              <td align="left" valign="top" width="10%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">F
                  -
                  10</font></div>
              </td>
            </tr>
            <tr>
              <td align="left" valign="top" width="70%">&#160;</td>
              <td align="left" valign="top" width="20%">&#160;</td>
              <td align="left" valign="top" width="10%">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="top" width="70%">
                <div style="DISPLAY: block; MARGIN-LEFT: 45pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Consolidated
                  Balance Sheets of Bridgeline Software, Inc. at July 31, 2006 (Unaudited)
                  and 2005 (Unaudited) and at September 30, 2005 and 2004</font></div>
              </td>
              <td align="left" valign="top" width="20%">&#160;</td>
              <td align="left" valign="top" width="10%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">F
                  -
                  11</font></div>
              </td>
            </tr>
            <tr>
              <td align="left" valign="top" width="70%">&#160;</td>
              <td align="left" valign="top" width="20%">&#160;</td>
              <td align="left" valign="top" width="10%">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="top" width="70%">
                <div style="DISPLAY: block; MARGIN-LEFT: 45pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Consolidated
                  Statements of Operations for Bridgeline Software Inc. for the ten
                  months
                  ended July 31, 2006 (Unaudited) and 2005 (Unaudited) September
                  30, 2005
                  and 2004</font></div>
              </td>
              <td align="left" valign="top" width="20%">&#160;</td>
              <td align="left" valign="top" width="10%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">F
                  -
                  12</font></div>
              </td>
            </tr>
            <tr>
              <td align="left" valign="top" width="70%">&#160;</td>
              <td align="left" valign="top" width="20%">&#160;</td>
              <td align="left" valign="top" width="10%">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="top" width="70%">
                <div style="DISPLAY: block; MARGIN-LEFT: 45pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Consolidated
                  Statements of Shareholder&#8217;s Equity for Bridgeline Software, Inc. for the
                  ten months ended July 31, 2006 (Unaudited) and the years ended
                  September
                  30, 2005 and 2004</font></div>
              </td>
              <td align="left" valign="top" width="20%">&#160;</td>
              <td align="left" valign="top" width="10%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">F
                  -
                  13</font></div>
              </td>
            </tr>
            <tr>
              <td align="left" valign="top" width="70%">&#160;</td>
              <td align="left" valign="top" width="20%">&#160;</td>
              <td align="left" valign="top" width="10%">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="top" width="70%">
                <div style="DISPLAY: block; MARGIN-LEFT: 45pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Consolidated
                  Statements of Cash Flows for Bridgeline Software, Inc. for for
                  the ten
                  months ended July 31, 2006 (Unaudited) and 2005 (Unaudited) and
                  the years
                  ended September 30, 2005 and 2004</font></div>
              </td>
              <td align="left" valign="top" width="20%">&#160;</td>
              <td align="left" valign="top" width="10%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">F
                  -
                  14</font></div>
              </td>
            </tr>
            <tr>
              <td align="left" valign="top" width="70%">&#160;</td>
              <td align="left" valign="top" width="20%">&#160;</td>
              <td align="left" valign="top" width="10%">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="top" width="70%">
                <div style="DISPLAY: block; MARGIN-LEFT: 45pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Notes
                  to Consolidated Financial Statements</font></div>
              </td>
              <td align="left" valign="top" width="20%">&#160;</td>
              <td align="left" valign="top" width="10%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">F
                  -
                  15</font></div>
              </td>
            </tr>

        </table>
      </div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 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="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">F
          -
          1</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <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="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>BRIDGELINE
      SOFTWARE, INC.</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>INDEX
      TO CONSOLIDATED FINANCIAL STATEMENTS</strong></font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 405pt">&#160;</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 9pt">&#160;</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br>
      <div>
        <table cellpadding="0" cellspacing="0" width="100%">

            <tr>
              <td align="left" valign="top" width="70%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">OBJECTWARE,
                INC.:</font></td>
              <td align="left" valign="top" width="20%">&#160;</td>
              <td width="10%">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Page</font></div>
              </td>
            </tr>
            <tr>
              <td align="left" valign="top" width="70%">&#160;</td>
              <td align="left" valign="top" width="20%">&#160;</td>
              <td width="10%">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="top" width="70%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">REPORT
                  OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM</font></div>
              </td>
              <td align="left" valign="top" width="20%">&#160;</td>
              <td width="10%">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">F-40</font></div>
              </td>
            </tr>
            <tr>
              <td align="left" valign="top" width="70%">&#160;</td>
              <td align="left" valign="top" width="20%">&#160;</td>
              <td width="10%">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="top" width="70%">
                <div style="DISPLAY: block; MARGIN-LEFT: 45pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Balance
                  Sheets for Objectware, Inc. at July 31, 2006 (Unaudited) and at
                  September
                  30, 2005 and 2004</font></div>
              </td>
              <td align="left" valign="top" width="20%">&#160;</td>
              <td width="10%">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">F-41</font></div>
              </td>
            </tr>
            <tr>
              <td align="left" valign="top" width="70%">
                <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">&#160;</div>
              </td>
              <td align="left" valign="top" width="20%">&#160;</td>
              <td width="10%">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="top" width="70%">
                <div style="DISPLAY: block; MARGIN-LEFT: 45pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Statements
                  of Operations for Objectware, Inc. for the ten months ended July
                  31, 2006
                  (Unaudited) and 2005 (Unaudited) and the years ended September
                  30, 2005
                  and 2004</font></div>
              </td>
              <td align="left" valign="top" width="20%">&#160;</td>
              <td valign="bottom" width="10%">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">F-42</font></div>
              </td>
            </tr>
            <tr>
              <td align="left" valign="top" width="70%">&#160;</td>
              <td align="left" valign="top" width="20%">&#160;</td>
              <td width="10%">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="top" width="70%">
                <div style="DISPLAY: block; MARGIN-LEFT: 45pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Statements
                  of Shareholder&#8217;s Equity for Objectware, Inc. for the ten months ended July
                  31, 2006 (Unaudited) and for the years ended September 30, 2005
                  and
                  2004</font></div>
              </td>
              <td align="left" valign="top" width="20%">&#160;</td>
              <td valign="bottom" width="10%">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">F-43</font></div>
              </td>
            </tr>
            <tr>
              <td align="left" valign="top" width="70%">&#160;</td>
              <td align="left" valign="top" width="20%">&#160;</td>
              <td width="10%">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="top" width="70%">
                <div style="DISPLAY: block; MARGIN-LEFT: 45pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Statements
                  of Cash Flows for Objectware, Inc. for the ten months ended July
                  31, 2006
                  (Unaudited) and for the years ended September 30, 2005 and
                  2004</font></div>
              </td>
              <td align="left" valign="top" width="20%">&#160;</td>
              <td valign="bottom" width="10%">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">F-44</font></div>
              </td>
            </tr>
            <tr>
              <td align="left" valign="top" width="70%">&#160;</td>
              <td align="left" valign="top" width="20%">&#160;</td>
              <td width="10%">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="top" width="70%">
                <div style="DISPLAY: block; MARGIN-LEFT: 45pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Notes
                  to Financial Statements</font></div>
              </td>
              <td align="left" valign="top" width="20%">&#160;</td>
              <td width="10%">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">F-45</font></div>
              </td>
            </tr>
            <tr>
              <td align="left" valign="top" width="70%">&#160;</td>
              <td align="left" valign="top" width="20%">&#160;</td>
              <td width="10%">&#160;</td>
            </tr>
            <tr>
              <td valign="top" width="70%">&#160;</td>
              <td valign="top" width="20%">&#160;</td>
              <td width="10%">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="top" width="70%">&#160;</td>
              <td align="left" valign="top" width="20%">&#160;</td>
              <td width="10%">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="top" width="70%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">NEW
                  TILT, INC.:</font></div>
              </td>
              <td align="left" valign="top" width="20%">&#160;</td>
              <td width="10%">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="top" width="70%">&#160;</td>
              <td align="left" valign="top" width="20%">&#160;</td>
              <td width="10%">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="top" width="70%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">REPORT
                  OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM</font></div>
              </td>
              <td align="left" valign="top" width="20%">&#160;</td>
              <td width="10%">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">F-57</font></div>
              </td>
            </tr>
            <tr>
              <td align="left" valign="top" width="70%">&#160;</td>
              <td align="left" valign="top" width="20%">&#160;</td>
              <td width="10%">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="top" width="70%">
                <div style="DISPLAY: block; MARGIN-LEFT: 45pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Balance
                  Sheets for New Tilt, Inc. at April 24, 2006 and at December 31,
                  2005
                  </font></div>
              </td>
              <td align="left" valign="top" width="20%">&#160;</td>
              <td width="10%">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">F-58</font></div>
              </td>
            </tr>
            <tr>
              <td align="left" valign="top" width="70%">&#160;</td>
              <td align="left" valign="top" width="20%">&#160;</td>
              <td width="10%">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="top" width="70%">
                <div style="DISPLAY: block; MARGIN-LEFT: 45pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Statements
                  of Operations for New Tilt, Inc. for the period of January 1, 2006
<font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">to
                  April 24, 2006 and for the year ended December 31,
                  2005</font></font></div>
              </td>
              <td align="left" valign="top" width="20%">&#160;</td>
              <td width="10%">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">F-59</font></div>
              </td>
            </tr>
            <tr>
              <td align="left" valign="top" width="70%">&#160;</td>
              <td align="left" valign="top" width="20%">&#160;</td>
              <td width="10%">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="top" width="70%">
                <div style="DISPLAY: block; MARGIN-LEFT: 45pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Statements
                  of Shareholder&#8217;s Equity for New Tilt, Inc. for the period of January 1,
                  2006 to April 24, 2006 and for the year ended December 31,
                  2005</font></div>
              </td>
              <td align="left" valign="top" width="20%">&#160;</td>
              <td width="10%">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">F-60</font></div>
              </td>
            </tr>
            <tr>
              <td align="left" valign="top" width="70%">&#160;</td>
              <td align="left" valign="top" width="20%">&#160;</td>
              <td width="10%">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="top" width="70%">
                <div style="DISPLAY: block; MARGIN-LEFT: 45pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Statements
                  of Cash Flows for New Tilt, Inc. for the period of January 1, 2006
                  to
                  April 24, 2006 and for the year ended December 31, 2005</font></div>
              </td>
              <td align="left" valign="top" width="20%">&#160;</td>
              <td width="10%">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">F-61</font></div>
              </td>
            </tr>
            <tr>
              <td align="left" valign="top" width="70%">&#160;</td>
              <td align="left" valign="top" width="20%">&#160;</td>
              <td width="10%">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
              </td>
            </tr>
            <tr>
              <td align="left" valign="top" width="70%">
                <div style="DISPLAY: block; MARGIN-LEFT: 45pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Notes
                  to Financial Statements</font></div>
              </td>
              <td align="left" valign="top" width="20%">&#160;</td>
              <td width="10%">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">F-62</font></div>
              </td>
            </tr>

        </table>
      </div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 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="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">F
          -
          2</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <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="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><a name="page_0_1_79"/><a name="gmnh301"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>BRIDGELINE
      SOFTWARE, INC.</strong></font></a><a name="gmnh122"/></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>UNAUDITED
      COMBINED PRO FORMA FINANCIAL STATEMENTS</strong></font><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>INTRODUCTION</strong></font><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      following unaudited combined pro forma condensed financial statements reflect
      the impact of the following transactions:</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">1.&#160;&#160;&#160;
              &#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
                offering of 3,000,000 shares of the Company&#8217;s common stock (the
                &#8220;Offering&#8221;). </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
                net proceeds will be used, in part, to repay short-term Senior Notes
                Payable as described in &#8220;Use of Proceeds<font style="DISPLAY: inline; FONT-FAMILY: Times New Roman">&#8221;</font>;</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2.&#160;&#160;&#160;
              &#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
                probable acquisition of Objectware, Inc. (&#8220;Objectware&#8221;), expected to be
                consummated after the offering;</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">3.&#160;&#160;&#160;
              &#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
                effect of the acquisition of New Tilt, Inc. (&#8220;New Tilt&#8221;) consummated on
                April 24, 2006; and </font></div>
            </td>
          </tr>

      </table>
    </div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">4.&#160;&#160;&#160;
              &#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
                effect of the acquisition of Interactive Applications, Inc. (&#8220;iapps&#8221;)
                consummated on December 15, 2004.</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">A
        description of pro forma adjustments related to each transaction is presented
        in
        the notes to the unaudited combined pro forma condensed financial statements.
        The unaudited combined pro forma condensed financial statements and accompanying
        notes should be read in conjunction with the historical financial statements
        of
        the Company, New Tilt and Objectware included in this registration statement.
        The unaudited combined pro forma condensed financial statements are based
        on
        currently available information and certain assumptions that the Company
        believes are reasonable; however, the actual adjustments may materially differ
        from the pro forma adjustments presented.</font></div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">A
      final
      determination of the purchase accounting adjustments, including the allocation
      of the purchase price of the assets acquired and liabilities assumed based
      on
      their fair values, has not been made with respect to the probable acquisition
      of
      Objectware. The purchase price accounting adjustments made in connection with
      the preparation of the unaudited combined pro forma condensed financial
      statements are preliminary and have been made solely for purposes of preparing
      such unaudited combined pro forma condensed financial statements. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      unaudited combined pro forma condensed financial statements do not purport
      to
      present the Company&#8217;s financial position or results of operations had the
      acquisition of Objectware, New Tilt and iapps actually been completed as of
      the
      dates indicated, and the unaudited combined pro forma condensed financial
      statements do not project the Company&#8217;s financial position or results of
      operations for any future date or period.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div>&#160;</div>
    <div><br>&#160;</div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 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="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">F
          -
          3</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <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="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>BRIDGELINE
      SOFTWARE, INC.</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>UNAUDITED
      COMBINED PRO FORMA CONDENSED BALANCE SHEET</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>JULY
      31, 2006</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(Amounts
      in thousands)</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      following unaudited combined pro forma condensed balance sheet reflects the
      effect of the Offering and the probable acquisition of Objectware as of July
      31,
      2006. The pro forma adjustments reflect the Use of Proceeds from the Offering
      as
      though it were completed on July 31, 2006 and the adjustments to Objectware&#8217;s
      historical balance sheet for the elimination of certain assets and liabilities
      that will not be acquired and to reflect the acquired assets and liabilities
      at
      estimated fair value as if they were acquired on July 31, 2006.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br>
      <div align="left">
        <table border="0" cellpadding="0" cellspacing="0" id="ftable" width="100%">

            <tr>
              <td valign="bottom" width="41%" style="border-bottom: medium none;">&#160;</td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td colspan="2" valign="bottom" width="12%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td colspan="2" valign="bottom" width="12%" style="border-bottom: medium none;">
                <div align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Probable
                  </font></div>
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              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td colspan="2" valign="bottom" width="12%" style="border-bottom: medium none;">
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              <td align="left" valign="bottom" width="3%" style="border-bottom: medium none;">&#160;</td>
              <td width="1%">&#160;</td>
              <td colspan="2" valign="bottom" width="12%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td valign="bottom" width="41%" style="border-bottom: medium none;">&#160;</td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td colspan="2" valign="bottom" width="12%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
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                <div align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Acquisition
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              <td align="left" valign="bottom" width="3%" style="border-bottom: medium none;">&#160;</td>
              <td width="1%">&#160;</td>
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                <div align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Pro
                  Forma </font></div>
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              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td valign="bottom" width="41%" style="border-bottom: #ffffff solid;">&#160;</td>
              <td width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
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                <div align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Historical
                  </font></div>
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              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td colspan="2" valign="bottom" width="12%" style="border-bottom: black thin solid;">
                <div align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(Note
                  1) </font></div>
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              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td colspan="2" valign="bottom" width="12%" style="border-bottom: black thin solid;">
                <div align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(Note
                  2) </font></div>
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              <td align="left" valign="bottom" width="3%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td width="1%">&#160;</td>
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                <div align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Combined
                  </font></div>
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              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;">&#160;</td>
            </tr>
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              </td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" colspan="2" valign="bottom" width="12%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" colspan="2" valign="bottom" width="12%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" colspan="2" valign="bottom" width="12%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: medium none;">&#160;</td>
              <td width="1%">&#160;</td>
              <td align="right" colspan="2" valign="bottom" width="12%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="41%" style="border-bottom: medium none;">&#160;<font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Current
                assets:</font></td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" colspan="2" valign="bottom" width="12%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" colspan="2" valign="bottom" width="12%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" colspan="2" valign="bottom" width="12%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: medium none;">&#160;</td>
              <td width="1%">&#160;</td>
              <td align="right" colspan="2" valign="bottom" width="12%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="41%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 18pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Cash
                  and cash equivalents </font>&#160;</div>
              </td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">971</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">552</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">8,380</font></div>
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              <td align="left" valign="bottom" width="3%" style="border-bottom: medium none;">&#160;(a)</td>
              <td width="1%">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">9,903</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="41%" style="border-bottom: #ffffff solid;">
                <div style="MARGIN-LEFT: 18pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Accounts
                  receivable and other current assets </font>&#160;</div>
              </td>
              <td width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">1,408
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">906
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(44</font></div>
              </td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: #ffffff thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)(b)</font></div>
              </td>
              <td width="1%">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">2,270
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="41%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 27pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">&#160;<font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Total
                  current assets </font></div>
              </td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">2,379
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">1,458
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">8,336
                  </font></div>
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              <td align="left" valign="bottom" width="3%" style="border-bottom: medium none;">&#160;</td>
              <td width="1%">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">12,173
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="41%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 9pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Other
                  assets </font></div>
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              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">963
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">549
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(303</font></div>
              </td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)(c)</font></div>
              </td>
              <td width="1%">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">1,209
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="41%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 9pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Intangible
                  assets, net </font></div>
              </td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">325
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman">&#8212;</font></font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">409
                  </font></div>
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              <td align="left" valign="bottom" width="3%" style="border-bottom: medium none;">&#160;(d)</td>
              <td width="1%">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">734
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="41%" style="border-bottom: #ffffff solid;">
                <div style="MARGIN-LEFT: 9pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Goodwill
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              </td>
              <td width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">6,310
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">&#8212;
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              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">4,130
                  </font></div>
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              <td align="left" valign="bottom" width="3%" style="border-bottom: #ffffff thin solid;">&#160;(e)</td>
              <td width="1%">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">10,440
                  </font></div>
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              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="41%" style="border-bottom: #ffffff solid;">
                <div style="MARGIN-LEFT: 18pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Total
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              <td width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
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              <td align="right" valign="bottom" width="11%" style="border-bottom: black double;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">9,977</font></div>
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              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
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              <td align="right" valign="bottom" width="11%" style="border-bottom: black double;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">2,007</font></div>
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              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
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              <td align="right" valign="bottom" width="11%" style="border-bottom: black double;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">12,572</font></div>
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              <td align="left" valign="bottom" width="3%" style="border-bottom: #ffffff solid;">&#160;</td>
              <td width="1%">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
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              <td align="right" valign="bottom" width="11%" style="border-bottom: black double;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">24,556</font></div>
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              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff solid;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="41%" style="border-bottom: medium none;">&#160;</td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: medium none;">&#160;</td>
              <td width="1%">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="41%" style="border-bottom: medium none;">
                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>LIABILITIES
                  AND SHAREHOLDERS&#8217; EQUITY </strong></font></div>
              </td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: medium none;">&#160;</td>
              <td width="1%">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="41%" style="border-bottom: medium none;">&#160;</td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: medium none;">&#160;</td>
              <td width="1%">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="41%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 9pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Current
                  liabilities: </font></div>
              </td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: medium none;">&#160;</td>
              <td width="1%">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="41%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 18pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Current
                  liabilities and accrued expenses </font>&#160;</div>
              </td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">925</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">806</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(271</font></div>
              </td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)(f)</font></div>
              </td>
              <td width="1%">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">1,460</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="41%" style="border-bottom: #ffffff solid;">
                <div style="MARGIN-LEFT: 18pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Short-term
                  debt, net of discount </font>&#160;</div>
              </td>
              <td width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">2,546
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">&#8212;
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(2,546</font></div>
              </td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: #ffffff thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)(g)</font></div>
              </td>
              <td width="1%">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">&#8212;
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="41%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 27pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">&#160;<font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Total
                  current liabilities </font></div>
              </td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">3,471
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">806
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(2,817</font></div>
              </td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
              </td>
              <td width="1%">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">1,460
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="41%" style="border-bottom: #ffffff solid;">
                <div style="MARGIN-LEFT: 9pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Other
                  liabilitlies </font></div>
              </td>
              <td width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">125
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">366
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(347</font></div>
              </td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: #ffffff thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)(h)</font></div>
              </td>
              <td width="1%">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">144
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="41%" style="border-bottom: #ffffff solid;">
                <div style="MARGIN-LEFT: 27pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Total
                  liabilities </font>&#160;</div>
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              <td width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
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              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
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              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
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              <td align="left" valign="bottom" width="3%" style="border-bottom: #ffffff thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
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              <td width="1%">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">1,604
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              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;">&#160;</td>
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            <tr>
              <td align="left" valign="bottom" width="41%" style="border-bottom: medium none;">&#160;</td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: medium none;">&#160;</td>
              <td width="1%">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="41%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 9pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Shareholders&#8217;
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              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: medium none;">&#160;</td>
              <td width="1%">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="41%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 18pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Common
                  stock </font>&#160;</div>
              </td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">4
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">2
                  </font></div>
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              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">1
                  </font></div>
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              <td align="left" valign="bottom" width="3%" style="border-bottom: medium none;">&#160;(i)</td>
              <td width="1%">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">7
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="41%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 18pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Additional
                  paid-in capital </font>&#160;</div>
              </td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">9,790
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">8
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              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">17,077
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              <td align="left" valign="bottom" width="3%" style="border-bottom: medium none;">&#160;(j)</td>
              <td width="1%">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">26,875
                  </font></div>
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              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="41%" style="border-bottom: #ffffff solid;">
                <div style="MARGIN-LEFT: 18pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Accumulated
                  earnings (deficit) </font>&#160;</div>
              </td>
              <td width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(3,413</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">825
                  </font></div>
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              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(1,342</font></div>
              </td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: #ffffff thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)(k)</font></div>
              </td>
              <td width="1%">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(3,930</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
              </td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="41%" style="border-bottom: #ffffff solid;">
                <div style="MARGIN-LEFT: 27pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">&#160;<font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Total
                  shareholders&#8217; equity </font></div>
              </td>
              <td width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">6,381
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">835
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">15,736
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td width="1%">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">22,952
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="41%" style="border-bottom: #ffffff solid;">
                <div style="MARGIN-LEFT: 18pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Total
                  liabilitiles and shareholders&#8217; equity </font>&#160;</div>
              </td>
              <td width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black double;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">9,977</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black double;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">2,007</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black double;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">12,572</font></div>
              </td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: #ffffff solid;">&#160;</td>
              <td width="1%">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black double;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">24,556</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff solid;">&#160;</td>
            </tr>

        </table>
      </div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      accompanying notes are an integral part of these unaudited combined pro forma
      condensed financial statements.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 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="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">F
          -
          4</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <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="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>BRIDGELINE
      SOFTWARE, INC.</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>NOTES
      TO UNAUDITED COMBINED PRO FORMA CONDENSED BALANCE SHEET</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>JULY
      31, 2006</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(Amounts
      in thousands)</font><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
    <div>
      <div>
        <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">

            <tr valign="top" style="line-height: 1;">
              <td align="left" style="width: 18pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>1.</strong></font></td>
              <td align="left">
                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Probable
                  Acquisition of
                  Objectware</strong></font></div>
              </td>
            </tr>

        </table>
      </div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      unaudited combined pro forma condensed balance sheet combines the Company&#8217;s
      unaudited balance sheet with Objectware&#8217;s unaudited balance sheet as of July 31,
      2006. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div>
      <div>
        <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">

            <tr valign="top" style="line-height: 1;">
              <td align="left" style="width: 18pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>2.</strong></font></td>
              <td align="left">
                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Pro
                  Forma Adjustments</strong></font></div>
              </td>
            </tr>

        </table>
      </div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 27pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(a)&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$8,380
                represents cash received in the Offering adjusted for the probable
                acquisition of Objectware and all other amounts paid as described
                in the
                Use of Proceeds.</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 27pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(b)&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$44
                represents amounts receivable by Objectware from its shareholder
                that will
                not be purchased in the
                acquisition.</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 27pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(c)&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$303
                represents the total of $263 of unamortized debt fees incurred in
                connection with issuance of the Senior Notes Payable that will be
                amortized when the notes are paid from the Proceeds of the Offering
                as
                discussed in the Use of Proceeds, and $40 of deferred costs associated
                with the Offering that will be charged to additional paid in capital
                when
                the Offering is completed.</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 27pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(d)&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$409
                represents the estimated fair value of intangible assets that will
                be
                recognized as an asset by the Company after the acquisition of
                Objectware.</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 27pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(e)&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$4,130
                represents the excess of the cost of the probable acquisition over
                the net
                amounts assigned to acquired assets and
                liabilities.</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 27pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(f)&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$271
                represents the total of $209 of Objectware&#8217;s income taxes payable that
                will not be a liability of the Company after the acquisition, and
                $62 of
                current deferred revenue related to service arrangements of Objectware,
                the performance of which has been
                completed.</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 27pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(g)&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$2,546
                represents the net of $2,800 Senior Notes Payable that will be paid
                with
                the proceeds of the Offering as discussed in Use of Proceeds, and
                $254
                unamortized discount on debt that will be amortized in full when
                the notes
                are paid.</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 27pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(h)&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$347
                represents non-current deferred revenue related to service arrangements
                of
                Objectware, the performance of&#160;which has been
                completed.</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 27pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(i)&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$1
                represents the net affect of the elimination of Objectware&#8217;s common stock
                outstanding and the expected issuance of the Company&#8217;s common stock in
                connection with the Offering and
                acquisition.</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 27pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(j)&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$17,077
                represents the effect of the Offering and the issuance of the Company&#8217;s
                common stock in connection with the probable acquisition of
                Objectware.</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 27pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(k)&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$1,342
                represents the total of $825 for the elimination of Objectware&#8217;s
                accumulated earnings, and $263 and $254 of costs to be fully amortized
                as
                discussed above in (c) and (g),
                respectively.</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div>&#160;</div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 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="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">F
          -
          5</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <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="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>BRIDGELINE
      SOFTWARE, INC.</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>UNAUDITED
      COMBINED PRO FORMA CONDENSED STATEMENT OF OPERATIONS</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>FOR
      THE TEN MONTHS ENDED JULY 31, 2006</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(Amounts
      in thousands, except per share amounts)</font><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      following unaudited combined pro forma condensed statement of operations for
      the
      ten months ended July 31, 2006 reflects adjustments related to the effects
      of
      the Offering, the probable acquisition of Objectware, and the results of
      operations of New Tilt as if these events occurred as of the beginning of the
      period on October 1, 2005. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br>
      <div align="left">
        <table border="0" cellpadding="0" cellspacing="0" id="ftable" width="100%">

            <tr>
              <td valign="bottom" width="41%" style="border-bottom: medium none;">&#160;</td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td colspan="2" valign="bottom" width="10%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td colspan="2" valign="bottom" width="10%" style="border-bottom: medium none;">
                <div align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Consummated
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td colspan="2" valign="bottom" width="10%" style="border-bottom: medium none;">
                <div align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Probable
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td colspan="2" valign="bottom" width="10%" style="border-bottom: medium none;">
                <div align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Pro
                  Forma </font></div>
              </td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: medium none;">&#160;</td>
              <td colspan="2" valign="bottom" width="10%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td valign="bottom" width="41%" style="border-bottom: medium none;">&#160;</td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td colspan="2" valign="bottom" width="10%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td colspan="2" valign="bottom" width="10%" style="border-bottom: medium none;">
                <div align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Acquisition
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td colspan="2" valign="bottom" width="10%" style="border-bottom: medium none;">
                <div align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Acquisition
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td colspan="2" valign="bottom" width="10%" style="border-bottom: medium none;">
                <div align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Adjustments
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: medium none;">&#160;</td>
              <td colspan="2" valign="bottom" width="10%" style="border-bottom: medium none;">
                <div align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Pro
                  Forma </font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td valign="bottom" width="41%" style="border-bottom: #ffffff solid;">&#160;</td>
              <td width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="right" colspan="2" valign="bottom" width="10%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Historical
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="right" colspan="2" valign="bottom" width="10%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(Note
                  1) </font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="right" colspan="2" valign="bottom" width="10%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(Note
                  2) </font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="right" colspan="2" valign="bottom" width="10%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(Note
                  3) </font></div>
              </td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="right" colspan="2" valign="bottom" width="10%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Combined
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="41%" style="border-bottom: medium none;">
                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Revenue:
                  </font></div>
              </td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" colspan="2" valign="bottom" width="10%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" colspan="2" valign="bottom" width="10%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" colspan="2" valign="bottom" width="10%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" colspan="2" valign="bottom" width="10%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" colspan="2" valign="bottom" width="10%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="41%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 9pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Web
                  services </font></div>
              </td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">5,355</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">919</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
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              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
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              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
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              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">&#8212;</font></div>
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              <td align="left" valign="bottom" width="3%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
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              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">8,852</font></div>
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              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="41%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 9pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Managed
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              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">898
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              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman">&#8212;</font></font></div>
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              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">558
                  </font></div>
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              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">&#8212;
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              <td align="left" valign="bottom" width="3%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">1,456
                  </font></div>
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              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="41%" style="border-bottom: #ffffff solid;">
                <div style="MARGIN-LEFT: 9pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Subscriptions
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              <td width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">350
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              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">&#8212;
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">&#8212;
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              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">&#8212;
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              <td align="left" valign="bottom" width="3%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">350
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              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="41%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 18pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Total
                  revenue </font></div>
              </td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">6,603
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              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">919
                  </font></div>
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              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">3,136
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">&#8212;
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">10,658
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="41%" style="border-bottom: #ffffff solid;">
                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Cost
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              </td>
              <td width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">2,924
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">851
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">1,440
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">60
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: #ffffff thin solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(a)</font>&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">5,275
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="41%" style="border-bottom: #ffffff solid;">
                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Gross
                  profit </font></div>
              </td>
              <td width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">3,679
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">68
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">1,696
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(60</font></div>
              </td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: #ffffff thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">5,383
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="41%" style="border-bottom: medium none;">
                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Operating
                  expenses: </font></div>
              </td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="41%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 9pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Sales
                  and marketing </font></div>
              </td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">2,193
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">77
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">&#8212;
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">2,270
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="41%">
                <div style="MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Technology
                  development</font></div>
              </td>
              <td width="2%">&#160;</td>
              <td align="left" valign="bottom" width="1%">&#160;</td>
              <td align="right" valign="bottom" width="9%">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">140</font></div>
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              <td align="left" valign="bottom" width="1%">&#160;</td>
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              <td align="left" valign="bottom" width="1%">&#160;</td>
              <td align="left" valign="bottom" width="1%">&#160;</td>
              <td align="right" valign="bottom" width="9%">
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              <td align="left" valign="bottom" width="1%">&#160;</td>
              <td align="left" valign="bottom" width="1%">&#160;</td>
              <td align="right" valign="bottom" width="9%">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">&#8212;
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              <td align="left" valign="bottom" width="3%">&#160;</td>
              <td align="left" valign="bottom" width="1%">&#160;</td>
              <td align="right" valign="bottom" width="9%">
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              <td align="left" valign="bottom" width="1%">&#160;</td>
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            <tr>
              <td align="left" valign="bottom" width="41%" style="border-bottom: #ffffff solid;">
                <div style="MARGIN-LEFT: 9pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">General
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              <td width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: black thin solid;">
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              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: black thin solid;">
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              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: black thin solid;">
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              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(239</font></div>
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              <td align="left" valign="bottom" width="3%" style="border-bottom: #ffffff thin solid;">
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              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">2,607
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              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="41%" style="border-bottom: #ffffff solid;">
                <div style="MARGIN-LEFT: 18pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Total
                  operating expenses </font></div>
              </td>
              <td width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">3,794
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              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">378
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              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">1,084
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(239</font></div>
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              <td align="left" valign="bottom" width="3%" style="border-bottom: #ffffff thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">5,017
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="41%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 9pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Income
                  (loss) from operations </font></div>
              </td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(115</font></div>
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              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
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              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">612
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              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">179
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              </td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">366
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="41%" style="border-bottom: medium none;">
                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Other
                  income (expenses): </font></div>
              </td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="41%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 9pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Other
                  income (expense) </font></div>
              </td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">&#8212;
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">10
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">22
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">&#8212;
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">32
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="41%" style="border-bottom: #ffffff solid;">
                <div style="MARGIN-LEFT: 9pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Interest
                  expense </font></div>
              </td>
              <td width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(583</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(2</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(1
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;">)&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">573
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: #ffffff thin solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(c)</font>&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(13</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
              </td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="41%" style="border-bottom: medium none;">
                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Income
                  (loss) before income taxes </font></div>
              </td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(698</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(302</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">633
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">752
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">385
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="41%" style="border-bottom: #ffffff solid;">
                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Provision
                  (benefit) for income taxes (Note 4) </font></div>
              </td>
              <td width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">&#8212;
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">&#8212;
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">246
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(200</font></div>
              </td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: #ffffff thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">46
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="41%" style="border-bottom: #ffffff solid;">
                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Net
                  income (loss) </font></div>
              </td>
              <td width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: black double;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(698</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: black double;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(302</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: black double;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">387</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: black double;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">952</font></div>
              </td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: #ffffff solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: black double;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">339</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff solid;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="41%" style="border-bottom: medium none;">
                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Net
                  income (loss) per share: </font></div>
              </td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="41%" style="border-bottom: #ffffff solid;">
                <div style="MARGIN-LEFT: 9pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Basic
                  </font></div>
              </td>
              <td width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: black double;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(0.17</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: black double;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">0.05</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff solid;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="41%" style="border-bottom: #ffffff solid;">
                <div style="MARGIN-LEFT: 9pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Diluted
                  </font></div>
              </td>
              <td width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: black double;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(0.17</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: black double;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">0.04</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff solid;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="41%" style="border-bottom: medium none;">
                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Number
                  of weighted average shares (Note 5): </font></div>
              </td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="41%" style="border-bottom: #ffffff solid;">
                <div style="MARGIN-LEFT: 9pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Basic
                  </font></div>
              </td>
              <td width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: black double;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">4,007
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: black double;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">7,135
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff solid;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="41%" style="border-bottom: #ffffff solid;">
                <div style="MARGIN-LEFT: 9pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Diluted
                  (Note 5) </font></div>
              </td>
              <td width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: black double;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">4,007
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: black double;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">7,706
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff solid;">&#160;</td>
            </tr>

        </table>
      </div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      accompanying notes are an integral part of these unaudited combined pro forma
      condensed financial statements.</font></div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 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="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">F
          -
          6</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <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="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>BRIDGELINE
      SOFTWARE, INC.</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>NOTES
      TO UNAUDITED COMBINED PRO FORMA CONDENSED </strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>STATEMENT
      OF OPERATIONS</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>FOR
      THE TEN MONTHS ENDED JULY 31, 2006</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(Amounts
      in thousands)</font><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">

          <tr valign="top" style="line-height: 1;">
            <td align="left" style="width: 18pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>1.</strong></font></td>
            <td align="left">
              <div align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Acquisition
                of New Tilt</strong></font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      Company acquired New Tilt on April 24, 2006. The amounts represent the
      historical pre-acquisition operating results of New Tilt from the beginning
      of
      the period October 1, 2005 to December 31, 2005, which were derived from the
      results of operations included in New Tilt&#8217;s fiscal year ended December 31,
      2005, combined with NewTilt&#8217;s results of operations from January 1, 2006 through
      the date of acquisition.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">

          <tr valign="top" style="line-height: 1;">
            <td align="left" style="width: 18pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>2.</strong></font></td>
            <td align="left">
              <div align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Probable
                Acquisition of Objectware</strong></font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      amounts represent the historical operating results of Objectware for the ten
      months ended July 31, 2006.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">

          <tr valign="top" style="line-height: 1;">
            <td align="left" style="width: 18pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>3.</strong></font></td>
            <td align="left">
              <div align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Pro
                Forma Adjustments</strong></font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      following adjustments assume the transactions described above occurred on
      October 1, 2005.</font></div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">

          <tr valign="top" style="line-height: 1;">
            <td style="width: 18pt;">
            </td>
            <td align="left" style="width: 18pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(a)</font></td>
            <td align="left">
              <div align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
                $60 net increase in cost of revenues represents the effect of the
                following items:</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div>
      <div>
        <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">

            <tr valign="top" style="line-height: 1;">
              <td style="width: 36pt;">
              </td>
              <td align="left" style="width: 18pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">i.</font></td>
              <td align="left">
                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$79
                  increase in amortization and depreciation expense resulting from
                  the
                  values assigned to intangible assets and property and equipment
                  of New
                  Tilt and Objectware upon acquisition,
                  and</font></div>
              </td>
            </tr>

        </table>
      </div>
    </div>
    <div>
      <div>
        <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">

            <tr valign="top" style="line-height: 1;">
              <td style="width: 36pt;">
              </td>
              <td align="left" style="width: 18pt;">
                <div>ii.</div>
              </td>
              <td align="left">
                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$19
                  decrease in New Tilt&#8217;s stock-based compensation in order to conform to the
                  Company&#8217;s accounting policy.</font></div>
              </td>
            </tr>

        </table>
      </div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">

          <tr valign="top" style="line-height: 1;">
            <td style="width: 18pt;">
            </td>
            <td align="left" style="width: 18pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(b)</font></td>
            <td align="left">
              <div align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
                $239 decrease in general and administrative expenses represents the
                effect
                of the following items: </font></div>
            </td>
          </tr>

      </table>
    </div>
    <div>
      <div>
        <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">

            <tr valign="top" style="line-height: 1;">
              <td style="width: 36pt;">
              </td>
              <td align="left" style="width: 18pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">i.</font></td>
              <td align="left">
                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$180
                  decrease in salary for the owner of Objectware in order to reflect
                  the
                  salary at the expected contractual rate that will be in effect
                  after the
                  acquisition,</font></div>
              </td>
            </tr>

        </table>
      </div>
    </div>
    <div>
      <div>
        <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">

            <tr valign="top" style="line-height: 1;">
              <td style="width: 36pt;">
              </td>
              <td align="left" style="width: 18pt;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.3; MARGIN-RIGHT: 0pt" align="left">ii.</div>
              </td>
              <td align="left">
                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$38
                  decrease in amortization and depreciation expense resulting from
                  the
                  values assigned to intangible assets and property and equipment
                  for New
                  Tilt and Objectware, and</font></div>
              </td>
            </tr>

        </table>
      </div>
    </div>
    <div>
      <div>
        <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">

            <tr valign="top" style="line-height: 1;">
              <td style="width: 36pt;">
              </td>
              <td align="left" style="width: 18pt;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.3; MARGIN-RIGHT: 0pt" align="left">iii.</div>
              </td>
              <td align="left">
                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$21
                  decrease in New Tilt&#8217;s stock-based compensation in order to conform to the
                  Company&#8217;s accounting policy.</font></div>
              </td>
            </tr>

        </table>
      </div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">

          <tr valign="top" style="line-height: 1;">
            <td style="width: 18pt;">
            </td>
            <td align="left" style="width: 18pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(c)</font></td>
            <td align="left">
              <div align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
                $573 decrease in interest expense related to indebtedness incurred
                to
                finance, in part, the acquisition of New Tilt, such indebtedness
                to be
                repaid with the proceeds of the Offering as described in the Use
                of
                Proceeds.</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">

          <tr valign="top" style="line-height: 1;">
            <td align="left" style="width: 18pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>4.</strong></font></td>
            <td align="left">
              <div align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Income
                Taxes</strong></font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      $200
      decrease in federal income tax expense is the result of combining Objectware
      as
      of the beginning of the period on October 1, 2005. The Company&#8217;s net operating
      loss carryforwards are sufficient to off-set the taxable income of Objectware
      such that no federal income tax expense would be incurred for the ten months
      ended July 31, 2006.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">

          <tr valign="top" style="line-height: 1;">
            <td align="left" style="width: 18pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>5.</strong></font></td>
            <td align="left">
              <div align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Weighted
                Average Shares Outstanding</strong></font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      shares issued in connection with the New Tilt acquisition and expected to be
      issued in connection with the probable acquisition of Objectware are included
      in
      the computation of weighted average shares outstanding as if these shares were
      issued as of the beginning of the period on October 1, 2005.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 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="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">F
          -
          7</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <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="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>BRIDGELINE
      SOFTWARE, INC.</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>UNAUDITED
      COMBINED PRO FORMA CONDENSED STATEMENT OF OPERATIONS</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>FOR
      THE YEAR ENDED SEPTEMBER 30, 2005</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(Amounts
      in thousands, except per share amounts)</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      following unaudited combined pro forma condensed statement of operations
      combines the results of operations of Objectware, New Tilt and iapps with those
      of the Company and also reflects adjustments related to the Offering and the
      acquisition of Objectware, New Tilt and iapps as if these events occurred as
      of
      the beginning of the period on October 1, 2004. </font><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br>
      <div align="left">
        <table border="0" cellpadding="0" cellspacing="0" id="ftable" width="100%">

            <tr>
              <td valign="bottom" width="30%" style="border-bottom: #ffffff solid;">&#160;</td>
              <td width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td colspan="2" valign="bottom" width="10%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td colspan="5" valign="bottom" width="21%" style="border-bottom: black thin solid;">
                <div align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Consummated
                  Acquisitions </font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td colspan="2" valign="bottom" width="10%" style="border-bottom: #ffffff thin solid;">
                <div align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Probable
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td colspan="2" valign="bottom" width="10%" style="border-bottom: #ffffff thin solid;">
                <div align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Pro
                  Forma </font></div>
              </td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td colspan="2" valign="bottom" width="10%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;">&#160;</td>
            </tr>
            <tr>
              <td valign="bottom" width="30%" style="border-bottom: medium none;">&#160;</td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td colspan="2" valign="bottom" width="10%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td colspan="2" valign="bottom" width="10%" style="border-bottom: medium none;">
                <div align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">New
                  Tilt </font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td colspan="2" valign="bottom" width="10%" style="border-bottom: medium none;">
                <div align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">iapps
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td colspan="2" valign="bottom" width="10%" style="border-bottom: medium none;">
                <div align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Acquisition
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td colspan="2" valign="bottom" width="10%" style="border-bottom: medium none;">
                <div align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Adjustments
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: medium none;">&#160;</td>
              <td colspan="2" valign="bottom" width="10%" style="border-bottom: medium none;">
                <div align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Pro
                  Forma </font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td valign="bottom" width="30%" style="border-bottom: #ffffff solid;">&#160;</td>
              <td width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="right" colspan="2" valign="bottom" width="10%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Historical
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="right" colspan="2" valign="bottom" width="10%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(Note
                  1) </font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="right" colspan="2" valign="bottom" width="10%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(Note
                  2) </font></div>
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              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="right" colspan="2" valign="bottom" width="10%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(Note
                  3) </font></div>
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              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="right" colspan="2" valign="bottom" width="10%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(Note
                  4) </font></div>
              </td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="right" colspan="2" valign="bottom" width="10%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Combined
                  </font></div>
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              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="30%" style="border-bottom: medium none;">
                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Revenue:
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              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" colspan="2" valign="bottom" width="10%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" colspan="2" valign="bottom" width="10%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" colspan="2" valign="bottom" width="10%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" colspan="2" valign="bottom" width="10%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" colspan="2" valign="bottom" width="10%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" colspan="2" valign="bottom" width="10%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="30%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 9pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Web
                  services </font></div>
              </td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">4,182</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">2,304</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">181</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">2,288</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman">&#8212;</font></font></div>
                </div>
              </td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">8,955</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="30%" style="border-bottom: #ffffff solid;">
                <div style="MARGIN-LEFT: 9pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Managed
                  services and subscriptions </font></div>
              </td>
              <td width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">1,587
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman">&#8212;</font></font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">95
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">474
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman">&#8212;</font></font></div>
                </div>
              </td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">2,156
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="30%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 18pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Total
                  revenue </font></div>
              </td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">5,769
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">2,304
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">276
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">2,762
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman">&#8212;</font></font></div>
                </div>
              </td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">11,111
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="30%" style="border-bottom: #ffffff solid;">
                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Cost
                  of revenue </font></div>
              </td>
              <td width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">3,113
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">1,533
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">141
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">1,443
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">75
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: #ffffff thin solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(a)</font>&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">6,305
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="30%" style="border-bottom: #ffffff solid;">
                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Gross
                  profit </font></div>
              </td>
              <td width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">2,656
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">771
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">135
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">1,319
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(75</font></div>
              </td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: #ffffff thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">4,806
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              </td>
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              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
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            <tr>
              <td align="left" valign="bottom" width="30%" style="border-bottom: medium none;">
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              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
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              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman">&#8212;</font></font></div>
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              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">137
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              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman">&#8212;</font></font></div>
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              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman">&#8212;</font></font></div>
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              <td align="left" valign="bottom" width="3%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">2,197
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              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
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            <tr>
              <td align="left" valign="bottom" width="30%">
                <div style="MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Technology
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              <td width="2%">&#160;</td>
              <td align="left" valign="bottom" width="1%">&#160;</td>
              <td align="right" valign="bottom" width="9%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">43</font></td>
              <td align="left" valign="bottom" width="1%">&#160;</td>
              <td align="left" valign="bottom" width="1%">&#160;</td>
              <td align="right" valign="bottom" width="9%">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman">&#8212;</font></font></div>
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              <td align="left" valign="bottom" width="1%">&#160;</td>
              <td align="left" valign="bottom" width="1%">&#160;</td>
              <td align="right" valign="bottom" width="9%">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman">&#8212;</font></font></div>
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              <td align="left" valign="bottom" width="1%">&#160;</td>
              <td align="left" valign="bottom" width="1%">&#160;</td>
              <td align="right" valign="bottom" width="9%">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman">&#8212;</font></font></div>
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              <td align="left" valign="bottom" width="1%">&#160;</td>
              <td align="left" valign="bottom" width="1%">&#160;</td>
              <td align="right" valign="bottom" width="9%">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman">&#8212;</font></font></div>
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              <td align="left" valign="bottom" width="3%">&#160;</td>
              <td align="left" valign="bottom" width="1%">&#160;</td>
              <td align="right" valign="bottom" width="9%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">43</font></td>
              <td align="left" valign="bottom" width="1%">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="30%" style="border-bottom: #ffffff solid;">
                <div style="MARGIN-LEFT: 9pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">General
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              <td width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">1,014
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              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">635
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              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">37
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              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">784
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              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(86</font></div>
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              <td align="left" valign="bottom" width="3%" style="border-bottom: #ffffff thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)(b)</font></div>
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              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">2,384
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              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="30%" style="border-bottom: #ffffff solid;">
                <div style="MARGIN-LEFT: 18pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Total
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              </td>
              <td width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">3,117
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              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">635
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              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">174
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              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">784
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(86</font></div>
              </td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: #ffffff thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">4,624
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              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="30%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 9pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Income
                  (loss) from operations </font></div>
              </td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(461</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">136
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              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(39</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">535
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              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">11
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">182
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="30%" style="border-bottom: medium none;">
                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Other
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              </td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="30%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 9pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Other
                  income (expense) </font></div>
              </td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman">&#8212;</font></font></div>
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              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">4
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              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman">&#8212;</font></font></div>
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              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(2
                  </font></div>
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              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">)&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman">&#8212;</font></font></div>
                </div>
              </td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">2
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="30%" style="border-bottom: #ffffff solid;">
                <div style="MARGIN-LEFT: 9pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Interest
                  expense, net </font></div>
              </td>
              <td width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(56</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(2</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(3</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(5</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">63
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: #ffffff thin solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(c)</font>&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(3</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
              </td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="30%" style="border-bottom: medium none;">
                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Income
                  (loss) before income taxes </font></div>
              </td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(517</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">138
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(42</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">528
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">74
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">181
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="30%" style="border-bottom: #ffffff solid;">
                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Provision
                  (benefit) for income taxes (Note 5) </font></div>
              </td>
              <td width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman">&#8212;</font></font></div>
                </div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman">&#8212;</font></font></div>
                </div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman">&#8212;</font></font></div>
                </div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">156
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(129</font></div>
              </td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: #ffffff thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">27
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="30%" style="border-bottom: #ffffff solid;">
                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Net
                  income (loss) </font></div>
              </td>
              <td width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: black double;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(517</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: black double;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">138</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: black double;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(42</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: black double;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">372</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: black double;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">203</font></div>
              </td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: #ffffff solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: black double;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">154</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff solid;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="30%" style="border-bottom: medium none;">
                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Net
                  income (loss) per share: </font></div>
              </td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
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              <td align="left" valign="bottom" width="30%" style="border-bottom: #ffffff solid;">
                <div style="MARGIN-LEFT: 9pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Basic
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              <td width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
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              <td align="right" valign="bottom" width="9%" style="border-bottom: black double;">
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              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff solid;">
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              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
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              <td align="right" valign="bottom" width="9%" style="border-bottom: black double;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">0.02</font></div>
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              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff solid;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="30%" style="border-bottom: #ffffff solid;">
                <div style="MARGIN-LEFT: 9pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Diluted
                  </font></div>
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              <td width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
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              <td align="right" valign="bottom" width="9%" style="border-bottom: black double;">
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              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
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              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
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              <td align="right" valign="bottom" width="9%" style="border-bottom: black double;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">0.02</font></div>
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              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff solid;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="30%" style="border-bottom: medium none;">
                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Number
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              </td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="30%" style="border-bottom: #ffffff solid;">
                <div style="MARGIN-LEFT: 9pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Basic
                  </font></div>
              </td>
              <td width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: black double;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">3,804
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: black double;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">7,614
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff solid;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="30%" style="border-bottom: #ffffff solid;">
                <div style="MARGIN-LEFT: 9pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Diluted
                  (Note 6) </font></div>
              </td>
              <td width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: black double;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">3,804
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: black double;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">7,979
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff solid;">&#160;</td>
            </tr>

        </table>
      </div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      accompanying notes are an integral part of these unaudited combined pro forma
      condensed financial statements.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 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="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">F
          -
          8</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <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="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>BRIDGELINE
      SOFTWARE, INC.</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>NOTES
      TO UNAUDITED COMBINED PRO FORMA CONDENSED </strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>STATEMENT
      OF OPERATIONS</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>FOR
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(Amounts
      in thousands)</font><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">

          <tr valign="top" style="line-height: 1;">
            <td align="left" style="width: 18pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>1.</strong></font></td>
            <td align="left">
              <div align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Acquisition
                of New Tilt</strong></font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
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      historical operating results of New Tilt for its fiscal year ended December
      31,
      2005. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">

          <tr valign="top" style="line-height: 1;">
            <td align="left" style="width: 18pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>2.</strong></font></td>
            <td align="left">
              <div align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Acquisition
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            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      Company acquired iapps on December 15, 2004. The amounts represent the
      historical operating results of iapps for the period October 1, 2004 to October
      31, 2004, which were derived from its historical results of operations for
      its
      fiscal year ended October 31, 2004, combined with its historical results of
      operations for the period November 1, 2004 through the date of acquisition.
      </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">

          <tr valign="top" style="line-height: 1;">
            <td align="left" style="width: 18pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>3.</strong></font></td>
            <td align="left">
              <div align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Probable
                Acquisition of Objectware</strong></font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      amounts represent the historical operating results of Objectware for its fiscal
      year ended September 30, 2005.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">

          <tr valign="top" style="line-height: 1;">
            <td align="left" style="width: 18pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>4.</strong></font></td>
            <td align="left">
              <div align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Pro
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            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      following adjustments assume the transactions described above occurred on
      October 1, 2004. </font></div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">

          <tr valign="top" style="line-height: 1;">
            <td style="width: 18pt;">
            </td>
            <td align="left" style="width: 18pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(a)</font></td>
            <td align="left">
              <div align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
                $75 net increase in cost of revenues represents the effect of the
                following items:</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div>
      <div>
        <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">

            <tr valign="top" style="line-height: 1;">
              <td style="width: 36pt;">
              </td>
              <td align="left" style="width: 18pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">i.</font></td>
              <td align="left">
                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$134
                  increase in amortization and depreciation expense resulting from
                  the
                  values assigned to intangible assets and property and equipment
                  upon
                  acquisition as follows: $18 for New Tilt, $34 for iapps and $82
                  for
                  Objectware, and</font></div>
              </td>
            </tr>

        </table>
      </div>
    </div>
    <div>
      <div>
        <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">

            <tr valign="top" style="line-height: 1;">
              <td style="width: 36pt;">
              </td>
              <td align="left" style="width: 18pt;">
                <div>ii.</div>
              </td>
              <td align="left">
                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$59
                  decrease in New Tilt&#8217;s stock-based compensation in order to conform to the
                  Company&#8217;s accounting policy.</font></div>
              </td>
            </tr>

        </table>
      </div>
      <div>&#160;</div>
    </div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">

          <tr valign="top" style="line-height: 1;">
            <td style="width: 18pt;">
            </td>
            <td align="left" style="width: 18pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(b)</font></td>
            <td align="left">
              <div align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
                $86 decrease in general and administrative expenses represents the
                effects
                of the following items:</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div>
      <div>
        <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">

            <tr valign="top" style="line-height: 1;">
              <td style="width: 36pt;">
              </td>
              <td align="left" style="width: 18pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">i.</font></td>
              <td align="left">
                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$73
                  decrease in amortization and depreciation expense resulting from
                  the
                  values assigned to intangible assets and property and equipment
                  upon
                  acquisition as follows: $40 for New Tilt, $22 for iapps and $11
                  for
                  Objectware, and</font></div>
              </td>
            </tr>

        </table>
      </div>
    </div>
    <div>
      <div>
        <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">

            <tr valign="top" style="line-height: 1;">
              <td style="width: 36pt;">
              </td>
              <td align="left" style="width: 18pt;">
                <div>ii.</div>
              </td>
              <td align="left">
                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$13
                  decrease in New Tilt&#8217;s stock-based compensation in order to conform to the
                  Company&#8217;s accounting policy.</font></div>
              </td>
            </tr>

        </table>
      </div>
      <div>&#160;</div>
    </div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">

          <tr valign="top" style="line-height: 1;">
            <td style="width: 18pt;">
            </td>
            <td align="left" style="width: 18pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(c)</font></td>
            <td align="left">
              <div align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
                $63 decrease in interest expense relates to indebtedness incurred
                to
                finance, in part, the acquisition of New Tilt, such indebtedness
                to be
                repaid with the proceeds of the Offering as described in the Use
                of
                Proceeds.</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">

          <tr valign="top" style="line-height: 1;">
            <td align="left" style="width: 18pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>5.</strong></font></td>
            <td align="left">
              <div align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Income
                Taxes</strong></font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      $129
      decrease in federal income tax expense is the result of combining Objectware
      as
      of the beginning of the period on October 1, 2004. The Company&#8217;s net operating
      loss carryforwards are sufficient to off-set the taxable income of Objectware
      such that no federal income tax expense would be incurred for the year ended
      September 30, 2005.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">

          <tr valign="top" style="line-height: 1;">
            <td align="left" style="width: 18pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>6.</strong></font></td>
            <td align="left">
              <div align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Weighted
                Average Shares Outstanding</strong></font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      shares issued in connection with the New Tilt and iapps acquisitions and
      expected to be issued in connection with the probable acquisition of Objectware
      are included in the computation of weighted average shares outstanding as if
      these shares were issued as of the beginning of the period on October 1,
      2004.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 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="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">F
          -
          9</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <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="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>REPORT
      OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">To
      the
      Board of Directors </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Bridgeline
      Software, Inc.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">We
      have
      audited the accompanying consolidated balance sheets of Bridgeline Software,
      Inc. as of September 30, 2005 and 2004 and the related consolidated statements
      of operations, shareholders&#8217; equity and cash flows for the years then ended.
      These consolidated financial statements are the responsibility of the Company&#8217;s
      management. Our responsibility is to express an opinion on these consolidated
      financial statements based on our audits. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">We
      conducted our audits in accordance with the standards of the Public Company
      Accounting Oversight Board (United States). Those standards require that we
      plan
      and perform the audit to obtain reasonable assurance about whether the financial
      statements are free of material misstatement. The Company is not required to
      have, nor were we engaged to perform, an audit of its internal control over
      financial reporting. Our audit included consideration of internal control over
      financial reporting as a basis for designing audit procedures that are
      appropriate in the circumstances, but not for the purpose of expressing an
      opinion on the effectiveness of the Company<font style="DISPLAY: inline; FONT-FAMILY: Times New Roman">&#8217;</font>s internal
      control
      over financial reporting. Accordingly, we express no such opinion. An audit
      also
      includes examining, on a test basis, evidence supporting the amounts and
      disclosures in the financial statements, assessing the accounting principles
      used and significant estimates made by management, as well as evaluating the
      overall financial statement presentation. We believe that our audits provide
      a
      reasonable basis for our opinion.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
      our
      opinion, the consolidated financial statements referred to above present fairly,
      in all material respects, the consolidated financial position of Bridgeline
      Software, Inc. as of September 30, 2005 and 2004 and the consolidated results
      of
      its operations and its cash flows for the years then ended in conformity with
      accounting principles generally accepted in the United States of
      America.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        accompanying consolidated financial statements have been prepared assuming
        that
        the Company will continue as a going concern. As described in Note 1 to the
        consolidated financial statements, the Company has incurred operating losses
        since inception,&#160;has a working capital deficit of approximately $179,000
        and accumulated deficit of approximately $2,715,000 at September 30, 2005
        and
        will need to repay its Senior Notes Payable of $2,800,000 and related interest
        no later than April 2007. These conditions raise substantial doubt about
        the
        ability of the Company to continue as a going concern. Management&#8217;s plans
        concerning these matters are also described in Note 1. The consolidated
        financial statements do not include any adjustments that might result from
        the
        outcome of this uncertainty.</font></div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>/s/
      UHY LLP</em></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Boston,
      Massachusetts</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">December
      11, 2006</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 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="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">F
          -
          10</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <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="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center">
      <div align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>BRIDGELINE
        SOFTWARE, INC. </strong></font></div>
      <div align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>CONSOLIDATED
        BALANCE SHEETS</strong></font></div>
      <div align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>(Information
        as of July 31, 2006 and 2005 is Unaudited)</strong></font></div>
      <div align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(Amounts
        in thousands, except share and per share data)</font></div>
      <div align="center">&#160;</div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">
      <div>
        <table cellpadding="0" cellspacing="0" id="ftable" width="100%">

            <tr>
              <td valign="bottom" width="43%" style="border-bottom: #ffffff solid;">
                <div align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>ASSETS</strong></font></div>
              </td>
              <td width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="right" colspan="5" valign="bottom" width="26%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>July
                  31,</strong></font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="right" colspan="5" valign="bottom" width="25%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>September
                  30,</strong></font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;">&#160;</td>
            </tr>
            <tr>
              <td valign="bottom" width="43%" style="border-bottom: #ffffff solid;">&#160;</td>
              <td width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="right" colspan="2" valign="bottom" width="12%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>2006</strong></font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="right" colspan="2" valign="bottom" width="12%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>2005</strong></font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="right" colspan="2" valign="bottom" width="12%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>2005</strong></font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="right" colspan="2" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>2004</strong></font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="43%" style="border-bottom: medium none;">
                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Current
                  assets:</font></div>
              </td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" colspan="2" valign="bottom" width="12%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" colspan="2" valign="bottom" width="12%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" colspan="2" valign="bottom" width="12%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" colspan="2" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="43%" style="border-bottom: medium none;">
                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;Cash
                  and cash equivalents </font></div>
              </td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">971</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">93</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">138</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
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              <td align="left" valign="bottom" width="43%" style="border-bottom: medium none;">
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              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
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            <tr>
              <td align="left" valign="bottom" width="43%" style="border-bottom: medium none;">
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              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
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              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
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              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
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              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
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              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
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            <tr>
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                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Unbilled
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              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
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              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
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              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">167
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              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">210
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              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
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            <tr>
              <td align="left" valign="bottom" width="43%" style="border-bottom: #ffffff solid;">
                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Prepaid
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              <td width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">82
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              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">20
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              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">25
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              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">6
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              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="43%" style="border-bottom: medium none;">
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              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">2,379
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              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">1,269
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              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">935
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              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">1,878
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              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="43%" style="border-bottom: medium none;">
                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Equipment
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              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">426
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              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">245
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">267
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              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">158
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="43%" style="border-bottom: medium none;">
                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Definite-lived
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              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">325
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              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">349
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">331
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              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">72
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="43%" style="border-bottom: medium none;">
                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Goodwill
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              </td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">6,310
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              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">5,097
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              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">5,097
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              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">2,740
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              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="43%" style="border-bottom: medium none;">
                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Deferred
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              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">263
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman">&#8212;</font></font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">&#8212;
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              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">&#8212;
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="43%" style="border-bottom: #ffffff solid;">
                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Other
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              </td>
              <td width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">274
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">159
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">109
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              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">111
                  </font></div>
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              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="43%" style="border-bottom: #ffffff solid;">
                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;&#160;&#160;&#160;&#160;&#160;Total
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              <td width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
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              <td align="right" valign="bottom" width="11%" style="border-bottom: black double;">
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              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
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              <td align="right" valign="bottom" width="11%" style="border-bottom: black double;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">7,119</font></div>
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              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
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              <td align="right" valign="bottom" width="11%" style="border-bottom: black double;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">6,739</font></div>
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              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
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              <td align="right" valign="bottom" width="11%" style="border-bottom: black double;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">4,959</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff solid;">&#160;</td>
            </tr>
            <tr>
              <td valign="bottom" width="43%" style="border-bottom: medium none;">
                <div align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>LIABILITIES
                  AND SHAREHOLDERS&#8217; EQUITY</strong></font></div>
              </td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="43%" style="border-bottom: medium none;">
                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Current
                  liabilities:</font></div>
              </td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="43%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;
                  Senior notes payable</font></div>
              </td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">2,546</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">&#8212;</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">&#8212;</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">&#8212;</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="43%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;
                  Financing agreement</font></div>
              </td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">&#8212;
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">474
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">292
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">&#8212;
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="43%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;Capital
                  lease obligations - current</font></div>
              </td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">44
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">11
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">11
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">10
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="43%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;
                  Notes payable to shareholders - current</font></div>
              </td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">&#8212;
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">45
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">85
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">110
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="43%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;
                  Accounts payable</font></div>
              </td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">307
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">323
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">272
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">215
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="43%" style="border-bottom: medium none;">
                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;
                  Deferred revenue </font></div>
              </td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">250
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">264
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">183
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">381
                  </font></div>
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              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="43%" style="border-bottom: #ffffff solid;">
                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;
                  Accrued liabilities </font></div>
              </td>
              <td width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">324
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">276
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">271
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">264
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="43%" style="border-bottom: medium none;">
                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;&#160;&#160;&#160;&#160;&#160;Total
                  current liabilities </font></div>
              </td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">3,471
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              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">1,393
                  </font></div>
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              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">1,114
                  </font></div>
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              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">980
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="43%" style="border-bottom: medium none;">
                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;
                  Capital lease obligations, less current portion </font></div>
              </td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">125
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">31
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">33
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">44
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="43%" style="border-bottom: #ffffff solid;">
                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;
                  Notes payable to shareholders, less current portion</font></div>
              </td>
              <td width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">&#8212;
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">&#8212;
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">&#8212;
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">61
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="43%" style="border-bottom: medium none;">
                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;&#160;&#160;&#160;&#160;&#160;Total
                  liabilities </font></div>
              </td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">3,596
                  </font></div>
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              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">1,424
                  </font></div>
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              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">1,147
                  </font></div>
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              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">1,085
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="43%">&#160;</td>
              <td width="2%">&#160;</td>
              <td align="left" valign="bottom" width="1%">&#160;</td>
              <td align="right" valign="bottom" width="11%">&#160;</td>
              <td align="left" valign="bottom" width="2%">&#160;</td>
              <td align="left" valign="bottom" width="1%">&#160;</td>
              <td align="right" valign="bottom" width="11%">&#160;</td>
              <td align="left" valign="bottom" width="2%">&#160;</td>
              <td align="left" valign="bottom" width="1%">&#160;</td>
              <td align="right" valign="bottom" width="11%">&#160;</td>
              <td align="left" valign="bottom" width="2%">&#160;</td>
              <td align="left" valign="bottom" width="1%">&#160;</td>
              <td align="right" valign="bottom" width="11%">&#160;</td>
              <td align="left" valign="bottom" width="1%">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="43%" style="border-bottom: medium none;">
                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Commitments
                  and Contingencies</font></div>
              </td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="43%" style="border-bottom: medium none;">&#160;</td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="43%" style="border-bottom: medium none;">
                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Shareholders&#8217;
                  equity:</font></div>
              </td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="43%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;
                  Common stock &#8212; $0.001 par value; 20,000,000 shares
                  authorized:</font></div>
                <div style="MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">4,233,833;
                  3,903,833; 3,903,833 and 3,427,166 shares issued</font></div>
                <div style="MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">and
                  outstanding, respectively</font></div>
              </td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">4
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">4
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">4
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">3
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="43%" style="border-bottom: medium none;">
                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;Additional
                  paid-in capital </font></div>
              </td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">9,790
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">8,302
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">8,303
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
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              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
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            <tr>
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              <td width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
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              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
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              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
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              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
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              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
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              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
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              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(2,198</font></div>
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              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
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            </tr>
            <tr>
              <td align="left" valign="bottom" width="43%" style="border-bottom: #ffffff solid;">
                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;&#160;&#160;&#160;&#160;&#160;Total
                  shareholders&#8217; equity </font></div>
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              <td width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">6,381
                  </font></div>
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              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">5,695
                  </font></div>
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              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">5,592
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">3,874
                  </font></div>
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              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="43%" style="border-bottom: #ffffff solid;">
                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;&#160;&#160;&#160;&#160;&#160;Total
                  liabilities and shareholders&#8217; equity </font></div>
              </td>
              <td width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
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              <td align="right" valign="bottom" width="11%" style="border-bottom: black double;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">9,977</font></div>
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              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black double;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">7,119</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black double;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">6,739</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
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              <td align="right" valign="bottom" width="11%" style="border-bottom: black double;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">4,959</font></div>
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              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff solid;">&#160;</td>
            </tr>

        </table>
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      <div>&#160;</div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      accompanying notes are an integral part of these consolidated financial
      statements.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 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="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">F
          -
          11</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <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="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">
      <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>BRIDGELINE
        SOFTWARE, INC. </strong></font></div>
      <div align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>CONSOLIDATED
        STATEMENTS OF OPERATIONS</strong></font></div>
      <div align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>(Information
        for the Ten Months Ended July 31, 2006 and 2005 is
        Unaudited)</strong></font></div>
      <div align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(Amounts
        in thousands, except share and per share data)</font></div>
      <div>&#160;</div>
      <div>
        <table cellpadding="0" cellspacing="0" id="ftable" width="100%">

            <tr>
              <td valign="bottom" width="43%" style="border-bottom: #ffffff solid;">&#160;</td>
              <td width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td colspan="5" valign="bottom" width="26%" style="border-bottom: black thin solid;">
                <div align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Ten
                  Months Ended July 31,</strong></font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="right" colspan="5" valign="bottom" width="25%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Year
                  Ended September 30,</strong></font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;">&#160;</td>
            </tr>
            <tr>
              <td valign="bottom" width="43%" style="border-bottom: #ffffff solid;">&#160;</td>
              <td width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td colspan="2" valign="bottom" width="12%" style="border-bottom: black thin solid;">
                <div align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>2006</strong></font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td colspan="2" valign="bottom" width="12%" style="border-bottom: black thin solid;">
                <div align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>2005</strong></font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td colspan="2" valign="bottom" width="12%" style="border-bottom: black thin solid;">
                <div align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>2005</strong></font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="right" colspan="2" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>2004</strong></font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="43%" style="border-bottom: medium none;">
                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Revenue:</font></div>
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              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" colspan="2" valign="bottom" width="12%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" colspan="2" valign="bottom" width="12%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" colspan="2" valign="bottom" width="12%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" colspan="2" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="43%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Web
                  services </font></div>
              </td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">5,355</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">3,377</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">4,182</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">3,820</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="43%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Managed
                  services </font></div>
              </td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">898
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">989
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">1,244
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">1,068
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="43%" style="border-bottom: #ffffff solid;">
                <div style="MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Subscription
                  </font></div>
              </td>
              <td width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">350
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
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              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">343
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              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">&#8212;
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              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;">&#160;</td>
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              <td align="left" valign="bottom" width="43%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Total
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              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
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              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
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              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">5,769
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              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
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              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
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            <tr>
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              <td width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
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              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
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              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">3,113
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              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">2,290
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              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="43%" style="border-bottom: medium none;">
                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Gross
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              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">3,679
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              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">2,118
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              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">2,656
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              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">2,598
                  </font></div>
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              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="43%" style="border-bottom: medium none;">
                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Operating
                  expenses:</font></div>
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              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="43%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Sales
                  and marketing </font></div>
              </td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">2,193
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">1,605
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              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">2,060
                  </font></div>
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              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">1,874
                  </font></div>
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              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="43%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">General
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              </td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">1,461
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">849
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">1,014
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">830
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="43%" style="border-bottom: #ffffff solid;">
                <div style="MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Technology
                  development</font></div>
              </td>
              <td width="2%" style="border-bottom: #ffffff solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">140
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">37
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">43
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">26
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff solid;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="43%" style="border-bottom: #ffffff solid;">
                <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Total
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              </td>
              <td width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">3,794
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">2,491
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">3,117
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">2,730
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="43%" style="border-bottom: medium none;">
                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Loss
                  from operations </font></div>
              </td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(115</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(373</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(461</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(132</font></div>
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              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
              </td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="43%" style="border-bottom: #ffffff solid;">
                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Interest
                  expense </font></div>
              </td>
              <td width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(583</font></div>
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              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(40</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(56</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(46</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
              </td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="43%" style="border-bottom: medium none;">
                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">L</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">oss
                  before income taxes </font></div>
              </td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(698</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(413</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(517</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(178</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
              </td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="43%" style="border-bottom: #ffffff solid;">
                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Income
                  taxes </font></div>
              </td>
              <td width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman">&#8212;</font></font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">&#8212;
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">&#8212;
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">&#8212;
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="43%" style="border-bottom: #ffffff solid;">
                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Net
                  loss </font></div>
              </td>
              <td width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black double;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(698</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black double;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(413</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black double;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(517</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black double;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(178</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
              </td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="43%" style="border-bottom: medium none;">&#160;</td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="43%" style="border-bottom: medium none;">
                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Net
                  loss per share:</font></div>
              </td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="43%" style="border-bottom: #ffffff solid;">
                <div style="MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Basic
                  and diluted </font></div>
              </td>
              <td width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black double;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(0.17</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black double;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(0.11</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black double;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(0.14</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black double;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(0.06</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
              </td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="43%" style="border-bottom: medium none;">&#160;</td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="43%" style="border-bottom: medium none;">
                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Number
                  of weighted average shares:</font></div>
              </td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="43%" style="border-bottom: #ffffff solid;">
                <div style="MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Basic
                  and diluted</font></div>
              </td>
              <td width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black double;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">4,007,499
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black double;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">3,786,255
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black double;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">3,804,527
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black double;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">3,026,163
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff solid;">&#160;</td>
            </tr>

        </table>
      </div>
      <div>&#160;</div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      accompanying notes are an integral part of these consolidated financial
      statements.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 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="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">F
          -
          12</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <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="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><strong><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">BRIDGELINE
      SOFTWARE, INC.</font></strong></div>
    <div>
      <div align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>CONSOLIDATED
        STATEMENTS OF SHAREHOLDERS&#8217; EQUITY</strong></font></div>
      <div align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>(Information
        as of July 31, 2006 and for the Ten Months Ended July 31, 2006 is
        Unaudited)</strong></font></div>
      <div align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>(Amounts
        in thousands, except share and per share data)</strong></font></div><br></div>
    <div>&#160;</div>
    <div>
      <table cellpadding="0" cellspacing="0" id="ftable" width="100%">

          <tr>
            <td valign="bottom" width="43%" style="border-bottom: medium none;">&#160;</td>
            <td width="2%" style="border-bottom: medium none;">&#160;</td>
            <td align="right" colspan="2" valign="bottom" width="10%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            <td align="right" colspan="2" valign="bottom" width="10%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            <td align="right" colspan="2" valign="bottom" width="10%" style="border-bottom: medium none;">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Additional</strong></font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            <td align="right" colspan="2" valign="bottom" width="10%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            <td align="right" colspan="2" valign="bottom" width="10%" style="border-bottom: medium none;">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Total</strong></font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
          </tr>
          <tr>
            <td valign="bottom" width="43%" style="border-bottom: #ffffff solid;">&#160;</td>
            <td width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
            <td colspan="5" valign="bottom" width="21%" style="border-bottom: black thin solid;">
              <div align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Common
                Stock</strong></font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;">&#160;</td>
            <td align="right" colspan="2" valign="bottom" width="10%" style="border-bottom: #ffffff thin solid;">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Paid-in</strong></font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;">&#160;</td>
            <td align="right" colspan="2" valign="bottom" width="10%" style="border-bottom: #ffffff thin solid;">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Accumulated</strong></font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;">&#160;</td>
            <td align="right" colspan="2" valign="bottom" width="10%" style="border-bottom: #ffffff thin solid;">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Shareholders&#8217;</strong></font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;">&#160;</td>
          </tr>
          <tr>
            <td valign="bottom" width="43%" style="border-bottom: #ffffff solid;">&#160;</td>
            <td width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
            <td colspan="2" valign="bottom" width="10%" style="border-bottom: black thin solid;">
              <div align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Shares</strong></font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;">&#160;</td>
            <td align="right" colspan="2" valign="bottom" width="10%" style="border-bottom: black thin solid;">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Par
                Value</strong></font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;">&#160;</td>
            <td align="right" colspan="2" valign="bottom" width="10%" style="border-bottom: black thin solid;">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Capital</strong></font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;">&#160;</td>
            <td align="right" colspan="2" valign="bottom" width="10%" style="border-bottom: black thin solid;">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Deficit</strong></font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;">&#160;</td>
            <td align="right" colspan="2" valign="bottom" width="10%" style="border-bottom: black thin solid;">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Equity</strong></font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;">&#160;</td>
          </tr>
          <tr>
            <td align="left" valign="bottom" width="43%" style="border-bottom: medium none;">&#160;</td>
            <td width="2%" style="border-bottom: medium none;">&#160;</td>
            <td align="right" colspan="2" valign="bottom" width="10%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            <td align="right" colspan="2" valign="bottom" width="10%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            <td align="right" colspan="2" valign="bottom" width="10%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            <td align="right" colspan="2" valign="bottom" width="10%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            <td align="right" colspan="2" valign="bottom" width="10%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
          </tr>
          <tr>
            <td align="left" valign="bottom" width="43%" style="border-bottom: medium none;">
              <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Balance,
                September 30, 2003 </font></div>
            </td>
            <td width="2%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
              <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">2,887,880
                </font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
              <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
            </td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
              <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">3</font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
              <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
            </td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
              <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">4,427</font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
              <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
            </td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
              <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(2,020</font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
              <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
              <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
            </td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
              <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">2,410</font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
          </tr>
          <tr>
            <td align="left" valign="bottom" width="43%" style="border-bottom: medium none;">&#160;</td>
            <td width="2%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
          </tr>
          <tr>
            <td align="left" valign="bottom" width="43%" style="border-bottom: medium none;">
              <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Issuance
                of stock for option exercises</font></div>
            </td>
            <td width="2%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
              <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">22,222
                </font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
              <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman">&#8212;</font></font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
              <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">&#8212;
                </font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
              <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">&#8212;
                </font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
              <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">&#8212;
                </font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
          </tr>
          <tr>
            <td align="left" valign="bottom" width="43%" style="border-bottom: medium none;">
              <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Issuance
                of stock in private offering </font></div>
            </td>
            <td width="2%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
              <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">517,064
                </font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
              <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">&#8212;
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            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
              <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">1,640
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            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
              <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">&#8212;
                </font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
              <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">1,640
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            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
          </tr>
          <tr>
            <td align="left" valign="bottom" width="43%" style="border-bottom: medium none;">
              <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Stock
                based compensation</font></div>
            </td>
            <td width="2%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
              <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">&#8212;
                </font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
              <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">&#8212;
                </font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
              <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">2
                </font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
              <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">&#8212;
                </font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
              <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">2
                </font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
          </tr>
          <tr>
            <td align="left" valign="bottom" width="43%" style="border-bottom: #ffffff solid;">
              <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Net
                loss </font></div>
            </td>
            <td width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: black thin solid;">
              <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">&#8212;
                </font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: black thin solid;">
              <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">&#8212;
                </font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: black thin solid;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: black thin solid;">
              <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(178</font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;">
              <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: black thin solid;">
              <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(178</font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;">
              <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
            </td>
          </tr>
          <tr>
            <td align="left" valign="bottom" width="43%" style="border-bottom: medium none;">
              <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Balance,
                September 30, 2004 </font></div>
            </td>
            <td width="2%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
              <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">3,427,166
                </font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
              <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">3
                </font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
              <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">6,069
                </font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
              <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(2,198</font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
              <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
              <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">3,874
                </font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
          </tr>
          <tr>
            <td align="left" valign="bottom" width="43%" style="border-bottom: medium none;">&#160;</td>
            <td width="2%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
          </tr>
          <tr>
            <td align="left" valign="bottom" width="43%" style="border-bottom: medium none;">
              <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Issuance
                of stock for acquisition </font></div>
            </td>
            <td width="2%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
              <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">476,667
                </font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
              <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">1
                </font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
              <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">2,218
                </font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
              <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">&#8212;
                </font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
              <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">2,219
                </font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
          </tr>
          <tr>
            <td align="left" valign="bottom" width="43%">
              <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Issuance
                of common stock warrants</font></div>
            </td>
            <td width="2%">&#160;</td>
            <td align="left" valign="bottom" width="1%">&#160;</td>
            <td align="right" valign="bottom" width="9%">&#160;</td>
            <td align="left" valign="bottom" width="1%">&#160;</td>
            <td align="left" valign="bottom" width="1%">&#160;</td>
            <td align="right" valign="bottom" width="9%">&#160;</td>
            <td align="left" valign="bottom" width="1%">&#160;</td>
            <td align="left" valign="bottom" width="1%">&#160;</td>
            <td align="right" valign="bottom" width="9%">&#160;</td>
            <td align="left" valign="bottom" width="1%">&#160;</td>
            <td align="left" valign="bottom" width="1%">&#160;</td>
            <td align="right" valign="bottom" width="9%">&#160;</td>
            <td align="left" valign="bottom" width="1%">&#160;</td>
            <td align="left" valign="bottom" width="1%">&#160;</td>
            <td align="right" valign="bottom" width="9%">&#160;</td>
            <td align="left" valign="bottom" width="1%">&#160;</td>
          </tr>
          <tr>
            <td align="left" valign="bottom" width="43%">
              <div style="MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">in
                connection with financing agreement</font></div>
            </td>
            <td width="2%">&#160;</td>
            <td align="left" valign="bottom" width="1%">&#160;</td>
            <td align="right" valign="bottom" width="9%">
              <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">&#8212;
                </font></div>
            </td>
            <td align="left" valign="bottom" width="1%">&#160;</td>
            <td align="left" valign="bottom" width="1%">&#160;</td>
            <td align="right" valign="bottom" width="9%">
              <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">&#8212;
                </font></div>
            </td>
            <td align="left" valign="bottom" width="1%">&#160;</td>
            <td align="left" valign="bottom" width="1%">&#160;</td>
            <td align="right" valign="bottom" width="9%">8</td>
            <td align="left" valign="bottom" width="1%">&#160;</td>
            <td align="left" valign="bottom" width="1%">&#160;</td>
            <td align="right" valign="bottom" width="9%">
              <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">&#8212;
                </font></div>
            </td>
            <td align="left" valign="bottom" width="1%">&#160;</td>
            <td align="left" valign="bottom" width="1%">&#160;</td>
            <td align="right" valign="bottom" width="9%">8</td>
            <td align="left" valign="bottom" width="1%">&#160;</td>
          </tr>
          <tr>
            <td align="left" valign="bottom" width="43%" style="border-bottom: medium none;">
              <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Stock
                based compensation</font></div>
            </td>
            <td width="2%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
              <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">&#8212;
                </font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
              <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">&#8212;
                </font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
              <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">8
                </font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
              <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">&#8212;
                </font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
              <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">8
                </font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
          </tr>
          <tr>
            <td align="left" valign="bottom" width="43%" style="border-bottom: #ffffff solid;">
              <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Net
                loss </font></div>
            </td>
            <td width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: black thin solid;">
              <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">&#8212;
                </font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: black thin solid;">
              <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">&#8212;
                </font></div>
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            <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: black thin solid;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: black thin solid;">
              <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(517</font></div>
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            <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;">
              <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: black thin solid;">
              <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(517</font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;">
              <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
            </td>
          </tr>
          <tr>
            <td align="left" valign="bottom" width="43%" style="border-bottom: medium none;">
              <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Balance,
                September 30, 2005</font></div>
            </td>
            <td width="2%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
              <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">3,903,833
                </font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
              <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">4
                </font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
              <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">8,303
                </font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
              <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(2,715</font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
              <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
              <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">5,592
                </font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
          </tr>
          <tr>
            <td align="left" valign="bottom" width="43%" style="border-bottom: medium none;">&#160;</td>
            <td width="2%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
          </tr>
          <tr>
            <td align="left" valign="bottom" width="43%" style="border-bottom: medium none;">
              <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Issuance
                of stock for acquisition </font></div>
            </td>
            <td width="2%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
              <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">320,000
                </font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
              <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">&#8212;
                </font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
              <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">837
                </font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
              <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">&#8212;
                </font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
              <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">837
                </font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
          </tr>
          <tr>
            <td align="left" valign="bottom" width="43%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Exercise
              of warrants</font></td>
            <td width="2%">&#160;</td>
            <td align="left" valign="bottom" width="1%">&#160;</td>
            <td align="right" valign="bottom" width="9%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">10,000</font></td>
            <td align="left" valign="bottom" width="1%">&#160;</td>
            <td align="left" valign="bottom" width="1%">&#160;</td>
            <td align="right" valign="bottom" width="9%">
              <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">&#8212;
                </font></div>
            </td>
            <td align="left" valign="bottom" width="1%">&#160;</td>
            <td align="left" valign="bottom" width="1%">&#160;</td>
            <td align="right" valign="bottom" width="9%">
              <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">&#8212;
                </font></div>
            </td>
            <td align="left" valign="bottom" width="1%">&#160;</td>
            <td align="left" valign="bottom" width="1%">&#160;</td>
            <td align="right" valign="bottom" width="9%">
              <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">&#8212;
                </font></div>
            </td>
            <td align="left" valign="bottom" width="1%">&#160;</td>
            <td align="left" valign="bottom" width="1%">&#160;</td>
            <td align="right" valign="bottom" width="9%">
              <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">&#8212;
                </font></div>
            </td>
            <td align="left" valign="bottom" width="1%">&#160;</td>
          </tr>
          <tr>
            <td align="left" valign="bottom" width="43%" style="border-bottom: medium none;">
              <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Issuance
                of common stock warrants</font></div>
            </td>
            <td width="2%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
              <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">&#8212;
                </font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
              <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">&#8212;
                </font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
              <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">&#8212;
                </font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
              <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">&#8212;
                </font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
          </tr>
          <tr>
            <td align="left" valign="bottom" width="43%" style="border-bottom: medium none;">
              <div style="MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">in
                private placement of debt</font></div>
            </td>
            <td width="2%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
              <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">&#8212;
                </font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
              <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">&#8212;
                </font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
              <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">646
                </font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
              <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">&#8212;
                </font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
              <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">646
                </font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
          </tr>
          <tr>
            <td align="left" valign="bottom" width="43%" style="border-bottom: medium none;">
              <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Stock
                based compensation</font></div>
            </td>
            <td width="2%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
              <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">&#8212;
                </font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
              <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">&#8212;
                </font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
              <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">4
                </font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
              <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">&#8212;
                </font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
              <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">4
                </font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
          </tr>
          <tr>
            <td align="left" valign="bottom" width="43%" style="border-bottom: #ffffff solid;">
              <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Net
                loss</font></div>
            </td>
            <td width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: black thin solid;">
              <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">&#8212;
                </font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: black thin solid;">
              <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">&#8212;
                </font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: black thin solid;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: black thin solid;">
              <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(698</font></div>
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            <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;">
              <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: black thin solid;">
              <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(698</font></div>
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            <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;">
              <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
            </td>
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          <tr>
            <td align="left" valign="bottom" width="43%" style="border-bottom: #ffffff solid;">
              <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Balance,
                July 31, 2006 </font></div>
            </td>
            <td width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">&#160;</td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: black double;">
              <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">4,233,833
                </font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff solid;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
              <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
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            <td align="right" valign="bottom" width="9%" style="border-bottom: black double;">
              <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">4</font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff solid;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
              <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
            </td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: black double;">
              <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">9,790</font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff solid;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
              <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
            </td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: black double;">
              <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(3,413</font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff solid;">
              <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
              <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
            </td>
            <td align="right" valign="bottom" width="9%" style="border-bottom: black double;">
              <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">6,381</font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff solid;">&#160;</td>
          </tr>

      </table>
    </div>
    <div>&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      accompanying notes are an integral part of these consolidated financial
      statements.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 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="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">F
          -
          13</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <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="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center">
      <div align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>BRIDGELINE
        SOFTWARE, INC.</strong></font></div>
      <div align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>CONSOLIDATED
        STATEMENTS OF CASH FLOWS</strong></font></div>
      <div align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>(Information
        as of July 31, 2006 and 2005 and for </strong></font></div>
      <div align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>the
        Ten Months Ended July 31, 2006 and 2005 is Unaudited)</strong></font></div>
      <div align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(Amounts
        in thousands, except share and per share data)</font></div>
      <div align="center">&#160;</div>
      <div align="center">&#160;</div>
      <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">
        <div>
          <table cellpadding="0" cellspacing="0" id="ftable" width="100%">

              <tr>
                <td align="left" valign="bottom" width="43%" style="border-bottom: #ffffff solid;">&#160;</td>
                <td width="2%" style="border-bottom: #ffffff solid;">&#160;</td>
                <td align="right" colspan="5" valign="bottom" width="26%" style="border-bottom: black thin solid;">
                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Ten
                    Months Ended July 31,</strong></font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff solid;">&#160;</td>
                <td align="right" colspan="5" valign="bottom" width="25%" style="border-bottom: black thin solid;">
                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Year
                    Ended September 30,</strong></font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff solid;">&#160;</td>
              </tr>
              <tr>
                <td align="left" valign="bottom" width="43%" style="border-bottom: #ffffff solid;">
                  <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Cash
                    flows from operating activities:</font></div>
                </td>
                <td width="2%" style="border-bottom: #ffffff solid;">&#160;</td>
                <td align="right" colspan="2" valign="bottom" width="12%" style="border-bottom: black thin solid;">
                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><strong><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2006</font></strong></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff solid;">&#160;</td>
                <td align="right" colspan="2" valign="bottom" width="12%" style="border-bottom: black thin solid;">
                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><strong><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2005</font></strong></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff solid;">&#160;</td>
                <td align="right" colspan="2" valign="bottom" width="12%" style="border-bottom: black thin solid;">
                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><strong><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2005</font></strong></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff solid;">&#160;</td>
                <td align="left" colspan="2" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><strong><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2004</font></strong></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff solid;">&#160;</td>
              </tr>
              <tr>
                <td align="left" valign="bottom" width="43%" style="border-bottom: medium none;">
                  <div style="MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;Net
                    loss </font></div>
                </td>
                <td width="2%" style="border-bottom: medium none;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
                </td>
                <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(698</font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
                </td>
                <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(413</font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
                </td>
                <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(517</font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
                </td>
                <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(178</font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
                </td>
              </tr>
              <tr>
                <td align="left" valign="bottom" width="43%" style="border-bottom: medium none;">
                  <div style="MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;Adjustments
                    to reconcile net loss to net cash used in operating
                    activities:</font></div>
                </td>
                <td width="2%" style="border-bottom: medium none;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              </tr>
              <tr>
                <td align="left" valign="bottom" width="43%" style="border-bottom: medium none;">
                  <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;&#160;&#160;Depreciation
                    </font></div>
                </td>
                <td width="2%" style="border-bottom: medium none;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">141
                    </font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">86
                    </font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">106
                    </font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">79
                    </font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              </tr>
              <tr>
                <td align="left" valign="bottom" width="43%" style="border-bottom: medium none;">
                  <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;&#160;&#160;Amortization
                    of intangible assets</font></div>
                </td>
                <td width="2%" style="border-bottom: medium none;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">97
                    </font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">76
                    </font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">94
                    </font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
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                <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
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                <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
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                <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
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                <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
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                <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
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                <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
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                <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
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                <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
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                <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
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                <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
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              <tr>
                <td align="left" valign="bottom" width="43%" style="border-bottom: medium none;">
                  <div style="MARGIN-LEFT: 36pt; TEXT-INDENT: -18pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;&#160;&#160;Changes
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                <td width="2%" style="border-bottom: medium none;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              </tr>
              <tr>
                <td align="left" valign="bottom" width="43%" style="border-bottom: medium none;">
                  <div style="MARGIN-LEFT: 27pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;&#160;&#160;&#160;&#160;Accounts
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                <td width="2%" style="border-bottom: medium none;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
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                <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
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                <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">
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                <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">245
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                <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
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                <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
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              <tr>
                <td align="left" valign="bottom" width="43%" style="border-bottom: medium none;">
                  <div style="MARGIN-LEFT: 27pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;&#160;&#160;&#160;&#160;Other
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                <td width="2%" style="border-bottom: medium none;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
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                <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
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                <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
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                <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">3
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                <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(48</font></div>
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                <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
                </td>
              </tr>
              <tr>
                <td align="left" valign="bottom" width="43%" style="border-bottom: medium none;">
                  <div style="MARGIN-LEFT: 27pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;&#160;&#160;&#160;&#160;Accounts
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                </td>
                <td width="2%" style="border-bottom: medium none;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">57
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                </td>
                <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
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                <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">
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                <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
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                <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">123
                    </font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              </tr>
              <tr>
                <td align="left" valign="bottom" width="43%" style="border-bottom: #ffffff solid;">
                  <div style="MARGIN-LEFT: 27pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;&#160;&#160;&#160;&#160;Deferred
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                </td>
                <td width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
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                    </font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
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                <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff thin solid;">
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                </td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
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                </td>
                <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff thin solid;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">51
                    </font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              </tr>
              <tr>
                <td align="left" valign="bottom" width="43%" style="border-bottom: #ffffff solid;">
                  <div style="MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Total
                    adjustments </font></div>
                </td>
                <td width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">205
                    </font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(248</font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff thin solid;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">85
                    </font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(200</font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
                </td>
              </tr>
              <tr>
                <td align="left" valign="bottom" width="43%" style="border-bottom: medium none;">
                  <div style="MARGIN-LEFT: 45pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Net
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                <td width="2%" style="border-bottom: medium none;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
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                <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
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                <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
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                <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
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                <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
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                <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
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                <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
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              <tr>
                <td align="left" valign="bottom" width="43%" style="border-bottom: medium none;">&#160;</td>
                <td width="2%" style="border-bottom: medium none;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              </tr>
              <tr>
                <td align="left" valign="bottom" width="43%" style="border-bottom: medium none;">
                  <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Cash
                    flows from investing activities: </font></div>
                </td>
                <td width="2%" style="border-bottom: medium none;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              </tr>
              <tr>
                <td align="left" valign="bottom" width="43%" style="border-bottom: medium none;">
                  <div style="MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;Acquisitions,
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                </td>
                <td width="2%" style="border-bottom: medium none;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(554</font></div>
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                <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(308</font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(308</font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px">
                    <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">&#8212;
                      </font></div>
                  </div>
                </td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              </tr>
              <tr>
                <td align="left" valign="bottom" width="43%" style="border-bottom: medium none;">
                  <div style="MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;
                    Contingent acquisition payments</font></div>
                </td>
                <td width="2%" style="border-bottom: medium none;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(92</font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(113</font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(113</font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(150</font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
                </td>
              </tr>
              <tr>
                <td align="left" valign="bottom" width="43%" style="border-bottom: #ffffff solid;">
                  <div style="MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;Equipment
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                </td>
                <td width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(108</font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff thin solid;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(119</font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff thin solid;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(122</font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff thin solid;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(76</font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
                </td>
              </tr>
              <tr>
                <td align="left" valign="bottom" width="43%" style="border-bottom: medium none;">
                  <div style="MARGIN-LEFT: 45pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Net
                    cash (used in) investing activities </font></div>
                </td>
                <td width="2%" style="border-bottom: medium none;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(754</font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(540</font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(543</font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(226</font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
                </td>
              </tr>
              <tr>
                <td align="left" valign="bottom" width="43%" style="border-bottom: medium none;">&#160;</td>
                <td width="2%" style="border-bottom: medium none;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              </tr>
              <tr>
                <td align="left" valign="bottom" width="43%" style="border-bottom: medium none;">
                  <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Cash
                    flows from financing activities:</font></div>
                </td>
                <td width="2%" style="border-bottom: medium none;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              </tr>
              <tr>
                <td align="left" valign="bottom" width="43%" style="border-bottom: medium none;">
                  <div style="MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;Proceeds
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                    </font></div>
                </td>
                <td width="2%" style="border-bottom: medium none;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
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                <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px">
                    <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">&#8212;
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                <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px">
                    <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">&#8212;
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                <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px">
                    <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">&#8212;
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                <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
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                <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
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                <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px">
                    <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">&#8212;
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                <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px">
                    <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">&#8212;
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                <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
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                <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
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                <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">
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                <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
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                <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">292
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                <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px">
                    <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">&#8212;
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                </td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              </tr>
              <tr>
                <td align="left" valign="bottom" width="43%" style="border-bottom: medium none;">
                  <div style="MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Payments
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                <td width="2%" style="border-bottom: medium none;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(9</font></div>
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                <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
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                <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
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                <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(49</font></div>
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                <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(4</font></div>
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                <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
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              </tr>
              <tr>
                <td align="left" valign="bottom" width="43%" style="border-bottom: #ffffff solid;">
                  <div style="MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;Payments
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                </td>
                <td width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
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                <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff thin solid;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
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                <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff thin solid;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(86</font></div>
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                <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff thin solid;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
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                <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
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                </td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
                </td>
              </tr>
              <tr>
                <td align="left" valign="bottom" width="43%" style="border-bottom: medium none;">
                  <div style="MARGIN-LEFT: 45pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Net
                    cash provided by financing activities </font></div>
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                <td width="2%" style="border-bottom: medium none;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">2,080
                    </font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">338
                    </font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">157
                    </font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">1,462
                    </font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              </tr>
              <tr>
                <td align="left" valign="bottom" width="43%" style="border-bottom: medium none;">&#160;</td>
                <td width="2%" style="border-bottom: medium none;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              </tr>
              <tr>
                <td align="left" valign="bottom" width="43%" style="border-bottom: medium none;">
                  <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Net
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                <td width="2%" style="border-bottom: medium none;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">833
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                </td>
                <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(863</font></div>
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                <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(818</font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">858
                    </font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              </tr>
              <tr>
                <td align="left" valign="bottom" width="43%" style="border-bottom: #ffffff solid;">
                  <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Cash
                    and cash equivalents at beginning of period</font></div>
                </td>
                <td width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">138
                    </font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">956
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                <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">956
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                <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">98
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                <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              </tr>
              <tr>
                <td align="left" valign="bottom" width="43%" style="border-bottom: #ffffff solid;">
                  <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Cash
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                <td width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
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                <td align="right" valign="bottom" width="11%" style="border-bottom: black double;">
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                <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff solid;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
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                <td align="right" valign="bottom" width="11%" style="border-bottom: black double;">
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                <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff solid;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
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                <td align="right" valign="bottom" width="11%" style="border-bottom: black double;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">138</font></div>
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                <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff solid;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
                </td>
                <td align="right" valign="bottom" width="11%" style="border-bottom: black double;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">956</font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff solid;">&#160;</td>
              </tr>
              <tr>
                <td align="left" valign="bottom" width="43%" style="border-bottom: medium none;">&#160;</td>
                <td width="2%" style="border-bottom: medium none;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              </tr>
              <tr>
                <td align="left" valign="bottom" width="43%" style="border-bottom: medium none;">
                  <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Supplemental
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                </td>
                <td width="2%" style="border-bottom: medium none;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              </tr>
              <tr>
                <td align="left" valign="bottom" width="43%" style="border-bottom: medium none;">
                  <div style="MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;Cash
                    paid for:</font></div>
                </td>
                <td width="2%" style="border-bottom: medium none;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              </tr>
              <tr>
                <td align="left" valign="bottom" width="43%" style="border-bottom: #ffffff solid;">
                  <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;&#160;&#160;Interest
                    </font></div>
                </td>
                <td width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
                </td>
                <td align="right" valign="bottom" width="11%" style="border-bottom: black double;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">157</font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff solid;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
                </td>
                <td align="right" valign="bottom" width="11%" style="border-bottom: black double;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">33</font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff solid;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
                </td>
                <td align="right" valign="bottom" width="11%" style="border-bottom: black double;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">50</font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff solid;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
                </td>
                <td align="right" valign="bottom" width="11%" style="border-bottom: black double;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">47</font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff solid;">&#160;</td>
              </tr>
              <tr>
                <td align="left" valign="bottom" width="43%" style="border-bottom: medium none;">&#160;</td>
                <td width="2%" style="border-bottom: medium none;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              </tr>
              <tr>
                <td align="left" valign="bottom" width="43%" style="border-bottom: medium none;">
                  <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Non
                    cash activities:</font></div>
                </td>
                <td width="2%" style="border-bottom: medium none;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              </tr>
              <tr>
                <td align="left" valign="bottom" width="43%" style="border-bottom: #ffffff solid;">
                  <div style="MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;
                    &#160;&#160;Issuance of common stock for acquisitions </font></div>
                </td>
                <td width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
                </td>
                <td align="right" valign="bottom" width="11%" style="border-bottom: black double;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">837</font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff solid;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
                </td>
                <td align="right" valign="bottom" width="11%" style="border-bottom: black double;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">2,218</font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff solid;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
                </td>
                <td align="right" valign="bottom" width="11%" style="border-bottom: black double;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">2,218</font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff solid;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
                </td>
                <td align="right" valign="bottom" width="11%" style="border-bottom: black double;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px">
                    <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">&#8212;
                      </font></div>
                  </div>
                </td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff solid;">&#160;</td>
              </tr>
              <tr>
                <td align="left" valign="bottom" width="43%" style="border-bottom: #ffffff solid;">
                  <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Warrants
                    issued in connection with&#160;equity and debt
                    transactions</font></div>
                </td>
                <td width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
                </td>
                <td align="right" valign="bottom" width="11%" style="border-bottom: black double;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">646</font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff solid;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
                </td>
                <td align="right" valign="bottom" width="11%" style="border-bottom: black double;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">436</font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff solid;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
                </td>
                <td align="right" valign="bottom" width="11%" style="border-bottom: black double;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">436</font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff solid;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
                </td>
                <td align="right" valign="bottom" width="11%" style="border-bottom: black double;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">181</font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff solid;">&#160;</td>
              </tr>
              <tr>
                <td align="left" valign="bottom" width="43%" style="border-bottom: #ffffff solid;">
                  <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Purchase
                    of capital equipment through capitalized leases</font></div>
                </td>
                <td width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
                </td>
                <td align="right" valign="bottom" width="11%" style="border-bottom: black double;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">134</font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff solid;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
                </td>
                <td align="right" valign="bottom" width="11%" style="border-bottom: black double;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px">
                    <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman">&#8212;</font></font></div>
                  </div>
                </td>
                <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff solid;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
                </td>
                <td align="right" valign="bottom" width="11%" style="border-bottom: black double;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">39</font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff solid;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
                </td>
                <td align="right" valign="bottom" width="11%" style="border-bottom: black double;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">58</font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff solid;">&#160;</td>
              </tr>

          </table>
        </div>
      </div>
      <div>&#160;</div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      accompanying notes are an integral part of these consolidated financial
      statements.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 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="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">F
          -
          14</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <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="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>BRIDGELINE
        SOFTWARE, INC.</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>NOTES
        TO CONSOLIDATED FINANCIAL STATEMENTS</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>(Information
        as of July 31, 2006 and 2005 and for </strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>the
        Ten Months Ended July 31, 2006 and 2005 is Unaudited)</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(Amounts
        in thousands, except share and per share data)</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>1.&#160;
        Description of Business and Basis of Presentation</strong></font></div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>Description
      of Business</em></strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Bridgeline
      Software, Inc. (&#8220;Bridgeline&#8221; or the &#8220;Company&#8221;), was incorporated in Delaware on
      August 28, 2000.</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      Bridgeline is a developer of Web service applications. In providing these
      services the Company has developed the following software tools: (i)
      netEDITOR-pro</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><sup>TM</sup></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">,
      its Web
      content management system, and (ii) Orgitecture</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><sup>TM</sup></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">,
      its
      on-demand Web based platform, which provides expandable on-demand modules such
      as Relationship Management, eSurvey, eNewsletter, Content Management, eCommerce,
      Event Registration and Integrated Grants Management. The Company&#8217;s in-house team
      of Microsoft</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><sup>&#174;-</sup></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">certified
      developers specializes in information architecture, usability engineering,
      Web
      application development, rich media Web development, e-Commerce, e-Learning,
      and
      database development. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      Company&#8217;s principal executive offices are located at </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">10
      Sixth
      Road, Woburn, Massachusetts</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">,
      and</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      it
      maintains offices in Cambridge, Massachusetts; in New York, New York; and in
      Washington, D.C. The Company also operates a wholly owned subsidiary, Bridgeline
      Software Enterprises, Pvt. Ltd, founded in 2003, as its software development
      center located in Bangalore, India. </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      Company maintains a website at www.bridgelinesw.com. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">On
        April
        7, 2006, the Company affected a 3 to 1 reverse stock split. The reduction
        in the
        number of shares as a result of the reverse stock split has been reflected
        retroactively for all periods presented.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>Operating
      Matters and Going Concern</em></strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        Company has incurred annual losses since commencement of operations in 2000
        and
        has used a significant amount of cash to fund its operations over the last
        several years. As a result, the Company has a working capital deficit of
        $179
        and an accumulated deficit of $2,715 at September 30, 2005. Subsequently,
        the
        Company recognized a loss of $698 for the ten months ended July 31, 2006
        resulting in a working capital deficit of $1,092 and an accumulated deficit
        of
        $3,413 at that date. The Company&#8217;s operating activities have not generated
        sufficient cash flows to maintain operations and, when required, the Company
        has
        issued various debt and equity securities. Management has taken significant
        steps to streamline its operations over the last several years and will continue
        to do so as circumstances warrant. To date, these steps have included reducing
        or maintaining headcount and limiting infrastructure, operating and capital
        expenditures where appropriate. The Company must maintain or increase revenue
        from current levels to achieve profitability and generate future positive
        cash
        flow. Long-term cash requirements, other than for normal operating expenses
        and
        for commitments described in Note 8, will be required for the development
        of new
        software products, enhancements of existing products, and the possible
        acquisition of other companies, products, or technologies complementary to
        the
        Company&#8217;s business.</font></div><br><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Delays
      in
      the timing of future revenues or revenue levels below management&#8217;s expectations
      may cause the Company to re-evaluate its cash position, adjust its operations,
      and/or take other possible actions. In the event the planned public offering
      described in Note 11 is not completed by April 7, 2007, the Company would need
      to seek additional financing to repay the senior notes payable described in
      Note
      7 and related interest. There can be no assurances that the Company would be
      able at that time to obtain the necessary financing under acceptable terms
      and
      conditions, or at all.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      circumstances discussed above raise substantial doubt about the Company&#8217;s
      ability to continue as a going concern in the normal course of business. The
      recovery of a major portion of the recorded asset amounts shown in the
      accompanying consolidated balance sheets are dependent upon the continued
      operations of the Company, which in turn are dependent upon its ability to
      maintain or increase revenue, succeed in its future operations, and complete
      its
      planned public offering or obtain other sources of cash to repay the secured
      senior notes payable. The consolidated financial statements do not include
      any
      adjustments relating to the recoverability and classification of recorded asset
      amounts or the classifications and amount of liabilities that might be necessary
      should the Company be unable to continue operations.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 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="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">F
          -
          15</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <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="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>BRIDGELINE
        SOFTWARE, INC.</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>NOTES
        TO CONSOLIDATED FINANCIAL STATEMENTS</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>(Information
        as of July 31, 2006 and 2005 and for </strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>the
        Ten Months Ended July 31, 2006 and 2005 is Unaudited)</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(Amounts
        in thousands, except share and per share data)</font></div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>Unaudited
      Interim Financial Information</em></strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      accompanying interim consolidated balance sheets as of July 31, 2006 and 2005,
      the consolidated statements of operations and cash flows for the ten months
      ended July 31, 2006 and 2005, and the consolidated statement of shareholders&#8217;
equity for the ten months ended July 31, 2006 are unaudited. The unaudited
      interim consolidated statements have been prepared in accordance with accounting
      principles generally accepted in the United States of America and in the opinion
      of the Company&#8217;s management have been prepared on the same basis as the audited
      consolidated financial statements as of and for the years ended September 30,
      2005 and 2004 and include all adjustments, consisting of normal recurring
      adjustments and accruals, necessary for the fair presentation of the Company&#8217;s
      financial position at July 31, 2006 and 2005 and its results of operations
      and
      its cash flows for the ten months ended July 31, 2006 and 2005. The results
      for
      the ten months ended July 31, 2006 are not necessarily indicative of the results
      to be expected for the year ending September 30, 2006.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>Principles
      of Consolidation</em></strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      consolidated financial statements include the accounts of the Company and its
      subsidiary. All significant inter-company accounts and transactions have been
      eliminated.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>2.&#160;
      Summary of Significant Accounting Policies </strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>Revenue
      Recognition</em></strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Substantially
      all of the Company&#8217;s revenue is generated from four activities: Web Services,
      Managed Services, Software Licenses and Subscriptions. The Company enters into
      arrangements to sell services, software licenses or combinations thereof. The
      Company recognizes revenue in accordance with Securities and Exchange Commission
      (<font style="DISPLAY: inline; FONT-FAMILY: Times New Roman">&#8220;</font>SEC<font style="DISPLAY: inline; FONT-FAMILY: Times New Roman">&#8221;</font>)
      Staff Accounting
      Bulletin (&#8220;SAB&#8221;) No. 104, </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>Revenue
      Recognition in Financial Statements</em></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">,
      Emerging Issues Task Force (&#8220;EITF&#8221;) Issue No. 00-21, </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>Accounting
      For Revenue Arrangements with Multiple Deliverables, </em></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">and
      American Institute of Certified Public Accountant&#8217;s Statement of Position No.
      97-2, </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>Software
      Revenue Recognition</em></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      (&#8220;SOP
      97-2&#8221;). Revenue is recognized when all of the following conditions are
      satisfied: (1) there is persuasive evidence of an arrangement; (2) the services
      have been provided to the customer; (3) the amount of fees to be paid by the
      customer is fixed or determinable; and (4) the collection of the fees is
      probable. Billings made or payments received in advance of providing services
      are deferred until the period these services are provided. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Web
      Services and Managed Services include consulting services that are related
      to
      specific customer needs such as information architecture and usability
      engineering, interface configuration, Web application development and hosting,
      rich media, e-Commerce, e-Learning and e-Training, search engine optimization,
      and content management. Such services typically do not involve significant
      production, modification, or customization of the Company&#8217;s licensed software
      products. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Managed
      Services also include on-going retained professional services and hosting
      arrangements. On-going retained professional services are either contracted
      for
      on an &#8220;on-call&#8221; basis or for a certain amount of hours each month. Such
      arrangements generally provide for a guaranteed availability of a number of
      hours each month on a &#8220;use it or lose it&#8221; basis. These arrangements do not
      require formal customer acceptance and do not grant any future right to labor
      hours contracted for but not used. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
      determining whether Web Services can be accounted for separately from other
      elements in multi-element arrangements, the Company considers the following
      factors for each agreement: availability of the Web Services from other vendors,
      whether objective and reliable evidence of fair value exists for the undelivered
      elements, and whether delivery of any undelivered elements is probable and
      can
      be controlled by the Company. The amount of revenue recognized for Web Services
      in multi-element arrangements is </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 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="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">F
          -
          16</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <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="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>BRIDGELINE
        SOFTWARE, INC.</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>NOTES
        TO CONSOLIDATED FINANCIAL STATEMENTS</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>(Information
        as of July 31, 2006 and 2005 and for </strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>the
        Ten Months Ended July 31, 2006 and 2005 is Unaudited)</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(Amounts
        in thousands, except share and per share data)</font></div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">determined
      by use of the residual method.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Revenue
      for Web Services and Managed Services is recognized when the services are
      performed or when they are complete. The Company uses the proportionate
      performance model in the determination of when delivery has occurred in relation
      to the extent of progress toward completion. When allocating revenue between
      reporting periods, the Company considers the actual labor dollars incurred
      each
      period in proportion to total estimated labor dollars necessary to deliver
      the
      services under the arrangement.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        Company&#8217;s software licenses include fixed-term and perpetual license agreements.
        Revenue for perpetual licenses is included in Web Services and is generally
        recognized upon delivery of the software in accordance with SOP 97-2. Revenue
        for licensed subscription agreements is included in Subscription revenue
        and is
        generally recognized over the term of the agreements. The Company provides
        maintenance and post contract support (&#8220;PCS&#8221;), however the revenues from PCS are
        not material to all periods presented.</font></div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Subscription
      Services often include hosting and other support services such as help desk,
      site or solution usage reporting. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Certain
      arrangements include a warranty period generally between 30 to 90 days from
      the
      completion of work. In hosting arrangements, the Company may provide warranties
      of up-time reliability. To date, few warranty claims have been received. The
      Company continues to monitor the conditions that are subject to the warranties
      to identify if a warranty claim may arise. If the Company determines that a
      warranty claim is probable, then any such estimable cost would be recognized
      to
      comply with the warranty requirements.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
      connection with certain arrangements, reimbursable expenses are incurred and
      billed to customers and such amounts are recognized as both revenue and cost
      of
      revenue. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>Use
      of Estimates</em></strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        preparation of financial statements in conformity with accounting principles
        generally accepted in the United States of America requires management to
        make
        certain estimates and assumptions that affect the reported amounts of assets
        and
        liabilities and disclosure of contingent assets and liabilities at the date
        of
        the financial statements and the reported amounts of revenue and expenses
        during
        the reported periods. The most significant estimates included in these financial
        statements are the valuation of accounts receivable and long-term assets,
        including intangibles, goodwill and deferred tax assets, stock-based
        compensation, amounts of revenue to be recognized on service contracts in
        progress, unbilled receivables, and deferred revenue. Actual results could
        differ from these estimates under different assumptions or
        conditions.</font></div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>Concentration
      of Credit Risk and Significant Customers</em></strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Financial
        instruments that potentially subject the Company to concentrations of credit
        risk consist primarily of cash and cash equivalents to the extent these exceed
        federal insurance limits and accounts receivable. </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Risks
        associated with cash and cash equivalents are mitigated by the Company&#8217;s
        investment policy, which limits the Company&#8217;s investing of excess cash into only
        money market mutual funds. </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        Company limits its exposure to credit loss by placing its cash and cash
        equivalents and investments with high credit quality financial institutions.
        In
        general, the Company does not require collateral on its arrangements with
        customers. The Company has accounts receivable related to monthly fees as
        well
        as service and licensing fees, which typically provide for credit terms of
        30-60
        days.</font></div><br></div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="left">
        </div>
      </div>
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        <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">F
          -
          17</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <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="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>BRIDGELINE
        SOFTWARE, INC.</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>NOTES
        TO CONSOLIDATED FINANCIAL STATEMENTS</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>(Information
        as of July 31, 2006 and 2005 and for </strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>the
        Ten Months Ended July 31, 2006 and 2005 is Unaudited)</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(Amounts
        in thousands, except share and per share data)</font></div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      Company had certain customers that individually represented 10% or more of
      the
      Company&#8217;s total revenue, as follows:</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">
      <div align="center">
        <table border="0" cellpadding="0" cellspacing="0" id="ftable" width="90%">

            <tr>
              <td align="left" valign="bottom" width="43%" style="border-bottom: #ffffff solid;">&#160;</td>
              <td width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="right" colspan="5" valign="bottom" width="26%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Ten
                  Months Ended July 31,</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="right" colspan="5" valign="bottom" width="26%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Year
                  Ended September 30,</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="43%" style="border-bottom: #ffffff solid;">&#160;</td>
              <td width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="right" colspan="2" valign="bottom" width="12%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2006</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="right" colspan="2" valign="bottom" width="12%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2005</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="right" colspan="2" valign="bottom" width="12%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2005</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="right" colspan="2" valign="bottom" width="12%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2004</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="43%" style="border-bottom: medium none;">&#160;</td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" colspan="2" valign="bottom" width="12%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" colspan="2" valign="bottom" width="12%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" colspan="2" valign="bottom" width="12%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" colspan="2" valign="bottom" width="12%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="43%" style="border-bottom: medium none;">
                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Customer
                  #1</font></div>
              </td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">23</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">%</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">11</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">%</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">12</font></div>
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              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">11</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">%</font></div>
              </td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="43%" style="border-bottom: medium none;">
                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Customer
                  #2</font></div>
              </td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">*
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">21</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">%</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">19</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">
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              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
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            <tr>
              <td align="left" valign="bottom" width="43%" style="border-bottom: medium none;">
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                  #3</font></div>
              </td>
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              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">*
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              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
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              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">
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              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">*</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px">&#160;</div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">13</font></div>
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              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
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            <tr>
              <td align="left" valign="bottom" width="43%" style="border-bottom: medium none;">&#160;</td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="43%" style="border-bottom: medium none;">
                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">*
                  Represents less than 10%</font></div>
              </td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>

        </table>
      </div>
      <div>&#160;</div>
      <div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
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          10% or more of the Company&#8217;s total accounts receivable, as
          follows:</font></div>
      </div>
      <div><br>
        <div align="center">
          <table border="0" cellpadding="0" cellspacing="0" id="ftable" width="90%">

              <tr>
                <td align="left" valign="bottom" width="43%" style="border-bottom: #ffffff solid;">&#160;</td>
                <td width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
                <td align="right" colspan="5" valign="bottom" width="26%" style="border-bottom: black thin solid;">
                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">July
                    31,</font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
                <td align="right" colspan="5" valign="bottom" width="26%" style="border-bottom: black thin solid;">
                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">September
                    30,</font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              </tr>
              <tr>
                <td align="left" valign="bottom" width="43%" style="border-bottom: #ffffff solid;">&#160;</td>
                <td width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
                <td align="right" colspan="2" valign="bottom" width="12%" style="border-bottom: black thin solid;">
                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2006</font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
                <td align="right" colspan="2" valign="bottom" width="12%" style="border-bottom: black thin solid;">
                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2005</font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
                <td align="right" colspan="2" valign="bottom" width="12%" style="border-bottom: black thin solid;">
                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2005</font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
                <td align="right" colspan="2" valign="bottom" width="12%" style="border-bottom: black thin solid;">
                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2004</font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              </tr>
              <tr>
                <td align="left" valign="bottom" width="43%" style="border-bottom: medium none;">&#160;</td>
                <td width="2%" style="border-bottom: medium none;">&#160;</td>
                <td align="right" colspan="2" valign="bottom" width="12%" style="border-bottom: medium none;">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
                <td align="right" colspan="2" valign="bottom" width="12%" style="border-bottom: medium none;">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
                <td align="right" colspan="2" valign="bottom" width="12%" style="border-bottom: medium none;">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
                <td align="right" colspan="2" valign="bottom" width="12%" style="border-bottom: medium none;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              </tr>
              <tr>
                <td align="left" valign="bottom" width="43%" style="border-bottom: medium none;">
                  <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Customer
                    #1</font></div>
                </td>
                <td width="2%" style="border-bottom: medium none;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">20</font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">%</font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">*</font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px">&#160;</div>
                </td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">12
                    </font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">%</font>&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">10</font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">%</font></div>
                </td>
              </tr>
              <tr>
                <td align="left" valign="bottom" width="43%" style="border-bottom: medium none;">
                  <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Customer
                    #2</font></div>
                </td>
                <td width="2%" style="border-bottom: medium none;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">10</font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">%</font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">13</font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">%</font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">17</font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">%</font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">39</font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">%</font></div>
                </td>
              </tr>
              <tr>
                <td align="left" valign="bottom" width="43%" style="border-bottom: medium none;">
                  <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Customer
                    #3</font></div>
                </td>
                <td width="2%" style="border-bottom: medium none;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">20
                    </font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">*</font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px">&#160;</div>
                </td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">18</font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">%</font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">*</font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px">&#160;</div>
                </td>
              </tr>
              <tr>
                <td align="left" valign="bottom" width="43%" style="border-bottom: medium none;">
                  <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Customer
                    #4</font></div>
                </td>
                <td width="2%" style="border-bottom: medium none;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">*</font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px">&#160;</div>
                </td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">19
                    </font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">%</font>&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">11
                    </font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">%</font>&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">12
                    </font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">%</font>&#160;</td>
              </tr>
              <tr>
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                <td width="2%" style="border-bottom: medium none;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              </tr>
              <tr>
                <td align="left" valign="bottom" width="43%" style="border-bottom: medium none;">
                  <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">*
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                </td>
                <td width="2%" style="border-bottom: medium none;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>Cash
      and Cash Equivalents </em></strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      Company considers all highly liquid instruments with original maturity of three
      months or less from the date of purchase to be cash equivalents. Cash
      equivalents primarily consist of money market mutual funds. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>Fair
      Value of Financial Instruments</em></strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      carrying amounts of financial instruments, including cash and cash equivalents,
      accounts receivable and accounts payable approximate their fair value because
      of
      the short-term maturity of these instruments. Based on rates available to the
      Company at September 30, 2005 and 2004 for loans with similar terms, the
      carrying values of short-term debt and capital lease obligations approximate
      their fair value. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>Impairment
      of Long-Lived and Intangible Assets</em></strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Long-lived
      assets to be held and used, which primarily consist of equipment and
      improvements and intangible assets with finite lives, are recorded at cost.
      Management reviews long-lived assets (other than goodwill) for impairment
      whenever events or changes in circumstances indicate the carrying amount of
      such
      assets is less than the undiscounted expected cash flows from such assets,
      or
      whenever changes or business circumstances indicate that the carrying value
      of
      the assets may not be fully recoverable or that the useful lives of those assets
      are no longer appropriate. Recoverability of theses assets is assessed using
      a
      number of factors including operating results, business plans, budgets, economic
      projections and undiscounted cash flows. In addition, the Company&#8217;s evaluation
      considers non-financial data such as </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 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="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">F
          -
          18</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="2">
        </div>
      </div>
      <div id="HDR">
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        </div>
      </div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>BRIDGELINE
        SOFTWARE, INC.</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>NOTES
        TO CONSOLIDATED FINANCIAL STATEMENTS</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>(Information
        as of July 31, 2006 and 2005 and for </strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>the
        Ten Months Ended July 31, 2006 and 2005 is Unaudited)</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(Amounts
        in thousands, except share and per share data)</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">market
      trends, product development cycles and changes in management&#8217;s market emphasis.
</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">There
      has
      been no impairment loss recorded for long-lived and intangible assets to
      date.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>Allowance
      for Doubtful Accounts</em></strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      Company maintains allowances for doubtful accounts for estimated losses
      resulting from the inability of its customers to make required payments. For
      all
      customers, the Company recognizes allowances for doubtful accounts based on
      the
      length of time that the receivables are past due, current business environment
      and its historical experience. If the financial condition of the Company&#8217;s
      customers were to deteriorate, resulting in impairment of their ability to
      make
      payments, additional allowances may be required. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>Technology
      Development Costs</em></strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Research
      and development expenditures for technology development are charged to
      operations as incurred. Software development costs subsequent to the
      establishment of technological feasibility are capitalized and amortized to
      cost
      of software and included in cost of sales. Based on the Company&#8217;s product
      development process, technological feasibility is established upon completion
      of
      a working model. Costs incurred between completion of a working model and the
      point at which the product is ready for general release are capitalized if
      significant. No software development costs have been capitalized to date as
      a
      result of the Company&#8217;s development process.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>Equipment
      and Improvements</em></strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      components of equipment and improvement are stated at cost. The Company provides
      for depreciation by use of the straight-line method over the estimated useful
      lives of the related assets (three to five years). Leasehold improvements are
      amortized by use of the straight-line method over the lesser of the estimated
      useful life of the asset or the lease term. Repairs and maintenance costs are
      expensed as incurred.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>Definite
      Lived Intangible Assets</em></strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Definite-lived
      intangible assets are amortized over their useful lives and are subject to
      impairment tests as previously described under </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>Impairment
      of Long-Lived and Intangible Assets</em></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>Deferred
      Financing Fees</em></strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        Company incurred $367 of direct costs in connection with the issuance of
        $2,800
        in Senior Notes Payable (See Note 7). These costs are being amortized using
        the
        interest method over the one year term of the notes.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>Deferred
      Offering Costs</em></strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">As
      of
      July 31, 2006, the Company incurred and included in other assets $42 of direct
      costs in connection with the anticipated initial public offering of its common
      stock as described in Note 11. These costs will be charged to additional paid
      in
      capital upon a successful&#160;conclusion of the initial public offering as a
      direct cost of raising capital.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>Contingent
        Consideration</em></strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
        accordance with EITF Issue No. 95-8, </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>Accounting
        for Contingent Consideration Paid to the Shareholders of an Acquired Enterprise
        in a Purchase Business Combination</em></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">,
        consideration is recorded as additional purchase price if the consideration
        is
        unrelated to continuing employment with the Company. Such consideration is
        paid
        when the contingency is resolved subsequent to acquisition and is recorded
        as
        additional goodwill resulting from the business combination.</font></div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 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="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">F
          -
          19</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <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="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>BRIDGELINE
        SOFTWARE, INC.</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>NOTES
        TO CONSOLIDATED FINANCIAL STATEMENTS</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>(Information
        as of July 31, 2006 and 2005 and for </strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>the
        Ten Months Ended July 31, 2006 and 2005 is Unaudited)</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(Amounts
        in thousands, except share and per share data)</font></div>
      <div id="HDR">&#160;</div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>Goodwill</em></strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      excess of the cost of an acquired entity over the amounts assigned to acquired
      assets and liabilities is recognized as goodwill. Goodwill is tested annually
      for impairment and is tested for impairment more frequently if events and
      circumstances indicate that the asset might be impaired. An impairment loss
      is
      recognized to the extent that the carrying amount exceeds the fair value
      calculated at a reporting unit level. The Company has determined that its
      operating locations can be aggregated as a single reporting unit due to their
      similar economic characteristics. For goodwill, the impairment determination
      is
      made at the reporting unit level and consists of two steps. First, the Company
      estimates the fair value of the reporting unit and compares it to its carrying
      amount. Second, if the carrying amount of the reporting unit exceeds its fair
      value, an impairment loss is recognized for any excess of the carrying amount
      of
      the reporting unit&#8217;s goodwill over the implied fair value of that goodwill. The
      implied fair value of goodwill is estimated by allocating the estimated fair
      value of the reporting unit in a manner similar to a purchase price allocation,
      in accordance with Statement of Financial Accounting Standards No. 141,
</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>Business
      Combinations </em></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(&#8220;SFAS
      141&#8221;). The residual estimated fair value after this allocation is the implied
      fair value of the reporting unit&#8217;s goodwill. The Company&#8217;s policy is to perform
      its annual impairment testing in the fourth quarter of each fiscal
      year.</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      factors the Company considers important that could indicate impairment include
      significant under performance relative to prior operating results, change in
      projections, significant changes in the manner of the Company&#8217;s use of assets or
      the strategy for the Company&#8217;s overall business, and significant negative
      industry or economic trends. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
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      evaluating the impairment of goodwill, the Company considers a number of factors
      such as discounted cash flow projections, market capitalization value and third
      party sales transactions of comparable companies. The process of evaluating
      the
      potential impairment of goodwill is highly subjective and requires significant
      judgment at many points during the analysis, especially with regard to the
      future cash flows of the Company. In estimating fair value of such, management
      makes estimates and judgments about the future cash flows of the
      Company.</font></div>
    <div>&#160;</div>
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      result of management&#8217;s evaluation, the Company concluded there was no impairment
      of goodwill based upon its annual assessments in 2005 and 2004.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>Advertising
      Costs</em></strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">All
      advertising costs are expensed when incurred. Advertising costs were $111,
      $103,
      $118 and $116 for the ten months ended July 31, 2006 and 2005 and the years
      ended September 30, 2005 and 2004, respectively.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>Stock-Based
      Compensation</em></strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">At
      July
      31, 2006, the Company had two stock-based employee compensation plans which
      are
      more fully described in Note 9. The Company accounts for its stock compensation
      awards using the intrinsic value method under the provisions of FASB Statement
      No.&#160;123, </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>Accounting
      for Stock-Based Compensation </em></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(&#8220;SFAS
      123&#8221;), as amended by SFAS No.&#160;148, </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>Accounting
      for</em></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>Stock-Based
      Compensation&#8212;Transition and Disclosure </em></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(&#8220;SFAS
      148&#8221;). As permitted by SFAS&#160;123, the Company measures compensation cost in
      accordance with Accounting Principles Board Opinion No.&#160;25, </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>Accounting
      for Stock Issued to Employees</em></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      (&#8220;APB
      25&#8221;) and related interpretations using the intrinsic value method.</font></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Under
      the
      intrinsic value method, compensation expense is measured as of the grant date
      as
      the excess of the estimated fair value of the Company&#8217;s common stock (the &#8220;Stock
      Price&#8221;) and the exercise price, if any, multiplied by the number of options
      granted. Generally, the Company grants stock options with exercise prices equal
      to the Stock Price; however, to the extent that the Stock Price exceeds the
      exercise price of stock options on the date of grant, the Company records
      stock-based compensation expense using the graded vested attribution method
      over
      the vesting schedule of the options, which is generally three
      years.</font></div>
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    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 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="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">F
          -
          20</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <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="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>BRIDGELINE
          SOFTWARE, INC.</strong></font></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><br></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>NOTES
          TO CONSOLIDATED FINANCIAL STATEMENTS</strong></font></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>(Information
          as of July 31, 2006 and 2005 and for </strong></font></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>the
          Ten Months Ended July 31, 2006 and 2005 is Unaudited)</strong></font></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(Amounts
          in thousands, except share and per share data)</font></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
      </div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      Company recognized $4, $7, $8 and $2 in stock-based compensation expense for
      the
      ten months ended July 31, 2006 and 2005 and the years ended September 30, 2005
      and 2004, respectively, under the intrinsic value method.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Since
        inception, </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">there
        has
        been no public market for the Company&#8217;s common stock to observe its Stock Price
        on award grant dates. Therefore, for purposes of applying the intrinsic value
        method, management estimated the stock price based on the American Institute
        of
        Certified Public Accountants Practice Alert No. 00-1, </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>Accounting
        for Certain Equity Transactions</em></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">.
        </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        estimated fair value of the common stock on the date of grant was based on
        weighing a variety of different quantitative and qualitative factors including,
        but not limited to, the Company&#8217;s financial position, an evaluation of the
        Company&#8217;s competition, the economic climate in the marketplace, the illiquid
        nature of the common stock, contemporaneous and anticipated private sales
        of the
        common stock, </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">and
        the
        Company&#8217;s analysis of a peer group of comparable public companies trading
        prices</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">.
        </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">For
        periods prior to August 1, 2005, the Company </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">estimated
        the fair value</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
        of
        common stock based on c</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">ontemporaneous
        transactions included in private placement sales of common stock for cash
        that
        were executed at or near the grant dates. Since August 1, 2005, the Company
        has</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>&#160;</strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">estimated
        the fair value of common stock based on valuations analyses performed for
        applicable periods which consider several factors including discounted cash
        flows, the average trading multiples of comparable peer group public companies
        and the multiples derived from recent purchase and sales transactions of
        comparable companies in the industry. </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        Company believes its approach results in a reasonable application of its
        valuation methodology for all periods.</font></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      Company granted the following stock options during the ten months ended July
      31,
      2006, and the years ended September 30, 2005 and 2004;</font></div>
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            <tr>
              <td valign="bottom" width="43%" style="border-bottom: #ffffff solid;">&#160;</td>
              <td width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td colspan="2" valign="bottom" width="12%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="right" colspan="8" valign="bottom" width="40%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Weighted
                  Average </font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;">&#160;</td>
            </tr>
            <tr>
              <td valign="bottom" width="43%" style="border-bottom: medium none;">&#160;</td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td colspan="2" valign="bottom" width="12%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td colspan="2" valign="bottom" width="12%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td colspan="2" valign="bottom" width="12%" style="border-bottom: medium none;">
                <div align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Estimated
                  </font></div>
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              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td colspan="2" valign="bottom" width="12%" style="border-bottom: medium none;">
                <div align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Intrinsic
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              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td valign="bottom" width="43%" style="border-bottom: medium none;">&#160;</td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td colspan="2" valign="bottom" width="12%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td colspan="2" valign="bottom" width="12%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td colspan="2" valign="bottom" width="12%" style="border-bottom: medium none;">
                <div align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Fair
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              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
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                <div align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Value
                  </font></div>
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              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td valign="bottom" width="43%" style="border-bottom: medium none;">&#160;</td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td colspan="2" valign="bottom" width="12%" style="border-bottom: medium none;">
                <div align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Options
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td colspan="2" valign="bottom" width="12%" style="border-bottom: medium none;">
                <div align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Exercise
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td colspan="2" valign="bottom" width="12%" style="border-bottom: medium none;">
                <div align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">at
                  Grant </font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td colspan="2" valign="bottom" width="12%" style="border-bottom: medium none;">
                <div align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">at
                  Grant </font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td valign="bottom" width="43%" style="border-bottom: #ffffff solid;">&#160;</td>
              <td width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="right" colspan="2" valign="bottom" width="12%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Granted
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="right" colspan="2" valign="bottom" width="12%" style="border-bottom: black thin solid;">
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              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="right" colspan="2" valign="bottom" width="12%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Date
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="right" colspan="2" valign="bottom" width="12%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Date
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="43%" style="border-bottom: medium none;">&#160;</td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" colspan="2" valign="bottom" width="12%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" colspan="2" valign="bottom" width="12%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" colspan="2" valign="bottom" width="12%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" colspan="2" valign="bottom" width="12%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="43%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 9pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Ten
                  Months Ended July 31, 2006 </font></div>
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              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">154,920
                  </font></div>
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              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
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              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">3.75</font></div>
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              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">2.17</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman">&#8212;</font></font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="43%" style="border-bottom: medium none;">&#160;</td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
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              <td align="left" valign="bottom" width="43%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 9pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Year
                  Ended September 30, 2005 </font></div>
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              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
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              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
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              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
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              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
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              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
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              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">0.01</font></div>
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              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
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            <tr>
              <td align="left" valign="bottom" width="43%" style="border-bottom: medium none;">&#160;</td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="43%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 9pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Year
                  Ended September 30, 2004 </font></div>
              </td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">109,067
                  </font></div>
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              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
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              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">3.00</font></div>
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              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
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              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">3.15</font></div>
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              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
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              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">0.15</font></div>
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              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
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      </div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      following disclosure, required by SFAS 148, illustrates the pro forma effect
      on
      net loss and net loss per share that would have been recognized in the statement
      of operations if the fair-value-based method had been applied to all awards
      in
      accordance with SFAS 123. Under the fair value-based-method, the Company must
      measure the estimated fair value of equity instruments awarded to employees
      at
      the grant date for which the Company is obligated to issue when employees have
      rendered the requisite service and satisfied any other conditions necessary
      to
      earn the right to benefit from the instruments (for example, to exercise the
      share options). That estimate is not re-measured in subsequent periods.
</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      Company estimated the fair value of stock options issued to employees using
      the
      Black-Scholes-Merton option-pricing model (the &#8220;Model&#8221;). The Model requires
      assumptions be made by management including the economic life of the option,
      expected volatility, expected dividends and risk-free interest rates. For
      purposes of calculating the pro forma compensation expense illustrated below,
      the Company used its cumulative actual forfeiture rate of 11.5% for all awards.
      The Company believes that the Model</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 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="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">F
          -
          21</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <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="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>BRIDGELINE
        SOFTWARE, INC.</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>NOTES
        TO CONSOLIDATED FINANCIAL STATEMENTS</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>(Information
        as of July 31, 2006 and 2005 and for </strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>the
        Ten Months Ended July 31, 2006 and 2005 is Unaudited)</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(Amounts
        in thousands, except share and per share data)</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">provides
      a fair value estimate that is consistent with the measurement objective and
      the
      fair-value-based method of SFAS 123.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      following table illustrates the pro forma effect on net loss per share as if
      the
      Company had applied the fair value recognition provisions of SFAS
      123:</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br>
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        <table border="0" cellpadding="0" cellspacing="0" id="ftable" width="90%">

            <tr>
              <td valign="bottom" width="43%" style="border-bottom: #ffffff solid;">&#160;</td>
              <td width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="right" colspan="5" valign="bottom" width="26%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Ten
                  Months Ended July 31, </font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="right" colspan="5" valign="bottom" width="26%" style="border-bottom: black thin solid;">
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                  Ended September 30, </font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;">&#160;</td>
            </tr>
            <tr>
              <td valign="bottom" width="43%" style="border-bottom: #ffffff solid;">&#160;</td>
              <td width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="right" colspan="2" valign="bottom" width="12%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2006
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="right" colspan="2" valign="bottom" width="12%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2005
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="right" colspan="2" valign="bottom" width="12%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2005
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="right" colspan="2" valign="bottom" width="12%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2004</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="43%" style="border-bottom: medium none;">&#160;</td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" colspan="2" valign="bottom" width="12%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" colspan="2" valign="bottom" width="12%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" colspan="2" valign="bottom" width="12%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" colspan="2" valign="bottom" width="12%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="43%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Net
                  loss </font></div>
              </td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(698</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(413</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(517</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(178</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
              </td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="43%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Deduct:
                  Stock based employee </font></div>
              </td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="43%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">compensation
                  determined under </font></div>
              </td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="43%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">the
                  fair value based method </font></div>
              </td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="43%" style="border-bottom: #ffffff solid;">
                <div style="MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">for
                  all awards, net of tax effect </font></div>
              </td>
              <td width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(439</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(336</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(405</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(335</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
              </td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="43%" style="border-bottom: #ffffff solid;">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Pro
                  forma net loss </font></div>
              </td>
              <td width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black double;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(1,137</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black double;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(749</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black double;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(922</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black double;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(513</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
              </td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="43%" style="border-bottom: medium none;">&#160;</td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="43%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Pro
                  forma net loss per share: </font></div>
              </td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="43%" style="border-bottom: #ffffff solid;">
                <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Basic
                  and diluted </font></div>
              </td>
              <td width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black double;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(0.28</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black double;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(0.20</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black double;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(0.24</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black double;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(0.15</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
              </td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="43%" style="border-bottom: medium none;">&#160;</td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="43%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">As
                  reported net loss per share: </font></div>
              </td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="43%" style="border-bottom: #ffffff solid;">
                <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Basic
                  and diluted </font></div>
              </td>
              <td width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black double;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(0.17</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
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              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff solid;">
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              <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
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              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff solid;">
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              <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
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              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
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            <tr>
              <td align="left" valign="bottom" width="43%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">&#160;</div>
              </td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="43%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Weighted
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              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="43%" style="border-bottom: #ffffff solid;">
                <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Basic
                  and diluted </font></div>
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              <td width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black double;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">4,007,499
                  </font></div>
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              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black double;">
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              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black double;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">3,804,527
                  </font></div>
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              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black double;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">3,026,163
                  </font></div>
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              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff solid;">&#160;</td>
            </tr>

        </table>
      </div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Certain
        assumptions used by the Company in the application of the Model were used
        to
        estimate the fair value of all stock options issued to employees on the grant
        date. The risk-free interest rate for all stock option grants is based on
        the
        treasury instrument whose term is consistent with the expected life of the
        stock
        options. The expected life of such options has been estimated to equal the
        average of the contractual term and the vesting term. The Company anticipates
        paying no cash dividends for its common stock; therefore, the expected dividend
        yield is assumed to be zero. As there was no public market for its common
        stock
        prior to July 31, 2006, the Company estimated the volatility for options
        granted
        based on an analysis of reported data for a peer group of publicly traded
        companies that issued options with substantially similar
        terms.</font></div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      following table illustrates the assumptions used by the Company in the
      application of the Model to calculate the pro forma compensation expense in
      accordance with SFAS 123 for stock options granted to employees and
      directors:</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br>
      <div>
        <table cellpadding="0" cellspacing="0" id="ftable" width="100%">

            <tr>
              <td valign="bottom" width="32%" style="border-bottom: medium none;">&#160;</td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td colspan="2" valign="bottom" width="10%" style="border-bottom: medium none;">
                <div align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Fair
                  Value </font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" colspan="2" valign="bottom" width="10%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td colspan="2" valign="bottom" width="10%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td colspan="2" valign="bottom" width="10%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td colspan="2" valign="bottom" width="10%" style="border-bottom: medium none;">
                <div align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Expected
                  </font></div>
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              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td colspan="2" valign="bottom" width="10%" style="border-bottom: medium none;">
                <div align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Option
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td valign="bottom" width="32%" style="border-bottom: medium none;">&#160;</td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td colspan="2" valign="bottom" width="10%" style="border-bottom: medium none;">
                <div align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">of
                  Stock </font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td colspan="2" valign="bottom" width="10%" style="border-bottom: medium none;">
                <div align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Stock
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td colspan="2" valign="bottom" width="10%" style="border-bottom: medium none;">
                <div align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Risk
                  Free </font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td colspan="2" valign="bottom" width="10%" style="border-bottom: medium none;">
                <div align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Dividend
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td colspan="2" valign="bottom" width="10%" style="border-bottom: medium none;">
                <div align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Option
                  Life </font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td colspan="2" valign="bottom" width="10%" style="border-bottom: medium none;">
                <div align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Exercise
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td valign="bottom" width="32%" style="border-bottom: #ffffff solid;">&#160;</td>
              <td width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td colspan="2" valign="bottom" width="10%" style="border-bottom: black thin solid;">
                <div align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Prices
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td colspan="2" valign="bottom" width="10%" style="border-bottom: black thin solid;">
                <div align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Volatility
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td colspan="2" valign="bottom" width="10%" style="border-bottom: black thin solid;">
                <div align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Rate
                  of Return </font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td colspan="2" valign="bottom" width="10%" style="border-bottom: black thin solid;">
                <div align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Rate
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td colspan="2" valign="bottom" width="10%" style="border-bottom: black thin solid;">
                <div align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">in
                  Years </font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td colspan="2" valign="bottom" width="10%" style="border-bottom: black thin solid;">
                <div align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Prices
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="32%" style="border-bottom: medium none;">&#160;</td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" colspan="2" valign="bottom" width="10%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" colspan="2" valign="bottom" width="10%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" colspan="2" valign="bottom" width="10%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" colspan="2" valign="bottom" width="10%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" colspan="2" valign="bottom" width="10%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" colspan="2" valign="bottom" width="10%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="32%" style="border-bottom: medium none;">
                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Ten
                  Months Ended July 31, </font></div>
              </td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" colspan="2" valign="bottom" width="10%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" colspan="2" valign="bottom" width="10%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" colspan="2" valign="bottom" width="10%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" colspan="2" valign="bottom" width="10%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" colspan="2" valign="bottom" width="10%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" colspan="2" valign="bottom" width="10%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="32%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 27pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2006</font></div>
              </td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" colspan="2" valign="bottom" width="10%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$
                  2.07 - $ 2.37</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">70%</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px">&#160;</div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">4.31%
                  - 4.90%</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px">&#160;</div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">0%</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px">&#160;</div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">6.5</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" colspan="2" valign="bottom" width="10%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$
                  3.75</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="32%" style="border-bottom: medium none;">&#160;</td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
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            <tr>
              <td align="left" valign="bottom" width="32%" style="border-bottom: medium none;">
                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Years
                  Ended September 30, </font></div>
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              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="32%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 27pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2005</font>&#160;</div>
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              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" colspan="2" valign="bottom" width="10%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$
                  3.75</font></div>
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              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">70%
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              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px">&#160;</div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">3.26%
                  - 4.13%</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px">&#160;</div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">0%</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px">&#160;</div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">6.5</font></div>
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              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" colspan="2" valign="bottom" width="10%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$
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              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="32%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 27pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2004</font></div>
              </td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" colspan="2" valign="bottom" width="10%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$
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              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">90%
                  - 100%</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px">&#160;</div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">2.96%
                  - 4.10%</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px">&#160;</div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">0%</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px">&#160;</div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">6.5</font></div>
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              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" colspan="2" valign="bottom" width="10%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$
                  3.00 - $ 3.75</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="32%" style="border-bottom: medium none;">&#160;</td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>

        </table>
      </div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">
      <div>&#160;</div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">As
      stock
      options vest over several years, additional stock option grants are made and
      employees terminate each year, the above pro forma disclosures and related
      assumptions used in the Model are not necessarily </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 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="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">F
          -
          22</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <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="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>BRIDGELINE
        SOFTWARE, INC.</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>NOTES
        TO CONSOLIDATED FINANCIAL STATEMENTS</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>(Information
        as of July 31, 2006 and 2005 and for </strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>the
        Ten Months Ended July 31, 2006 and 2005 is Unaudited)</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(Amounts
        in thousands, except share and per share data)</font></div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">representative
      of pro forma effects on operations for future periods. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">On
      December 12, 2004, the FASB issued SFAS No, 123R, </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>Share-Based
      Payments</em></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      (&#8220;SFAS
      123R&#8221;), which is a revision of SFAS 123. SFAS 123R superseded APB 25. Generally,
      the approach under SFAS 123R is similar to the approach described in SFAS 123.
      SFAS 123R requires companies to utilize an estimated forfeiture rate when
      calculating the expense for the period, whereas SFAS 123 permitted companies
      to
      record forfeitures based on actual forfeitures. SFAS 123R requires all
      share-based payments to employees, including grants of employee stock options,
      to be recognized in the statement of operations based on their fair values.
      Pro
      forma disclosure will no longer be an acceptable alternative. SFAS 123R must
      be
      adopted for fiscal years starting after October 1, 2006 and the Company expects
      to adopt the modified prospective method described therein.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>Valuation
      of Other Options and Warrants Issued</em></strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      Company measures expense for non-employee stock-based compensation and the
      estimated fair value of options exchanged in business combinations and warrants
      issued for services using the fair value method for services received or the
      equity instruments issued, whichever is more readily measured in accordance
      with
      SFAS 123 and EITF Issue No. 96-18, </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>Accounting
      for Equity Instruments That Are Issued to Other Than Employees for Acquiring,
      or
      in Conjunction With Selling Goods or Services</em></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">.
      The
      Company estimated the fair value of stock options and warrants issued to
      non-employees using the Model as described more fully above. The following
      table
      illustrates the inputs and assumptions used by the Company in the application
      of
      the Model to estimate the fair value for fully vested stock options granted
      to
      non-employees as follows:</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br>
      <div align="left">
        <table border="0" cellpadding="0" cellspacing="0" id="ftable" width="90%">

            <tr>
              <td valign="bottom" width="55%" style="border-bottom: medium none;">&#160;</td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td colspan="2" valign="bottom" width="12%" style="border-bottom: medium none;">
                <div align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Ten
                  Months </font></div>
              </td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: medium none;">&#160;</td>
              <td colspan="2" valign="bottom" width="12%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: medium none;">&#160;</td>
              <td colspan="2" valign="bottom" width="12%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td valign="bottom" width="55%" style="border-bottom: #ffffff solid;">&#160;</td>
              <td width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="right" colspan="2" valign="bottom" width="12%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Ended
                  July 31, </font></div>
              </td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="right" colspan="5" valign="bottom" width="27%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Years
                  Ended September 30, </font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;">&#160;</td>
            </tr>
            <tr>
              <td valign="bottom" width="55%" style="border-bottom: #ffffff solid;">&#160;</td>
              <td width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="right" colspan="2" valign="bottom" width="12%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2006
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="right" colspan="2" valign="bottom" width="12%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2005
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="right" colspan="2" valign="bottom" width="12%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2004
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="55%" style="border-bottom: medium none;">&#160;</td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" colspan="2" valign="bottom" width="12%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" colspan="2" valign="bottom" width="12%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" colspan="2" valign="bottom" width="12%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="55%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Options
                  granted to non-emplyees </font></div>
              </td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">9,227
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman">&#8212;</font></font></div>
              </td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">&#8212;
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="55%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Warrants
                  granted to non-employees </font></div>
              </td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">464,527
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">93,740
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">36,667
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="55%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Contractual
                  lives in years </font></div>
              </td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">5
                  - 10 </font></div>
              </td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">5
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">5
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="55%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Estimated
                  combined fair value </font></div>
              </td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">656</font></div>
              </td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">436</font></div>
              </td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">181</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="55%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Estimated
                  fair value of common stock </font></div>
              </td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">2.07
                  - $ 2.37</font></div>
              </td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">3.75</font></div>
              </td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">3.00
                  - $ 3.75</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="55%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Exercise
                  prices </font></div>
              </td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">0.001
                  - $ 4.68</font></div>
              </td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">4.68</font></div>
              </td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">3.75</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="55%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Estimated
                  stock volatility </font></div>
              </td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">70</font></div>
              </td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">%</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">70%
                  - 90</font></div>
              </td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">%</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">90%
                  - 100</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">%</font></div>
              </td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="55%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Risk
                  free rate of return </font></div>
              </td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">3.48%
                  to 4.86</font></div>
              </td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">%</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">3.36%
                  to 3.48</font></div>
              </td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">%</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">3.36</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">%</font></div>
              </td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="55%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Dividend
                  Rate </font></div>
              </td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">0</font></div>
              </td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">%</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">0</font></div>
              </td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">%</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">0</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">%</font></div>
              </td>
            </tr>

        </table>
      </div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>Employee
      Benefits</em></strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">As
      of
      January 1, 2002, the Company adopted a contributory 401(k) plan covering all
      full-time employees who meet prescribed service requirements. The Company is
      not
      required to make matching contributions, although the plan provides for
      discretionary contributions by the Company. The Company has not made any
      contributions since inception.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>Income
      Taxes</em></strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Deferred
      income taxes are recognized, based on temporary differences between the
      financial statement and tax basis of assets and liabilities using enacted tax
      rates in effect for the year in which the temporary differences are expected
      to
      reverse. Valuation allowances are provided if, based upon the weight of
</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
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      <div id="FTR">
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        </div>
      </div>
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          -
          23</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <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="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>BRIDGELINE
        SOFTWARE, INC.</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>NOTES
        TO CONSOLIDATED FINANCIAL STATEMENTS</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>(Information
        as of July 31, 2006 and 2005 and for </strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>the
        Ten Months Ended July 31, 2006 and 2005 is Unaudited)</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(Amounts
        in thousands, except share and per share data)</font></div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">available
      evidence, it is more likely than not that some or all of the deferred tax assets
      will not be realized. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      Company does not provide for U.S. income taxes on the undistributed earnings
      of
      foreign subsidiaries, which the Company considers to be permanent investments.
      </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>Net
      Loss Per Share of Common Stock</em></strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Basic
        loss per common share is computed by dividing net loss available to common
        shareholders by the weighted average number of common shares outstanding.
        Diluted loss per common share is computed similarly to basic loss per common
        share, except that the denominator is increased to include the number of
        additional common shares that would have been outstanding if the potential
        common shares had been issued and if the additional common shares were not
        anti-dilutive. The Company has excluded all outstanding options, warrants
        and
        convertible debt from the calculation of diluted weighted average shares
        outstanding because these securities were anti-dilutive for all periods
        presented. Weighted average shares of these equity instruments were 1,232,647,
        836,021, 816,749 and 731,560 for the ten months ended July 31, 2006 and 2005
        and
        the years ended September 30, 2005 and 2004, respectively.</font></div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>Recent
      Accounting Pronouncements</em></strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
      September 2006, the SEC staff issued Staff Accounting
      Bulletin&#160;No.&#160;108, </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>Considering
      the Effects of Prior Year Misstatements when Quantifying Misstatements in
      Current Year Financial Statements</em></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">,
      (&#8220;SAB
      108&#8221;). SAB&#160;108 was issued in order to eliminate the diversity of practice
      surrounding how public companies quantify financial statement misstatements.
      Traditionally, there have been two widely-recognized methods for quantifying
      the
      effects of financial statement misstatements: the &#8220;roll-over&#8221; method and the
&#8220;iron curtain&#8221; method. The roll-over method focuses primarily on the impact of a
      misstatement on the income statement&#160;&#8212; including the reversing effect of
      prior year misstatements&#160;&#8212; but its use can lead to the accumulation of
      misstatements in the balance sheet. The iron-curtain method, on the other hand,
      focuses primarily on the effect of correcting the period-end balance sheet
      with
      less emphasis on the reversing effects of prior year errors on the income
      statement. In SAB&#160;108, the SEC staff established an approach that requires
      quantification of financial statement misstatements based on the effects of
      the
      misstatements on each of a company&#8217;s financial statements and the related
      financial statement disclosures. This model is commonly referred to as a &#8220;dual
      approach&#8221; because it requires quantification of errors under both the iron
      curtain and the roll-over methods. Management of the Company has evaluated
      SFAS
      108 and believes its adoption will not materially impact the consolidated
      financial statements.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
      September 2006, the FASB issued SFAS No. 157, </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>Fair
      Value Measurements</em></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      (&#8220;SFAS
      157&#8221;), which defines fair value, establishes a framework for measuring fair
      value in accounting principles generally accepted in the United State of
      America, and expands disclosures about fair value measurements. SFAS 157
      prioritizes the inputs to valuation techniques used to measure fair value into
      a
      hierarchy containing three broad levels. The fair value hierarchy gives the
      highest priority to quoted prices (unadjusted) in active markets for identical
      assets and liabilities (Level 1) and the lowest priority to unobservable inputs
      (Level 3). In some cases, the inputs used to measure fair value might fall
      in
      different levels of the fair value hierarchy. The level in the fair value
      hierarchy within which the fair value measurement in its entirety falls shall
      be
      determined on the lowest level input that is significant to the fair value
      measurement in its entirety. Assessing the significance of a particular input
      to
      the fair value measurement in its entirety requires judgment, considering
      factors specific to the asset or liability. SFAS No. 157 is effective for
      interim and annual financial statements for fiscal years beginning after
      November 15, 2007. Upon initial adoption of SFAS 157, differences between the
      carrying value and the fair value of those instruments shall be recognized
      as a
      cumulative-effect adjustment to the opening balance of retained earnings for
      that fiscal year, and the effect of subsequent adjustments resulting from
      recurring fair measurements shall be recognized in earnings for the period.
      The
      Company has yet not adopted SFAS 157. As a result, the consolidated financial
      statements do not include any adjustments relating to any potential adjustments
      to </font></div>
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          -
          24</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="2">
        </div>
      </div>
      <div id="HDR">
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        </div>
      </div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>BRIDGELINE
        SOFTWARE, INC.</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>NOTES
        TO CONSOLIDATED FINANCIAL STATEMENTS</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>(Information
        as of July 31, 2006 and 2005 and for </strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>the
        Ten Months Ended July 31, 2006 and 2005 is Unaudited)</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(Amounts
        in thousands, except share and per share data)</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">the
      carrying value of assets and liabilities. </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Management
      of the Company has not completed its evaluation of SFAS 157. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
      June
      2006, the FASB issued FASB Interpretation No.&#160;48, </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>Accounting
      for Uncertainty in Income Taxes&#160;&#8212; an Interpretation of FASB Statement
      No.&#160;109</em></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      (&#8220;FIN&#160;48&#8221;), which clarifies the accounting for uncertainty in tax
      positions. FIN&#160;No.&#160;48 requires that the Company recognize the impact
      of a tax position in the financial statements, if that position is more likely
      than not to be sustained on audit, based on the technical merits of the
      position. The provisions of FIN&#160;48 are effective for fiscal years beginning
      after December 15, 2006, with the cumulative effect, if any, of the change
      in
      accounting principle recorded as an adjustment to opening retained earnings.
      </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Management
      of the Company has evaluated FIN 48 and believes its adoption will not
      materially impact the consolidated financial statements.</font><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>3.&#160;
      Acquisitions </strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      Company completed the acquisition of New Tilt, Inc. (&#8220;New Tilt&#8221;) on April 24,
      2006 and the Interactive Applications Group, Inc. (&#8220;iapps&#8221;) on December 15,
      2004. The following table summarizes the estimated fair values of the assets
      acquired at the date of each acquisition as described further below:
</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br>
      <div align="center">
        <table border="0" cellpadding="0" cellspacing="0" id="ftable" width="75%">

            <tr>
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              <td width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="right" colspan="2" valign="bottom" width="12%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">New
                  Tilt </font></div>
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              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" colspan="2" valign="bottom" width="12%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">iapps
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="71%" style="border-bottom: medium none;">
                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Net
                  assets acquired; </font></div>
              </td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" colspan="2" valign="bottom" width="12%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" colspan="2" valign="bottom" width="12%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
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            <tr>
              <td align="left" valign="bottom" width="71%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 9pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Cash
                  </font></div>
              </td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">159</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">77</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="71%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 9pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Other
                  current assets </font></div>
              </td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">181
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">104
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="71%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 9pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Equipment
                  </font></div>
              </td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">58
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">54
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              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
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              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">59
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              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">202
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              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
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            <tr>
              <td align="left" valign="bottom" width="71%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 9pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Intangible
                  assets </font></div>
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              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">91
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              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">353
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              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
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            <tr>
              <td align="left" valign="bottom" width="71%" style="border-bottom: #ffffff solid;">
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              <td width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">1,121
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              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">2,244
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              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;">&#160;</td>
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            <tr>
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                <div style="MARGIN-LEFT: 27pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Total
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              <td width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">1,669
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              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">3,034
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              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;">&#160;</td>
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            <tr>
              <td align="left" valign="bottom" width="71%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 9pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Current
                  liabilities </font></div>
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              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">70
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              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">247
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              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
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            <tr>
              <td align="left" valign="bottom" width="71%" style="border-bottom: #ffffff solid;">
                <div style="MARGIN-LEFT: 9pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Deferred
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              <td width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">49
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              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">182
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              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;">&#160;</td>
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            <tr>
              <td align="left" valign="bottom" width="71%" style="border-bottom: #ffffff solid;">
                <div style="MARGIN-LEFT: 27pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Total
                  liabilities </font></div>
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              <td width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">119
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              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">429
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              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;">&#160;</td>
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            <tr>
              <td align="left" valign="bottom" width="71%" style="border-bottom: #ffffff solid;">
                <div style="MARGIN-LEFT: 9pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Net
                  assets acquired </font></div>
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              <td width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black double;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">1,550</font></div>
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              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
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              <td align="right" valign="bottom" width="11%" style="border-bottom: black double;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">2,605</font></div>
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              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff solid;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="71%" style="border-bottom: medium none;">&#160;</td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="71%" style="border-bottom: medium none;">
                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Purchase
                  price; </font></div>
              </td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="71%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 9pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Cash
                  paid</font></div>
              </td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">550</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">355</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="71%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 9pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Equity
                  exchanged </font></div>
              </td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">717
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">1,788
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="71%">
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              <td align="left" valign="bottom" width="1%">&#160;</td>
              <td align="right" valign="bottom" width="11%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">120</font></td>
              <td align="left" valign="bottom" width="2%">&#160;</td>
              <td align="left" valign="bottom" width="1%">&#160;</td>
              <td align="right" valign="bottom" width="11%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">432</font></td>
              <td align="left" valign="bottom" width="1%">&#160;</td>
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            <tr>
              <td align="left" valign="bottom" width="71%" style="border-bottom: #ffffff solid;">
                <div style="MARGIN-LEFT: 9pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Closing
                  costs and fees </font></div>
              </td>
              <td width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">163
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">30
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="71%" style="border-bottom: #ffffff solid;">
                <div style="MARGIN-LEFT: 9pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Total
                  purchase price </font></div>
              </td>
              <td width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black double;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">1,550</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black double;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">2,605</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff solid;">&#160;</td>
            </tr>

        </table>
      </div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>Unaudited
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      following unaudited pro forma information reflects the results of operations
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
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        <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">F
          -
          25</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <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="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>BRIDGELINE
      SOFTWARE, INC.</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>NOTES
      TO CONSOLIDATED FINANCIAL STATEMENTS</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>(Information
      as of July 31, 2006 and 2005 and for </strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>the
      Ten Months Ended July 31, 2006 and 2005 is Unaudited)</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(Amounts
      in thousands, except share and per share data)</font></div>
    <div><br>
      <div align="left">
        <table border="0" cellpadding="0" cellspacing="0" id="ftable" width="100%">

            <tr>
              <td valign="bottom" width="42%" style="border-bottom: #ffffff solid;">&#160;</td>
              <td width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="right" colspan="11" valign="bottom" width="55%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Pro
                  Forma Combined (Unaudited)</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="42%" style="border-bottom: #ffffff solid;">&#160;</td>
              <td width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="right" colspan="5" valign="bottom" width="26%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Ten
                  Months Ended July 31, </font></div>
              </td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="right" colspan="5" valign="bottom" width="26%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Years
                  Ended September 30, </font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;">&#160;</td>
            </tr>
            <tr>
              <td valign="bottom" width="42%" style="border-bottom: #ffffff solid;">&#160;</td>
              <td width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="right" colspan="2" valign="bottom" width="12%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2006
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="right" colspan="2" valign="bottom" width="12%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2005
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="right" colspan="2" valign="bottom" width="12%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2005
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="right" colspan="2" valign="bottom" width="12%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2004
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="42%" style="border-bottom: medium none;">&#160;</td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" colspan="2" valign="bottom" width="12%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" colspan="2" valign="bottom" width="12%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" colspan="2" valign="bottom" width="12%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" colspan="2" valign="bottom" width="12%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="42%" style="border-bottom: #ffffff solid;">
                <div style="MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Revenue
                  </font></div>
              </td>
              <td width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black double;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">7,522</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black double;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">6,753</font></div>
              </td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: #ffffff solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black double;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">8,349</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black double;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">8,113</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff solid;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="42%" style="border-bottom: #ffffff solid;">
                <div style="MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Net
                  (loss) </font></div>
              </td>
              <td width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black double;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(1,090</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black double;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(515</font></div>
              </td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: #ffffff solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black double;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(621</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black double;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(191</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
              </td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="42%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Net
                  (loss) per share: </font></div>
              </td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="42%" style="border-bottom: #ffffff solid;">
                <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Basic
                  and diluted </font></div>
              </td>
              <td width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black double;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(0.26</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black double;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(0.12</font></div>
              </td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: #ffffff solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black double;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(0.15</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black double;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(0.05</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
              </td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="42%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Number
                  of weighted average shares: </font></div>
              </td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="42%" style="border-bottom: #ffffff solid;">
                <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Basic
                  and diluted </font></div>
              </td>
              <td width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black double;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">4,226,166
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black double;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">4,152,227
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: #ffffff solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black double;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">4,223,833
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black double;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">3,822,830
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff solid;">&#160;</td>
            </tr>

        </table>
      </div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        results above give effect to the following pro forma adjustments related
        to New
        Tilt and iapps:</font></div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 63pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
            <td>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Reduction
                in depreciation resulting from the new accounting basis of equipment
                and
                improvements of $(12) and $(22) for New Tilt for the ten months ended
                July, 31, 2006 and the year ended September 30, 2005,
                respectively.</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 63pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Increase
                in amortization of the new accounting basis of assets, including
                intangible assets of $12 and $12 for iapps for the ten months ended
                July
                31, 2005 and year ended September 30, 2005,
                respectively.</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 63pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
            <td>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Reduction
                in stock-compensation expense of $(41) and $(72) for New Tilt for
                the ten
                months ended July, 31, 2006 and the year ended September 30, 2005,
                respectively, to conform to the Company&#8217;s accounting policy of using the
                intrinsic value method.</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 63pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
            <td>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
                effect of additional interest expense that would have been incurred
                to
                finance a portion of the purchase price for New Tilt in the amount
                of $142
                and $282 for the ten months ended July 31, 2006 and year ended September
                30, 2005, respectively.</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      common stock used as consideration for the acquisitions is presented as being
      outstanding during the entire period for the computation of weighted average
      shares outstanding used in the computation of net loss per share for all periods
      above.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        results presented above for the ten months ended July 31, 2006 include the
        results of the Company for that period combined with the pre-acquisition
        results
        of New Tilt from October 1, 2005 through April 24, 2006.</font><br></div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      results presented above for the ten months ended July 31, 2005 include the
      results of the Company for that period combined with the pre-acquisition results
      of iapps from October 1, 2004 through the day before acquisition on December
      15,
      2004.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      results presented above for the year ended September 30, 2005 include the
      results of the Company for that period combined with the pre-acquisition results
      of New Tilt for its fiscal year ended December 31, 2005 and iapps from October
      1, 2004 through the day before acquisition on December 15, 2004.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      results presented above for the year ended September 30, 2004 include the
      results of the Company for that period combined with the pre-acquisition results
      of New Tilt for its fiscal year ended December 31, 2004 and iapps for its fiscal
      year ended October 31, 2004.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">See
      Note
      2 regarding the accounting policy related to the measurement, recognition and
      allocation of contingent consideration and intangible assets acquired in
      business combinations. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 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="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">F
          -
          26</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <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="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>BRIDGELINE
          SOFTWARE, INC.</strong></font></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><br></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>NOTES
          TO CONSOLIDATED FINANCIAL STATEMENTS</strong></font></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>(Information
          as of July 31, 2006 and 2005 and for </strong></font></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>the
          Ten Months Ended July 31, 2006 and 2005 is Unaudited)</strong></font></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(Amounts
          in thousands, except share and per share data)</font></div>
      </div>
      <div>&#160;</div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>New
      Tilt, Inc.</em></strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">On
        April
        24, 2006, the Company acquired New Tilt, a privately held provider of Web
        services. New Tilt&#8217;s results of operations have been included in the
        consolidated financial statements since the date of acquisition. As a result
        of
        the acquisition, the Company is expected to expand its services in the health
        care and insurance industries. The aggregate current consideration of
        approximately $1,550 consisted of $550 in cash, common stock valued at $717,
        and
        other costs of $283. Additional consideration of up to approximately
        $750&#160;may be paid over a three-year period in cash as additional
        consideration.</font></div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      additional consideration described above is based upon the attainment by the
      acquired entity of defined operating objectives. No additional consideration
      has
      been paid to date.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Acquired
      intangible assets of $91 were assigned as follows: $29 was assigned to the
      customer relationships and $62 was assigned to non-compete agreements. The
      estimated value for customer relationships was based on using discounted cash
      flows. The estimated value for non-compete agreements was based on
      probability-weighted future discounted cash flows with and without certain
      key
      members of New Tilt that have critical relationships with certain customers
      for
      which future competition may arise if the key executives were to leave and
      compete directly with the Company. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      acquisition has been treated as a non-taxable transaction; therefore, the
      intangible assets, including goodwill, are not tax deductible for the
      Company.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>Interactive
      Applications Group, Inc.</em></strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">On
      December 15, 2004, the Company acquired iapps, a privately-held provider of
      Web
      services. Iapps&#8217; results of operations have been included in the consolidated
      financial statements since the date of acquisition. As a result of the
      acquisition, the Company is expected to expand its services to not-for-profit
      organizations.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        aggregate current consideration of approximately $2,605 consisted of $355
        in
        cash, common stock valued at $1,788 and other costs of $462 (including $269
        paid
        to an investment advisor as equity equivalents). Additional consideration
        of
        $300 may be paid over a three-year period in cash as additional
        consideration.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      additional consideration described above is based upon the attainment by the
      acquired entity of defined operating objectives.&#160;At July 31, 2006, the
      maximum potential future consideration pursuant to such arrangements during
      the
      three years subsequent to acquisition is approximately $176.&#160; To date $124
      was recorded as an increase to goodwill under these arrangements.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Acquired
      intangible assets of $353 were assigned as follows: $180 was assigned to the
      customer relationships, $58 was assigned to non-compete agreements, $95 was
      assigned to the Orgitecture platform, $10 was assigned to domain names and
      $10
      was assigned to trademarks. The estimated value for customer relationships
      was
      based on using discounted cash flows. The estimated value for non-compete
      agreements was based on probability-weighted future cash flows with and without
      certain key members of iapps that have critical relationships with certain
      customers for which future competition may arise if the key executives were
      to
      leave and compete directly with the Company. The estimated value assigned to
      the
      Orgitecture platform and domain and trade names was based on estimates of the
      replacement costs for each of the items.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      acquisition has been treated as a non-taxable transaction, therefore the
      intangible assets, including </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 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="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">F
          -
          27</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <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="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>BRIDGELINE
          SOFTWARE, INC.</strong></font></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><br></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>NOTES
          TO CONSOLIDATED FINANCIAL STATEMENTS</strong></font></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>(Information
          as of July 31, 2006 and 2005 and for </strong></font></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>the
          Ten Months Ended July 31, 2006 and 2005 is Unaudited)</strong></font></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(Amounts
          in thousands, except share and per share data)</font></div>
      </div>
      <div>&#160;</div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">goodwill,
      are not tax deductible for the Company.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>4.&#160;
      Equipment and Improvements</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Equipment
      and improvements, net consisted of the following:</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div align="center">
      <table border="0" cellpadding="0" cellspacing="0" id="ftable" width="90%">

          <tr>
            <td align="left" valign="bottom" width="43%" style="border-bottom: #ffffff solid;">&#160;</td>
            <td width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
            <td colspan="5" valign="bottom" width="26%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">As
                of July 31,</font></div>
            </td>
            <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
            <td colspan="5" valign="bottom" width="26%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">As
                of September 30,</font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;">&#160;</td>
          </tr>
          <tr>
            <td align="left" valign="bottom" width="43%" style="border-bottom: #ffffff solid;">&#160;</td>
            <td width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
            <td colspan="2" valign="bottom" width="12%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2006</font></div>
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            <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
            <td colspan="2" valign="bottom" width="12%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2005</font></div>
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            <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
            <td colspan="2" valign="bottom" width="12%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2005</font></div>
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            <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
            <td colspan="2" valign="bottom" width="12%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2004</font></div>
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            <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;">&#160;</td>
          </tr>
          <tr>
            <td align="left" valign="bottom" width="43%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Furniture
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            <td width="2%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
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            <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
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            <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
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            <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">110</font></div>
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            <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
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            <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
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            <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
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            <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">75</font></div>
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            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
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          <tr>
            <td align="left" valign="bottom" width="43%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Acquired
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            <td align="left" valign="bottom" width="1%">&#160;</td>
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          <tr>
            <td align="left" valign="bottom" width="43%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Computers
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          <tr>
            <td align="left" valign="bottom" width="43%" style="border-bottom: #ffffff solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Leasehold
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            <td width="2%" style="border-bottom: #ffffff solid;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
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            <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
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            <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff solid;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">&#160;<font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">28</font></td>
            <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff solid;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">&#160;<font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">19</font></td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff solid;">&#160;</td>
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          <tr>
            <td align="left" valign="bottom" width="43%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
            </td>
            <td width="2%">&#160;</td>
            <td align="left" valign="bottom" width="1%">&#160;</td>
            <td align="right" valign="bottom" width="11%">&#160;<font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">879</font></td>
            <td align="left" valign="bottom" width="2%">&#160;</td>
            <td align="left" valign="bottom" width="1%">&#160;</td>
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            <td align="left" valign="bottom" width="2%">&#160;</td>
            <td align="left" valign="bottom" width="1%">&#160;</td>
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            <td align="left" valign="bottom" width="2%">&#160;</td>
            <td align="left" valign="bottom" width="1%">&#160;</td>
            <td align="right" valign="bottom" width="11%">&#160;<font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">364</font></td>
            <td align="left" valign="bottom" width="1%">&#160;</td>
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          <tr>
            <td align="left" valign="bottom" width="43%" style="border-bottom: #ffffff solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Less
                accumulated depreciation</font>&#160;</div>
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            <td width="2%" style="border-bottom: #ffffff solid;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
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            <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff solid;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">&#160;<font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">292</font></td>
            <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff solid;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">312</font></td>
            <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff solid;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">&#160;<font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">206</font></td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff solid;">&#160;</td>
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          <tr>
            <td align="left" valign="bottom" width="43%" style="border-bottom: #ffffff solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
            </td>
            <td width="2%" style="border-bottom: #ffffff solid;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font>&#160;</div>
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            <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff solid;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font>&#160;</div>
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            <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font>&#160;</div>
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            <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font>&#160;</div>
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      accumulated depreciation thereon of $81, $35, $41 and $19,
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">
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        <table border="0" cellpadding="0" cellspacing="0" id="ftable" width="95%">

            <tr>
              <td align="left" valign="bottom" width="30%" style="border-bottom: #ffffff solid;">&#160;</td>
              <td width="1%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td colspan="2" valign="bottom" width="8%" style="border-bottom: #ffffff thin solid;">
                <div align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Useful
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="right" colspan="8" valign="bottom" width="28%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">As
                  of July 31, 2006 </font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="right" colspan="8" valign="bottom" width="28%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">As
                  of July 31, 2005 </font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="30%" style="border-bottom: medium none;">&#160;</td>
              <td width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" colspan="2" valign="bottom" width="8%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Lives
                  in </font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" colspan="2" valign="bottom" width="8%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Gross
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" colspan="2" valign="bottom" width="8%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Accumulated
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" colspan="2" valign="bottom" width="8%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Net
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" colspan="2" valign="bottom" width="8%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Gross
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" colspan="2" valign="bottom" width="8%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Accumulated
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" colspan="2" valign="bottom" width="8%" style="border-bottom: medium none;">
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              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
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              <td align="left" valign="bottom" width="30%" style="border-bottom: #ffffff solid;">&#160;</td>
              <td width="1%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="right" colspan="2" valign="bottom" width="8%" style="border-bottom: black thin solid;">
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              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
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              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="right" colspan="2" valign="bottom" width="8%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Amortization
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              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="right" colspan="2" valign="bottom" width="8%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Amount
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              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="right" colspan="2" valign="bottom" width="8%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Asset
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              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="right" colspan="2" valign="bottom" width="8%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Amortization
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              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="right" colspan="2" valign="bottom" width="8%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Amount
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              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;">&#160;</td>
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            <tr>
              <td align="left" valign="bottom" width="30%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Intangible
                  assets; </font></div>
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              <td width="1%" style="border-bottom: medium none;">&#160;</td>
              <td colspan="2" valign="bottom" width="8%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" colspan="2" valign="bottom" width="8%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" colspan="2" valign="bottom" width="8%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" colspan="2" valign="bottom" width="8%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" colspan="2" valign="bottom" width="8%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" colspan="2" valign="bottom" width="8%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" colspan="2" valign="bottom" width="8%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="30%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 18pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Domain
                  and trade names </font></div>
              </td>
              <td width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="7%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">10
                  </font></div>
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              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="7%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">29</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="7%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(11</font></div>
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              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="7%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">18</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="7%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">29</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="7%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(10</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="7%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">19</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="30%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 18pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Customer
                  related </font></div>
              </td>
              <td width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="7%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">5
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="7%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">478
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="7%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(214</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="7%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">264
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="7%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">387
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="7%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(132</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="7%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">255
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="30%" style="border-bottom: #ffffff solid;">
                <div style="MARGIN-LEFT: 18pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Acquired
                  software </font></div>
              </td>
              <td width="1%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="7%" style="border-bottom: #ffffff thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">3
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="7%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">95
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="7%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(52</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="7%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">43
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="7%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">95
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="7%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(20</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="7%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">75
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="30%" style="border-bottom: #ffffff solid;">
                <div style="MARGIN-LEFT: 27pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Total
                  intangible assets </font></div>
              </td>
              <td width="1%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="7%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="7%" style="border-bottom: black double;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">602</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="7%" style="border-bottom: black double;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(277</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
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              <td align="right" valign="bottom" width="7%" style="border-bottom: black double;">
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              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
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              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
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              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
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              <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
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              <td align="right" valign="bottom" width="7%" style="border-bottom: black double;">
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              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff solid;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="30%" style="border-bottom: medium none;">&#160;</td>
              <td width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="7%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="7%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="7%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="7%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="7%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="7%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="7%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="30%" style="border-bottom: #ffffff solid;">
                <div style="MARGIN-LEFT: 9pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Goodwill
                  </font></div>
              </td>
              <td width="1%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="7%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
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              <td align="right" valign="bottom" width="7%" style="border-bottom: black double;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">6,310</font></div>
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              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="7%" style="border-bottom: black double;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman">&#8212;</font></font></div>
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              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="7%" style="border-bottom: black double;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">6,310</font></div>
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              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="7%" style="border-bottom: black double;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">5,097</font></div>
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              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
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              <td align="right" valign="bottom" width="7%" style="border-bottom: black double;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman">&#8212;</font></font></div>
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              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="7%" style="border-bottom: black double;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">5,097</font></div>
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              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff solid;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="30%" style="border-bottom: medium none;">&#160;</td>
              <td width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="7%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="7%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="7%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="7%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="7%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="7%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="7%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="30%" style="border-bottom: medium none;">&#160;</td>
              <td width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="7%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="7%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="7%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="7%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="7%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="7%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="7%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="30%" style="border-bottom: #ffffff solid;">
              </td>
              <td width="1%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="7%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" colspan="7" valign="bottom" width="27%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">As
                  of September 30, 2005</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" colspan="7" valign="bottom" width="27%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">As
                  of September 30, 2004 </font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="30%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 63pt" align="left">&#160;</div>
              </td>
              <td width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="7%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" colspan="2" valign="bottom" width="8%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center">&#160;<font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Gross</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" colspan="2" valign="bottom" width="8%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center">&#160;<font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">Accumulated
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" colspan="2" valign="bottom" width="8%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center">&#160;<font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">Net
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" colspan="2" valign="bottom" width="8%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center">&#160;<font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">Gross
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" colspan="2" valign="bottom" width="8%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center">&#160;<font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">Accumulated
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" colspan="2" valign="bottom" width="8%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center">&#160;<font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">Net
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="30%" style="border-bottom: #ffffff solid;">
              </td>
              <td width="1%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="7%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" colspan="2" valign="bottom" width="8%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center">&#160;<font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Asset</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" colspan="2" valign="bottom" width="8%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center">&#160;<font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">Amortization
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" colspan="2" valign="bottom" width="8%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center">&#160;<font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">Amount
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" colspan="2" valign="bottom" width="8%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center">&#160;<font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">Asset
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" colspan="2" valign="bottom" width="8%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center">&#160;<font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">Amortization
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff thin solid;">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
              </td>
              <td align="left" colspan="2" valign="bottom" width="8%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center">&#160;<font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">Amount
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="30%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 9pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Intangible
                  assets; </font></div>
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              <td width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="7%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="7%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="7%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="7%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="7%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="7%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="7%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="30%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 18pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Domain
                  and trade names </font></div>
              </td>
              <td width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="7%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">10
                  </font></div>
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              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
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              <td align="right" valign="bottom" width="7%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">29</font></div>
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              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
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              <td align="right" valign="bottom" width="7%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(10</font></div>
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              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
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              <td align="right" valign="bottom" width="7%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">19</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="7%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">9</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="7%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(9</font></div>
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              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="7%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman">&#8212;</font></font></div>
                </div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="30%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 18pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Customer
                  related </font></div>
              </td>
              <td width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="7%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">5
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="7%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">387
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="7%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(145</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="7%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">242
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="7%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">149
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="7%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(77</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="7%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">72
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="30%" style="border-bottom: #ffffff solid;">
                <div style="MARGIN-LEFT: 18pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Acquired
                  software </font></div>
              </td>
              <td width="1%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="7%" style="border-bottom: #ffffff thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">3
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="7%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">95
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="7%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(25</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="7%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">70
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="7%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman">&#8212;</font></font></div>
                </div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="7%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman">&#8212;</font></font></div>
                </div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="7%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman">&#8212;</font></font></div>
                </div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="30%" style="border-bottom: #ffffff solid;">
                <div style="MARGIN-LEFT: 27pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Total
                  intangible assets </font></div>
              </td>
              <td width="1%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="7%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="7%" style="border-bottom: black double;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">511</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="7%" style="border-bottom: black double;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(180</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="7%" style="border-bottom: black double;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">331</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="7%" style="border-bottom: black double;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">158</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="7%" style="border-bottom: black double;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(86</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="7%" style="border-bottom: black double;">
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              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff solid;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="30%" style="border-bottom: medium none;">&#160;</td>
              <td width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="7%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="7%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="7%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="7%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="7%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="7%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="7%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="30%" style="border-bottom: #ffffff solid;">
                <div style="MARGIN-LEFT: 9pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Goodwill
                  </font></div>
              </td>
              <td width="1%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="7%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="7%" style="border-bottom: black double;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">5,097</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="7%" style="border-bottom: black double;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman">&#8212;</font></font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="7%" style="border-bottom: black double;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">5,097</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="7%" style="border-bottom: black double;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">2,740</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="7%" style="border-bottom: black double;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman">&#8212;</font></font></div>
                </div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="7%" style="border-bottom: black double;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">2,740</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff solid;">&#160;</td>
            </tr>

        </table>
      </div>
    </div>
    <div>&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      aggregate amortization expense for the ten months ended July 31, 2006 and 2004
      and for the years ended September 30, 2005 and 2004 is as follows:</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 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="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">F
          -
          28</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <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="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>BRIDGELINE
        SOFTWARE, INC.</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>NOTES
        TO CONSOLIDATED FINANCIAL STATEMENTS</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>(Information
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      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>the
        Ten Months Ended July 31, 2006 and 2005 is Unaudited)</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(Amounts
        in thousands, except share and per share data)</font></div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br>
      <div align="center">
        <table border="0" cellpadding="0" cellspacing="0" id="ftable" width="90%">

            <tr>
              <td valign="bottom" width="57%" style="border-bottom: #ffffff solid;">&#160;</td>
              <td width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td colspan="2" valign="bottom" width="12%" style="border-bottom: #ffffff thin solid;">
                <div align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Total
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="right" colspan="5" valign="bottom" width="26%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Expense
                  Charge To </font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;">&#160;</td>
            </tr>
            <tr>
              <td valign="bottom" width="57%" style="border-bottom: medium none;">&#160;</td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td colspan="2" valign="bottom" width="12%" style="border-bottom: medium none;">
                <div align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Amortization
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td colspan="2" valign="bottom" width="12%" style="border-bottom: medium none;">
                <div align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Cost
                  of </font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td colspan="2" valign="bottom" width="12%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td valign="bottom" width="57%" style="border-bottom: #ffffff solid;">&#160;</td>
              <td width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="right" colspan="2" valign="bottom" width="12%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Expense
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="right" colspan="2" valign="bottom" width="12%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Revenue
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="right" colspan="2" valign="bottom" width="12%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Operations
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="57%" style="border-bottom: medium none;">&#160;</td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" colspan="2" valign="bottom" width="12%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" colspan="2" valign="bottom" width="12%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" colspan="2" valign="bottom" width="12%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="57%" style="border-bottom: medium none;">
                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Ten
                  Months Ended July 31, 2006 </font></div>
              </td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">97</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">95</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">2</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="57%" style="border-bottom: medium none;">
                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Ten
                  Months Ended July 31, 2005 </font></div>
              </td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">76</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">74</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">2</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="57%" style="border-bottom: medium none;">&#160;</td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="57%" style="border-bottom: medium none;">
                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Year
                  Ended September 30, 2005 </font></div>
              </td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">94</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">92</font></div>
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              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">2</font></div>
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              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="57%" style="border-bottom: medium none;">
                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Year
                  Ended September 30, 2004 </font></div>
              </td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
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              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">30</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
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              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">30</font></div>
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              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
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              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">-</font></div>
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              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>

        </table>
      </div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        estimated amortization expense for the fiscal years 2006, 2007, 2008, 2009,
        2010
        and thereafter is $111, $90, $52, $46, $18 and $14, respectively.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">As
      discussed more fully in Note 3, goodwill increased $2,244 in the year ended
      September 30, 2005 as a result of the acquisition of iapps, and $1,121 in the
      ten months ended July 31, 2006 as a result of the acquisition of New Tilt.
      In
      addition to the acquisitions, goodwill increased $113 and $92 in the year ended
      September 30, 2005 and in the ten months ended July 31, 2006, respectively,
      due
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      Digital, Inc. (&#8220;Lead Dog&#8221;) and iapps.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>6.&#160;
      Accrued Liabilities</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Accrued
      liabilities consisted of the following:</font><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br>
      <div align="left">
        <table border="0" cellpadding="0" cellspacing="0" id="ftable" width="90%">

            <tr>
              <td align="left" valign="bottom" width="43%" style="border-bottom: #ffffff solid;">&#160;</td>
              <td width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" colspan="5" valign="bottom" width="26%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">As
                  of July 31,</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" colspan="5" valign="bottom" width="26%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">As
                  of September 30,</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="43%" style="border-bottom: #ffffff solid;">&#160;</td>
              <td width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" colspan="2" valign="bottom" width="12%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2006</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" colspan="2" valign="bottom" width="12%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2005</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" colspan="2" valign="bottom" width="12%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2005</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" colspan="2" valign="bottom" width="12%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2004</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="43%" style="border-bottom: medium none;">&#160;</td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" colspan="2" valign="bottom" width="12%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" colspan="2" valign="bottom" width="12%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" colspan="2" valign="bottom" width="12%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" colspan="2" valign="bottom" width="12%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="43%" style="border-bottom: medium none;">
                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Compensation
                  and benefits</font></div>
              </td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">139</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">98</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">144</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">179</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="43%" style="border-bottom: medium none;">
                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Subcontractors</font></div>
              </td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">89
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">22
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">31
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">17
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="43%" style="border-bottom: medium none;">
                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Deferred
                  rent</font></div>
              </td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">32
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">56
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">44
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">36
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="43%" style="border-bottom: medium none;">
                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Other</font></div>
              </td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">64
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">100
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">52
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">32
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="43%" style="border-bottom: #ffffff solid;">&#160;</td>
              <td width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="43%" style="border-bottom: #ffffff solid;">&#160;</td>
              <td width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black double;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">324</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black double;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">276</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black double;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">271</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black double;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">264</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff solid;">&#160;</td>
            </tr>

        </table>
      </div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>7.&#160;
      Indebtedness</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      Company&#8217;s indebtedness consisted of the following:</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><strong><em><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Senior
      Notes Payable</font></em></strong></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br>
      <div align="left">
        <table border="0" cellpadding="0" cellspacing="0" id="ftable" width="90%">

            <tr>
              <td valign="bottom" width="43%" style="border-bottom: #ffffff solid;">&#160;</td>
              <td width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td colspan="5" valign="bottom" width="26%" style="border-bottom: black thin solid;">
                <div align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">As
                  of July 31,</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td colspan="5" valign="bottom" width="26%" style="border-bottom: black thin solid;">
                <div align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">As
                  of September 30,</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;">&#160;</td>
            </tr>
            <tr>
              <td valign="bottom" width="43%" style="border-bottom: #ffffff solid;">&#160;</td>
              <td width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td colspan="2" valign="bottom" width="12%" style="border-bottom: black thin solid;">
                <div align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2006</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td colspan="2" valign="bottom" width="12%" style="border-bottom: black thin solid;">
                <div align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2005</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td colspan="2" valign="bottom" width="12%" style="border-bottom: black thin solid;">
                <div align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2005</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td colspan="2" valign="bottom" width="12%" style="border-bottom: black thin solid;">
                <div align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2004</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;">&#160;</td>
            </tr>
            <tr>
              <td valign="bottom" width="43%" style="border-bottom: medium none;">&#160;</td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" colspan="2" valign="bottom" width="12%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" colspan="2" valign="bottom" width="12%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" colspan="2" valign="bottom" width="12%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" colspan="2" valign="bottom" width="12%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td valign="bottom" width="43%" style="border-bottom: medium none;">&#160;</td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" colspan="2" valign="bottom" width="12%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" colspan="2" valign="bottom" width="12%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" colspan="2" valign="bottom" width="12%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" colspan="2" valign="bottom" width="12%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="43%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Senior
                  notes payable</font></div>
              </td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">2,800</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman">&#8212;</font></font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman">&#8212;</font></font></div>
                </div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman">&#8212;</font></font></div>
                </div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="43%" style="border-bottom: #ffffff solid;">
                <div style="MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Discount
                  on senior notes payable</font></div>
              </td>
              <td width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(254</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman">&#8212;</font></font></div>
                </div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman">&#8212;</font></font></div>
                </div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman">&#8212;</font></font></div>
                </div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="43%" style="border-bottom: #ffffff solid;">&#160;</td>
              <td width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black double;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">2,546</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black double;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman">&#8212;</font></font></div>
                </div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black double;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman">&#8212;</font></font></div>
                </div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black double;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman">&#8212;</font></font></div>
                </div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff solid;">&#160;</td>
            </tr>

        </table>
      </div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
      2006,
      the Company entered into an agreement with an underwriter to execute a private
      placement of $2.8 million of senior secured notes payable and related security
      agreement (the &#8220;Senior Notes&#8221;) and to underwrite an initial public offering of
      the Company&#8217;s common stock. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 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="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">F
          -
          29</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <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="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>BRIDGELINE
          SOFTWARE, INC.</strong></font></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><br></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>NOTES
          TO CONSOLIDATED FINANCIAL STATEMENTS</strong></font></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>(Information
          as of July 31, 2006 and 2005 and for </strong></font></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>the
          Ten Months Ended July 31, 2006 and 2005 is Unaudited)</strong></font></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(Amounts
          in thousands, except share and per share data)</font></div>
      </div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      terms
      of the Senior Notes include various covenants and are secured by all assets
      of
      the Company. The Senior Notes were subordinated to other creditors at issuance;
      however, those debts were fully paid by the Company as of July 1, 2006. The
      principal amount of the Senior Notes is payable in full at the earlier of April
      2007 or the closing date of an initial public offering of the Company&#8217;s
      securities pursuant to a registration statement filed by the Company under
      the
      Securities Act of 1933 (the &#8220;Maturity Date&#8221;). </font></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Under
      the
      terms of the Senior Notes, the Company agreed to comply with certain restrictive
      covenants so long as the notes remain outstanding, which include; (a) not to
      liquidate, dissolve or merge with another entity, excluding its wholly-owned
      subsidiaries, (b) not to sell assets other than in the ordinary course of
      business, (c) not to redeem or repurchase equity securities of the Company
      other
      than from employees or consultants to the Company, (d) not to declare dividends,
      pay any cash dividends or make distributions to the Company&#8217;s outstanding
      shareholders and (e) not to engage in a merger, acquisition, reorganization,
      declaration of bankruptcy or sell substantially all of its assets that would
      result in a change in voting control of the Company from its current
      shareholders.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
        connection with the issuance of the Senior Notes, the Company issued 280,000
        warrants to the note holders (the &#8220;Debt Warrants&#8221;) and 112,000 warrants to the
        underwriter for services rendered in connection with the private placement
        (the
&#8220;Underwriter&#8217;s Debt Warrants&#8221;). These Warrants are exercisable into shares of
        the Company&#8217;s common stock. The Debt Warrants are exercisable at $0.001 per
        share at any time within five years from the date of grant. The Underwriter&#8217;s
        Debt Warrants are exercisable at any time within five years from the grant
        date
        provided, however, that no such exercise shall take place prior to the earlier
        of the date of an initial public offering or April 21, 2008. The Underwriter&#8217;s
        Debt Warrants are exercisable at $4.68 or, in the case of an initial public
        offering, an amount equal to the first offering price on the first day of
        an
        offering.</font></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Under
      the
      terms of the Senior Notes, the Company is not obligated to make principal
      payments until the Maturity Date, nor are there any penalties should the notes
      be repaid prior to the Maturity Date. Interest on the Senior Notes accrues
      at a
      rate of 10% per annum through October 27, 2006 and at the rate of 12% from
      October 27, 2006 thereafter as defined in the note agreement and is payable
      quarterly commencing June 30, 2006. Interest expense related to this debt
      including amortization of the deferred financing fees for the ten months ended
      July 31, 2006 was $185, which when aggregated with the amortization of the
      Debt
      Warrants and the Underwriter&#8217;s Debt Warrants described above, yields an
      effective interest rate of 47%. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>Financing
      Agreement</em></strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">
      <div align="left">
        <table border="0" cellpadding="0" cellspacing="0" id="ftable" width="90%">

            <tr>
              <td valign="bottom" width="43%" style="border-bottom: #ffffff solid;">&#160;</td>
              <td width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td colspan="5" valign="bottom" width="26%" style="border-bottom: black thin solid;">
                <div align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">As
                  of July 31,</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td colspan="5" valign="bottom" width="26%" style="border-bottom: black thin solid;">
                <div align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">As
                  of September 30,</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;">&#160;</td>
            </tr>
            <tr>
              <td valign="bottom" width="43%" style="border-bottom: #ffffff solid;">&#160;</td>
              <td width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td colspan="2" valign="bottom" width="12%" style="border-bottom: black thin solid;">
                <div align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2006</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td colspan="2" valign="bottom" width="12%" style="border-bottom: black thin solid;">
                <div align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2005</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td colspan="2" valign="bottom" width="12%" style="border-bottom: black thin solid;">
                <div align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2005</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td colspan="2" valign="bottom" width="12%" style="border-bottom: black thin solid;">
                <div align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2004</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;">&#160;</td>
            </tr>
            <tr>
              <td valign="bottom" width="43%" style="border-bottom: medium none;">&#160;</td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" colspan="2" valign="bottom" width="12%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" colspan="2" valign="bottom" width="12%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" colspan="2" valign="bottom" width="12%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" colspan="2" valign="bottom" width="12%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td valign="bottom" width="43%" style="border-bottom: medium none;">&#160;</td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" colspan="2" valign="bottom" width="12%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" colspan="2" valign="bottom" width="12%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" colspan="2" valign="bottom" width="12%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" colspan="2" valign="bottom" width="12%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="43%" style="border-bottom: #ffffff solid;">
                <div style="MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Financing
                  agreement</font></div>
              </td>
              <td width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black double;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman">&#8212;</font></font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black double;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">474</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black double;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">292</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black double;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman">&#8212;</font></font></div>
                </div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff solid;">&#160;</td>
            </tr>

        </table>
      </div>
      <div align="left">&#160;</div>
      <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Commencing
        March 2005, the Company entered into a financing agreement (the &#8220;Agreement&#8221;)
        with a private commercial lender (the &#8220;Lender&#8221;) providing the Company up to $500
        of credit availability which was increased to $750 on September 12, 2005.
        Under
        the terms of the Agreement, the Company chose to deliver certain accounts
        receivable to the Lender, subject to acceptance. Upon acceptance, the Lender
        advanced to the Company up to 80% of the face amount of the receivable, and
        the
        remaining 20% was remitted to the Company when paid by the customer. In this
        Agreement, the Company assigned its right of </font></div>
      <div align="left">&#160;</div>
      <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 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="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">F
            -
            30</font></div>
          <div style="WIDTH: 100%; TEXT-ALIGN: center">
            <hr style="COLOR: black" noshade size="2">
          </div>
        </div>
        <div id="HDR">
          <div id="GLHDR" style="WIDTH: 100%" align="right">
          </div>
        </div>
      </div>
      <div align="left">
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>BRIDGELINE
          SOFTWARE, INC.</strong></font></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><br></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>NOTES
          TO CONSOLIDATED FINANCIAL STATEMENTS</strong></font></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>(Information
          as of July 31, 2006 and 2005 and for </strong></font></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>the
          Ten Months Ended July 31, 2006 and 2005 is Unaudited)</strong></font></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(Amounts
          in thousands, except share and per share data)</font></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
      </div>
      <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">collection
        to the Lender with full recourse rights against the Company in the event
        the
        receivable was never paid to the Company or the Lender directly.
</font></div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      fees
      charged under the Agreement for the aggregate amounts advanced by the Lender
      included a monthly commitment fee of 1.7%, which the Company recorded as
      interest expense. The total interest expense was $57, $22, $37, and $0 for
      the
      ten months ended July 31, 2006 and 2005 and the years ended September 30, 2005
      and 2004, respectively. The weighted average interest rate incurred by the
      Company on this arrangement was 21%, 24%, 22% and 0% on weighted average
      borrowings of $370, $266, $319, and $0 for the ten months ended July 31, 2006
      and 2005 and the years ended September 30, 2005 and 2004, respectively. The
      Company terminated the Agreement in June 2006.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>Capitalized
      Lease Obligations</em></strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">
      <div align="left">
        <table border="0" cellpadding="0" cellspacing="0" id="ftable" width="90%">

            <tr>
              <td valign="bottom" width="43%" style="border-bottom: #ffffff solid;">&#160;</td>
              <td width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td colspan="5" valign="bottom" width="26%" style="border-bottom: black thin solid;">
                <div align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">As
                  of July 31,</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td colspan="5" valign="bottom" width="26%" style="border-bottom: black thin solid;">
                <div align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">As
                  of September 30,</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;">&#160;</td>
            </tr>
            <tr>
              <td valign="bottom" width="43%" style="border-bottom: #ffffff solid;">&#160;</td>
              <td width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td colspan="2" valign="bottom" width="12%" style="border-bottom: black thin solid;">
                <div align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2006</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td colspan="2" valign="bottom" width="12%" style="border-bottom: black thin solid;">
                <div align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2005</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td colspan="2" valign="bottom" width="12%" style="border-bottom: black thin solid;">
                <div align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2005</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td colspan="2" valign="bottom" width="12%" style="border-bottom: black thin solid;">
                <div align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2004</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;">&#160;</td>
            </tr>
            <tr>
              <td valign="bottom" width="43%" style="border-bottom: medium none;">&#160;</td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" colspan="2" valign="bottom" width="12%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" colspan="2" valign="bottom" width="12%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" colspan="2" valign="bottom" width="12%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" colspan="2" valign="bottom" width="12%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="43%" style="border-bottom: #ffffff solid;">
                <div style="MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Capital
                  lease obligations</font></div>
              </td>
              <td width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black double;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">169</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black double;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">42</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black double;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">44</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
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              <td align="right" valign="bottom" width="11%" style="border-bottom: black double;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">54</font></div>
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              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff solid;">&#160;</td>
            </tr>

        </table>
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    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">As
      of
      September 30, 2005, the Company had remaining the following minimum lease
      payments under capitalized lease obligations:</font><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div align="center">
      <table border="0" cellpadding="0" cellspacing="0" id="ftable" width="75%">

          <tr>
            <td align="left" valign="bottom" width="85%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>Year
              Ending September 30,</u></font></td>
            <td width="2%">&#160;</td>
            <td align="left" valign="bottom" width="1%">&#160;</td>
            <td align="right" valign="bottom" width="11%">&#160;</td>
            <td align="left" valign="bottom" width="1%">&#160;</td>
          </tr>
          <tr>
            <td align="left" valign="bottom" width="85%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2006</font>&#160;</td>
            <td width="2%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">16</font></td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
          </tr>
          <tr>
            <td align="left" valign="bottom" width="85%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2007</font>&#160;</td>
            <td width="2%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">16</font></td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
          </tr>
          <tr>
            <td align="left" valign="bottom" width="85%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2008</font>&#160;</td>
            <td width="2%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">16</font></td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
          </tr>
          <tr>
            <td align="left" valign="bottom" width="85%" style="border-bottom: #ffffff solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2009</font>&#160;</td>
            <td width="2%" style="border-bottom: #ffffff solid;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">8</font></td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff solid;">&#160;</td>
          </tr>
          <tr>
            <td align="left" valign="bottom" width="85%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Totals</font>&#160;</td>
            <td width="2%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">56</font></td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
          </tr>
          <tr>
            <td align="left" valign="bottom" width="85%" style="border-bottom: #ffffff solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Less
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            <td width="2%" style="border-bottom: #ffffff solid;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">12</font></td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff solid;">&#160;</td>
          </tr>
          <tr>
            <td align="left" valign="bottom" width="85%" style="border-bottom: #ffffff solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Total
                capitalized lease obligations</font></div>
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            <td width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
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            <td align="right" valign="bottom" width="11%" style="border-bottom: black double;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">44</font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff solid;">&#160;</td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">During
      the ten months ended July 31, 2006, the Company leased additional equipment
      with
      a cost of $134 under capitalized leases.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>Notes
      Payable to Shareholders</em></strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br>
      <div align="left">
        <table border="0" cellpadding="0" cellspacing="0" id="ftable" width="90%">

            <tr>
              <td valign="bottom" width="43%" style="border-bottom: #ffffff solid;">&#160;</td>
              <td width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td colspan="5" valign="bottom" width="26%" style="border-bottom: black thin solid;">
                <div align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">As
                  of July 31,</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td colspan="5" valign="bottom" width="26%" style="border-bottom: black thin solid;">
                <div align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">As
                  of September 30,</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;">&#160;</td>
            </tr>
            <tr>
              <td valign="bottom" width="43%" style="border-bottom: #ffffff solid;">&#160;</td>
              <td width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td colspan="2" valign="bottom" width="12%" style="border-bottom: black thin solid;">
                <div align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2006</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td colspan="2" valign="bottom" width="12%" style="border-bottom: black thin solid;">
                <div align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2005</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td colspan="2" valign="bottom" width="12%" style="border-bottom: black thin solid;">
                <div align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2005</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td colspan="2" valign="bottom" width="12%" style="border-bottom: black thin solid;">
                <div align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2004</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;">&#160;</td>
            </tr>
            <tr>
              <td valign="bottom" width="43%" style="border-bottom: medium none;">&#160;</td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" colspan="2" valign="bottom" width="12%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" colspan="2" valign="bottom" width="12%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" colspan="2" valign="bottom" width="12%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" colspan="2" valign="bottom" width="12%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td valign="bottom" width="43%" style="border-bottom: medium none;">&#160;</td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" colspan="2" valign="bottom" width="12%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" colspan="2" valign="bottom" width="12%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" colspan="2" valign="bottom" width="12%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" colspan="2" valign="bottom" width="12%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="43%" style="border-bottom: #ffffff solid;">
                <div style="MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Notes
                  payable to shareholders</font></div>
              </td>
              <td width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black double;">
                <div style="MARGIN-LEFT: 9pt; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman">&#8212;</font></font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black double;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">45</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black double;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">85</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black double;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">171</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff solid;">&#160;</td>
            </tr>

        </table>
      </div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
      connection with the acquisition of Lead Dog Digital, Inc. (<font style="DISPLAY: inline; FONT-FAMILY: Times New Roman">&#8220;</font>Lead Dog<font style="DISPLAY: inline; FONT-FAMILY: Times New Roman">&#8221;</font>)
      in 2002, the
      Company issued notes payable to the former shareholders of Lead Dog totaling
      $58. These notes carried an interest rate of 10% maturing on August 31, 2005
      and
      were convertible into the Company&#8217;s common stock at $3.00 per share. The Company
      was unable to fully repay the principal and one of the note holders instituted
      the default interest rate of 15% for the period subsequent to August 31, 2005.
      Interest incurred under the notes was $5, $5, $6 and $6 for the </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 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="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">F
          -
          31</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <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="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>BRIDGELINE
        SOFTWARE, INC.</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>NOTES
        TO CONSOLIDATED FINANCIAL STATEMENTS</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>(Information
        as of July 31, 2006 and 2005 and for </strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>the
        Ten Months Ended July 31, 2006 and 2005 is Unaudited)</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(Amounts
        in thousands, except share and per share data)</font></div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">ten
      month
      periods ended July 31, 2006 and 2005 and the years ended September 30, 2005
      and
      2004, respectively. <font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      amounts outstanding under these notes were $0, $45, $45 and $58 for the ten
      months ended July 31, 2006 and 2005 and the years ended September 30, 2005
      and
      2004, respectively. These notes were subsequently paid in April 2006 and July
      2006.</font></font></div>
    <div>&#160;</div>
    <div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
        September 2002, the Company entered into two notes payable with its Chief
        Executive Officer in the amounts of $200 and $112. The $200 was secured by
        all
        assets of the Company and the $112 was an unsecured note. Both notes carried
        a
        10% interest rate and were convertible into the Company&#8217;s common stock at $3.00
        per share. The balances on these notes were $0, $0, $40 and $113 for the
        ten
        months ended July 31, 2006 and 2005, and the years ended September 30, 2005
        and
        2004, respectively. Both of these notes matured on September 7, 2006 and
        were
        paid on October 12, 2004 with no advance payment penalty. Interest under
        these
        notes was $0, $0, $0 and $5 for the ten months ended July 31, 2006 and 2005
        and
        the years ended September 30, 2005 and 2004, respectively.</font></div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
      September 2005, the Company received an interest free advance from its Chief
      Executive Officer in the amount of $40 and the advance was repaid on November
      9,
      2005. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>8.&#160;
      Commitments and Contingencies</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>Guarantees
      and Indemnifications</em></strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Certain
      software licenses granted by the Company contain provisions that indemnify
      licensees from damages and costs resulting from claims alleging that the
      Company&#8217;s software infringes the intellectual property rights of a third party.
      The Company has indemnification provisions in its articles of incorporation
      whereby no director or officer will be liable to the Company or its shareholders
      for monetary damages for breach of certain fiduciary duties as a director or
      officer. The Company has received no requests for indemnification under these
      provisions, and has not been required to make material payments pursuant to
      these provisions. Accordingly, the Company has not recorded a liability related
      to these indemnification provisions.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>Litigation</em></strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
      the
      normal course of business, the Company is subject to ordinary routine litigation
      and claims incidental to its business. The Company monitors and assesses the
      merits and risks of pending legal proceedings. While the results of litigation
      and claims cannot be predicted with certainty, based upon its current
      assessment, the Company believes that the final outcome of any existing legal
      proceeding will not have a materially adverse effect, individually or in the
      aggregate, on its consolidated results of operations or financial
      condition.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>Operating
      Lease Commitments</em></strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      Company maintains its executive offices in Woburn, Massachusetts and operating
      offices in several locations throughout the United States and abroad. Future
      minimum rental commitments under non-cancelable operating leases with initial
      or
      remaining terms in excess of one year at September 30, 2005 were as follows:
      </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div align="center">
      <table border="0" cellpadding="0" cellspacing="0" id="ftable" width="75%">

          <tr>
            <td align="left" valign="bottom" width="85%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><u><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Year
                Ending September 30,</font></u></div>
            </td>
            <td width="2%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" colspan="2" valign="bottom" width="12%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
          </tr>
          <tr>
            <td align="left" valign="bottom" width="85%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;2006</font></div>
            </td>
            <td width="2%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
            </td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">475</font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
          </tr>
          <tr>
            <td align="left" valign="bottom" width="85%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;2007</font></div>
            </td>
            <td width="2%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">259</font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
          </tr>

      </table>
    </div>
    <div align="center">&#160;</div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 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="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">F
          -
          32</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="2">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">
        </div>
      </div>
    </div>
    <div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>BRIDGELINE
        SOFTWARE, INC.</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>NOTES
        TO CONSOLIDATED FINANCIAL STATEMENTS</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>(Information
        as of July 31, 2006 and 2005 and for </strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>the
        Ten Months Ended July 31, 2006 and 2005 is Unaudited)</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(Amounts
        in thousands, except share and per share data)</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
    </div>
    <div align="center">
      <table border="0" cellpadding="0" cellspacing="0" id="ftable" width="75%">

          <tr>
            <td align="left" valign="bottom" width="85%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;2008</font></div>
            </td>
            <td width="2%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">234</font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
          </tr>
          <tr>
            <td align="left" valign="bottom" width="85%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;2009</font></div>
            </td>
            <td width="2%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">237</font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
          </tr>
          <tr>
            <td align="left" valign="bottom" width="85%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;2010</font></div>
            </td>
            <td width="2%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">239</font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
          </tr>
          <tr>
            <td align="left" valign="bottom" width="85%" style="border-bottom: #ffffff solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;Thereafter</font></div>
            </td>
            <td width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">230</font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;">&#160;</td>
          </tr>
          <tr>
            <td align="left" valign="bottom" width="85%" style="border-bottom: medium none;">&#160;</td>
            <td width="2%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
          </tr>
          <tr>
            <td align="left" valign="bottom" width="85%" style="border-bottom: #ffffff solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;Total</font></div>
            </td>
            <td width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
            </td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: black double;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">1,674</font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff solid;">&#160;</td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;&#160;&#160;&#160;
      </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Rent
      expense for the ten months ended July 31, 2006 and 2005 and the years ended
      September&#160;30, 2005 and 2004 was approximately $495, $432, $501 and $278,
      respectively.</font><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>Other
      Commitments</em></strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">On
      October 1, 2005, the Company entered into a Business Combination Services
      Agreement with Joseph Gunnar &amp; Co., LLC (&#8220;Gunnar&#8221;), pursuant to which Gunnar
      provides us with certain advisory services concerning potential acquisitions
      and
      transactions. The term of the agreement is for one year with automatic one-year
      renewals until either party elects not to renew and provides 90 days&#8217; written
      notice prior to the commencement of the next renewal period or after the
      consummation of two business combinations during any term. During the term
      and
      any renewal periods, the Company is required to pay cash advances against
      success fees in the initial amount of $7 per month, which amount increased
      to
      $10 per month in May 2006, and will increase to $15 per month upon a public
      stock offering. As compensation for its services, the Company is obligated
      to
      pay Gunnar, at the closing of a business combination (</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>i.e</em></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">.,
      a
      merger, acquisition, sale or joint venture), a success fee equal to six percent
      of the total value of all cash, securities or other property paid in connection
      with the transaction. The success fee for each business combination consummated
      during the initial term or a renewal period is a minimum of $125 and a maximum
      of $375, net of the cash advances paid to Gunnar during the applicable period.
      <font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Success
      fees, less amounts paid in advance, are included in the total purchase price
      of
      the related acquisition. Amounts paid in advance are expensed as paid.
</font>The Company is also obligated to reimburse Gunnar for reasonable expenses
      incurred in connection with providing the advisory services.</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      This
      agreement also contains exclusivity, indemnification and other terms and
      provisions customary for agreements of this nature.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      Company frequently warrants that the technology solutions it develops for its
      clients will operate in accordance with the project specifications without
      defects for a specified warranty period, subject to certain limitations that
      the
      Company believes are standard in the industry. In the event that defects are
      discovered during the warranty period, and none of the limitations apply, the
      Company is obligated to remedy the defects until the solution that the Company
      provided operates within the project specifications. The Company is not
      typically obligated by contract to provide its clients with any refunds of
      the
      fees they have paid, although a small number of its contracts provide for the
      payment of liquidated damages upon default. The Company has purchased insurance
      policies covering professional errors and omissions, property damage and general
      liability that reduce its monetary exposure for warranty-related claims and
      enable it to recover a portion of any future amounts paid. The Company typically
      provides in its contracts for testing and client acceptance procedures that
      are
      designed to mitigate the likelihood of warranty-related claims, although there
      can be no assurance </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">that
      such
      procedures will be effective for each project. The Company has never paid any
      material amounts with respect to the warranties for its solutions. The Company
      sometimes commits unanticipated levels of effort to projects to remedy defects
      covered by its warranties. The Company&#8217;s estimate of its exposure related to
      warranties on contracts is immaterial as of July 31, 2006 and 2005 and
      September&#160;30, 2005 and 2004. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
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        </div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
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          -
          33</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <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="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>BRIDGELINE
        SOFTWARE, INC.</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>NOTES
        TO CONSOLIDATED FINANCIAL STATEMENTS</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>(Information
        as of July 31, 2006 and 2005 and for </strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>the
        Ten Months Ended July 31, 2006 and 2005 is Unaudited)</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(Amounts
        in thousands, except share and per share data)</font></div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>9.&#160;
      Shareholder&#8217;s Equity</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>Estimated
      Fair Value of Common Stock</em></strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Since
      its
      inception in 2000, the Company has granted common stock, common stock warrants,
      and common stock option awards (the &#8220;Equity Awards&#8221;) to employees, consultants,
      advisors and debt holders of the Company and to former owners and employees
      of
      acquired companies that become employees of the Company. </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      following is a summary of the common stock reserved for issuance for stock
      option and warrant activity:</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>Common
      Stock Warrants</em></strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">During
      2001 through 2004, the Company issued to certain investment advisors warrants
      to
      purchase 128,874 shares of common stock for services rendered in connection
      with
      private placement sales of common stock with aggregate proceeds of approximately
      $4,700. The warrants are exercisable at $3.75 and $4.68 per share at any time
      within five years from the grant date. The Company valued the warrants at a
      combined amount of $341 using the Model as described in Note 2.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
      connection with the December 2004 acquisition of iapps described in Note 3,
      the
      Company issued 104,193 warrants to its investment advisor for services rendered
      in connection with the acquisition. The warrants are exercisable at $3.75 and
      $4.68 per share at any time within five years from the grant date. The Company
      valued the warrants at $269 using the Model as described in Note 2, which the
      Company recorded as a direct cost of the acquisition.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
      March
      2005, the Company issued 3,200 warrants in connection with the $500 financing
      agreement described in Note 7. The warrants are exercisable at $4.68 per share
      at any time within five years from the date of grant. The Company valued the
      warrants at $8 using the Model as described in Note 2, which the Company charged
      to deferred financing fees and amortized the cost over the expected life of
      the
      agreement. The fees were fully amortized when the financing agreement was
      terminated in 2006.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      Debt
      Warrants issued in connection with the Senior Notes described in Note 7 are
      exercisable at $0.001 per share at any time within five years from the date
      of
      grant. For the ten months ending July 31, 2006, 10,000 Debt Warrants have been
      exercised by one Senior Note holder. The Underwriter&#8217;s Debt Warrants issued in
      connection with the Senior Notes described in Note 7 are exercisable at any
      time
      within five years from the grant date provided, however, that no such exercise
      shall take place prior to the earlier of the date of an initial public offering
      or April 21, 2008. The Underwriter&#8217;s Debt Warrants are exercisable at $4.68 or,
      in the case of an initial public offering, an amount equal to the first offering
      price on the first day of an offering. The Company valued the Debt Warrants
      at
      $531 and the Underwriter&#8217;s Debt Warrants at $115 using the Model as described in
      Note 2, which the Company charged to deferred financing costs and amortized
      over
      the expected life of the Senior Notes of one year.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Upon
      successful completion of an initial public offering, the exercise price of
      the
      Underwriter&#8217;s Debt Warrants will be modified to an amount equal to the first
      offering price on the first day of an offering in accordance with the Agreement.
      As such, the modification will require the Company to re-measure the value
      assigned to the warrants using the Model (as more fully described in Note 2).
      The effect of the modification, if any, will be charged to earnings at that
      time.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>2000
      Stock Incentive Plan</em></strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">During
      2000, the Company adopted the 2000 Stock Incentive Plan (the &#8220;Plan&#8221;) and
      reserved 1.0&#160;million </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 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="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">F
          -
          34</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <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="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>BRIDGELINE
          SOFTWARE, INC.</strong></font></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><br></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>NOTES
          TO CONSOLIDATED FINANCIAL STATEMENTS</strong></font></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>(Information
          as of July 31, 2006 and 2005 and for </strong></font></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>the
          Ten Months Ended July 31, 2006 and 2005 is Unaudited)</strong></font></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(Amounts
          in thousands, except share and per share data)</font></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
      </div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">shares
      of
      common stock for issuance thereunder. On June 24, 2005 the Board of Directors
      increased the reserve for common stock issued under the Plan to 1.2 million.
      The
      Plan authorized the award of incentive stock options, non-statutory stock
      options, restricted stock, unrestricted stock, performance shares, stock
      appreciation rights and any combination thereof to employees, officers,
      directors, consultants, independent contractors and advisors of the Company.
      During 2006, the Company amended and restated the Plan to conform to current
      tax
      laws and to increase the number of common shares reserved for issuance under
      the
      plan to 1.4 million. Options granted under the Plan may be granted with
      contractual lives of up to ten years. There were 366,427 options reserved for
      issuance under the Plan as of September 30, 2005.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>2001
      Lead Dog Stock Option Plan</em></strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
      connection with the Company&#8217;s merger with Lead Dog Digital, Inc. (&#8220;Lead Dog&#8221;) in
      February 2002, the Company acquired Lead Dog&#8217;s 2001 Stock Option Plan (the &#8220;Lead
      Dog Plan&#8221;). Options under the Lead Dog Plan may be granted for periods of up to
      ten years and at prices no less than the fair market value of the shares on
      the
      date of grant. Under the terms of the Agreement and Plan of Merger with Lead
      Dog, 98,731 options of the Lead Dog Plan were reserved for issuance to former
      Lead Dog employees that remained with the Company based on achievement of
      certain contingent objectives subsequent to the merger. During 2002, the Company
      issued 66,851 options with exercise prices of between $0.36 and $1.07 as the
      contingent objectives were met and during 2006, the Company issued 31,880 of
      its
      options with exercise prices of $3.75 as the contingent objectives were
      met.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">A
      summary
      of combined option activity is as follows:</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br>
      <div align="center">
        <table border="0" cellpadding="0" cellspacing="0" id="ftable" width="90%">

            <tr>
              <td valign="bottom" width="43%" style="border-bottom: #ffffff solid;">&#160;</td>
              <td width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="right" colspan="5" valign="bottom" width="26%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Stock
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              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="right" colspan="5" valign="bottom" width="26%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Stock
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              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;">&#160;</td>
            </tr>
            <tr>
              <td valign="bottom" width="43%" style="border-bottom: medium none;">&#160;</td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td colspan="2" valign="bottom" width="12%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td colspan="2" valign="bottom" width="12%" style="border-bottom: medium none;">
                <div align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Weighted
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td colspan="2" valign="bottom" width="12%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td colspan="2" valign="bottom" width="12%" style="border-bottom: medium none;">
                <div align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Weighted
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td valign="bottom" width="43%" style="border-bottom: medium none;">&#160;</td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td colspan="2" valign="bottom" width="12%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td colspan="2" valign="bottom" width="12%" style="border-bottom: medium none;">
                <div align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Average
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td colspan="2" valign="bottom" width="12%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td colspan="2" valign="bottom" width="12%" style="border-bottom: medium none;">
                <div align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Average
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td valign="bottom" width="43%" style="border-bottom: medium none;">&#160;</td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td colspan="2" valign="bottom" width="12%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td colspan="2" valign="bottom" width="12%" style="border-bottom: medium none;">
                <div align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Exercise
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td colspan="2" valign="bottom" width="12%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td colspan="2" valign="bottom" width="12%" style="border-bottom: medium none;">
                <div align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Exercise
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td valign="bottom" width="43%" style="border-bottom: #ffffff solid;">&#160;</td>
              <td width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="right" colspan="2" valign="bottom" width="12%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Options
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="right" colspan="2" valign="bottom" width="12%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Price
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="right" colspan="2" valign="bottom" width="12%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Warrants
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="right" colspan="2" valign="bottom" width="12%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Price
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;">&#160;</td>
            </tr>
            <tr>
              <td valign="bottom" width="43%" style="border-bottom: medium none;">&#160;</td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" colspan="2" valign="bottom" width="12%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" colspan="2" valign="bottom" width="12%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" colspan="2" valign="bottom" width="12%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" colspan="2" valign="bottom" width="12%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="43%" style="border-bottom: medium none;">
                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Outstanding,
                  October 1, 2003 </font></div>
              </td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">582,587
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">2.376</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">33,333
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">3.750</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="43%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Granted
                  </font></div>
              </td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">109,067
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
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              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">36,667
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              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
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              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
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              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="43%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Exercised
                  </font></div>
              </td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(22,222</font></div>
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              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
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              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
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              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">0.003</font></div>
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              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">&#8212;
                  </font></div>
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              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">&#8212;
                  </font></div>
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              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="43%" style="border-bottom: #ffffff solid;">
                <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Cancelled
                  or expired </font></div>
              </td>
              <td width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
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              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
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              <td align="right" valign="bottom" width="11%" style="border-bottom: #ffffff thin solid;">
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              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">&#8212;
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: #ffffff thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">&#8212;
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="43%" style="border-bottom: medium none;">
                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Outstanding,
                  September 30, 2004 </font></div>
              </td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">610,722
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">2.579</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">70,000
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">3.778</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="43%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Granted
                  </font></div>
              </td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">429,616
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">3.439</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">93,740
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">4.349</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="43%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Exercised
                  </font></div>
              </td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman">&#8212;</font></font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">&#8212;
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">&#8212;
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">&#8212;
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="43%" style="border-bottom: #ffffff solid;">
                <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Cancelled
                  or expired </font></div>
              </td>
              <td width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(206,765</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: #ffffff thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">2.852</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">&#8212;
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: #ffffff thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">&#8212;
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="43%" style="border-bottom: medium none;">
                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Outstanding,
                  September 30, 2005 </font></div>
              </td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">833,573
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">2.955</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">163,740
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">4.093</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="43%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Granted
                  </font></div>
              </td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
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              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
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              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">464,527
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              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
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              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">1.860</font></div>
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              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="43%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Exercised
                  </font></div>
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              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">&#8212;
                  </font></div>
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              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">&#8212;
                  </font></div>
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              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">&#8212;
                  </font></div>
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              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">&#8212;
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="43%" style="border-bottom: #ffffff solid;">
                <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Cancelled
                  or expired </font></div>
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              <td width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(62,662</font></div>
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              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: #ffffff thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">3.348</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">&#8212;
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: #ffffff thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">&#8212;
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="43%" style="border-bottom: #ffffff solid;">
                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Outstanding,
                  July 31, 2006 </font></div>
              </td>
              <td width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black double;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">925,831
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: #ffffff thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">3.055</font></div>
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              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black double;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">628,267
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: #ffffff thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">2.442</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;">&#160;</td>
            </tr>

        </table>
      </div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 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="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">F
          -
          35</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <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="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>BRIDGELINE
        SOFTWARE, INC.</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>NOTES
        TO CONSOLIDATED FINANCIAL STATEMENTS</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>(Information
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      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>the
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      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(Amounts
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    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">A
        summary
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        2005:</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">
      <div align="center">
        <table border="0" cellpadding="0" cellspacing="0" id="ftable" width="90%">

            <tr>
              <td width="9%">&#160;</td>
              <td valign="bottom" width="10%" style="border-bottom: #ffffff solid;">&#160;</td>
              <td width="3%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" colspan="8" valign="bottom" width="39%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Options
                  Outstanding </font></div>
              </td>
              <td align="left" valign="bottom" width="4%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="right" colspan="5" valign="bottom" width="25%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Options
                  Exercisable </font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td width="9%">&#160;</td>
            </tr>
            <tr>
              <td width="9%">&#160;</td>
              <td valign="bottom" width="10%" style="border-bottom: medium none;">&#160;</td>
              <td width="3%" style="border-bottom: medium none;">&#160;</td>
              <td colspan="2" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: medium none;">&#160;</td>
              <td colspan="2" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Weighted
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: medium none;">&#160;</td>
              <td colspan="2" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="4%" style="border-bottom: medium none;">&#160;</td>
              <td colspan="2" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: medium none;">&#160;</td>
              <td colspan="2" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td width="9%">&#160;</td>
            </tr>
            <tr>
              <td width="9%">&#160;</td>
              <td valign="bottom" width="10%" style="border-bottom: medium none;">&#160;</td>
              <td width="3%" style="border-bottom: medium none;">&#160;</td>
              <td colspan="2" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: medium none;">&#160;</td>
              <td colspan="2" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Average
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: medium none;">&#160;</td>
              <td colspan="2" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="4%" style="border-bottom: medium none;">&#160;</td>
              <td colspan="2" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: medium none;">&#160;</td>
              <td colspan="2" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td width="9%">&#160;</td>
            </tr>
            <tr>
              <td width="9%">&#160;</td>
              <td valign="bottom" width="10%" style="border-bottom: medium none;">&#160;</td>
              <td width="3%" style="border-bottom: medium none;">&#160;</td>
              <td colspan="2" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: medium none;">&#160;</td>
              <td colspan="2" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Remaining
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: medium none;">&#160;</td>
              <td colspan="2" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Aggregate
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="4%" style="border-bottom: medium none;">&#160;</td>
              <td colspan="2" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Number
                  of </font></div>
              </td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: medium none;">&#160;</td>
              <td colspan="2" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Aggregate
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td width="9%">&#160;</td>
            </tr>
            <tr>
              <td width="9%">&#160;</td>
              <td valign="bottom" width="10%" style="border-bottom: medium none;">
                <div align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Exercise
                  </font></div>
              </td>
              <td width="3%" style="border-bottom: medium none;">&#160;</td>
              <td colspan="2" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Number
                  of </font></div>
              </td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: medium none;">&#160;</td>
              <td colspan="2" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Contractual
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: medium none;">&#160;</td>
              <td colspan="2" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Intrinsic
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="4%" style="border-bottom: medium none;">&#160;</td>
              <td colspan="2" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Options
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: medium none;">&#160;</td>
              <td colspan="2" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Intrinsic
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td width="9%">&#160;</td>
            </tr>
            <tr>
              <td width="9%">&#160;</td>
              <td align="left" valign="bottom" width="10%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Price
                  </font></div>
              </td>
              <td width="3%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="right" colspan="2" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Options
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="right" colspan="2" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Life
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              <td align="left" valign="bottom" width="3%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="right" colspan="2" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Value
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              <td align="left" valign="bottom" width="4%" style="border-bottom: #ffffff thin solid;">&#160;</td>
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                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Exercisable
                  </font></div>
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              <td align="left" valign="bottom" width="3%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="right" colspan="2" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Value
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              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td width="9%">&#160;</td>
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            <tr>
              <td width="9%">&#160;</td>
              <td align="left" valign="bottom" width="10%" style="border-bottom: medium none;">&#160;</td>
              <td width="3%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" colspan="2" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" colspan="2" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" colspan="2" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="4%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" colspan="2" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" colspan="2" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td width="9%">&#160;</td>
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            <tr>
              <td width="9%">&#160;</td>
              <td align="left" valign="bottom" width="10%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$
                  0.003 </font></div>
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              <td width="3%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="10%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">24,167
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              <td align="left" valign="bottom" width="3%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="10%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">7.00
                  </font></div>
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              <td align="left" valign="bottom" width="3%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
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              <td align="right" valign="bottom" width="10%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">49,953</font></div>
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              <td align="left" valign="bottom" width="4%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="10%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">24,167
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="10%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">49,953</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td width="9%">&#160;</td>
            </tr>
            <tr>
              <td width="9%">&#160;</td>
              <td align="left" valign="bottom" width="10%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$
                  0.357 </font></div>
              </td>
              <td width="3%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="10%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">15,397
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="10%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">5.06
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="10%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">26,371</font></div>
              </td>
              <td align="left" valign="bottom" width="4%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="10%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">15,397
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="10%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">26,371</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td width="9%">&#160;</td>
            </tr>
            <tr>
              <td width="9%">&#160;</td>
              <td align="left" valign="bottom" width="10%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$
                  1.072 </font></div>
              </td>
              <td width="3%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="10%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">63,374
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="10%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">6.51
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="10%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">63,272</font></div>
              </td>
              <td align="left" valign="bottom" width="4%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="10%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">63,374
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="10%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">63,272</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td width="9%">&#160;</td>
            </tr>
            <tr>
              <td width="9%">&#160;</td>
              <td align="left" valign="bottom" width="10%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$
                  1.200 </font></div>
              </td>
              <td width="3%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="10%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">43,764
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="10%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">9.21
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="10%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">38,075</font></div>
              </td>
              <td align="left" valign="bottom" width="4%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="10%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">43,764
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="10%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">38,075</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td width="9%">&#160;</td>
            </tr>
            <tr>
              <td width="9%">&#160;</td>
              <td align="left" valign="bottom" width="10%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$
                  3.000 </font></div>
              </td>
              <td width="3%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="10%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">568,038
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="10%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">8.00
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="10%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman">&#8212;</font></font></div>
              </td>
              <td align="left" valign="bottom" width="4%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="10%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">197,379
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="10%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman">&#8212;</font></font></div>
                </div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td width="9%">&#160;</td>
            </tr>
            <tr>
              <td width="9%">&#160;</td>
              <td align="left" valign="bottom" width="10%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$
                  3.750 </font></div>
              </td>
              <td width="3%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="10%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">118,833
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="10%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">9.17
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="10%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman">&#8212;</font></font></div>
                </div>
              </td>
              <td align="left" valign="bottom" width="4%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="10%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">4,389
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="3%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="10%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman">&#8212;</font></font></div>
                </div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td width="9%">&#160;</td>
            </tr>

        </table>
      </div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      aggregate intrinsic value in the table above represents the total intrinsic
      value, based on the Company&#8217;s estimate of fair value of $1.94 </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">a</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">t
      September 30, 2005 which would have been received by the option holders had
      all
      option holders exercised their options as of those dates.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>10.&#160;
      Income Taxes</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      provision for income taxes differs from the amount computed by applying the
      statutory federal income tax rate to income before provision for income taxes.
      The sources and tax effects of the differences are as follows:</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br>
      <div align="left">
        <table border="0" cellpadding="0" cellspacing="0" id="ftable" width="75%">

            <tr>
              <td align="left" valign="bottom" width="69%" style="border-bottom: #ffffff solid;">&#160;</td>
              <td width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" colspan="5" valign="bottom" width="28%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Fiscal
                  Year Ended September 30, </font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="69%" style="border-bottom: #ffffff solid;">&#160;</td>
              <td width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" colspan="2" valign="bottom" width="13%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2005
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" colspan="2" valign="bottom" width="13%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2004
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="69%" style="border-bottom: medium none;">&#160;</td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" colspan="2" valign="bottom" width="13%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" colspan="2" valign="bottom" width="13%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="69%" style="border-bottom: medium none;">
                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Income
                  tax benefit at the</font></div>
              </td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" colspan="2" valign="bottom" width="13%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" colspan="2" valign="bottom" width="13%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="69%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">federal
                  statutory rate of 34%</font></div>
              </td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="12%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(175</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="12%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(61</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
              </td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="69%" style="border-bottom: medium none;">
                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Permanent
                  differences, net</font></div>
              </td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="12%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">45
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="12%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">15
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="69%" style="border-bottom: medium none;">
                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">State
                  income benefit,</font></div>
              </td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="12%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="12%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="69%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">net
                  of federal benefit</font></div>
              </td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="12%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(20</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="12%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(9</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
              </td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="69%" style="border-bottom: #ffffff solid;">
                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Change
                  in valuation allowance</font></div>
              </td>
              <td width="2%" style="border-bottom: #ffffff solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="12%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">150
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="12%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">55
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff solid;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="69%" style="border-bottom: #ffffff solid;">
                <div style="MARGIN-LEFT: 18pt" align="left">&#160;</div>
              </td>
              <td width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font>&#160;</div>
              </td>
              <td align="right" valign="bottom" width="12%" style="border-bottom: black double;">&#160;<font style="DISPLAY: inline; FONT-FAMILY: Times New Roman">&#8212;</font></td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="12%" style="border-bottom: black double;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman" size="3">&#8212;</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff solid;">&#160;</td>
            </tr>

        </table>
      </div>
      <div>&#160;</div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">As
      of
      September 30, 2005, the Company has net operating loss carryforwards (&#8220;NOLs&#8221;) of
      approximately $3,000 for federal purposes and $2,900 for state purposes, which
      will be available to offset future taxable income. If not used, the federal
      carryforwards will expire between 2020 and 2025 and the state carryforwards
      will
      expire between 2006 and 2025.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      Company&#8217;s income tax provision was computed based on the federal statutory rate
      and average state statutory rates, net of the related federal
      benefit.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 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="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">F
          -
          36</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <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="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>BRIDGELINE
        SOFTWARE, INC.</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>NOTES
        TO CONSOLIDATED FINANCIAL STATEMENTS</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>(Information
        as of July 31, 2006 and 2005 and for </strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>the
        Ten Months Ended July 31, 2006 and 2005 is Unaudited)</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(Amounts
        in thousands, except share and per share data)</font><br></div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Significant
      components of the Company&#8217;s deferred tax assets and liabilities are as
      follows:</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div align="center">
      <table border="0" cellpadding="0" cellspacing="0" id="ftable" width="90%">

          <tr>
            <td align="left" valign="bottom" width="71%" style="border-bottom: #ffffff solid;">&#160;</td>
            <td width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
            <td colspan="5" valign="bottom" width="26%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">As
                of September 30,</font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;">&#160;</td>
          </tr>
          <tr>
            <td align="left" valign="bottom" width="71%" style="border-bottom: #ffffff solid;">&#160;</td>
            <td width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
            <td colspan="2" valign="bottom" width="12%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2005</font></div>
            </td>
            <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
            <td colspan="2" valign="bottom" width="12%" style="border-bottom: black thin solid;">
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            <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;">&#160;</td>
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          <tr>
            <td align="left" valign="bottom" width="71%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Deferred
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            </td>
            <td width="2%" style="border-bottom: medium none;">&#160;</td>
            <td align="right" colspan="2" valign="bottom" width="12%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right">&#160;</div>
            </td>
            <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
            <td align="right" colspan="2" valign="bottom" width="12%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right">&#160;</div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
          </tr>
          <tr>
            <td align="left" valign="bottom" width="71%" style="border-bottom: medium none;">
              <div style="MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Long-term</font>&#160;</div>
            </td>
            <td width="2%" style="border-bottom: medium none;">&#160;</td>
            <td align="right" colspan="2" valign="bottom" width="12%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
            <td align="right" colspan="2" valign="bottom" width="12%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
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          <tr>
            <td align="left" valign="bottom" width="71%" style="border-bottom: medium none;">
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            <td width="2%" style="border-bottom: medium none;">&#160;</td>
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            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
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          <tr>
            <td align="left" valign="bottom" width="71%" style="border-bottom: medium none;">&#160;</td>
            <td width="2%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
          </tr>
          <tr>
            <td align="left" valign="bottom" width="71%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Deferred
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            <td width="2%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
          </tr>
          <tr>
            <td align="left" valign="bottom" width="71%" style="border-bottom: medium none;">
              <div style="MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Current:</font>&#160;</div>
            </td>
            <td width="2%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
          </tr>
          <tr>
            <td align="left" valign="bottom" width="71%" style="border-bottom: medium none;">
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            <td width="2%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(3</font></td>
            <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(5</font></td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></td>
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          <tr>
            <td align="left" valign="bottom" width="71%" style="border-bottom: medium none;">&#160;</td>
            <td width="2%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
          </tr>
          <tr>
            <td align="left" valign="bottom" width="71%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Long-term:</font>&#160;</td>
            <td width="2%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
          </tr>
          <tr>
            <td align="left" valign="bottom" width="71%">
              <div style="MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Intangibles&#160;</font></div>
            </td>
            <td width="2%">&#160;</td>
            <td align="left" valign="bottom" width="1%">&#160;</td>
            <td align="right" valign="bottom" width="11%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;(132</font></td>
            <td align="left" valign="bottom" width="2%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)&#160;</font></td>
            <td align="left" valign="bottom" width="1%">&#160;</td>
            <td align="right" valign="bottom" width="11%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;(30</font></td>
            <td align="left" valign="bottom" width="1%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)&#160;</font></td>
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          <tr>
            <td align="left" valign="bottom" width="71%" style="border-bottom: #ffffff thin solid;">
              <div style="MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Depreciation</font>&#160;</div>
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            <td width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(57</font></td>
            <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff thin solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></font></td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(11</font></td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></font></td>
          </tr>
          <tr>
            <td align="left" valign="bottom" width="71%" style="border-bottom: medium none;">&#160;</td>
            <td width="2%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">994</font></td>
            <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">978</font></td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
          </tr>
          <tr>
            <td align="left" valign="bottom" width="71%" style="border-bottom: #ffffff thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Valuation
                allowance</font>&#160;</div>
            </td>
            <td width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">994</font></td>
            <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">978</font></td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;">&#160;</td>
          </tr>
          <tr>
            <td align="left" valign="bottom" width="71%" style="border-bottom: #ffffff solid;">&#160;</td>
            <td width="2%" style="border-bottom: #ffffff solid;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: black double;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: black double;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">-0-</font></td>
            <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff solid;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: black double;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: black double;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">-0-</font></td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff solid;">&#160;</td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      valuation allowance for deferred tax assets increased by $16 and $56 in the
      years ended September 30, 2005 and 2004, respectively. These increases were
      mainly due to the losses incurred during those years and the acquisition of
      iapps in December 2004. The Company has NOLs and other deferred tax benefits
      that are available to offset future taxable income. When realization of the
      deferred tax asset is more likely than not to occur, the Company establishes
      a
      valuation allowance to the extent that this realization is not probable;
      accordingly, the Company has established a full valuation allowance against
      its
      net deferred tax asset at July 31, 2006 and 2005 and September 30, 2005 and
      2004, respectively.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
      January 2005, the Company established Bridgeline Software Enterprises Pvt Ltd
      in
      Bangalore India under the Software Technology Parks of India law. This law
      establishes a tax holiday for the first ten years of operations; therefore
      the
      Company has not incurred any foreign taxes.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Undistributed
      earnings of the Company&#8217;s foreign subsidiary amounted to approximately $28 at
      September 30, 2005. These earnings are considered to be indefinitely reinvested;
      accordingly, no provision for US federal and state income taxes has been
      provided thereon. Upon repatriation of those earnings, in the form of dividends
      or otherwise, the Company would be subject to both US income taxes (subject
      to
      an adjustment for foreign tax credits) and withholding taxes payable to the
      applicable foreign tax authority. Determination of the amount of unrecognized
      deferred US income tax liability is not material and detailed calculations
      have
      not been performed. As of September 30, 2005, there would be minimal withholding
      taxes upon remittance of all previously unremitted earnings.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>11.&#160;
      Subsequent Events</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>Probable
      Acquisition of Objectware, Inc.</em></strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">On
        December 7, 2006, the Company signed a definitive agreement to acquire
        Objectware, Inc. (&#8220;OW&#8221;) effective immediately following a successful initial
        public offering, and no later than May 15, 2007. </font>OW is an Atlanta,
        Georgia-based company that <font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">specializes
        in Web application development, Web design, wireless application development,
        search engine optimization and providing managed Web services to
</font></div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 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="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">F
          -
          37</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <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="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>BRIDGELINE
        SOFTWARE, INC.</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>NOTES
        TO CONSOLIDATED FINANCIAL STATEMENTS</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>(Information
        as of July 31, 2006 and 2005 and for </strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>the
        Ten Months Ended July 31, 2006 and 2005 is Unaudited)</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(Amounts
        in thousands, except share and per share data)</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">customers.</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      The</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      proposed
      consideration for the acquisition of OW will consist of </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(i)
      $2,500 in cash, (ii) shares of its common stock having a value (based on the
      </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">initial
      public offering price of its shares in this offering)</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      of
      $2,700 and (iii) a deferred, contingent purchase price of up to $1,800, payable
      in cash and stock quarterly over the three years after the acquisition,
      contingent upon OW attaining certain operational performance benchmarks.
</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>Initial
      Public Offering of Common Stock</em></strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
      December 2006, the Company expects to file an initial public offering with
      the
      Securities and Exchange Commission for the sale of 3,000,000 of the Company&#8217;s
      common stock and to register 3,612,000 shares and warrants. </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      initial public offering price for the shares offered hereby is estimated to
      be
      between $5.00 and $6.00&#160;per share. The underwriter has a 45-day option to
      purchase up to an additional 450,000 shares to cover over-allotments. The shares
      are being offered by the underwriter, Joseph Gunnar &amp; Co., LLC, subject to
      prior sale, when, as and if accepted by them and subject to certain
      conditions.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>Amendment
      of Warrant Agreements</em></strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
        November 2006, the terms of Debt Warrants described in Note 7 were amended
        to
        eliminate a certain provision, included in the Debt Warrants in error during
        the
        drafting of the Debt Warrant documents, which provision resulted in a contingent
        obligation of the Company to redeem the Debt Warrants in the event that an
        initial public offering of the Company&#8217;s common stock does not occur prior to
        the April 2011 expiration date of the Debt Warrants. As a result of the
        amendment correcting this error, the Company has accounted for the warrants
        in
        shareholder&#8217;s equity as additional paid in capital since the date of
        issuance.</font></div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
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      </div>
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          -
          38</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
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      </div>
      <div id="HDR">
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    </div><a name="gmnh123"/>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 18pt; FONT-FAMILY: Times New Roman"><strong>Objectware,
        Inc.</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><br>&#160;</div>
      <div align="center">
        <table bgcolor="white" cellpadding="0" cellspacing="0" width="100%">

            <tr bgcolor="white">
              <td width="90%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Report
                of Independent Certified Public Accountants</font></td>
              <td width="10%">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">F-40</font></div>
              </td>
            </tr>
            <tr bgcolor="white">
              <td width="90%">&#160;</td>
              <td width="10%">&#160;</td>
            </tr>
            <tr bgcolor="white">
              <td width="90%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Balance
                Sheets as of July 31, 2006 (unaudited) and September 30, 2005 and
                2004</font></td>
              <td width="10%">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">F-41</font></div>
              </td>
            </tr>
            <tr bgcolor="white">
              <td width="90%">&#160;</td>
              <td width="10%">&#160;</td>
            </tr>
            <tr bgcolor="white">
              <td width="90%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Statements
                  of Operations for the ten months ended July 31, 2006 (unaudited)
                  </font></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;&#160;&#160;&#160;and
                  2005 (unaudited) and the years ended September 30, 2005 and
                  2004</font></div>
              </td>
              <td valign="bottom" width="10%">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">F-42</font></div>
              </td>
            </tr>
            <tr bgcolor="white">
              <td width="90%">&#160;</td>
              <td width="10%">&#160;</td>
            </tr>
            <tr bgcolor="white">
              <td width="90%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Statements
                  of Shareholder&#8217;s Equity for the ten months ended July 31, 2006
                  (unaudited)</font></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;&#160;&#160;&#160;&#160;and
                  the years ended September 30, 2005 and 2004</font></div>
              </td>
              <td valign="bottom" width="10%">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">F-43</font></div>
              </td>
            </tr>
            <tr bgcolor="white">
              <td width="90%">&#160;</td>
              <td width="10%">&#160;</td>
            </tr>
            <tr bgcolor="white">
              <td width="90%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Statements
                  of Cash Flows for the ten months ended July 31, 2006 (unaudited)
                  </font></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;&#160;&#160;&#160;&#160;and
                  the years ended September 30, 2005 and 2004</font></div>
              </td>
              <td valign="bottom" width="10%">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">F-44</font></div>
              </td>
            </tr>
            <tr bgcolor="white">
              <td width="90%">&#160;</td>
              <td width="10%">&#160;</td>
            </tr>
            <tr bgcolor="white">
              <td width="90%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Notes
                to Financial Statements&#160;</font></td>
              <td width="10%">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">F-45</font></div>
              </td>
            </tr>

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      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
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      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left">
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left">
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left">
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><br></div>
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      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
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            -
            39</font></div>
          <div style="WIDTH: 100%; TEXT-ALIGN: center">
            <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="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>Report
        of Independent Certified Public Accountants</u></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">To
        the
        Shareholders of</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Bridgeline
        Software, Inc.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">and
        </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Objectware,
        Inc.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">We
        have
        audited the accompanying balance sheets of Objectware, Inc. (the &#8220;Company&#8221;) as
        of September 30, 2005 and 2004, and the related statements of operations,
        shareholder&#8217;s equity, and cash flows for the years ended September 30, 2005 and
        2004. These financial statements are the responsibility of the Company&#8217;s
        management. Our responsibility is to express an opinion on these financial
        statements based on our audits.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">We
        conducted our audits in accordance with auditing standards generally accepted
        in
        the United States of America. Those standards require that we plan and perform
        the audit to obtain reasonable assurance about whether the financial statements
        are free of material misstatement. An audit includes examining, on a test
        basis,
        evidence supporting the amounts and disclosures in the financial statements.
        An
        audit also includes assessing the accounting principles used and significant
        estimates made by management, as well as evaluating the overall financial
        statement presentation. We believe that our audits provide a reasonable basis
        for our opinion.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
        our
        opinion, the financial statements referred to above present fairly, in all
        material respects, the financial position of Objectware, Inc. as of September
        30, 2005 and 2004, and the results of its operations and its cash flows for
        the
        years then ended in conformity with accounting principles generally accepted
        in
        the United States of America.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">/s/
        UHY
        LLP</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Boston,
        Massachusetts</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">December
        11, 2006</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
        <div id="FTR">
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          </div>
        </div>
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          <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">F
            -
            40</font></div>
          <div style="WIDTH: 100%; TEXT-ALIGN: center">
            <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="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left">
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Objectware,
          Inc.</strong></font></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>BALANCE
          SHEETS</strong></font></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>(Amounts
          in thousands, except share amounts)</strong></font></div>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div>
        <table cellpadding="0" cellspacing="0" id="ftable" width="100%">

            <tr>
              <td valign="bottom" width="57%" style="border-bottom: #ffffff solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td width="2%" style="border-bottom: #ffffff thin solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td colspan="2" valign="bottom" width="12%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(Unaudited)</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff thin solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="right" colspan="2" valign="bottom" width="12%" style="border-bottom: #ffffff thin solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff thin solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="right" colspan="2" valign="bottom" width="11%" style="border-bottom: #ffffff thin solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
            </tr>
            <tr>
              <td valign="bottom" width="57%" style="border-bottom: #ffffff solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td width="2%" style="border-bottom: #ffffff thin solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td colspan="2" valign="bottom" width="12%" style="border-bottom: #ffffff thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">July
                  31,</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff thin solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td colspan="5" valign="bottom" width="25%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">September
                  30,</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
            </tr>
            <tr>
              <td valign="bottom" width="57%" style="border-bottom: #ffffff solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">ASSETS</font></div>
              </td>
              <td width="2%" style="border-bottom: #ffffff thin solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td colspan="2" valign="bottom" width="12%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2006</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff thin solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td colspan="2" valign="bottom" width="12%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2005</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff thin solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td colspan="2" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2004</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
            </tr>
            <tr>
              <td valign="bottom" width="57%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Current
                  assets:</font></div>
              </td>
              <td width="2%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td colspan="2" valign="bottom" width="12%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td colspan="2" valign="bottom" width="12%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td colspan="2" valign="bottom" width="11%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
            </tr>
            <tr>
              <td valign="bottom" width="57%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Cash
                  and cash equivalents</font></div>
              </td>
              <td width="2%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">552</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">530</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">211</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
            </tr>
            <tr>
              <td valign="bottom" width="57%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Accounts
                  receivable, net</font></div>
              </td>
              <td width="2%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">366</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">180</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">138
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
            </tr>
            <tr>
              <td valign="bottom" width="57%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Current
                  portion of long-term receivable</font></div>
              </td>
              <td width="2%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">62</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">37</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8212;</font></div>
                </div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
            </tr>
            <tr>
              <td valign="bottom" width="57%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Marketable
                  securities - available for sale</font></div>
              </td>
              <td width="2%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">363</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8212;</font></div>
                </div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8212;</font></div>
                </div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
            </tr>
            <tr>
              <td valign="bottom" width="57%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Due
                  from shareholder&#160;</font></div>
              </td>
              <td width="2%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">44
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">27</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8212;</font></div>
                </div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
            </tr>
            <tr>
              <td valign="bottom" width="57%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Deferred
                  tax asset&#160;</font></div>
              </td>
              <td width="2%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">48
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">48</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8212;</font></div>
                </div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
            </tr>
            <tr>
              <td valign="bottom" width="57%" style="border-bottom: #ffffff thin solid;">
                <div style="MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Other
                  current assets&#160;</font></div>
              </td>
              <td width="2%" style="border-bottom: #ffffff thin solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">23</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff thin solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">19</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff thin solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">7</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
            </tr>
            <tr>
              <td valign="bottom" width="57%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Total
                  current assets&#160;</font></div>
              </td>
              <td width="2%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">1,458
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">841</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">356
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
            </tr>
            <tr>
              <td valign="bottom" width="57%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Equipment
                  and improvements, net&#160;</font></div>
              </td>
              <td width="2%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">190</font></div>
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              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">134
                  </font></div>
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              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">87</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
            </tr>
            <tr>
              <td valign="bottom" width="57%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Long-term
                  receivable, net of current portion&#160;</font></div>
              </td>
              <td width="2%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">347</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">226</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8212;</font></div>
                </div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
            </tr>
            <tr>
              <td valign="bottom" width="57%" style="border-bottom: #ffffff thin solid;">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Other
                  assets&#160;</font></div>
              </td>
              <td width="2%" style="border-bottom: #ffffff thin solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">12</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff thin solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">11</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff thin solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">12</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
            </tr>
            <tr>
              <td valign="bottom" width="57%" style="border-bottom: #ffffff solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Total
                  assets&#160;</font></div>
              </td>
              <td width="2%" style="border-bottom: #ffffff solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black double;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2,007</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black double;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">1,212</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black double;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">455</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="57%" style="border-bottom: medium none;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
              </td>
              <td width="2%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1; MARGIN-RIGHT: 0px">
                </div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1; MARGIN-RIGHT: 0px">
                </div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="57%" style="border-bottom: medium none;">&#160;</td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td valign="bottom" width="57%" style="border-bottom: medium none;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">LIABILITIES
                  AND SHAREHOLDER&#8217;S EQUITY</font></div>
              </td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="57%" style="border-bottom: medium none;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Current
                  liabilities:</font></div>
              </td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="57%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Accounts
                  payable&#160;</font></div>
              </td>
              <td width="2%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">52</font></td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">24</font></td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">30</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="57%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Income
                  taxes payable&#160;</font></div>
              </td>
              <td width="2%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">209</font></td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">184</font></td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">5</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="57%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Accrued
                  liabilities&#160;</font></div>
              </td>
              <td width="2%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">93</font></td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">81</font></td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">55</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="57%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Deferred
                  revenue&#160;</font></div>
              </td>
              <td width="2%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">452</font></td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">238</font></td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">221</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="57%" style="border-bottom: #ffffff thin solid;">
                <div style="MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Due
                  to shareholder&#160;</font></div>
              </td>
              <td width="2%" style="border-bottom: #ffffff thin solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8212;</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff thin solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8212;</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff thin solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">76</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="57%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Total
                  current liabilities&#160;</font></div>
              </td>
              <td width="2%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">806</font></td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">527</font></td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">387</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="57%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Deferred
                tax liability&#160;</font></td>
              <td width="2%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">19</font></td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">19</font></td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8212;</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="57%" style="border-bottom: #ffffff thin solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Long-term
                deferred revenue&#160;</font></td>
              <td width="2%" style="border-bottom: #ffffff thin solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">347</font></td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff thin solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">226</font></td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff thin solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8212;</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="57%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Total
                  liabilities&#160;</font></div>
              </td>
              <td width="2%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">1,172</font></td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">772</font></td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">387</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="57%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td width="2%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="57%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Commitments
                (Note 9)&#160;</font></td>
              <td width="2%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8212;</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8212;</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8212;</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="57%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td width="2%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="57%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Shareholder&#8217;s
                equity:&#160;</font></td>
              <td width="2%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="57%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Common
                  stock &#8212; $0.001 par value; 5,000,000 shares</font></div>
                <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">authorized;
                  1,600,000 shares issued and outstanding&#160;</font></div>
              </td>
              <td width="2%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2</font></td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2</font></td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="57%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Accumulated
                other comprehensive income, net of taxes&#160;</font></td>
              <td width="2%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">8</font></td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8212;</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8212;</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="57%" style="border-bottom: #ffffff thin solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Retained
                earnings&#160;</font></td>
              <td width="2%" style="border-bottom: #ffffff thin solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
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              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">438</font></td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff thin solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">66</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
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            <tr>
              <td align="left" valign="bottom" width="57%" style="border-bottom: #ffffff thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Total
                  shareholder&#8217;s equity</font></div>
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              <td width="2%" style="border-bottom: #ffffff thin solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">835</font></td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff thin solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">440</font></td>
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              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">68</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
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            <tr>
              <td align="left" valign="bottom" width="57%" style="border-bottom: #ffffff solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Total
                  liabilities and shareholder&#8217;s equity&#160;</font></div>
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              <td width="2%" style="border-bottom: #ffffff thin solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
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              <td align="right" valign="bottom" width="11%" style="border-bottom: black double;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2,007</font></div>
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              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
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              <td align="right" valign="bottom" width="11%" style="border-bottom: black double;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">1,212</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black double;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">455</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
            </tr>

        </table>
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        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
          accompanying notes are an integral part of these financial
          statements.</font></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
        <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 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="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">F
              -
              41</font></div>
            <div style="WIDTH: 100%; TEXT-ALIGN: center">
              <hr style="COLOR: black" noshade size="2">
            </div>
          </div>
          <div id="HDR">
            <div id="GLHDR" style="WIDTH: 100%" align="right">
            </div>
          </div>
        </div>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left">
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Objectware,
          Inc.</strong></font></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>STATEMENTS
          OF OPERATIONS</strong></font></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>(Amounts
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      <div>
        <table cellpadding="0" cellspacing="0" id="ftable" width="100%">

            <tr>
              <td align="left" valign="bottom" width="43%" style="border-bottom: #ffffff solid;">&#160;</td>
              <td width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td colspan="5" valign="bottom" width="26%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">For
                  the Ten Months Ended</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td colspan="5" valign="bottom" width="25%" style="border-bottom: #ffffff thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">For
                  the Year Ended</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="43%" style="border-bottom: #ffffff solid;">&#160;</td>
              <td width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td colspan="2" valign="bottom" width="12%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(Unaudited)</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td colspan="2" valign="bottom" width="12%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(Unaudited)</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td colspan="5" valign="bottom" width="25%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">September
                  30,</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="43%" style="border-bottom: #ffffff solid;">&#160;</td>
              <td width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="right" colspan="2" valign="bottom" width="12%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">July
                  31, 2006</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="right" colspan="2" valign="bottom" width="12%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">July
                  31, 2005</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td colspan="2" valign="bottom" width="12%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2005</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td colspan="2" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2004</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="43%" style="border-bottom: medium none;">&#160;</td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" colspan="2" valign="bottom" width="12%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" colspan="2" valign="bottom" width="12%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td colspan="2" valign="bottom" width="12%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td colspan="2" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="43%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Revenue:&#160;</font></td>
              <td width="2%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="right" colspan="2" valign="bottom" width="12%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="right" colspan="2" valign="bottom" width="12%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td colspan="2" valign="bottom" width="12%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td colspan="2" valign="bottom" width="11%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="43%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Web
                  services&#160;</font></div>
              </td>
              <td width="2%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2,560</font></td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">1,816</font></td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2,265</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">1,334</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="43%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Managed
                  services&#160;</font></div>
              </td>
              <td width="2%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">558</font></td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">404</font></td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">474</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">336</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="43%" style="border-bottom: #ffffff solid;">
                <div style="MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Reimbursable
                  expense&#160;</font></div>
              </td>
              <td width="2%" style="border-bottom: #ffffff solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">18</font></td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">19</font></td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">23</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="43%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Total
                  revenue&#160;</font></div>
              </td>
              <td width="2%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">3,136</font></td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2,239</font></td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2,762</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">1,672</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="43%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td width="2%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px">
                </div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="43%" style="border-bottom: #ffffff solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Cost
                of revenue&#160;</font></td>
              <td width="2%" style="border-bottom: #ffffff solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">1,440</font></td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">1,200</font></td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">1,443</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">1,141</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="43%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td width="2%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px">
                </div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="43%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Gross
                  profit&#160;</font></div>
              </td>
              <td width="2%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">1,696</font></td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">1,039</font></td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">1,319</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">531</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="43%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td width="2%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px">
                </div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="43%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Operating
                Expenses:&#160;</font></td>
              <td width="2%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px">
                </div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="43%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Selling,
                  general and administrative&#160;</font></div>
              </td>
              <td width="2%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">1,041</font></td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">631</font></td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">743</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">586</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="43%" style="border-bottom: #ffffff solid;">
                <div style="MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Depreciation&#160;</font></div>
              </td>
              <td width="2%" style="border-bottom: #ffffff solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">43</font></td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">34</font></td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">41</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">32</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="43%" style="border-bottom: #ffffff solid;">
                <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Total
                  operating expenses&#160;</font></div>
              </td>
              <td width="2%" style="border-bottom: #ffffff solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">1,084</font></td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">665</font></td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">784</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">618</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="43%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Income
                (loss) from operations&#160;</font></td>
              <td width="2%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">612</font></td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">374</font></td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">535</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(87</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
              </td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="43%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Other
                income (expense), net&#160;</font></td>
              <td width="2%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">22</font></td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8212;</font></td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(2</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8212;</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="43%" style="border-bottom: #ffffff solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Interest
                income (expense), net&#160;</font></td>
              <td width="2%" style="border-bottom: #ffffff solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(1</font></td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(4</font></td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(5</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(6</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
              </td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="43%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Income
                (loss) before provision for income taxes&#160;</font></td>
              <td width="2%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">633</font></td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">370</font></td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">528</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(93</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
              </td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="43%" style="border-bottom: #ffffff solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Provision
                for income taxes&#160;</font></td>
              <td width="2%" style="border-bottom: #ffffff solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">246</font></td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">110</font></td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">156</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">5</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="43%" style="border-bottom: #ffffff solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Net
                  income (loss)</font></div>
              </td>
              <td width="2%" style="border-bottom: #ffffff thin solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black double;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">387</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black double;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">260</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black double;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">372</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black double;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(98</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
              </td>
            </tr>

        </table>
      </div>
      <div>&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left">
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
          accompanying notes are an integral part of these financial
          statements.</font></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
        <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 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="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">F
              -
              42</font></div>
            <div style="WIDTH: 100%; TEXT-ALIGN: center">
              <hr style="COLOR: black" noshade size="2">
            </div>
          </div>
          <div id="HDR">
            <div id="GLHDR" style="WIDTH: 100%" align="right">
            </div>
          </div>
        </div>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left">
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Objectware,
          Inc.</strong></font></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>STATEMENTS
          OF SHAREHOLDER&#8217;S EQUITY</strong></font></div>
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          in thousands except share amounts)</strong></font></div>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
      <div>
        <table cellpadding="0" cellspacing="0" id="ftable" width="100%">

            <tr>
              <td align="left" valign="bottom" width="32%" style="border-bottom: medium none;">&#160;</td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td colspan="5" valign="bottom" width="21%" style="border-bottom: medium none;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Common
                  Stock</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" colspan="2" valign="bottom" width="10%" style="border-bottom: medium none;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Retained</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td colspan="2" valign="bottom" width="10%" style="border-bottom: medium none;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Accumulated</font></div>
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              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td colspan="2" valign="bottom" width="10%" style="border-bottom: medium none;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Total</font></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Shareholder&#8217;s</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td colspan="2" valign="bottom" width="10%" style="border-bottom: medium none;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Comprehensive</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="32%" style="border-bottom: #ffffff solid;">&#160;</td>
              <td width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td colspan="2" valign="bottom" width="10%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Shares</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" colspan="2" valign="bottom" width="10%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Amount</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" colspan="2" valign="bottom" width="10%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Earnings</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td colspan="2" valign="bottom" width="10%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Income</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td colspan="2" valign="bottom" width="10%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Equity</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td colspan="2" valign="bottom" width="10%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Income</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="32%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Balance,
                September 30, 2003&#160;</font></td>
              <td width="2%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">1,600,000</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">164</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8212;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">166</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="32%" style="border-bottom: #ffffff solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Net
                loss&#160;</font></td>
              <td width="2%" style="border-bottom: #ffffff solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: black thin solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8212;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: black thin solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8212;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: black thin solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(98</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: black thin solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8212;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: black thin solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(98</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: #ffffff thin solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="32%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Balance,
                September 30, 2004&#160;</font></td>
              <td width="2%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">1,600,000</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">66</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8212;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">68</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="32%" style="border-bottom: #ffffff solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Net
                income&#160;</font></td>
              <td width="2%" style="border-bottom: #ffffff solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: black thin solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8212;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: black thin solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8212;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: black thin solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">372</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: black thin solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8212;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: black thin solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">372</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: #ffffff thin solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="32%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Balance,
                September 30, 2005&#160;</font></td>
              <td width="2%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">1,600,000</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">438</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8212;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">440</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="32%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Net
                income (unaudited)&#160;</font></td>
              <td width="2%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8212;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8212;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">387</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8212;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">387</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">387</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="32%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Other
                comprehensive income:&#160;</font></td>
              <td width="2%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="32%" style="border-bottom: #ffffff solid;">
                <div style="MARGIN-LEFT: 36pt; TEXT-INDENT: -18pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Unrealized
                  gain in fair&#160;market&#160;value&#160;of &#160;&#160;marketable
                  securities, net of tax of $5&#160;(unaudited)&#160;</font></div>
              </td>
              <td width="2%" style="border-bottom: #ffffff solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: #ffffff solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: #ffffff solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: #ffffff solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: #ffffff solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">8
                </font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: #ffffff solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">8</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: black thin solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">8</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="32%" style="border-bottom: #ffffff solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Total
                comprehensive income (unaudited)&#160;</font></td>
              <td width="2%" style="border-bottom: #ffffff solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: black thin solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#8212;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: black thin solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#8212;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: black thin solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#8212;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: black thin solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8212;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: black thin solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8212;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black double;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: black double;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">395</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="32%" style="border-bottom: #ffffff solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Balance,
                  July 31, 2006 (unaudited)</font></div>
              </td>
              <td width="2%" style="border-bottom: #ffffff thin solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black double;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: black double;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">1,600,000</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: black double;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: black double;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">825</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: black double;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">8</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: black double;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">835</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: #ffffff solid;">
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff solid;">&#160;</td>
            </tr>

        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><br>&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        accompanying notes are an integral part of these financial
        statements.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><br></div><br>
      <div id="PGBRK" style="MARGIN-LEFT: 0pt; WIDTH: 100%; TEXT-INDENT: 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="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">F
            -
            43</font></div>
          <div style="WIDTH: 100%; TEXT-ALIGN: center">
            <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="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Objectware,
        Inc.</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>STATEMENTS
        OF CASH FLOWS</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>(Amounts
        in thousands)</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div>
        <table cellpadding="0" cellspacing="0" id="ftable" width="100%">

            <tr>
              <td align="left" valign="bottom" width="43%" style="border-bottom: #ffffff solid;">&#160;</td>
              <td width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td colspan="5" valign="bottom" width="26%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">For
                  the Ten Months Ended</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td colspan="5" valign="bottom" width="25%" style="border-bottom: #ffffff thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">For
                  the Year Ended</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="43%" style="border-bottom: #ffffff solid;">&#160;</td>
              <td width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td colspan="2" valign="bottom" width="12%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(Unaudited)</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td colspan="2" valign="bottom" width="12%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(Unaudited)</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td colspan="5" valign="bottom" width="25%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">September
                  30,</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="43%" style="border-bottom: #ffffff solid;">&#160;</td>
              <td width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="right" colspan="2" valign="bottom" width="12%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">July
                  31, 2006</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="right" colspan="2" valign="bottom" width="12%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">July
                  31, 2005</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td colspan="2" valign="bottom" width="12%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2005</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td colspan="2" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2004</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="43%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Cash
                flows from operating activities:&#160;</font></td>
              <td width="2%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="right" colspan="2" valign="bottom" width="12%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="right" colspan="2" valign="bottom" width="12%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="right" colspan="2" valign="bottom" width="12%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="right" colspan="2" valign="bottom" width="11%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="43%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Net
                income (loss)&#160;</font></td>
              <td width="2%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">387</font></td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">260</font></td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">372</font></td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(98</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="43%" style="border-bottom: medium none;">
                <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: -9pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Adjustments
                  to reconcile income (loss) from operations to net cash provided
                  by
                  operating activities:&#160;</font></div>
              </td>
              <td width="2%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="43%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Depreciation&#160;</font></td>
              <td width="2%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">43</font></td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">39</font></td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">40</font></td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">32</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="43%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Loss
                on disposal of fixed assets&#160;</font></td>
              <td width="2%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8212;</font></td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8212;</font></td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2</font></td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8212;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="43%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Gain
                on sale of marketable securities&#160;</font></td>
              <td width="2%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(5</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8212;</font></td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8212;</font></td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8212;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="43%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Changes
                in operating assets and liabilities:&#160;</font></td>
              <td width="2%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="43%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Accounts
                  receivable&#160;</font></div>
              </td>
              <td width="2%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(185</font></td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(56</font></td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(42</font></td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(20</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="43%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Long
                  term receivable&#160;</font></div>
              </td>
              <td width="2%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(146</font></td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(206</font></td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(263</font></td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8212;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="43%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Prepaid
                  expenses&#160;</font></div>
              </td>
              <td width="2%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(4</font></td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8212;</font></td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(12</font></td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(7</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="43%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Other
                  current assets&#160;</font></div>
              </td>
              <td width="2%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8212;</font></td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8212;</font></td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8212;</font></td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(3</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="43%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Deferred
                  tax assets&#160;</font></div>
              </td>
              <td width="2%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8212;</font></td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8212;</font></td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(48</font></td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8212;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="43%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Accounts
                  payable&#160;</font></div>
              </td>
              <td width="2%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">28</font></td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(15</font></td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(6</font></td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">21</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="43%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Income
                  taxes payable&#160;</font></div>
              </td>
              <td width="2%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">25</font></td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">105</font></td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">179</font></td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">5</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="43%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Accrued
                  liabilities&#160;</font></div>
              </td>
              <td width="2%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">12</font></td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">40</font></td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">26</font></td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">13</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="43%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Deferred
                  revenue&#160;</font></div>
              </td>
              <td width="2%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">335</font></td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">132</font></td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">243</font></td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">192</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="43%" style="border-bottom: #ffffff thin solid;">
                <div style="MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Deferred
                  tax liability&#160;</font></div>
              </td>
              <td width="2%" style="border-bottom: #ffffff thin solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8212;</font></td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff thin solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8212;</font></td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff thin solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">19</font></td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff thin solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8212;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="43%" style="border-bottom: #ffffff solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Net
                  cash provided by operating activities</font></div>
              </td>
              <td width="2%" style="border-bottom: #ffffff thin solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">490</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff thin solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">299</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff thin solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">510</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff thin solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">135</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="43%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Cash
                flows from investing activities:&#160;</font></td>
              <td width="2%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="43%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Capital
                  expenditures&#160;</font></div>
              </td>
              <td width="2%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(98</font></td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(62</font></td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(88</font></td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(43</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="43%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Purchases
                  of investments&#160;</font></div>
              </td>
              <td width="2%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(458</font></td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8212;</font></td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8212;</font></td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8212;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="43%" style="border-bottom: #ffffff solid;">
                <div style="MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Proceeds
                  from the sale of investments&#160;</font></div>
              </td>
              <td width="2%" style="border-bottom: #ffffff solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">105</font></td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8212;</font></td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8212;</font></td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8212;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="43%" style="border-bottom: #ffffff solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Net
                  cash used in investing activities</font></div>
              </td>
              <td width="2%" style="border-bottom: #ffffff thin solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(451</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(62</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(88</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(43</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
              </td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="43%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Cash
                  flows from financing activities:&#160;</font></div>
              </td>
              <td width="2%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="43%" style="border-bottom: #ffffff solid;">
                <div style="MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Advances
                  (to) from&#160;shareholder, net&#160;</font></div>
              </td>
              <td width="2%" style="border-bottom: #ffffff solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(17</font></td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(96</font></td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(103</font></td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(26</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="43%" style="border-bottom: #ffffff solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Net
                  cash used in financing activities</font></div>
              </td>
              <td width="2%" style="border-bottom: #ffffff thin solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(17</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(96</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(103</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(26</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></div>
              </td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="43%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Net
                increase in cash and cash equivalents&#160;</font></td>
              <td width="2%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">22</font></td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">141</font></td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">319</font></td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">66</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="43%" style="border-bottom: #ffffff solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Cash
                and cash equivalents, beginning of period&#160;</font></td>
              <td width="2%" style="border-bottom: #ffffff solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">530</font></td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">211</font></td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">211</font></td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">145</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="43%" style="border-bottom: #ffffff solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Cash
                  and cash equivalents, end of period</font></div>
              </td>
              <td width="2%" style="border-bottom: #ffffff thin solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black double;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">552</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black double;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">352</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black double;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">530</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black double;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">211</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="43%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Supplemental
                cash flow information:&#160;</font></td>
              <td width="2%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="43%" style="border-bottom: #ffffff solid;">
                <div style="MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Cash
                  paid for interest&#160;</font></div>
              </td>
              <td width="2%" style="border-bottom: #ffffff solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black double;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black double;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">1</font></td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black double;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black double;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">4</font></td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black double;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black double;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">5</font></td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black double;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black double;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">6</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="43%" style="border-bottom: #ffffff solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Cash
                  paid for income taxes</font></div>
              </td>
              <td width="2%" style="border-bottom: #ffffff thin solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black double;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">221</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black double;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">6</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black double;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">6</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black double;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8212;</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
            </tr>

        </table>
      </div>
      <div>&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left">
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
          accompanying notes are an integral part of these financial
          statements.</font></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><br>&#160;</div>
        <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
          <div id="FTR">
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            </div>
          </div>
          <div id="PN" style="PAGE-BREAK-AFTER: always">
            <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">F
              -
              44</font></div>
            <div style="WIDTH: 100%; TEXT-ALIGN: center">
              <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="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center">
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Objectware,
            Inc.</strong></font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><br></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>NOTES
            TO FINANCIAL STATEMENTS</strong></font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>(Information
            as of July 31, 2006 and for </strong></font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>the
            Ten Months Ended July 31, 2006 and 2005 is Unaudited)</strong></font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(Dollars
            in thousands, except share and per share data)</font></div>
        </div>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><br></div>
      <div>
        <div>
          <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">

              <tr valign="top" style="line-height: 1;">
                <td style="width: 18pt;">
                </td>
                <td align="left" style="width: 18pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>1.</strong></font></td>
                <td align="left">
                  <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Business
                    Description:</strong></font></div>
                </td>
              </tr>

          </table>
        </div>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Objectware,
        Inc. (the &#8220;Company&#8221;), a Georgia corporation, is a software company specializing
        in the development and hosting of custom Web, mobile and wireless applications.
        The Company is headquartered in Atlanta, Georgia. The Company&#8217;s customers are
        primarily located in the Southeastern and Eastern United States.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        Company&#8217;s operations are subject to certain risks and uncertainties, including
        the susceptibility of the Company&#8217;s services to rapid technological change,
        increased competition from existing service providers and new entrants, and
        dependence upon key members of the management team.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>Unaudited
        Interim Financial Information</em></strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        accompanying balance sheet as of July 31, 2006, the statements of operations
        and
        cash flows for the ten months ended July 31, 2006 and 2005, and the statement
        of
        stockholder&#8217;s equity for the ten months ended July 31, 2006 are unaudited. The
        unaudited interim statements have been prepared in accordance with accounting
        principles generally accepted in the United States of America and in the
        opinion
        of the Company&#8217;s management have been prepared on the same basis as the
        accompanying audited financial statements and include all adjustments,
        consisting of normal recurring adjustments and accruals, necessary for the
        fair
        presentation of the Company&#8217;s financial position at July 31, 2006 and its
        results of operations and its cash flows for the ten months ended July 31,
        2006
        and 2005. The results for the ten months ended July 31, 2006 are not necessarily
        indicative of the results to be expected for the year ending September 30,
        2006.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div>
        <div>
          <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">

              <tr valign="top" style="line-height: 1;">
                <td style="width: 18pt;">
                </td>
                <td align="left" style="width: 18pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>2.</strong></font></td>
                <td align="left">
                  <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Summary
                    of Significant Accounting
                    Policies:</strong></font></div>
                </td>
              </tr>

          </table>
        </div>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>Revenue
        Recognition</em></strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Substantially
        all of the Company&#8217;s revenue is generated from Web Services and Managed
        Services. The Company recognizes revenue</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
        when all
        of the following conditions are satisfied: (1) there is persuasive evidence
        of
        an arrangement; (2) the services have been provided to the customer; (3)
        the
        amount of fees to be paid by the customer is fixed or determinable; and (4)
        the
        collection of the fees is probable. Billings made or payments received in
        advance of providing services are deferred until the period these services
        are
        provided. </font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Web
        Services and Managed Services include consulting services that are related
        to
        specific customer needs such as information architecture and usability
        engineering, interface configuration, Web application development and hosting,
        rich media, e-Commerce, </font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
      <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
        <div id="FTR">
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          </div>
        </div>
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            -
            45</font></div>
          <div style="WIDTH: 100%; TEXT-ALIGN: center">
            <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="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Objectware,
            Inc.</strong></font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><br></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>NOTES
            TO FINANCIAL STATEMENTS</strong></font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>(Information
            as of July 31, 2006 and for </strong></font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>the
            Ten Months Ended July 31, 2006 and 2005 is Unaudited)</strong></font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(Dollars
            in thousands, except share and per share data)</font></div>
        </div>
        <div>&#160;</div>
      </div>
      <div>
        <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">

            <tr valign="top" style="line-height: 1;">
              <td style="width: 18pt;">
              </td>
              <td align="left" style="width: 18pt;">
                <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>2.</strong></font></div>
              </td>
              <td align="left">
                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Summary
                  of Significant Accounting Policies
                  (Continued):</strong></font></div>
              </td>
            </tr>

        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">e-Training,
        search engine optimization, and content management. </font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Revenue
        for Web Services and Managed Services is recognized when the services are
        performed or when they are complete. The Company uses the proportionate
        performance model in the determination of when delivery has occurred in relation
        to the extent of progress toward completion. When allocating revenue between
        reporting periods, the Company considers the actual labor hours&#160;incurred
        each period in proportion to total estimated labor hours necessary to deliver
        the services under the arrangement.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><br>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Managed
          Services also include on-going retained professional services and hosting
          arrangements. On-going retained professional services are either contracted
          for
          on an &#8220;on-call&#8221; basis or for a certain amount of hours each month. Such
          arrangements generally provide for a guaranteed availability of a number
          of
          hours each month on a &#8220;use it or lose it&#8221; basis. These arrangements do not
          require formal customer acceptance and do not grant any future right to
          labor
          hours contracted for but not used.</font></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
          determining whether Web Services can be accounted for separately from other
          elements in multi-element arrangements, the Company considers the following
          factors for each agreement: availability of the Web Services from other
          vendors,
          whether objective and reliable evidence of fair value exists for the undelivered
          elements, and whether delivery of any undelivered elements is probable
          and can
          be controlled by the Company. The amount of revenue recognized for Web
          Services
          in multi-element arrangements is determined by use of the residual
          method.</font></div>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Certain
        arrangements include a warranty period generally&#160;60 days from the
        completion of work. In hosting arrangements, the Company may provide warranties
        of up-time reliability. To date, few warranty claims have been received.
        The
        Company continues to monitor the conditions that are subject to the warranties
        to identify if a warranty claim may arise. If the Company determines that
        a
        warranty claim is probable, then any such estimable cost would be recognized
        to
        comply with the warranty requirements.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
        connection with certain arrangements, reimbursable expenses are incurred
        and
        billed to customers and such amounts are recognized as both revenue and cost
        of
        revenue. </font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>Concentration
        of Credit Risk and Significant Customers</em></strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Financial
        instruments, which potentially subject the Company to concentrations of credit
        risk consist primarily of cash and cash equivalents, to the extent these
        exceed
        federal insurance limits, short-term investments and accounts receivable.
        </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Risks
        associated with cash and cash equivalents are mitigated by investing excess
        cash
        in money market funds with high credit quality financial institutions. In
        general the Company does not require </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">collateral
        on its arrangements with customers. The Company has accounts receivable related
        to upfront fees which typically provide for credit terms of 30-60 days. The
        Company provides reserves against accounts receivables for estimated losses
        that
        may result from</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">customers&#8217;
        inability to pay. The amount of the reserve is determined by analyzing known
        uncollectible accounts, aged receivables, the economic conditions in the
        customers&#8217; industry, historical losses and changes in customer
        creditworthiness.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        Company had one customer who individually represented 18% of the Company&#8217;s total
        revenue for the ten months ended July 31, 2006 and no other customers
        representing 10% or more of the Company&#8217;s total revenue in all other periods
        presented.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify">
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
        <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 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="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">F
              -
              46</font></div>
            <div style="WIDTH: 100%; TEXT-ALIGN: center">
              <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="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Objectware,
              Inc.</strong></font></div>
            <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><br></div>
            <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>NOTES
              TO FINANCIAL STATEMENTS</strong></font></div>
            <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>(Information
              as of July 31, 2006 and for </strong></font></div>
            <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>the
              Ten Months Ended July 31, 2006 and 2005 is Unaudited)</strong></font></div>
            <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(Dollars
              in thousands, except share and per share data)</font></div>
          </div>
          <div>&#160;</div>
        </div>
        <div>
          <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">

              <tr valign="top" style="line-height: 1;">
                <td style="width: 18pt;">
                </td>
                <td align="left" style="width: 18pt;">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>2.</strong></font></div>
                </td>
                <td align="left">
                  <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Summary
                    of Significant Accounting Policies
                    (Continued):</strong></font></div>
                </td>
              </tr>

          </table>
        </div>
        <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        Company had certain customers whose balances individually represented 10%
        or
        more of the total accounts receivable (excluding the long term receivable
        discussed in Note 7), as follows:</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><br>
        <div align="center">
          <table border="0" cellpadding="0" cellspacing="0" width="75%">

              <tr>
                <td align="left" valign="top" width="24%">&#160;</td>
                <td align="left" valign="top" width="2%">&#160;</td>
                <td align="left" valign="top" width="24%">&#160;</td>
                <td align="left" valign="top" width="1%">&#160;</td>
                <td align="left" colspan="3" valign="top" width="49%" style="border-bottom: black thin solid;">
                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">September
                    30,</font></div>
                </td>
              </tr>
              <tr>
                <td align="left" valign="top" width="24%">&#160;</td>
                <td align="left" valign="top" width="2%">&#160;</td>
                <td align="left" valign="top" width="24%" style="border-bottom: black thin solid;">
                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">July
                    31, 2006</font></div>
                </td>
                <td align="left" valign="top" width="1%">&#160;</td>
                <td align="left" valign="top" width="24%" style="border-bottom: black thin solid;">
                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2005</font></div>
                </td>
                <td align="left" valign="top" width="1%">&#160;</td>
                <td align="left" valign="top" width="24%" style="border-bottom: black thin solid;">
                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2004</font></div>
                </td>
              </tr>
              <tr>
                <td align="left" valign="top" width="24%">&#160;</td>
                <td align="left" valign="top" width="2%">&#160;</td>
                <td align="left" valign="top" width="24%">&#160;</td>
                <td align="left" valign="top" width="1%">&#160;</td>
                <td align="left" valign="top" width="24%">&#160;</td>
                <td align="left" valign="top" width="1%">&#160;</td>
                <td align="left" valign="top" width="24%">&#160;</td>
              </tr>
              <tr>
                <td align="left" valign="top" width="24%">
                  <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Customer
                    #1</font></div>
                </td>
                <td align="left" valign="top" width="2%">&#160;</td>
                <td align="left" valign="top" width="24%">
                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">25%</font></div>
                </td>
                <td align="left" valign="top" width="1%">&#160;</td>
                <td align="left" valign="top" width="24%">
                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">*
                    </font></div>
                </td>
                <td align="left" valign="top" width="1%">&#160;</td>
                <td align="left" valign="top" width="24%">
                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">*
                    </font></div>
                </td>
              </tr>
              <tr>
                <td align="left" valign="top" width="24%">
                  <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Customer
                    #2</font></div>
                </td>
                <td align="left" valign="top" width="2%">&#160;</td>
                <td align="left" valign="top" width="24%">
                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">*
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                </td>
                <td align="left" valign="top" width="1%">&#160;</td>
                <td align="left" valign="top" width="24%">
                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">25%</font></div>
                </td>
                <td align="left" valign="top" width="1%">&#160;</td>
                <td align="left" valign="top" width="24%">
                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">*
                    </font></div>
                </td>
              </tr>
              <tr>
                <td align="left" valign="top" width="24%">
                  <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Customer
                    #3</font></div>
                </td>
                <td align="left" valign="top" width="2%">&#160;</td>
                <td align="left" valign="top" width="24%">
                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">*
                    </font></div>
                </td>
                <td align="left" valign="top" width="1%">&#160;</td>
                <td align="left" valign="top" width="24%">
                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">24%</font></div>
                </td>
                <td align="left" valign="top" width="1%">&#160;</td>
                <td align="left" valign="top" width="24%">
                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">*
                    </font></div>
                </td>
              </tr>
              <tr>
                <td align="left" valign="top" width="24%">
                  <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Customer
                    #4</font></div>
                </td>
                <td align="left" valign="top" width="2%">&#160;</td>
                <td align="left" valign="top" width="24%">
                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">*
                    </font></div>
                </td>
                <td align="left" valign="top" width="1%">&#160;</td>
                <td align="left" valign="top" width="24%">
                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">11%</font></div>
                </td>
                <td align="left" valign="top" width="1%">&#160;</td>
                <td align="left" valign="top" width="24%">
                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">*
                    </font></div>
                </td>
              </tr>
              <tr>
                <td align="left" valign="top" width="24%">
                  <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Customer
                    #5</font></div>
                </td>
                <td align="left" valign="top" width="2%">&#160;</td>
                <td align="left" valign="top" width="24%">
                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">*
                    </font></div>
                </td>
                <td align="left" valign="top" width="1%">&#160;</td>
                <td align="left" valign="top" width="24%">
                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">*
                    </font></div>
                </td>
                <td align="left" valign="top" width="1%">&#160;</td>
                <td align="left" valign="top" width="24%">
                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">26%</font></div>
                </td>
              </tr>
              <tr>
                <td align="left" valign="top" width="24%">
                  <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Customer
                    #6</font></div>
                </td>
                <td align="left" valign="top" width="2%">&#160;</td>
                <td align="left" valign="top" width="24%">
                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">*
                    </font></div>
                </td>
                <td align="left" valign="top" width="1%">&#160;</td>
                <td align="left" valign="top" width="24%">
                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">*
                    </font></div>
                </td>
                <td align="left" valign="top" width="1%">&#160;</td>
                <td align="left" valign="top" width="24%">
                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">17%</font></div>
                </td>
              </tr>
              <tr>
                <td align="left" valign="top" width="24%">&#160;</td>
                <td align="left" valign="top" width="2%">&#160;</td>
                <td align="left" valign="top" width="24%">&#160;</td>
                <td align="left" valign="top" width="1%">&#160;</td>
                <td align="left" valign="top" width="24%">&#160;</td>
                <td align="left" valign="top" width="1%">&#160;</td>
                <td align="left" valign="top" width="24%">&#160;</td>
              </tr>
              <tr>
                <td align="left" colspan="4" valign="top" width="51%">
                  <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">*
                    Represents less than 10%</font></div>
                </td>
                <td align="left" valign="top" width="24%">&#160;</td>
                <td align="left" valign="top" width="1%">&#160;</td>
                <td align="left" valign="top" width="24%">&#160;</td>
              </tr>

          </table>
        </div>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>Use
        of Estimates</em></strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        preparation of financial statements in conformity with accounting principles
        generally accepted in the United States of America requires management to
        make
        certain estimates and assumptions that affect the reported amounts of assets
        and
        liabilities and disclosure of contingent assets and liabilities at the date
        of
        the financial statements and the reported amounts of revenue and expenses
        during
        the reported periods. The most significant estimates included in these financial
        statements are the valuation of accounts receivable and deferred tax assets,
        proportionate performance estimates, unbilled receivables and deferred revenue.
        Actual results could differ from these estimates under different assumptions
        or
        conditions.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><br>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
          complexity of the estimation process and factors relating to assumptions,
          risks
          and uncertainties inherent with the use of the proportionate performance
          model
          affect the amounts of revenues and related expenses reported in our financial
          statements. A number of internal and external factors can affect our estimates
          including efficiency variances and specification and test requirement
          changes.</font></div>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>Cash
        and Cash Equivalents</em></strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        Company considers all highly liquid instruments with original maturity of
        three
        months or less from the date of purchase to be cash equivalents. Cash
        equivalents primarily consist of money market mutual funds. </font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>Fair
        Value of Financial Instruments</em></strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        carrying amounts of financial instruments, which include cash and cash
        equivalents, accounts receivable and accounts payable approximates their
        fair
        value because of the short-term maturity of these instruments. </font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify">
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
        <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 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="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">F
              -
              47</font></div>
            <div style="WIDTH: 100%; TEXT-ALIGN: center">
              <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="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Objectware,
              Inc.</strong></font></div>
            <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><br></div>
            <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>NOTES
              TO FINANCIAL STATEMENTS</strong></font></div>
            <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>(Information
              as of July 31, 2006 and for </strong></font></div>
            <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>the
              Ten Months Ended July 31, 2006 and 2005 is Unaudited)</strong></font></div>
            <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(Dollars
              in thousands, except share and per share data)</font></div>
          </div>
          <div>&#160;</div>
        </div>
        <div>
          <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">

              <tr valign="top" style="line-height: 1;">
                <td style="width: 18pt;">
                </td>
                <td align="left" style="width: 18pt;">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>2.</strong></font></div>
                </td>
                <td align="left">
                  <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Summary
                    of Significant Accounting Policies
                    (Continued):</strong></font></div>
                </td>
              </tr>

          </table>
        </div>
        <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>Marketable
        Securities - Available for Sale</em></strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Investments
        in marketable equity securities are classified as available for sale and
        are
        recorded at fair value.&#160; Unrealized gains and losses on these securities,
        net of income taxes, are included in&#160;shareholder&#8217;s equity as a component of
        accumulated other comprehensive income. </font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>Equipment
        and Improvements</em></strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        components of equipment and improvements are stated at cost. The Company
        provides for depreciation and amortization using the straight-line method
        over
        the estimated useful lives of the individual assets as follows: software,
        three
        years; furniture and fixtures, five to ten years; and computers and equipment,
        three to ten years. Leasehold improvements are amortized by use of the
        straight-line method over the lesser of the estimated useful life of the
        asset
        or the lease term. </font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Maintenance
        and repair costs are charged to expense as incurred. Major renewals,
        betterments, and additions are capitalized.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>Advertising
        Costs</em></strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">All
        advertising costs are expensed when incurred. Advertising costs were $2,
        $0, $3,
        and $11 for the ten months ended July 31, 2006 and 2005 and for years ended
        September 30, 2005 and 2004, respectively.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>Stock-Based
        Compensation </em></strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        Company has a stock-based employee compensation plan that is described more
        fully in Note 10. </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Prior
        to
        the effective date of Statement of Fnancial Accounting Standards (<font style="DISPLAY: inline; FONT-FAMILY: Times New Roman">&#8220;</font>SFAS<font style="DISPLAY: inline; FONT-FAMILY: Times New Roman">&#8221;</font>)
        No.&#160;123(R),
</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>&#8220;Share-Based
        Payment,&#8221; </em></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">the
        Company has elected under the provisions of SFAS&#160;No.&#160;123, </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>&#8220;Accounting
        for Stock-Based Compensation&#8221;</em></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
        (&#8220;SFAS&#160;No.&#160;123&#8221;), to account for employee stock options in accordance
        with Accounting Principle Board Opinion No.&#160;25, </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>&#8220;Accounting
        for Stock Issued to Employees&#8221;</em></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
        (&#8220;APB
        No.&#160;25&#8221;), using the intrinsic value approach to measure
        compensation</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>&#160;</em></strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">expense,
        if any. Companies that account for stock-based compensation arrangements
        under
        APB No.&#160;25 are required by SFAS&#160;No.&#160;123 to disclose the pro forma
        effect on net income (loss) as if the fair value based method prescribed
        by
        SFAS&#160;No.&#160;123 had been applied. </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        Company has not granted any options since 2001 and all options were fully
        vested
        in 2002, therefore no pro forma disclosure of the effect of SFAS No. 123
        is
        required.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify">
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
        <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 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="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">F
              -
              48</font></div>
            <div style="WIDTH: 100%; TEXT-ALIGN: center">
              <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="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Objectware,
              Inc.</strong></font></div>
            <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><br></div>
            <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>NOTES
              TO FINANCIAL STATEMENTS</strong></font></div>
            <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>(Information
              as of July 31, 2006 and for </strong></font></div>
            <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>the
              Ten Months Ended July 31, 2006 and 2005 is Unaudited)</strong></font></div>
            <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(Dollars
              in thousands, except share and per share data)</font></div>
          </div>
          <div>&#160;</div>
        </div>
        <div>
          <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">

              <tr valign="top" style="line-height: 1;">
                <td style="width: 18pt;">
                </td>
                <td align="left" style="width: 18pt;">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>2.</strong></font></div>
                </td>
                <td align="left">
                  <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Summary
                    of Significant Accounting Policies
                    (Continued):</strong></font></div>
                </td>
              </tr>

          </table>
        </div>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>Income
        Taxes</em></strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Deferred
        income taxes are recognized based on temporary differences between the financial
        statement and tax basis of assets and liabilities using enacted tax rates
        in
        effect for the year in which the temporary differences are expected to reverse.
        Valuation allowances are provided if, based upon the weight of available
        evidence, it is more likely than not that some or all of the deferred tax
        assets
        will not be realized. </font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>Recent
        Accounting Pronouncements</em></strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
        September 2006, the SEC staff issued Staff Accounting Bulletin&#160;108,
</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>Considering
        the Effects of Prior Year Misstatements when Quantifying Misstatements in
        Current Year Financial Statements</em></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
        (&#8220;SAB
        108&#8221;). SAB&#160;108 was issued in order to eliminate the diversity of practice
        surrounding how public companies quantify financial statement misstatements.
        Traditionally, there have been two widely-recognized methods for quantifying
        the
        effects of financial statement misstatements: the &#8220;roll-over&#8221; method and the
&#8220;iron curtain&#8221; method. The roll-over method focuses primarily on the impact of a
        misstatement on the income statement&#160;&#8212; including the reversing effect of
        prior year misstatements&#160;&#8212; but its use can lead to the accumulation of
        misstatements in the balance sheet. The iron-curtain method, on the other
        hand,
        focuses primarily on the effect of correcting the period-end balance sheet
        with
        less emphasis on the reversing effects of prior year errors on the income
        statement. In SAB&#160;108, the SEC staff established an approach that requires
        quantification of financial statement misstatements based on the effects
        of the
        misstatements on each of the company&#8217;s financial statements and the related
        financial statement disclosures. This model is commonly referred to as a
&#8220;dual
        approach&#8221; because it requires quantification of errors under both the iron
        curtain and the roll-over methods. Management of the Company has evaluated
        SAB
        108 and believes its adoption will not materially impact the financial
        statements.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
        September 2006, the FASB issued Statement of financial Accounting Standard
        157,
</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>Fair
        Value Measurements</em></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
        (&#8220;SFAS
        157&#8221;), which defines fair value, establishes a framework for measuring fair
        value in accounting principles generally accepted in the United States and
        expands disclosures about fair value measurements. SFAS 157 prioritizes the
        inputs to valuation techniques used to measure fair value into a hierarchy
        containing three broad levels. The fair value hierarchy gives the highest
        priority to quoted prices (unadjusted) in active markets for identical assets
        and liabilities (Level 1) and the lowest priority to unobservable inputs
        (Level
        3). In some cases, the inputs used to measure fair value might fall in different
        levels of the fair value hierarchy. The level in the fair value hierarchy
        within
        which the fair value measurement in its entirety falls shall be determined
        on
        the lowest level input that is significant to the fair value measurement
        in its
        entirety. Assessing the </font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify">
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
        <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 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="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">F
              -
              49</font></div>
            <div style="WIDTH: 100%; TEXT-ALIGN: center">
              <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="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Objectware,
              Inc.</strong></font></div>
            <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><br></div>
            <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>NOTES
              TO FINANCIAL STATEMENTS</strong></font></div>
            <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>(Information
              as of July 31, 2006 and for </strong></font></div>
            <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>the
              Ten Months Ended July 31, 2006 and 2005 is Unaudited)</strong></font></div>
            <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(Dollars
              in thousands, except share and per share data)</font></div>
          </div>
          <div>&#160;</div>
        </div>
        <div>
          <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">

              <tr valign="top" style="line-height: 1;">
                <td style="width: 18pt;">
                </td>
                <td align="left" style="width: 18pt;">
                  <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>2.</strong></font></div>
                </td>
                <td align="left">
                  <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Summary
                    of Significant Accounting Policies
                    (Continued):</strong></font></div>
                </td>
              </tr>

          </table>
        </div>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">significance
        of a particular input to the fair value measurement in its entirety requires
        judgment, considering factors specific to the asset or liability. SFAS 157
        is
        effective for interim and annual financial statements for years beginning
        after
        November 15, 2007. Upon initial adoption of SFAS 157, differences between
        the
        carrying value and the fair value of those instruments shall be recognized
        as a
        cumulative-effect adjustment to the opening balance of retained earnings
        for
        that year, and the effect of subsequent adjustments resulting from recurring
        fair measurements shall be recognized in earnings for the period. The Company
        has yet not adopted SFAS 157. As a result, the financial statements do not
        include any adjustments relating to any potential adjustments to the carrying
        value of assets and liabilities. </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Management
        of the Company has not completed its evaluation of SFAS 157. </font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
        June
        2006, the FASB issued FASB Interpretation&#160;48, </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>Accounting
        for Uncertainty in Income Taxes&#160;&#8212; an Interpretation of FASB
        Statement&#160;109</em></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
        (&#8220;FIN&#160;48&#8221;), which clarifies the accounting for uncertainty in tax
        positions. FIN&#160;48 requires that the Company recognize the impact of a tax
        position in the financial statements if that position is more likely than
        not to
        be reversed on audit, based on the technical merits of the position. The
        provisions of FIN&#160;48 are effective for years beginning after December 15,
        2006, with the cumulative effect, if any, of the change in accounting principle
        recorded as an adjustment to opening retained earnings. </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Management
        of the Company has evaluated SFAS 48 and believes its adoption will not
        materially impact the financial statements.</font><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div>
        <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">

            <tr valign="top" style="line-height: 1;">
              <td style="width: 18pt;">
              </td>
              <td align="left" style="width: 18pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>3.</strong></font></td>
              <td align="left">
                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Related-Party
                  Transactions:</strong></font></div>
              </td>
            </tr>

        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        Company&#8217;s sole shareholder has from time to time advanced funds to the Company
        for working capital purposes and has received funds as advances from the
        Company. Outstanding balances are due on demand. As of September 30, 2004,
        the
        balance of advances from the shareholder was approximately $76 and the amount
        due from the shareholder was $44 and $27 as of July 31, 2006 and September
        30,
        2005, respectively. Interest paid in relation to advances from the shareholder
        totaled $1, $5, $5 and $6 for the ten months ended July 31, 2006 and 2005
        and
        the years ended September 30, 2005 and 2004, respectively. </font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left">
        <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 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="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">F
              -
              50</font></div>
            <div style="WIDTH: 100%; TEXT-ALIGN: center">
              <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="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Objectware,
              Inc.</strong></font></div>
            <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><br></div>
            <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>NOTES
              TO FINANCIAL STATEMENTS</strong></font></div>
            <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>(Information
              as of July 31, 2006 and for </strong></font></div>
            <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>the
              Ten Months Ended July 31, 2006 and 2005 is Unaudited)</strong></font></div>
            <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(Dollars
              in thousands, except share and per share data)</font></div>
          </div>
          <div>&#160;</div>
        </div>
      </div>
      <div>
        <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">

            <tr valign="top" style="line-height: 1;">
              <td style="width: 18pt;">
              </td>
              <td align="left" style="width: 18pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>4.</strong></font></td>
              <td align="left">
                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Accounts
                  Receivable:</strong></font></div>
              </td>
            </tr>

        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Accounts
        receivable consisted of the following as of July 31, 2006 and September 30,
        2005
        and 2004:</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div align="center">
        <table border="0" cellpadding="0" cellspacing="0" id="ftable" width="90%">

            <tr>
              <td align="left" valign="bottom" width="57%" style="border-bottom: #ffffff solid;">&#160;</td>
              <td width="2%" style="border-bottom: #ffffff solid;">&#160;</td>
              <td align="right" colspan="2" valign="bottom" width="12%" style="border-bottom: #ffffff solid;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff solid;">&#160;</td>
              <td align="right" colspan="5" valign="bottom" width="26%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">September
                  30,</font>&#160;</div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff solid;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="57%" style="border-bottom: #ffffff solid;">&#160;</td>
              <td width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="right" colspan="2" valign="bottom" width="12%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">July
                  31, 2006</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="right" colspan="2" valign="bottom" width="12%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2005&#160;&#160;</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="right" colspan="2" valign="bottom" width="12%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2004</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="57%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Accounts
                receivable</font>&#160;</td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">409</font></td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">195</font></td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">116</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="57%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Unbilled
                accounts receivable</font>&#160;</td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;"><font style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px">&#8212;</font></td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">15</font></td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">22</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="57%" style="border-bottom: #ffffff solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Allowance
                for doubtful accounts</font>&#160;</td>
              <td width="2%" style="border-bottom: #ffffff solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(43</font></td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(30</font></td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;"><font style="DISPLAY: inline; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">&#8212;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff solid;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="57%" style="border-bottom: #ffffff solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Accounts
                  receivable, net</font></div>
              </td>
              <td width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black double;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">366</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black double;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">180</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black double;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">138</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff solid;">&#160;</td>
            </tr>

        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div>
        <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">

            <tr valign="top" style="line-height: 1;">
              <td style="width: 18pt;">
              </td>
              <td align="left" style="width: 18pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>5.</strong></font></td>
              <td align="left">
                <div align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Marketable
                  Securities - Available for
                  Sale:</strong></font></div>
              </td>
            </tr>

        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Marketable
        securities consist of the following at July 31, 2006:</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div align="center">
        <table border="0" cellpadding="0" cellspacing="0" id="ftable" width="90%">

            <tr>
              <td align="left" valign="bottom" width="43%" style="border-bottom: #ffffff solid;">&#160;</td>
              <td width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td colspan="2" valign="bottom" width="12%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Cost</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td colspan="2" valign="bottom" width="12%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Unrealized</font></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Gain
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td colspan="2" valign="bottom" width="12%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Unrealized</font></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(Loss)</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td colspan="2" valign="bottom" width="12%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Estimated</font></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Fair
                  Value</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="43%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Current:</font>&#160;</td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td colspan="2" valign="bottom" width="12%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td colspan="2" valign="bottom" width="12%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td colspan="2" valign="bottom" width="12%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td colspan="2" valign="bottom" width="12%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="43%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Common
                  stocks</font>&#160;</div>
              </td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">300</font></td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">14</font></td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;"><font style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px" size="3">&#8212;
                </font></td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">314</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="43%" style="border-bottom: #ffffff solid;">
                <div style="MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Mutual
                  funds</font>&#160;</div>
              </td>
              <td width="2%" style="border-bottom: #ffffff solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">50</font></td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">&#8212;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(1</font></td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">49</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff solid;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="43%" style="border-bottom: #ffffff solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Totals</font></div>
              </td>
              <td width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black double;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">350</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black double;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">14</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black double;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(1</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black double;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">363</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff solid;">&#160;</td>
            </tr>

        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div>
        <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">

            <tr valign="top" style="line-height: 1;">
              <td style="width: 18pt;">
              </td>
              <td align="left" style="width: 18pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>6.</strong></font></td>
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      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Equipment
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      <div align="center">
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            <tr>
              <td align="left" valign="bottom" width="57%" style="border-bottom: #ffffff solid;">&#160;</td>
              <td width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="right" colspan="2" valign="bottom" width="12%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td colspan="5" valign="bottom" width="26%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">September
                  30,</font></div>
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              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="57%" style="border-bottom: #ffffff solid;">&#160;</td>
              <td width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="right" colspan="2" valign="bottom" width="12%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">July
                  31, 2006</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td colspan="2" valign="bottom" width="12%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2005</font></div>
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              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td colspan="2" valign="bottom" width="12%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2004</font></div>
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              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;">&#160;</td>
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              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">391</font></td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
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              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">296</font></div>
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              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></div>
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              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">209</font></div>
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              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="57%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Furniture
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              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">37</font></td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">34</font></td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">34</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="57%" style="border-bottom: #ffffff solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Leasehold
                improvements</font>&#160;</td>
              <td width="2%" style="border-bottom: #ffffff solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">20</font></td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">20</font></td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">20</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff solid;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="57%" style="border-bottom: medium none;">&#160;</td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">448</font></td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">350</font></td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">263</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="57%" style="border-bottom: #ffffff solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Less:
                Accumulated depreciation and&#160;&#160;amortization</font>&#160;</td>
              <td width="2%" style="border-bottom: #ffffff solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">258</font></td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">216</font></td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">176</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff solid;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="57%" style="border-bottom: #ffffff solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Equipment
                  and improvements, net</font></div>
              </td>
              <td width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black double;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">190</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black double;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">134</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black double;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">87</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff solid;">&#160;</td>
            </tr>

        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
      <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
        <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">

            <tr valign="top" style="line-height: 1;">
              <td style="width: 18pt;">
              </td>
              <td align="left" style="width: 18pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>7.</strong></font></td>
              <td align="left">
                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Long
                  Term Receivable:</strong></font></div>
              </td>
            </tr>

        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Commencing
        in the year ended September 30, 2005, the Company granted to a certain customer
        extended payment term which provided for monthly payments of interest and
        principal. Prior to August 11, 2006, the payments were $3 monthly plus interest
        at a rate of 7%. Effective August 11, 2006, the principal payments were
        increased to $5 per month and the interest rate remained at 7%. The balance
        of
        the outstanding principal and interest</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify">
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left">
          <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 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="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">F
                -
                51</font></div>
              <div style="WIDTH: 100%; TEXT-ALIGN: center">
                <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="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Objectware,
                Inc.</strong></font></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><br></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>NOTES
                TO FINANCIAL STATEMENTS</strong></font></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>(Information
                as of July 31, 2006 and for </strong></font></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>the
                Ten Months Ended July 31, 2006 and 2005 is Unaudited)</strong></font></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(Dollars
                in thousands, except share and per share
                data)</font></div>
            </div><br></div>
        </div>
      </div>
      <div>
        <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">

            <tr valign="top" style="line-height: 1;">
              <td style="width: 18pt;">
              </td>
              <td align="left" style="width: 18pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>7.</strong></font></td>
              <td align="left">
                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Long
                  Term Receivable
                  (Continued):</strong></font></div>
              </td>
            </tr>

        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">becomes
        due and payable on August 31, 2010. The Company has determined that, in
        accordance with its revenue recognition policy, revenue for the arrangement
        should be deferred and is recognizing revenue as payments are received. During
        the ten months ended July 31, 2006 and the year ended September 30, 2005,
        the
        Company recognized revenue of $203 and $166, respectively, under this
        arrangement.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div>
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            <tr valign="top" style="line-height: 1;">
              <td style="width: 18pt;">
              </td>
              <td align="left" style="width: 18pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>8.</strong></font></td>
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                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Accrued
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              </td>
            </tr>

        </table>
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      <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Accrued
        liabilities consisted of the following as of July 31, 2006 and September
        30,
        2005 and 2004:</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
      <div align="center">
        <table border="0" cellpadding="0" cellspacing="0" id="ftable" width="90%">

            <tr>
              <td align="left" valign="bottom" width="57%" style="border-bottom: #ffffff solid;">&#160;</td>
              <td width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="right" colspan="2" valign="bottom" width="12%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td colspan="5" valign="bottom" width="26%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">September
                  30,</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="57%" style="border-bottom: #ffffff solid;">&#160;</td>
              <td width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="right" colspan="2" valign="bottom" width="12%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">July
                  31, 2006</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td colspan="2" valign="bottom" width="12%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2005</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td colspan="2" valign="bottom" width="12%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2004</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="57%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Deferred
                rent</font>&#160;</td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">22</font></td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">44</font></td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">48</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="57%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Accrued
                payroll</font>&#160;</td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">66</font></td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">37</font></td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">7</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="57%" style="border-bottom: #ffffff solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Other
                accruals</font>&#160;</td>
              <td width="2%" style="border-bottom: #ffffff solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">5</font></td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">&#8212;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">&#8212;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff solid;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="57%" style="border-bottom: #ffffff solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Total
                  accrued liabilities</font></div>
              </td>
              <td width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black double;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">93</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black double;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">81</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black double;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">55</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff solid;">&#160;</td>
            </tr>

        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
      <div>
        <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">

            <tr valign="top" style="line-height: 1;">
              <td style="width: 18pt;">
              </td>
              <td align="left" style="width: 18pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>9.</strong></font></td>
              <td align="left">
                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Commitments:</strong></font></div>
              </td>
            </tr>

        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>Revolving
        Line of Credit</em></strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">On
        January 9, 2002, the Company entered into a revolving line of credit with
        a
        commercial lender, First Union National Bank and its successor, Wachovia
        National Bank (the &#8220;Facility&#8221;). The Facility provides borrowings of up to $250
        and bears interest at the Wall Street Journal&#8217;s prime rate plus 5% (8.25% at
        July 31, 2006 and 6.75% at September 30, 2005). There was no balance outstanding
        under the Facility for any of the periods presented and the Company has never
        had any substantial borrowings under this arrangement. The Facility, which
        is
        guaranteed by the Company&#8217;s sole shareholder, is renewable annually.
</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>Operating
        Leases</em></strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        Company leases office space under non-cancelable operating leases with various
        expirations through 2008. Future minimum lease payments under all operating
        leases at September 30, 2005 were as follows:</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div align="center">
        <table cellpadding="0" cellspacing="0" id="ftable" width="75%">

            <tr>
              <td align="left" valign="bottom" width="81%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>Year
                Ended September 30,:</u></font>&#160;</td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" colspan="2" valign="bottom" width="16%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="81%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2006</font>&#160;</td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></td>
              <td align="right" valign="bottom" width="15%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">159</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="81%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2007</font></td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="15%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">164</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="81%" style="border-bottom: medium none;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2008</font></div>
              </td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="15%" style="border-bottom: medium none;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">35</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>

        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left">
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left">
          <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 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="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">F
                -
                52</font></div>
              <div style="WIDTH: 100%; TEXT-ALIGN: center">
                <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="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Objectware,
                Inc.</strong></font></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><br></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>NOTES
                TO FINANCIAL STATEMENTS</strong></font></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>(Information
                as of July 31, 2006 and for </strong></font></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>the
                Ten Months Ended July 31, 2006 and 2005 is Unaudited)</strong></font></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(Dollars
                in thousands, except share and per share data)</font></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
            </div>
          </div>
        </div>
      </div>
      <div>
        <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">

            <tr valign="top" style="line-height: 1;">
              <td style="width: 18pt;">
              </td>
              <td align="left" style="width: 18pt;">
                <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>9.</strong></font></div>
              </td>
              <td align="left">
                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Commitments
                  (Continued):</strong></font></div>
              </td>
            </tr>

        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Rent
        expense under all operating leases was approximately $100, $123, $135 and
        $129
        for the ten months ended July 31, 2006 and 2005 and the years ended September
        30, 2005 and 2004, respectively.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div>
        <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">

            <tr valign="top" style="line-height: 1;">
              <td style="width: 18pt;">
              </td>
              <td align="left" style="width: 27pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>10.</strong></font></td>
              <td align="left">
                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Shareholder&#8217;s
                  Equity: </strong></font></div>
              </td>
            </tr>

        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        Company has a stock option plan (the &#8220;Option Plan&#8221;) under which officers and key
        employees may be granted options to purchase shares of the Company&#8217;s authorized
        but unissued common stock. The maximum number of shares of the Company&#8217;s common
        stock available for issuance under the Option Plan is 400,000 shares. Under
        the
        Option Plan, the exercise price is equal to the estimated fair market value
        of
        the Company&#8217;s common stock at the date of grant as estimated by management.
        Options currently expire no later than 10 years from the grant date and
        generally vest within three months. Additional information with respect to
        the
        Option Plan&#8217;s stock option activity is as follows:</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div align="center">
        <table border="0" cellpadding="0" cellspacing="0" id="ftable" width="90%">

            <tr>
              <td align="left" valign="bottom" width="69%" style="border-bottom: #ffffff solid;">&#160;</td>
              <td width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td colspan="2" valign="bottom" width="12%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Options</font></div>
              </td>
              <td align="left" valign="bottom" width="4%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td colspan="2" valign="bottom" width="12%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Weighted</font></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Average</font></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Exercise</font></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;&#160;Price&#160;&#160;&#160;</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="69%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Options
                outstanding at September 30, 2003</font>&#160;</td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">52,500</font></td>
              <td align="left" valign="bottom" width="4%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">1.00</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="69%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Granted</font>&#160;</td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman">&#8212;</font></font></td>
              <td align="left" valign="bottom" width="4%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
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              <td align="left" valign="bottom" width="69%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Cancelled</font>&#160;</td>
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              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
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              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">1.00</font></td>
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            <tr>
              <td align="left" valign="bottom" width="69%" style="border-bottom: #ffffff solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Exercised</font>&#160;</td>
              <td width="2%" style="border-bottom: #ffffff solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8212;</font></td>
              <td align="left" valign="bottom" width="4%" style="border-bottom: #ffffff solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff solid;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: #ffffff solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff solid;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="69%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Options
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              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">42,500</font></td>
              <td align="left" valign="bottom" width="4%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">1.00</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="69%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Granted</font>&#160;</td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8212;</font></td>
              <td align="left" valign="bottom" width="4%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="69%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Cancelled</font>&#160;</td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8212;</font></td>
              <td align="left" valign="bottom" width="4%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="69%" style="border-bottom: #ffffff solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Exercised</font>&#160;</td>
              <td width="2%" style="border-bottom: #ffffff solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8212;</font></td>
              <td align="left" valign="bottom" width="4%" style="border-bottom: #ffffff solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff solid;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: #ffffff solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff solid;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="69%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Options
                outstanding at September 30, 2005</font>&#160;</td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">42,500
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              <td align="left" valign="bottom" width="4%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">1.00
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              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="69%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Granted</font>&#160;</td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8212;</font></td>
              <td align="left" valign="bottom" width="4%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="69%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Cancelled</font>&#160;</td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8212;</font></td>
              <td align="left" valign="bottom" width="4%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="69%" style="border-bottom: #ffffff solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Exercised</font>&#160;</td>
              <td width="2%" style="border-bottom: #ffffff solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8212;</font></td>
              <td align="left" valign="bottom" width="4%" style="border-bottom: #ffffff solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff solid;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: #ffffff solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff solid;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="69%" style="border-bottom: #ffffff solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Options
                  outstanding at July 31, 2006</font></div>
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              <td width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black double;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">42,500</font></div>
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              <td align="left" valign="bottom" width="4%" style="border-bottom: #ffffff solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: #ffffff thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">1.00
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              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;">&#160;</td>
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      <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Summarized
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      <div align="center">
        <table border="0" cellpadding="0" cellspacing="0" width="95%">

            <tr>
              <td align="left" valign="top" width="15%">&#160;</td>
              <td align="left" valign="top" width="2%">&#160;</td>
              <td valign="top" width="15%">&#160;</td>
              <td align="left" valign="top" width="2%">&#160;</td>
              <td valign="top" width="15%">&#160;</td>
              <td align="left" valign="top" width="2%">&#160;</td>
              <td valign="top" width="15%">&#160;</td>
              <td align="left" valign="top" width="2%">&#160;</td>
              <td colspan="3" valign="top" width="32%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Exercisable</font></div>
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            <tr>
              <td align="left" valign="bottom" width="15%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Range
                  of Exercise Prices</font></div>
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              <td align="left" valign="top" width="2%">&#160;</td>
              <td valign="top" width="15%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Number
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                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Options</font></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Outstanding</font></div>
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              <td align="left" valign="top" width="2%">&#160;</td>
              <td valign="bottom" width="15%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Weighted</font></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Average</font></div>
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                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Contractual</font></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Life</font></div>
              </td>
              <td align="left" valign="top" width="2%">&#160;</td>
              <td valign="bottom" width="15%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Weighted</font></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Average</font></div>
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                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Price</font></div>
              </td>
              <td align="left" valign="top" width="2%">&#160;</td>
              <td valign="bottom" width="15%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Number
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                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Options</font></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Outstanding</font></div>
              </td>
              <td align="left" valign="top" width="2%">&#160;</td>
              <td valign="bottom" width="15%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Weighted</font></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Average</font></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Remaining</font></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Contractual</font></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Life</font></div>
              </td>
            </tr>
            <tr>
              <td align="left" valign="top" width="15%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$1.00</font></div>
              </td>
              <td align="left" valign="top" width="2%">&#160;</td>
              <td align="right" valign="top" width="15%" style="border-bottom: black double;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">42,500</font></div>
              </td>
              <td align="left" valign="top" width="2%">&#160;</td>
              <td align="right" valign="top" width="15%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">5.4</font></div>
              </td>
              <td align="left" valign="top" width="2%">&#160;</td>
              <td align="right" valign="top" width="15%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$1.00</font></div>
              </td>
              <td align="left" valign="top" width="2%">&#160;</td>
              <td align="right" valign="top" width="15%" style="border-bottom: black double;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">42,500</font></div>
              </td>
              <td align="left" valign="top" width="2%">&#160;</td>
              <td align="right" valign="top" width="15%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">5.4</font></div>
              </td>
            </tr>

        </table>
      </div>
      <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left">
          <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
            <div id="FTR">
              <div id="GLFTR" style="WIDTH: 100%" align="left">
              </div>
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              <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">F
                -
                53</font></div>
              <div style="WIDTH: 100%; TEXT-ALIGN: center">
                <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="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Objectware,
                Inc.</strong></font></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><br></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>NOTES
                TO FINANCIAL STATEMENTS</strong></font></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>(Information
                as of July 31, 2006 and for </strong></font></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>the
                Ten Months Ended July 31, 2006 and 2005 is Unaudited)</strong></font></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(Dollars
                in thousands, except share and per share
                data)</font></div>
            </div>
          </div>
        </div>
      </div>
      <div align="center">&#160;</div>
      <div>
        <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">

            <tr valign="top" style="line-height: 1;">
              <td style="width: 18pt;">
              </td>
              <td align="left" style="width: 27pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>11.</strong></font></td>
              <td align="left">
                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Retirement
                  Plan: </strong></font></div>
              </td>
            </tr>

        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        Company has established a 401(k) employee savings and profit sharing plan
        (the
&#8220;401(k) Plan&#8221;) for the benefit of employees. Under the 401(k) Plan, employees
        can contribute and defer taxes on a portion of their compensation. The Company
        has not made any contributions to the plan since its inception.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div>
        <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">

            <tr valign="top" style="line-height: 1;">
              <td style="width: 18pt;">
              </td>
              <td align="left" style="width: 27pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>12.</strong></font></td>
              <td align="left">
                <div align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Income
                  Taxes</strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">:</font></div>
              </td>
            </tr>

        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Deferred
        tax assets or liabilities at the end of each period are determined using
        the
        currently enacted tax rates applied to taxable income in the period in which
        the
        deferred tax asset or liability is expected to be settled or realized.
        Realization of deferred tax assets is dependent on future earnings, if any,
        the
        timing and amount of which is uncertain. Accordingly, a valuation allowance
        in
        an amount equal to the net deferred tax asset as of September 30, 2004 has
        been
        established to reflect these uncertainties. As a result of improved operating
        results, a valuation allowance as of September 30, 2005 was not deemed necessary
        by the Company. </font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        components of net deferred tax assets at September 30, 2005 and 2004 are
        as
        follows:</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div align="center">
        <table border="0" cellpadding="0" cellspacing="0" id="ftable" width="90%">

            <tr>
              <td align="left" valign="bottom" width="71%" style="border-bottom: #ffffff solid;">&#160;</td>
              <td width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td colspan="5" valign="bottom" width="26%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">September
                  30,</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="71%" style="border-bottom: #ffffff solid;">&#160;</td>
              <td width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td colspan="2" valign="bottom" width="12%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2005</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td colspan="2" valign="bottom" width="12%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2004</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="71%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Deferred
                tax assets:</font>&#160;</td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td colspan="2" valign="bottom" width="12%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td colspan="2" valign="bottom" width="12%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="71%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Deferred
                  revenues</font>&#160;</div>
              </td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">77</font></td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">84</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="71%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Accounts
                  payable and accrued liabilities</font>&#160;</div>
              </td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">40
                </font></td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">32</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="71%" style="border-bottom: medium none;">&#160;</td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="71%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Less:
                Deferred tax liabilities:</font>&#160;</td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="71%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Accounts
                  receivable, net</font>&#160;</div>
              </td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(69</font></td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(53</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="71%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Tax
                  over book depreciation</font></div>
              </td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(19</font></td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(5</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></font></td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="71%" style="border-bottom: #ffffff solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Valuation
                allowance</font></td>
              <td width="2%" style="border-bottom: #ffffff solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman">&#8212;</font></font></td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(58
                </font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font>&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="71%" style="border-bottom: #ffffff solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Net
                  deferred taxes</font></div>
              </td>
              <td width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black double;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">29</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black double;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">&#8212;</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff solid;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="71%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Current</font>&#160;</td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">48</font></td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8212;</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="71%" style="border-bottom: #ffffff solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Long-term</font></div>
              </td>
              <td width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black double;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(19</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black double;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">&#8212;</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff solid;">&#160;</td>
            </tr>

        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        components of the provision for income taxes for the years ended September
        30,
        2005 and 2004 are as follows:</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div align="center">
        <table border="0" cellpadding="0" cellspacing="0" id="ftable" width="90%">

            <tr>
              <td align="left" valign="bottom" width="71%" style="border-bottom: #ffffff solid;">&#160;</td>
              <td width="2%" style="border-bottom: #ffffff solid;">&#160;</td>
              <td colspan="5" valign="bottom" width="26%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">For
                  the Year Ended September 30,</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff solid;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="71%" style="border-bottom: #ffffff solid;">&#160;</td>
              <td width="2%" style="border-bottom: #ffffff solid;">&#160;</td>
              <td colspan="2" valign="bottom" width="12%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2005</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff solid;">&#160;</td>
              <td colspan="2" valign="bottom" width="12%" style="border-bottom: black thin solid;">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2004</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff solid;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="71%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Federal
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              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td colspan="2" valign="bottom" width="12%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td colspan="2" valign="bottom" width="12%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="71%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Current:</font>&#160;</div>
              </td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td colspan="2" valign="bottom" width="12%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td colspan="2" valign="bottom" width="12%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="71%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Federal</font>&#160;</div>
              </td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">158</font></td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$</font></td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman">&#8212;</font></font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="71%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">State</font></div>
              </td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">27</font></td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">5
                </font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="71%" style="border-bottom: #ffffff solid;">
                <div style="MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Deferred</font></div>
              </td>
              <td width="2%" style="border-bottom: #ffffff solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(29</font></td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)</font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman">&#8212;</font></font></td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff solid;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="71%" style="border-bottom: #ffffff solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Provision
                  for income taxes</font></div>
              </td>
              <td width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black double;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">156</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black double;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">5</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff solid;">&#160;</td>
            </tr>

        </table>
      </div>
      <div>
        <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left">
            <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 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="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">F
                  -
                  54</font></div>
                <div style="WIDTH: 100%; TEXT-ALIGN: center">
                  <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="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Objectware,
                  Inc.</strong></font></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><br></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>NOTES
                  TO FINANCIAL STATEMENTS</strong></font></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>(Information
                  as of July 31, 2006 and for </strong></font></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>the
                  Ten Months Ended July 31, 2006 and 2005 is Unaudited)</strong></font></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(Dollars
                  in thousands, except share and per share
                  data)</font></div>
              </div>
            </div>
          </div>
        </div>
      </div>
      <div>
        <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">

            <tr valign="top" style="line-height: 1;">
              <td style="width: 18pt;">
              </td>
              <td align="left" style="width: 27pt;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>12.</strong></font></div>
              </td>
              <td align="left">
                <div align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Income
                  Taxes (Continued)</strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">:</font></div>
              </td>
            </tr>

        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        provision for income taxes differs from the amount computed by applying the
        statutory federal income tax to income before provision for income taxes.
        The
        sources and tax effects of the differences are as follows:</font><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><br>
        <div align="center">
          <table border="0" cellpadding="0" cellspacing="0" id="ftable" width="90%">

              <tr>
                <td align="left" valign="bottom" width="71%" style="border-bottom: #ffffff solid;">&#160;</td>
                <td width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
                <td align="left" colspan="5" valign="bottom" width="26%" style="border-bottom: black thin solid;">
                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Fiscal
                    Year Ended September 30, </font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              </tr>
              <tr>
                <td align="left" valign="bottom" width="71%" style="border-bottom: #ffffff solid;">&#160;</td>
                <td width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
                <td align="left" colspan="2" valign="bottom" width="12%" style="border-bottom: black thin solid;">
                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2005</font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
                <td align="left" colspan="2" valign="bottom" width="12%" style="border-bottom: black thin solid;">
                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2004</font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              </tr>
              <tr>
                <td align="left" valign="bottom" width="71%" style="border-bottom: medium none;">&#160;</td>
                <td width="2%" style="border-bottom: medium none;">&#160;</td>
                <td align="left" colspan="2" valign="bottom" width="12%" style="border-bottom: medium none;">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
                <td align="left" colspan="2" valign="bottom" width="12%" style="border-bottom: medium none;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              </tr>
              <tr>
                <td align="left" valign="bottom" width="71%" style="border-bottom: medium none;">
                  <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Income
                    tax (benefit) provision&#160;at the</font></div>
                </td>
                <td width="2%" style="border-bottom: medium none;">&#160;</td>
                <td align="left" colspan="2" valign="bottom" width="12%" style="border-bottom: medium none;">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
                <td align="left" colspan="2" valign="bottom" width="12%" style="border-bottom: medium none;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              </tr>
              <tr>
                <td align="left" valign="bottom" width="71%" style="border-bottom: medium none;">
                  <div style="MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">federal
                    statutory rate of 34%</font></div>
                </td>
                <td width="2%" style="border-bottom: medium none;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
                </td>
                <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">180</font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
                </td>
                <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(32</font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
                </td>
              </tr>
              <tr>
                <td align="left" valign="bottom" width="71%" style="border-bottom: medium none;">
                  <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">State
                    income expense,</font></div>
                </td>
                <td width="2%" style="border-bottom: medium none;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              </tr>
              <tr>
                <td align="left" valign="bottom" width="71%" style="border-bottom: medium none;">
                  <div style="MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">net
                    of federal benefit</font></div>
                </td>
                <td width="2%" style="border-bottom: medium none;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">21
                    </font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">5
                    </font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              </tr>
              <tr>
                <td align="left" valign="bottom" width="71%" style="border-bottom: medium none;">
                  <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Change
                    in valuation allowance</font></div>
                </td>
                <td width="2%" style="border-bottom: medium none;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(58</font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">32
                    </font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              </tr>
              <tr>
                <td align="left" valign="bottom" width="71%" style="border-bottom: #ffffff solid;">
                  <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Other</font></div>
                </td>
                <td width="2%" style="border-bottom: #ffffff solid;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">13
                    </font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff solid;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman">&#8212;</font></font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff solid;">&#160;</td>
              </tr>
              <tr>
                <td align="left" valign="bottom" width="71%" style="border-bottom: #ffffff solid;">&#160;</td>
                <td width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
                </td>
                <td align="right" valign="bottom" width="11%" style="border-bottom: black double;">
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                </td>
                <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff solid;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
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                <td align="right" valign="bottom" width="11%" style="border-bottom: black double;">
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                </td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff solid;">&#160;</td>
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          </table>
        </div>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
      <div>
        <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">

            <tr valign="top" style="line-height: 1;">
              <td style="width: 18pt;">
              </td>
              <td align="left" style="width: 27pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>13.</strong></font></td>
              <td align="left">
                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Subsequent
                  Event:</strong></font></div>
              </td>
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        </table>
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      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
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        December 7, 2006, the shareholder of the Company entered into a definitive
        agreement to sell the Company to Bridgeline Software, Inc. (&#8220;Bridgeline<font style="DISPLAY: inline; FONT-FAMILY: Times New Roman">&#8221;</font>). The
        sale is
        contingent on Bridgeline&#8217;s successful completion of an initial public offering
        (&#8220;IPO&#8221;) and the receipt of proceeds from the IPO of at least $10,000. The
        Company plans to complete the sale concurrent with, or shortly after
        Bridgeline&#8217;s IPO. </font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
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        <div id="PN" style="PAGE-BREAK-AFTER: always">
          <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">F
            -
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          <div style="WIDTH: 100%; TEXT-ALIGN: center">
            <hr style="COLOR: black" noshade size="2">
          </div>
        </div>
        <div id="HDR">
          <div id="GLHDR" style="WIDTH: 100%" align="right">
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      </div>
    </div>
    <div>
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      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><br>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 18pt; FONT-FAMILY: Times New Roman"><strong>New
          Tilt, Inc.</strong></font></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">
          <div align="left">
            <table border="0" cellpadding="0" cellspacing="0" width="100%">

                <tr>
                  <td align="left" valign="top" width="70%" style="border-bottom: medium none;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Report
                      of Independent Certified Public Accountants</font></div>
                  </td>
                  <td align="left" valign="top" width="20%" style="border-bottom: medium none;">&#160;</td>
                  <td align="left" valign="top" width="10%" style="border-bottom: medium none;">
                    <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;F-57</font></div>
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                <tr>
                  <td align="left" valign="top" width="70%">&#160;</td>
                  <td align="left" valign="top" width="20%">&#160;</td>
                  <td align="left" valign="top" width="10%">&#160;</td>
                </tr>
                <tr>
                  <td align="left" valign="top" width="70%" style="border-bottom: medium none;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Balance
                      Sheets as of April 24, 2006 and December 31, 2005</font></div>
                  </td>
                  <td align="left" valign="top" width="20%" style="border-bottom: medium none;">&#160;</td>
                  <td align="left" valign="top" width="10%" style="border-bottom: medium none;">
                    <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;F-58</font></div>
                  </td>
                </tr>
                <tr>
                  <td align="left" valign="top" width="70%">&#160;</td>
                  <td align="left" valign="top" width="20%">&#160;</td>
                  <td align="left" valign="top" width="10%">&#160;</td>
                </tr>
                <tr>
                  <td align="left" valign="top" width="70%" style="border-bottom: medium none;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Statements
                      of Operations for the period January 1, 2006 thru April 24,
                      2006 and the
                      </font></div>
                    <div style="DISPLAY: block; MARGIN-LEFT: 27pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">year
                      ended December 31, 2005</font></div>
                  </td>
                  <td align="left" valign="top" width="20%" style="border-bottom: medium none;">&#160;</td>
                  <td align="left" valign="bottom" width="10%" style="border-bottom: medium none;">
                    <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;F-59</font></div>
                  </td>
                </tr>
                <tr>
                  <td align="left" valign="top" width="70%">&#160;</td>
                  <td align="left" valign="top" width="20%">&#160;</td>
                  <td align="left" valign="top" width="10%">&#160;</td>
                </tr>
                <tr>
                  <td align="left" valign="top" width="70%" style="border-bottom: medium none;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Statements
                      of Shareholders&#8217; Equity for the period January 1, 2006 thru April 24, 2006
                      and the </font></div>
                    <div style="DISPLAY: block; MARGIN-LEFT: 27pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">year
                      ended December 31, 2005</font></div>
                  </td>
                  <td align="left" valign="top" width="20%" style="border-bottom: medium none;">&#160;</td>
                  <td align="left" valign="bottom" width="10%" style="border-bottom: medium none;">
                    <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;F-60</font></div>
                  </td>
                </tr>
                <tr>
                  <td align="left" valign="top" width="70%">&#160;</td>
                  <td align="left" valign="top" width="20%">&#160;</td>
                  <td align="left" valign="top" width="10%">&#160;</td>
                </tr>
                <tr>
                  <td align="left" valign="top" width="70%" style="border-bottom: medium none;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Statements
                      of Cash Flows for the period January 1, 2006 thru April 24,
                      2006 and the
                      year ended </font></div>
                    <div style="DISPLAY: block; MARGIN-LEFT: 27pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">December
                      31, 2005</font></div>
                  </td>
                  <td align="left" valign="top" width="20%" style="border-bottom: medium none;">&#160;</td>
                  <td align="left" valign="bottom" width="10%" style="border-bottom: medium none;">
                    <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;F-61</font></div>
                  </td>
                </tr>
                <tr>
                  <td align="left" valign="top" width="70%">&#160;</td>
                  <td align="left" valign="top" width="20%">&#160;</td>
                  <td align="left" valign="top" width="10%">&#160;</td>
                </tr>
                <tr>
                  <td align="left" valign="top" width="70%" style="border-bottom: medium none;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Notes
                      to Financial Statements </font></div>
                  </td>
                  <td align="left" valign="top" width="20%" style="border-bottom: medium none;">&#160;</td>
                  <td align="left" valign="top" width="10%" style="border-bottom: medium none;">
                    <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;F-62</font></div>
                  </td>
                </tr>

            </table>
          </div><br></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
        <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 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="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">F
              -
              56</font></div>
            <div style="WIDTH: 100%; TEXT-ALIGN: center">
              <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="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>Report
          of Independent Certified Public Accountants</u></font></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">To
          the
          Shareholders</font></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Bridgeline
          Software, Inc.</font></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">We
          have
          audited the accompanying balance sheets of New Tilt, Inc. (the &#8220;Company&#8221;) as of
          April 24, 2006 and December 31, 2005, and the related statements of operations,
          shareholders&#8217; equity, and cash flows for the period January 1, 2006 thru April
          24, 2006 and for the year ended December 31, 2005. These financial statements
          are the responsibility of the Company&#8217;s management. Our responsibility is to
          express an opinion on these financial statements based on our
          audits.</font></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">We
          conducted our audits in accordance with auditing standards generally accepted
          in
          the United States of America. Those standards require that we plan and
          perform
          the audit to obtain reasonable assurance about whether the financial statements
          are free of material misstatement. An audit includes examining, on a test
          basis,
          evidence supporting the amounts and disclosures in the financial statements.
          An
          audit also includes assessing the accounting principles used and significant
          estimates made by management, as well as evaluating the overall financial
          statement presentation. We believe that our audits provide a reasonable
          basis
          for our opinion.</font></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
          our
          opinion, the financial statements referred to above present fairly, in
          all
          material respects, the financial position of New Tilt, Inc. as of April
          24, 2006
          and December 31, 2005, and the results of its operations and its cash flows
          for
          the period January 1, 2006 thru April 24, 2006 and the year ended December
          31,
          2005 in conformity with accounting principles generally accepted in the
          United
          States of America.</font></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">/s/
          UHY
          LLP</font></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Boston,
          Massachusetts</font></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">December
          11, 2006</font></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
        <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 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="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">F
              -
              57</font></div>
            <div style="WIDTH: 100%; TEXT-ALIGN: center">
              <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="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>New
            Tilt, Inc.</strong></font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>BALANCE
            SHEETS</strong></font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>(Amounts
            in thousands, except share amounts)</strong></font></div>
        </div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
        <div>&#160;</div>
        <div><br>
          <div>
            <table cellpadding="0" cellspacing="0" id="ftable" width="100%">

                <tr>
                  <td align="left" valign="bottom" width="71%" style="border-bottom: #ffffff solid;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">ASSETS</font></div>
                  </td>
                  <td width="2%" style="border-bottom: #ffffff solid;">&#160;</td>
                  <td align="left" colspan="2" valign="bottom" width="12%" style="border-bottom: black thin solid;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">April
                      24, 2006</font></div>
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                  <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff solid;">&#160;</td>
                  <td align="left" colspan="2" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">December
                      31, 2005</font></div>
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                  <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff solid;">&#160;</td>
                </tr>
                <tr>
                  <td align="left" valign="bottom" width="71%" style="border-bottom: medium none;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Current
                      assets:</font></div>
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                  <td width="2%" style="border-bottom: medium none;">&#160;</td>
                  <td align="left" colspan="2" valign="bottom" width="12%" style="border-bottom: medium none;">&#160;</td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
                  <td align="left" colspan="2" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                </tr>
                <tr>
                  <td align="left" valign="bottom" width="71%" style="border-bottom: medium none;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Cash
                      and cash equivalents</font></div>
                  </td>
                  <td width="2%" style="border-bottom: medium none;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
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                  <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">159</font></div>
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                  <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
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                  <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">148</font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                </tr>
                <tr>
                  <td align="left" valign="bottom" width="71%" style="border-bottom: medium none;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Accounts
                      receivable</font></div>
                  </td>
                  <td width="2%" style="border-bottom: medium none;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">173</font></div>
                  </td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">465</font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                </tr>
                <tr>
                  <td align="left" valign="bottom" width="71%" style="border-bottom: #ffffff solid;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Prepaid
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                  </td>
                  <td width="2%" style="border-bottom: #ffffff solid;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">8</font></div>
                  </td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff solid;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">13</font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff solid;">&#160;</td>
                </tr>
                <tr>
                  <td align="left" valign="bottom" width="71%" style="border-bottom: medium none;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Total
                      current assets</font></div>
                  </td>
                  <td width="2%" style="border-bottom: medium none;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">340</font></div>
                  </td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">626</font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                </tr>
                <tr>
                  <td align="left" valign="bottom" width="71%" style="border-bottom: medium none;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Equipment
                      and improvements, net</font></div>
                  </td>
                  <td width="2%" style="border-bottom: medium none;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">61</font></div>
                  </td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">73</font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                </tr>
                <tr>
                  <td align="left" valign="bottom" width="71%" style="border-bottom: #ffffff solid;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Other
                      assets</font></div>
                  </td>
                  <td width="2%" style="border-bottom: #ffffff solid;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">11</font></div>
                  </td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff solid;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">15</font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff solid;">&#160;</td>
                </tr>
                <tr>
                  <td align="left" valign="bottom" width="71%" style="border-bottom: #ffffff solid;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Total
                      assets</font></div>
                  </td>
                  <td width="2%" style="border-bottom: #ffffff solid;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font>&#160;</div>
                  </td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: black double;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">412</font></div>
                  </td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff solid;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font>&#160;</div>
                  </td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: black double;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">714</font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff solid;">&#160;</td>
                </tr>
                <tr>
                  <td align="left" valign="bottom" width="71%" style="border-bottom: medium none;">&#160;</td>
                  <td width="2%" style="border-bottom: medium none;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                </tr>
                <tr>
                  <td align="left" valign="bottom" width="71%" style="border-bottom: medium none;">&#160;</td>
                  <td width="2%" style="border-bottom: medium none;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                </tr>
                <tr>
                  <td align="left" valign="bottom" width="71%">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">LIABILITIES
                      AND SHAREHOLDERS&#8217; EQUITY</font></div>
                  </td>
                  <td width="2%">&#160;</td>
                  <td align="left" valign="bottom" width="1%">&#160;</td>
                  <td align="right" valign="bottom" width="11%">&#160;</td>
                  <td align="left" valign="bottom" width="2%">&#160;</td>
                  <td align="left" valign="bottom" width="1%">&#160;</td>
                  <td align="right" valign="bottom" width="11%">&#160;</td>
                  <td align="left" valign="bottom" width="1%">&#160;</td>
                </tr>
                <tr>
                  <td align="left" valign="bottom" width="71%" style="border-bottom: medium none;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Current
                      liabilities:</font></div>
                  </td>
                  <td width="2%" style="border-bottom: medium none;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                </tr>
                <tr>
                  <td align="left" valign="bottom" width="71%" style="border-bottom: medium none;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Line
                      of credit and other debt</font></div>
                  </td>
                  <td width="2%" style="border-bottom: medium none;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
                  </td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman">&#8212;</font></font></div>
                  </td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
                  </td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">54</font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                </tr>
                <tr>
                  <td align="left" valign="bottom" width="71%" style="border-bottom: medium none;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Accounts
                      payable</font></div>
                  </td>
                  <td width="2%" style="border-bottom: medium none;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">19</font></div>
                  </td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">23</font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                </tr>
                <tr>
                  <td align="left" valign="bottom" width="71%" style="border-bottom: medium none;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Deferred
                      revenue</font></div>
                  </td>
                  <td width="2%" style="border-bottom: medium none;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">48</font></div>
                  </td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">58</font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                </tr>
                <tr>
                  <td align="left" valign="bottom" width="71%" style="border-bottom: #ffffff solid;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Accrued
                      liabilities</font></div>
                  </td>
                  <td width="2%" style="border-bottom: #ffffff solid;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">31</font></div>
                  </td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff solid;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">77</font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff solid;">&#160;</td>
                </tr>
                <tr>
                  <td align="left" valign="bottom" width="71%" style="border-bottom: medium none;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Total
                      current liabilities</font></div>
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                  <td width="2%" style="border-bottom: medium none;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">98</font></div>
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                  <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">212</font></div>
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                  <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                </tr>
                <tr>
                  <td align="left" valign="bottom" width="71%" style="border-bottom: medium none;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Commitments
                      (Note 9)</font></div>
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                  <td width="2%" style="border-bottom: medium none;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px">
                      <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman">&#8212;</font></font></div>
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                  </td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px">
                      <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman">&#8212;</font></font></div>
                    </div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                </tr>
                <tr>
                  <td align="left" valign="bottom" width="71%" style="border-bottom: medium none;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Shareholders&#8217;
                      equity:</font></div>
                  </td>
                  <td width="2%" style="border-bottom: medium none;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                </tr>
                <tr>
                  <td align="left" valign="bottom" width="71%" style="border-bottom: medium none;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 27pt; TEXT-INDENT: -9pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Common
                      stock &#8212; $0.001 par value; 2,000,000 shares authorized; 1</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">,200,000
                      </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">shares
                      issued and outstanding</font></div>
                  </td>
                  <td width="2%" style="border-bottom: medium none;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">1</font></div>
                  </td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">1</font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                </tr>
                <tr>
                  <td align="left" valign="bottom" width="71%" style="border-bottom: medium none;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Additional
                      paid-in capital</font></div>
                  </td>
                  <td width="2%" style="border-bottom: medium none;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">182</font></div>
                  </td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">160</font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                </tr>
                <tr>
                  <td align="left" valign="bottom" width="71%" style="border-bottom: #ffffff solid;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Retained
                      earnings</font></div>
                  </td>
                  <td width="2%" style="border-bottom: #ffffff solid;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">131</font></div>
                  </td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff solid;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">341</font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff solid;">&#160;</td>
                </tr>
                <tr>
                  <td align="left" valign="bottom" width="71%" style="border-bottom: #ffffff solid;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Total
                      shareholders&#8217; equity</font></div>
                  </td>
                  <td width="2%" style="border-bottom: #ffffff solid;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">314</font></div>
                  </td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff solid;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">502</font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff solid;">&#160;</td>
                </tr>
                <tr>
                  <td align="left" valign="bottom" width="71%" style="border-bottom: #ffffff solid;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Total
                      liabilities and shareholders&#8217; equity</font></div>
                  </td>
                  <td width="2%" style="border-bottom: #ffffff solid;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font>&#160;</div>
                  </td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: black double;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">412</font></div>
                  </td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff solid;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font>&#160;</div>
                  </td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: black double;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">714</font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff solid;">&#160;</td>
                </tr>

            </table>
          </div>
        </div>
        <div>&#160;</div>
        <div>&#160;</div>
        <div>&#160;</div>
        <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
          accompanying notes are an integral part of these financial
          statements.</font></div>
        <div>&#160;</div>
        <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 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="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">F
              -
              58</font></div>
            <div style="WIDTH: 100%; TEXT-ALIGN: center">
              <hr style="COLOR: black" noshade size="2">
            </div>
          </div>
          <div id="HDR">
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            </div>
          </div>
        </div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>New
          Tilt, Inc.</strong></font></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>STATEMENTS
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          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>(Amounts
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        </div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br>
          <div>
            <table cellpadding="0" cellspacing="0" id="ftable" width="100%">

                <tr>
                  <td align="left" valign="bottom" width="71%" style="border-bottom: #ffffff solid;">&#160;</td>
                  <td width="2%" style="border-bottom: #ffffff solid;">&#160;</td>
                  <td align="left" colspan="2" valign="bottom" width="12%" style="border-bottom: black thin solid;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Period
                      from </font></div>
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">January
                      1, 2006</font></div>
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">thru
                      April 24, 2006</font></div>
                  </td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff solid;">&#160;</td>
                  <td align="left" colspan="2" valign="bottom" width="12%" style="border-bottom: black thin solid;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">For
                      the</font></div>
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Year
                      Ended</font></div>
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">December
                      31, 2005</font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff solid;">&#160;</td>
                </tr>
                <tr>
                  <td align="left" valign="bottom" width="71%" style="border-bottom: medium none;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Revenue</font></div>
                  </td>
                  <td width="2%" style="border-bottom: medium none;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
                  </td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">404</font></div>
                  </td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
                  </td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">2,304</font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                </tr>
                <tr>
                  <td align="left" valign="bottom" width="71%" style="border-bottom: #ffffff solid;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Cost
                      of revenue</font></div>
                  </td>
                  <td width="2%" style="border-bottom: #ffffff solid;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">392</font></div>
                  </td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff solid;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">1,533</font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff solid;">&#160;</td>
                </tr>
                <tr>
                  <td align="left" valign="bottom" width="71%" style="border-bottom: medium none;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;&#160;&#160;Gross
                      profit</font></div>
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                  <td width="2%" style="border-bottom: medium none;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">12</font></div>
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                  <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">771</font></div>
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                  <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
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                <tr>
                  <td align="left" valign="bottom" width="71%" style="border-bottom: medium none;">
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                  <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
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                <tr>
                  <td align="left" valign="bottom" width="71%" style="border-bottom: medium none;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;&#160;&#160;General
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                  <td width="2%" style="border-bottom: medium none;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">199</font></div>
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                  <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">593</font></div>
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                  <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
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                <tr>
                  <td align="left" valign="bottom" width="71%" style="border-bottom: #ffffff solid;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;&#160;&#160;Depreciation</font></div>
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                  <td width="2%" style="border-bottom: #ffffff solid;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">12</font></div>
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                  <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff solid;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">42</font></div>
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                  <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff solid;">&#160;</td>
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                <tr>
                  <td align="left" valign="bottom" width="71%" style="border-bottom: medium none;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Income
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                  <td width="2%" style="border-bottom: medium none;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(199</font></div>
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                  <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">136</font></div>
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                  <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                </tr>
                <tr>
                  <td align="left" valign="bottom" width="71%" style="border-bottom: medium none;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Other
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                  <td width="2%" style="border-bottom: medium none;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                </tr>
                <tr>
                  <td align="left" valign="bottom" width="71%" style="border-bottom: medium none;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;&#160;&#160;Interest
                      expense</font></div>
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                  <td width="2%" style="border-bottom: medium none;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(2</font></div>
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                  <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(2</font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
                  </td>
                </tr>
                <tr>
                  <td align="left" valign="bottom" width="71%" style="border-bottom: #ffffff solid;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;&#160;&#160;Miscellaneous</font></div>
                  </td>
                  <td width="2%" style="border-bottom: #ffffff solid;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">10</font></div>
                  </td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff solid;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">4</font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff solid;">&#160;</td>
                </tr>
                <tr>
                  <td align="left" valign="bottom" width="71%" style="border-bottom: #ffffff solid;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Net
                      income (loss)</font></div>
                  </td>
                  <td width="2%" style="border-bottom: #ffffff solid;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font>&#160;</div>
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                  <td align="right" valign="bottom" width="11%" style="border-bottom: black double;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(191</font></div>
                  </td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff solid;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font>&#160;</div>
                  </td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: black double;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">138</font></div>
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                  <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff solid;">&#160;</td>
                </tr>

            </table>
          </div>
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        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">
          <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
            accompanying notes are an integral part of these financial
            statements.</font></div>
          <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
          <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
            <div id="FTR">
              <div id="GLFTR" style="WIDTH: 100%" align="left">
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              <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">F
                -
                59</font></div>
              <div style="WIDTH: 100%; TEXT-ALIGN: center">
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              </div>
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            <div id="HDR">
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            </div>
          </div>
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        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>New
          Tilt, Inc.</strong></font></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>STATEMENTS
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        </div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br>
          <div align="left">
            <table cellpadding="0" cellspacing="0" id="ftable" width="100%">

                <tr>
                  <td align="left" valign="bottom" width="29%">&#160;</td>
                  <td width="2%">&#160;</td>
                  <td align="left" colspan="5" valign="bottom" width="26%">&#160;</td>
                  <td align="left" valign="bottom" width="2%">&#160;</td>
                  <td align="left" colspan="2" valign="bottom" width="12%">
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                  <td align="left" valign="bottom" width="2%">&#160;</td>
                  <td align="left" colspan="2" valign="bottom" width="12%">&#160;</td>
                  <td align="left" valign="bottom" width="2%">&#160;</td>
                  <td align="left" colspan="2" valign="bottom" width="12%">
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                  <td align="left" valign="bottom" width="1%">&#160;</td>
                </tr>
                <tr>
                  <td align="left" valign="bottom" width="29%" style="border-bottom: #ffffff solid;">&#160;</td>
                  <td width="2%" style="border-bottom: #ffffff solid;">&#160;</td>
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                  <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff solid;">&#160;</td>
                  <td align="left" colspan="2" valign="bottom" width="12%" style="border-bottom: #ffffff solid;">
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                  <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff solid;">&#160;</td>
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                  <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff solid;">&#160;</td>
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                  <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff solid;">&#160;</td>
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                <tr>
                  <td align="left" valign="bottom" width="29%" style="border-bottom: #ffffff solid;">&#160;</td>
                  <td width="2%" style="border-bottom: #ffffff solid;">&#160;</td>
                  <td align="left" colspan="2" valign="bottom" width="12%" style="border-bottom: black thin solid;">
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                  <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff solid;">&#160;</td>
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                  <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff solid;">&#160;</td>
                  <td align="left" colspan="2" valign="bottom" width="12%" style="border-bottom: black thin solid;">
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                  <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff solid;">&#160;</td>
                  <td align="left" colspan="2" valign="bottom" width="12%" style="border-bottom: black thin solid;">
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                  <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff solid;">&#160;</td>
                  <td align="left" colspan="2" valign="bottom" width="12%" style="border-bottom: black thin solid;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Equity</font></div>
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                  <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff solid;">&#160;</td>
                </tr>
                <tr>
                  <td align="left" valign="bottom" width="29%" style="border-bottom: medium none;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Balance,
                      December 31, 2004</font></div>
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                  <td width="2%" style="border-bottom: medium none;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">1,200,000</font></div>
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                  <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
                  </td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">1</font></div>
                  </td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
                  </td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">88</font></div>
                  </td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
                  </td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">260</font></div>
                  </td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
                  </td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">349</font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                </tr>
                <tr>
                  <td align="left" valign="bottom" width="29%" style="border-bottom: medium none;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Distributions
                      to shareholders</font></div>
                  </td>
                  <td width="2%" style="border-bottom: medium none;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px">
                      <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman">&#8212;</font></font></div>
                    </div>
                  </td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px">
                      <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman">&#8212;</font></font></div>
                    </div>
                  </td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px">
                      <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman">&#8212;</font></font></div>
                    </div>
                  </td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(57</font></div>
                  </td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(57</font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
                  </td>
                </tr>
                <tr>
                  <td align="left" valign="bottom" width="29%" style="border-bottom: medium none;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Stock
                      based compensation expense</font></div>
                  </td>
                  <td width="2%" style="border-bottom: medium none;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px">
                      <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman">&#8212;</font></font></div>
                    </div>
                  </td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px">
                      <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman">&#8212;</font></font></div>
                    </div>
                  </td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">72</font></div>
                  </td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px">
                      <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman">&#8212;</font></font></div>
                    </div>
                  </td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">72</font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                </tr>
                <tr>
                  <td align="left" valign="bottom" width="29%" style="border-bottom: #ffffff solid;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Net
                      income</font></div>
                  </td>
                  <td width="2%" style="border-bottom: #ffffff solid;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px">
                      <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman">&#8212;</font></font></div>
                    </div>
                  </td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff solid;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px">
                      <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman">&#8212;</font></font></div>
                    </div>
                  </td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff solid;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px">
                      <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman">&#8212;</font></font></div>
                    </div>
                  </td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff solid;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">138</font></div>
                  </td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff solid;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">138</font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff solid;">&#160;</td>
                </tr>
                <tr>
                  <td align="left" valign="bottom" width="29%" style="border-bottom: medium none;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Balance,
                      December 31, 2005</font></div>
                  </td>
                  <td width="2%" style="border-bottom: medium none;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">1,200,000</font></div>
                  </td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">1</font></div>
                  </td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">160</font></div>
                  </td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">341</font></div>
                  </td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">502</font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                </tr>
                <tr>
                  <td align="left" valign="bottom" width="29%" style="border-bottom: medium none;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Distributions
                      to shareholders</font></div>
                  </td>
                  <td width="2%" style="border-bottom: medium none;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px">
                      <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman">&#8212;</font></font></div>
                    </div>
                  </td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px">
                      <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman">&#8212;</font></font></div>
                    </div>
                  </td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px">
                      <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman">&#8212;</font></font></div>
                    </div>
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                  <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(19</font></div>
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                  <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
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                  <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(19</font></div>
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                  <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
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                <tr>
                  <td align="left" valign="bottom" width="29%" style="border-bottom: medium none;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Stock
                      based compensation expense</font></div>
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                  <td width="2%" style="border-bottom: medium none;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px">
                      <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman">&#8212;</font></font></div>
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                  <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px">
                      <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman">&#8212;</font></font></div>
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                  <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">22</font></div>
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                  <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px">
                      <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman">&#8212;</font></font></div>
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                  <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">22</font></div>
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                  <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                </tr>
                <tr>
                  <td align="left" valign="bottom" width="29%" style="border-bottom: #ffffff solid;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Net
                      loss</font></div>
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                  <td width="2%" style="border-bottom: #ffffff solid;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px">
                      <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman">&#8212;</font></font></div>
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                  <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff solid;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px">
                      <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman">&#8212;</font></font></div>
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                  <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff solid;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px">
                      <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman">&#8212;</font></font></div>
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                  </td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff solid;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(191</font></div>
                  </td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff solid;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(191</font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff solid;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
                  </td>
                </tr>
                <tr>
                  <td align="left" valign="bottom" width="29%" style="border-bottom: #ffffff solid;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Balance,
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                  </td>
                  <td width="2%" style="border-bottom: #ffffff solid;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: black double;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">1,200,000</font></div>
                  </td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff solid;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
                  </td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: black double;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">1</font></div>
                  </td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff solid;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
                  </td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: black double;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">182</font></div>
                  </td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff solid;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
                  </td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: black double;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">131</font></div>
                  </td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff solid;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
                  </td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: black double;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">314</font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff solid;">&#160;</td>
                </tr>

            </table>
          </div>
        </div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">
          <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
            accompanying notes are an integral part of these financial
            statements.</font></div>
        </div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
        <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
          <div id="FTR">
            <div id="GLFTR" style="WIDTH: 100%" align="left">
            </div>
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          <div id="PN" style="PAGE-BREAK-AFTER: always">
            <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">F
              -
              60</font></div>
            <div style="WIDTH: 100%; TEXT-ALIGN: center">
              <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="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>New
            Tilt, Inc.</strong></font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>STATEMENTS
            OF CASH FLOWS</strong></font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>(Amounts
            in thousands)</strong></font></div>
        </div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br>
          <div align="left">
            <table cellpadding="0" cellspacing="0" id="ftable" width="100%">

                <tr>
                  <td align="left" valign="bottom" width="71%" style="border-bottom: #ffffff solid;">&#160;</td>
                  <td width="2%" style="border-bottom: #ffffff solid;">&#160;</td>
                  <td align="left" colspan="2" valign="bottom" width="12%" style="border-bottom: black thin solid;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Period
                      from</font></div>
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">January
                      1, 2006</font></div>
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">thru
                      April 24, 2006</font></div>
                  </td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff solid;">&#160;</td>
                  <td align="left" colspan="2" valign="bottom" width="12%" style="border-bottom: black thin solid;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">For
                      the Year Ended</font></div>
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">December
                      31, 2005</font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff solid;">&#160;</td>
                </tr>
                <tr>
                  <td align="left" valign="bottom" width="71%" style="border-bottom: medium none;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Cash
                      flows from operating activities:</font></div>
                  </td>
                  <td width="2%" style="border-bottom: medium none;">&#160;</td>
                  <td align="left" colspan="2" valign="bottom" width="12%" style="border-bottom: medium none;">&#160;</td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
                  <td align="left" colspan="2" valign="bottom" width="12%" style="border-bottom: medium none;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                </tr>
                <tr>
                  <td align="left" valign="bottom" width="71%" style="border-bottom: medium none;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Net
                      income (loss)</font></div>
                  </td>
                  <td width="2%" style="border-bottom: medium none;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
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                  <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(191</font></div>
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                  <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
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                  <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">138</font></div>
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                  <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                </tr>
                <tr>
                  <td align="left" valign="bottom" width="71%" style="border-bottom: medium none;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Adjustments
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                  <td width="2%" style="border-bottom: medium none;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                </tr>
                <tr>
                  <td align="left" valign="bottom" width="71%" style="border-bottom: medium none;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Depreciation</font></div>
                  </td>
                  <td width="2%" style="border-bottom: medium none;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">12</font></div>
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                  <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">42</font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                </tr>
                <tr>
                  <td align="left" valign="bottom" width="71%" style="border-bottom: medium none;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Stock
                      based compensation expense</font></div>
                  </td>
                  <td width="2%" style="border-bottom: medium none;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">22</font></div>
                  </td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">72</font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                </tr>
                <tr>
                  <td align="left" valign="bottom" width="71%" style="border-bottom: medium none;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Gain
                      on sale of assets</font></div>
                  </td>
                  <td width="2%" style="border-bottom: medium none;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(9</font></div>
                  </td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px">
                      <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman">&#8212;</font></font></div>
                    </div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                </tr>
                <tr>
                  <td align="left" valign="bottom" width="71%" style="border-bottom: medium none;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Changes
                      in operating assets and liabilities:</font></div>
                  </td>
                  <td width="2%" style="border-bottom: medium none;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                </tr>
                <tr>
                  <td align="left" valign="bottom" width="71%" style="border-bottom: medium none;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 54pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Accounts
                      receivable</font></div>
                  </td>
                  <td width="2%" style="border-bottom: medium none;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">292</font></div>
                  </td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(51</font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
                  </td>
                </tr>
                <tr>
                  <td align="left" valign="bottom" width="71%" style="border-bottom: medium none;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 54pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Prepaid
                      expenses</font></div>
                  </td>
                  <td width="2%" style="border-bottom: medium none;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">5</font></div>
                  </td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">3</font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                </tr>
                <tr>
                  <td align="left" valign="bottom" width="71%" style="border-bottom: medium none;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 54pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Other
                      assets</font></div>
                  </td>
                  <td width="2%" style="border-bottom: medium none;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">4</font></div>
                  </td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">4</font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                </tr>
                <tr>
                  <td align="left" valign="bottom" width="71%" style="border-bottom: medium none;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 54pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Accounts
                      payable</font></div>
                  </td>
                  <td width="2%" style="border-bottom: medium none;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(4</font></div>
                  </td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(35</font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
                  </td>
                </tr>
                <tr>
                  <td align="left" valign="bottom" width="71%" style="border-bottom: medium none;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 54pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Deferred
                      revenue</font></div>
                  </td>
                  <td width="2%" style="border-bottom: medium none;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(10</font></div>
                  </td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(38</font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
                  </td>
                </tr>
                <tr>
                  <td align="left" valign="bottom" width="71%" style="border-bottom: #ffffff solid;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 54pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Accrued
                      liabilities</font></div>
                  </td>
                  <td width="2%" style="border-bottom: #ffffff solid;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(46</font></div>
                  </td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff solid;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(7</font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff solid;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
                  </td>
                </tr>
                <tr>
                  <td align="left" valign="bottom" width="71%" style="border-bottom: #ffffff solid;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 72pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Total
                      adjustments</font></div>
                  </td>
                  <td width="2%" style="border-bottom: #ffffff solid;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">266</font></div>
                  </td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff solid;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(10</font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff solid;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
                  </td>
                </tr>
                <tr>
                  <td align="left" valign="bottom" width="71%" style="border-bottom: #ffffff solid;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 90pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Net
                      cash provided by operating activities</font></div>
                  </td>
                  <td width="2%" style="border-bottom: #ffffff solid;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
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                  <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff solid;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">128</font></div>
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                  <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff solid;">&#160;</td>
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                <tr>
                  <td align="left" valign="bottom" width="71%" style="border-bottom: medium none;">&#160;</td>
                  <td width="2%" style="border-bottom: medium none;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
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                <tr>
                  <td align="left" valign="bottom" width="71%" style="border-bottom: medium none;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Cash
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                  <td width="2%" style="border-bottom: medium none;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
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                <tr>
                  <td align="left" valign="bottom" width="71%" style="border-bottom: medium none;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Proceeds
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                  <td width="2%" style="border-bottom: medium none;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">3</font></div>
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                  <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px">
                      <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman">&#8212;</font></font></div>
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                  <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                </tr>
                <tr>
                  <td align="left" valign="bottom" width="71%" style="border-bottom: #ffffff solid;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Equipment
                      and improvements expenditures</font></div>
                  </td>
                  <td width="2%" style="border-bottom: #ffffff solid;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(3</font></div>
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                  <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff solid;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(60</font></div>
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                  <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff solid;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
                  </td>
                </tr>
                <tr>
                  <td align="left" valign="bottom" width="71%" style="border-bottom: #ffffff solid;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 90pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Net
                      cash provided by (used in) investing activities</font></div>
                  </td>
                  <td width="2%" style="border-bottom: #ffffff solid;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px">
                      <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman">&#8212;</font></font></div>
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                  </td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff solid;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(60</font></div>
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                  <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff solid;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
                  </td>
                </tr>
                <tr>
                  <td align="left" valign="bottom" width="71%" style="border-bottom: medium none;">&#160;</td>
                  <td width="2%" style="border-bottom: medium none;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                </tr>
                <tr>
                  <td align="left" valign="bottom" width="71%" style="border-bottom: medium none;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Cash
                      flows from financing activities:</font></div>
                  </td>
                  <td width="2%" style="border-bottom: medium none;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                </tr>
                <tr>
                  <td align="left" valign="bottom" width="71%" style="border-bottom: medium none;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Proceeds
                      from issuance of long term debt</font></div>
                  </td>
                  <td width="2%" style="border-bottom: medium none;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px">
                      <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman">&#8212;</font></font></div>
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                  </td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">50</font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                </tr>
                <tr>
                  <td align="left" valign="bottom" width="71%" style="border-bottom: medium none;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Payments
                      on debt</font></div>
                  </td>
                  <td width="2%" style="border-bottom: medium none;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(54</font></div>
                  </td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(5</font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
                  </td>
                </tr>
                <tr>
                  <td align="left" valign="bottom" width="71%" style="border-bottom: #ffffff solid;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Cash
                      distributions to shareholders</font></div>
                  </td>
                  <td width="2%" style="border-bottom: #ffffff solid;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(10</font></div>
                  </td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff solid;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(57</font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff solid;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
                  </td>
                </tr>
                <tr>
                  <td align="left" valign="bottom" width="71%" style="border-bottom: #ffffff solid;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 90pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Net
                      cash used in financing activities</font></div>
                  </td>
                  <td width="2%" style="border-bottom: #ffffff solid;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(64</font></div>
                  </td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff solid;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(12</font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff solid;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
                  </td>
                </tr>
                <tr>
                  <td align="left" valign="bottom" width="71%" style="border-bottom: medium none;">&#160;</td>
                  <td width="2%" style="border-bottom: medium none;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                </tr>
                <tr>
                  <td align="left" valign="bottom" width="71%" style="border-bottom: medium none;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Net
                      increase in cash and cash equivalents</font></div>
                  </td>
                  <td width="2%" style="border-bottom: medium none;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">11</font></div>
                  </td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">56</font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                </tr>
                <tr>
                  <td align="left" valign="bottom" width="71%" style="border-bottom: #ffffff solid;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Cash
                      and cash equivalents at beginning of period</font></div>
                  </td>
                  <td width="2%" style="border-bottom: #ffffff solid;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">148</font></div>
                  </td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff solid;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">92</font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff solid;">&#160;</td>
                </tr>
                <tr>
                  <td align="left" valign="bottom" width="71%" style="border-bottom: #ffffff solid;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Cash
                      and cash equivalents at end of period</font></div>
                  </td>
                  <td width="2%" style="border-bottom: #ffffff solid;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
                  </td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: black double;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">159</font></div>
                  </td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff solid;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
                  </td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: black double;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">148</font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff solid;">&#160;</td>
                </tr>
                <tr>
                  <td align="left" valign="bottom" width="71%" style="border-bottom: medium none;">&#160;</td>
                  <td width="2%" style="border-bottom: medium none;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                </tr>
                <tr>
                  <td align="left" valign="bottom" width="71%" style="border-bottom: medium none;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Supplemental
                      disclosures of cash flow information:</font></div>
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                  <td width="2%" style="border-bottom: medium none;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                </tr>
                <tr>
                  <td align="left" valign="bottom" width="71%" style="border-bottom: medium none;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Cash
                      paid during the period for:</font></div>
                  </td>
                  <td width="2%" style="border-bottom: medium none;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                </tr>
                <tr>
                  <td align="left" valign="bottom" width="71%" style="border-bottom: #ffffff solid;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Interest</font></div>
                  </td>
                  <td width="2%" style="border-bottom: #ffffff solid;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
                  </td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: black double;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">2</font></div>
                  </td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff solid;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
                  </td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: black double;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">2</font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff solid;">&#160;</td>
                </tr>
                <tr>
                  <td align="left" valign="bottom" width="71%" style="border-bottom: #ffffff solid;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Additional
                      distribution to shareholders (see Note 3)</font></div>
                  </td>
                  <td width="2%" style="border-bottom: #ffffff solid;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
                  </td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: black double;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">9</font></div>
                  </td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff solid;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
                  </td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: black double;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px">
                      <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman">&#8212;</font></font></div>
                    </div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff solid;">&#160;</td>
                </tr>

            </table>
          </div>
        </div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">
          <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
            accompanying notes are an integral part of these financial
            statements.</font></div>
        </div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
        <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 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="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">F
              -
              61</font></div>
            <div style="WIDTH: 100%; TEXT-ALIGN: center">
              <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="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>New
            Tilt, Inc.</strong></font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Notes
            to Financial Statements</strong></font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>For
            the period January 1, 2006 thru April 24, 2006 and for the year ended
            December
            31, 2005</strong></font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>(Amounts
            in thousands, except share and per share
            amounts)</strong></font><br></div>
        </div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.3; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>1.&#160;&#160;&#160;&#160;&#160;</strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Business
          Description:</strong></font></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">New
          Tilt,
          Inc. (the &#8220;Company&#8221;), a Massachusetts Subchapter S corporation, is an internet
          strategy firm that architects, designs and delivers an internet based business
          platform for competitive advantage. The Company is headquartered in Cambridge,
          Massachusetts. The Company&#8217;s customers are primarily located in the Northeastern
          United States. The Company was acquired by Bridgeline Software, Inc. (<font style="DISPLAY: inline; FONT-FAMILY: Times New Roman">&#8220;</font>Bridgeline<font style="DISPLAY: inline; FONT-FAMILY: Times New Roman">&#8221;</font>)
          on April 24,
          2006 (See Note 12). </font></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
          results of operations for the period January 1, 2006 thru April 24, 2006
          are not
          necessarily indicative of the results to be expected for a full
          year.</font></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.3; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>2.&#160;&#160;</strong></font>&#160;&#160;
          <font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Summary
          of Significant Accounting Policies:</strong></font></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>Revenue
          Recognition</em></strong></font></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Substantially
          all of the Company&#8217;s revenue is generated from Web services. The Company
          recognizes revenue </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">when
          all
          of the following conditions are satisfied: (1) there is persuasive evidence
          of
          an arrangement; (2) the services have been provided to the customer; (3)
          the
          amount of fees to be paid by the customer is fixed or determinable; and
          (4) the
          collection of the fees is probable. The Company recognizes revenue using
          the
          proportional performance model. Certain arrangements include a warranty
          period
          of between 30 to 60 days from the completion of work. To date, few warranty
          claims have been received. Billings made or payments received in advance
          of
          providing services are deferred until the period these services are provided.
          </font></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Web
          Services include consulting services that are related to specific customer
          needs
          such as information architecture and usability engineering, interface
          configuration, Web application development and database and content management.
          </font></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>Concentration
          of Credit Risk and Significant Customers</em></strong></font></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Financial
          instruments which potentially subject the Company to concentrations of
          credit
          risk consist primarily of cash and cash equivalents to the extent these
          exceed
          federal insurance limits, short-term investments and accounts receivable.
          </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Risks
          associated with cash and cash equivalents are mitigated by investing in
          money
          market funds with high credit quality </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">financial
          institutions. In general, the Company does not require collateral on its
          arrangements with customers and typically provides for credit terms of
          30-60
          days. </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
          Company has not provided an allowance for doubtful accounts since its customers
          have a good credit rating and the Company has experienced minimal write-offs
          of
          its receivables in the past and continues to believe that its customers
          pose no
          significant risk of non-payment.</font></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
        <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 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="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">F
              -
              62</font></div>
            <div style="WIDTH: 100%; TEXT-ALIGN: center">
              <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="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>New
            Tilt, Inc.</strong></font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Notes
            to Financial Statements</strong></font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>For
            the period January 1, 2006 thru April 24, 2006 and for the year ended
            December
            31, 2005</strong></font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>(Amounts
            in thousands, except share and per share amounts)</strong></font><br></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
        </div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>2.&#160;&#160;&#160;&#160;
          Summary of Significant Accounting Policies -- (Continued):</strong></font></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
          Company&#8217;s customers who comprised at least 10% of the Company&#8217;s revenue for the
          period January 1, 2006 thru April 24, 2006 and the year ended December
          31, 2005
          or who comprised of at least 10% of the Company&#8217;s accounts receivable at April
          24, 2006 or December 31, 2005 are as follows:</font></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">
          <div align="left">
            <table cellpadding="0" cellspacing="0" width="100%">

                <tr>
                  <td align="left" valign="top" width="16%" style="border-bottom: #ffffff solid;">&#160;</td>
                  <td width="4%" style="border-bottom: #ffffff solid;">&#160;</td>
                  <td colspan="3" valign="bottom" width="38%" style="border-bottom: black thin solid;">
                    <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Revenue</font></div>
                  </td>
                  <td width="4%" style="border-bottom: #ffffff solid;">&#160;</td>
                  <td colspan="3" valign="bottom" width="38%" style="border-bottom: black thin solid;">
                    <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Accounts
                      Receivable</font></div>
                  </td>
                </tr>
                <tr>
                  <td align="left" valign="top" width="16%" style="border-bottom: #ffffff solid;">&#160;</td>
                  <td width="4%" style="border-bottom: #ffffff solid;">&#160;</td>
                  <td valign="bottom" width="17%" style="border-bottom: black thin solid;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">For
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                      1, 2006<br></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">thru
                      April 24, 2006</font></div>
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                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">For
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                  <td valign="bottom" width="17%" style="border-bottom: black thin solid;">
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                  <td align="left" valign="top" width="16%">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Company
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                  <td valign="top" width="17%">
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                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Company
                      B</font></div>
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                  <td valign="top" width="17%">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">7</font></div>
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                  <td valign="top" width="17%">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">*</font></div>
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                  <td valign="top" width="17%">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">19</font></div>
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                  <td valign="top" width="17%">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">*</font></div>
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                <tr>
                  <td align="left" valign="top" width="16%">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Company
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                  <td valign="top" width="17%">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">5</font></div>
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                  <td valign="top" width="17%">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">*</font></div>
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                  <td width="4%">&#160;</td>
                  <td valign="top" width="17%">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">11</font></div>
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                  <td valign="top" width="17%">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">*</font></div>
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                <tr>
                  <td align="left" valign="top" width="16%">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Company
                      D</font></div>
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                  <td width="4%">&#160;</td>
                  <td valign="top" width="17%">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">5</font></div>
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                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">*</font></div>
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                  <td width="4%">&#160;</td>
                  <td valign="top" width="17%">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">10</font></div>
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                  <td width="4%">&#160;</td>
                  <td valign="top" width="17%">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">*</font></div>
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                <tr>
                  <td align="left" valign="top" width="16%">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Company
                      E</font></div>
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                  <td width="4%">&#160;</td>
                  <td valign="top" width="17%">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">*</font></div>
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                  <td width="4%">&#160;</td>
                  <td valign="top" width="17%">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">12</font></div>
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                  <td valign="top" width="17%">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">*</font></div>
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                  <td width="4%">&#160;</td>
                  <td valign="top" width="17%">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">8</font></div>
                  </td>
                </tr>

            </table>
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        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>*
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        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
          preparation of financial statements in conformity with accounting principles
          generally accepted in the United States of America requires management
          to make
          certain estimates and assumptions that affect the reported amounts of assets
          and
          liabilities and disclosure of contingent assets and liabilities at the
          date of
          the financial statements and the reported amounts of revenue and expenses
          during
          the reported periods. The most significant estimates included in these
          financial
          statements are related to revenue recognition.</font></div>
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          complexity of the estimation process and factors relating to the assumptions,
          risks and uncertainties inherent with the&#160;use of the proportional
          performance model&#160;affect the amounts of revenue and related expenses
          reported in our consolidated financial statements. A number of internal
          and
          external factors can affect these estimates, including efficiency variances
          and
          specification and testing requirement changes.</font></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>Cash
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        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
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          the date of purchase of three months or less to be cash equivalents. Cash
          equivalents consist primarily of money market mutual funds. </font></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>Fair
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        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
          carrying amounts of financial instruments, which include cash and cash
          equivalents, accounts receivable and accounts payable, approximate their
          fair
          value because of the short-term maturity of these instruments. Based on
          borrowing rates currently available to the Company for loans with similar
          terms,
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              -
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            <div style="WIDTH: 100%; TEXT-ALIGN: center">
              <hr style="COLOR: black" noshade size="2">
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            </div>
          </div>
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        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>New
            Tilt, Inc.</strong></font></div>
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            December
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            amounts)</strong></font><br></div>
        </div>
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        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>2.&#160;&#160;&#160;&#160;
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        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
          components of equipment and improvements are stated at cost. The Company
          provides for depreciation by use of the straight-line method over the estimated
          useful lives of the related assets (three to five years). Leasehold improvements
          are amortized by use of the straight-line method over the lesser of the
          estimated useful life of the asset or the lease term. Repairs and maintenance
          costs are expensed as incurred.</font></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>Advertising
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        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
          Company expenses advertising costs when incurred. Advertising expense totaled
          $2
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          ended
          December 31, 2005, respectively.</font></div>
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        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>Income
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          Company, with the consent of its shareholders, has elected under Subchapter
          <font style="DISPLAY: inline; FONT-FAMILY: Times New Roman">&#8220;</font>S<font style="DISPLAY: inline; FONT-FAMILY: Times New Roman">&#8221;</font>
          of the Internal
          Revenue Code, to be treated substantially as a partnership for income tax
          purposes. As a result, the shareholders will report the entire corporate
          taxable
          income or loss on their individual tax returns.</font></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>Stock-Based
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        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
          Company has adopted a long-term incentive plan which is used to attract
          and
          retain employees, advisors, and consultants, as applicable, subject to
          certain
          limitations. The exercise price of any award shall not be less than the
          fair
          market value of the common stock on the date of the grant. The Company&#8217;s board
          of directors administers the incentive plan, with sole authority to select
          participants, determine the types of awards to be granted, and all of the
          terms
          and conditions of the awards, including whether the grant, vesting or settlement
          of awards may be subject to the attainment of one or more performance goals.
          No
          awards will be granted under the plan if the grant, vesting and/or exercise
          of
          the awards would jeopardize the Company&#8217;s status as an S-Corp under the Internal
          Revenue Code or otherwise violates the ownership and transfer restrictions
          imposed under the Company&#8217;s charter. Unless determined by the Company&#8217;s board of
          directors, no award granted under the long-term incentive plan will be
          transferable except through the laws of descent and distribution. </font></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
          accordance with Statement of Financial Accounting Standards (&#8220;SFAS&#8221;)
          No.&#160;123, </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>Accounting
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          the
          Company estimated the fair value of each stock option granted in 2005 and
          2006
          as of the date of the grant using the Black-Scholes-Merton model with the
          following assumptions:</font></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
        <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 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="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">F
              -
              64</font></div>
            <div style="WIDTH: 100%; TEXT-ALIGN: center">
              <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="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>New
            Tilt, Inc.</strong></font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Notes
            to Financial Statements</strong></font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>For
            the period January 1, 2006 thru April 24, 2006 and for the year ended
            December
            31, 2005</strong></font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>(Amounts
            in thousands, except share and per share amounts)</strong></font><br></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
        </div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>2.&#160;&#160;&#160;&#160;
          Summary of Significant Accounting Policies -- (Continued):</strong></font></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">
          <div align="center">
            <table cellpadding="0" cellspacing="0" width="80%">

                <tr>
                  <td align="left" valign="top" width="30%" style="border-bottom: #ffffff solid;">&#160;</td>
                  <td width="10%" style="border-bottom: #ffffff solid;">&#160;</td>
                  <td valign="top" width="25%" style="border-bottom: black thin solid;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Options&#160;granted&#160;during</font></div>
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">the
                      period January 1, 2006</font></div>
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">thru
                      April 24, 2006</font></div>
                  </td>
                  <td width="10%" style="border-bottom: #ffffff solid;">&#160;</td>
                  <td valign="bottom" width="25%" style="border-bottom: black thin solid;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Options&#160;granted</font></div>
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Year
                      2005</font></div>
                  </td>
                </tr>
                <tr>
                  <td align="left" valign="top" width="30%">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Risk-free
                      rate</font></div>
                  </td>
                  <td width="10%">&#160;</td>
                  <td valign="top" width="25%">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">4.58%
                      - 4.92%</font></div>
                  </td>
                  <td width="10%">&#160;</td>
                  <td valign="top" width="25%">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">3.99%
                      - 4.38%</font></div>
                  </td>
                </tr>
                <tr>
                  <td align="left" valign="top" width="30%">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Projected
                      future dividend yield</font></div>
                  </td>
                  <td width="10%">&#160;</td>
                  <td valign="top" width="25%">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">0.00%</font></div>
                  </td>
                  <td width="10%">&#160;</td>
                  <td valign="top" width="25%">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">0.00%</font></div>
                  </td>
                </tr>
                <tr>
                  <td align="left" valign="top" width="30%">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Expected
                      life of the options</font></div>
                  </td>
                  <td width="10%">&#160;</td>
                  <td valign="top" width="25%">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">6.5
                      years</font></div>
                  </td>
                  <td width="10%">&#160;</td>
                  <td valign="top" width="25%">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">6.5
                      years</font></div>
                  </td>
                </tr>
                <tr>
                  <td align="left" valign="top" width="30%">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Volatility</font></div>
                  </td>
                  <td width="10%">&#160;</td>
                  <td valign="top" width="25%">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">70%</font></div>
                  </td>
                  <td width="10%">&#160;</td>
                  <td valign="top" width="25%">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">70%</font></div>
                  </td>
                </tr>

            </table>
          </div>
        </div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">As
          none
          of the options described above have been exercised, the Company does not
          have
          relevant historical data on which to base an estimate of the expected life
          of
          the options.&#160;The expected life of such options has been estimated to equal
          the average of the contractual term and the vesting term. As the Company&#8217;s
          common stock is not publicly traded, the Company does not have relevant
          historical data on which to base an estimate of volatility in the value
          of such
          options.&#160;The volatility of such options has been estimated to equal the
          average fluctuations in historical stock prices of publicly traded companies
          that are otherwise similar to the Company. The Company has also historically
          experienced a forfeiture rate of approximately 5%. Based on the above
          assumptions, the fair value of the options granted during the period January
          1,
          2006 thru April 24, 2006 and the year ended December 31, 2005 equals
          approximately $45 and $41, respectively and will be amortized to compensation
          expense over the vesting period. The Company has expensed $22 and $72 for
          the
          period January 1, 2006 thru April 24, 2006 and the year ended September
          30,
          2005, respectively. As of April 24, 2006 the Company has $43 remaining
          to be
          amortized.</font></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
          December 2004, the FASB issued SFAS No. 123(R), </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>Share-Based
          Payment </em>(<font style="DISPLAY: inline; FONT-FAMILY: Times New Roman">&#8220;</font>SFAS
          123R<font style="DISPLAY: inline; FONT-FAMILY: Times New Roman">&#8221;</font>)<em>.</em></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">SFAS
          123</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(R)
          </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">requires
          the recognition of the fair value of stock-based compensation in net income.
          SFAS 123</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(R)</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
          supersedes SFAS 123, </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">and
          Accounting Principles Board Opinion No. 25, </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>Accounting
          for Stock Issued to Employees</em></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
          (&#8220;APB
          25&#8221;). The Company adopted SFAS 123</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(R),
          </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">but
          since
          the Company had previously adopted SFAS 123, the adoption had no significant
          effect on the Company&#8217;s financial position, results of operations or cash
          flows.</font></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>3.&#160;&#160;&#160;&#160;
          Related-Party Transactions:</strong></font></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">On
          April
          24, 2006, the Company sold an automobile to a shareholder of the Company
          for $3
          which approximated its net book value. The difference between the net book
          value
          and the fair market value of $12 has been recorded as an additional distribution
          to shareholders. </font></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>4.&#160;&#160;&#160;&#160;
          Accounts Receivable:</strong></font></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Included
          in the Company&#8217;s accounts receivable balance at April 24, 2006 and December 31,
          2005 is $22 and $8 of unbilled receivables, respectively.</font></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
        <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 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="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">F
              -
              65</font></div>
            <div style="WIDTH: 100%; TEXT-ALIGN: center">
              <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="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>New
            Tilt, Inc.</strong></font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Notes
            to Financial Statements</strong></font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>For
            the period January 1, 2006 thru April 24, 2006 and for the year ended
            December
            31, 2005</strong></font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>(Amounts
            in thousands, except share and per share amounts)</strong></font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
        </div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>5.&#160;&#160;&#160;&#160;
          Equipment and Improvements:</strong></font></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Equipment
          and improvements, net consisted of the following as of April 24, 2006 and
          December 31, 2005:</font></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">
          <div align="left">
            <table cellpadding="0" cellspacing="0" id="ftable" width="100%">

                <tr>
                  <td align="left" valign="bottom" width="71%" style="border-bottom: #ffffff solid;">&#160;</td>
                  <td width="2%" style="border-bottom: #ffffff solid;">&#160;</td>
                  <td align="left" colspan="2" valign="bottom" width="12%" style="border-bottom: black thin solid;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">April
                      24, 2006</font></div>
                  </td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff solid;">&#160;</td>
                  <td align="left" colspan="2" valign="bottom" width="12%" style="border-bottom: black thin solid;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">December
                      31, 2005</font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff solid;">&#160;</td>
                </tr>
                <tr>
                  <td align="left" valign="bottom" width="71%" style="border-bottom: medium none;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Computers,
                      software and equipment</font></div>
                  </td>
                  <td width="2%" style="border-bottom: medium none;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
                  </td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">95</font></div>
                  </td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
                  </td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">102</font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                </tr>
                <tr>
                  <td align="left" valign="bottom" width="71%" style="border-bottom: medium none;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Furniture
                      and fixtures</font></div>
                  </td>
                  <td width="2%" style="border-bottom: medium none;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">36</font></div>
                  </td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">36</font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                </tr>
                <tr>
                  <td align="left" valign="bottom" width="71%" style="border-bottom: medium none;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Leasehold
                      improvements</font></div>
                  </td>
                  <td width="2%" style="border-bottom: medium none;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">9</font></div>
                  </td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">9</font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                </tr>
                <tr>
                  <td align="left" valign="bottom" width="71%" style="border-bottom: #ffffff solid;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Vehicle</font></div>
                  </td>
                  <td width="2%" style="border-bottom: #ffffff solid;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman">&#8212;</font></font></div>
                  </td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff solid;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">24</font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff solid;">&#160;</td>
                </tr>
                <tr>
                  <td align="left" valign="bottom" width="71%" style="border-bottom: medium none;">&#160;</td>
                  <td width="2%" style="border-bottom: medium none;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">140</font></div>
                  </td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">171</font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                </tr>
                <tr>
                  <td align="left" valign="bottom" width="71%" style="border-bottom: #ffffff solid;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Less
                      accumulated depreciation</font></div>
                  </td>
                  <td width="2%" style="border-bottom: #ffffff solid;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">79</font></div>
                  </td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff solid;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">98</font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff solid;">&#160;</td>
                </tr>
                <tr>
                  <td align="left" valign="bottom" width="71%" style="border-bottom: #ffffff solid;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Equipment
                      and improvements, net</font></div>
                  </td>
                  <td width="2%" style="border-bottom: #ffffff solid;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
                  </td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: black double;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">61</font></div>
                  </td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff solid;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
                  </td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: black double;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">73</font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff solid;">&#160;</td>
                </tr>

            </table>
          </div>
        </div>
        <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">During
          the period January 1, 2006 thru April 24, 2006, the Company retired fully
          depreciated assets whose original cost was $10 and sold a vehicle to a
          shareholder (See Note 3).</font></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>6.&#160;&#160;&#160;&#160;
          Other Assets:</strong></font></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Other
          assets consisted of the following as of April 24, 2006 and December 31,
          2005:</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><br></font></div>
        <div>
          <div>
            <table cellpadding="0" cellspacing="0" id="ftable" width="100%">

                <tr>
                  <td align="left" valign="bottom" width="71%" style="border-bottom: #ffffff solid;">&#160;</td>
                  <td width="2%" style="border-bottom: #ffffff solid;">&#160;</td>
                  <td align="left" colspan="2" valign="bottom" width="12%" style="border-bottom: black thin solid;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">April
                      24, 2006</font></div>
                  </td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff solid;">&#160;</td>
                  <td align="left" colspan="2" valign="bottom" width="12%" style="border-bottom: black thin solid;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">December
                      31, 2005</font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff solid;">&#160;</td>
                </tr>
                <tr>
                  <td align="left" valign="bottom" width="71%" style="border-bottom: medium none;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Deferred
                      charges</font></div>
                  </td>
                  <td width="2%" style="border-bottom: medium none;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
                  </td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px">
                      <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman">&#8212;</font></font></div>
                    </div>
                  </td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
                  </td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">1</font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                </tr>
                <tr>
                  <td align="left" valign="bottom" width="71%" style="border-bottom: #ffffff solid;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Security
                      deposits</font></div>
                  </td>
                  <td width="2%" style="border-bottom: #ffffff solid;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">11</font></div>
                  </td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff solid;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">14</font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff solid;">&#160;</td>
                </tr>
                <tr>
                  <td align="left" valign="bottom" width="71%" style="border-bottom: #ffffff solid;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;&#160;&#160;&#160;Total</font></div>
                  </td>
                  <td width="2%" style="border-bottom: #ffffff solid;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
                  </td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: black double;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">11</font></div>
                  </td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff solid;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
                  </td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: black double;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">15</font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff solid;">&#160;</td>
                </tr>

            </table>
          </div>
        </div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>7.&#160;&#160;&#160;&#160;
          Accrued Liabilities:</strong></font></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Accrued
          liabilities consisted of the following as of April 24, 2006 and December
          31,
          2005:</font></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">
          <div>
            <table cellpadding="0" cellspacing="0" id="ftable" width="100%">

                <tr>
                  <td align="left" valign="bottom" width="71%" style="border-bottom: #ffffff solid;">&#160;</td>
                  <td width="2%" style="border-bottom: #ffffff solid;">&#160;</td>
                  <td align="left" colspan="2" valign="bottom" width="12%" style="border-bottom: black thin solid;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">April
                      24, 2006</font></div>
                  </td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff solid;">&#160;</td>
                  <td align="left" colspan="2" valign="bottom" width="12%" style="border-bottom: black thin solid;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">December
                      31, 2005</font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff solid;">&#160;</td>
                </tr>
                <tr>
                  <td align="left" valign="bottom" width="71%" style="border-bottom: medium none;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Compensation
                      and benefits</font></div>
                  </td>
                  <td width="2%" style="border-bottom: medium none;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
                  </td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px">
                      <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman">&#8212;</font></font></div>
                    </div>
                  </td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
                  </td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">58</font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                </tr>
                <tr>
                  <td align="left" valign="bottom" width="71%" style="border-bottom: #ffffff solid;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Miscellaneous</font></div>
                  </td>
                  <td width="2%" style="border-bottom: #ffffff solid;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">31</font></div>
                  </td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff solid;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">19</font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff solid;">&#160;</td>
                </tr>
                <tr>
                  <td align="left" valign="bottom" width="71%" style="border-bottom: #ffffff solid;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;&#160;&#160;&#160;Total</font></div>
                  </td>
                  <td width="2%" style="border-bottom: #ffffff solid;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
                  </td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: black double;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">31</font></div>
                  </td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff solid;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
                  </td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: black double;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">77</font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff solid;">&#160;</td>
                </tr>

            </table>
          </div>
        </div>
        <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>8.&#160;&#160;&#160;&#160;
          Debt:</strong></font></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">On
          November 27, 2001, the Company entered into a revolving line of credit
          with a
          commercial lender (the &#8220;Facility&#8221;). The Facility provides borrowings of up to
          $150 and bears interest at the Wall Street Journal&#8217;s prime rate plus 1 percent
          (8.75% at April 24, 2006). On February 6, 2006, the Company changed its
          agreement to provide borrowings of up to $250 with interest at a variable
          rate
          equal to the highest prime rate published in the Wall Street Journal. The
          weighted average debt during the period January 1, 2006 thru April
          24,</font></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
        <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 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="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">F
              -
              66</font></div>
            <div style="WIDTH: 100%; TEXT-ALIGN: center">
              <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="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>New
            Tilt, Inc.</strong></font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Notes
            to Financial Statements</strong></font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>For
            the period January 1, 2006 thru April 24, 2006 and for the year ended
            December
            31, 2005</strong></font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>(Amounts
            in thousands, except share and per share amounts)</strong></font></div>
        </div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>8.&#160;&#160;&#160;&#160;
          Debt (Continued):</strong></font></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2006
          and
          for the year ended December 31, 2005 was $50 and $28, respectively, resulting
          in
          weighted average interest rates of 9.9% and 7.3%, respectively. Upon the
          sale of
          the Company on April 24, 2006 (See Note 12), the line of credit was
          closed.</font></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">On
          October 15, 2003, the Company entered into an automobile loan of $14 repayable
          over a period of 36 months with an interest rate of 3.4%. This loan was
          repaid
          upon the sale of the automobile (See Note 3). </font></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>9.&#160;&#160;&#160;&#160;
          Commitments:</strong></font></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>Operating
          Leases</em></strong></font></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
          Company leases office space under a non-cancelable operating lease expiring
          on
          March 5, 2009. Future minimum lease payments under this lease are as
          follows:</font></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br>
          <div align="center">
            <table cellpadding="0" cellspacing="0" id="ftable" width="75%">

                <tr>
                  <td align="left" valign="bottom" width="81%">&#160;</td>
                  <td width="2%">&#160;</td>
                  <td align="left" valign="bottom" width="1%">&#160;</td>
                  <td align="right" valign="bottom" width="15%">&#160;</td>
                  <td align="left" valign="bottom" width="1%">&#160;</td>
                </tr>
                <tr>
                  <td align="left" valign="bottom" width="81%" style="border-bottom: medium none;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">April
                      25, 2006 to December 31, 2006</font></div>
                  </td>
                  <td width="2%" style="border-bottom: medium none;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
                  </td>
                  <td align="right" valign="bottom" width="15%" style="border-bottom: medium none;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">63</font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                </tr>
                <tr>
                  <td align="left" valign="bottom" width="81%" style="border-bottom: medium none;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;Year
                      Ended December 31, 2007</font></div>
                  </td>
                  <td width="2%" style="border-bottom: medium none;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                  <td align="right" valign="bottom" width="15%" style="border-bottom: medium none;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">98</font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                </tr>
                <tr>
                  <td align="left" valign="bottom" width="81%" style="border-bottom: medium none;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;Year
                      Ended December 31, 2008</font></div>
                  </td>
                  <td width="2%" style="border-bottom: medium none;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                  <td align="right" valign="bottom" width="15%" style="border-bottom: medium none;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">107</font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                </tr>
                <tr>
                  <td align="left" valign="bottom" width="81%" style="border-bottom: medium none;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;Year
                      Ended December 31, 2009</font></div>
                  </td>
                  <td width="2%" style="border-bottom: medium none;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                  <td align="right" valign="bottom" width="15%" style="border-bottom: medium none;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">18</font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                </tr>

            </table>
          </div>
        </div>
        <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br>&#160;</div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Rent
          expense under all operating leases was approximately $23 and $50 for the
          period
          January 1, 2006 through April 24, 2006 and the year ended December 31,
          2005,
          respectively.</font></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>10.&#160;&#160;
          Stock Options: </strong></font></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">As
          of
          October 1, 2000, the Company had established an option plan approved by
          the
          Board of Directors, the 2000 Equity Incentive Plan of NewTilt, Inc. (the
          &#8220;Plan&#8221;). The exercise price for these options is equal to the estimated fair
          market value of the Company&#8217;s common stock at the date of grant, based on
          management&#8217;s assessment. Options expire no later than ten years from the grant
          date and generally vest as follows: 50% upon the first anniversary of date
          of
          grant, an additional 25% on the eighteen-month anniversary and the remaining
          25%
          on the second anniversary of the date of grant. A summary of option activity
          is
          as follows:</font></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
        <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
        <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 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="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">F
              -
              67</font></div>
            <div style="WIDTH: 100%; TEXT-ALIGN: center">
              <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="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">
            <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>New
              Tilt, Inc.</strong></font></div>
            <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Notes
              to Financial Statements</strong></font></div>
            <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>For
              the period January 1, 2006 thru April 24, 2006 and for the year ended
              December
              31, 2005</strong></font></div>
            <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>(Amounts
              in thousands, except share and per share amounts)</strong></font></div>
            <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
          </div>
        </div>
        <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>10.&#160;
          &#160;Stock Options (continued): </strong></font></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><br></font>
          <div align="center">
            <table border="0" cellpadding="0" cellspacing="0" id="ftable" width="75%">

                <tr>
                  <td align="left" valign="bottom" width="62%" style="border-bottom: #ffffff solid;">&#160;</td>
                  <td width="2%" style="border-bottom: #ffffff solid;">&#160;</td>
                  <td align="left" colspan="2" valign="bottom" width="16%" style="border-bottom: black thin solid;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Options</font></div>
                  </td>
                  <td align="left" valign="bottom" width="3%" style="border-bottom: #ffffff solid;">&#160;</td>
                  <td align="left" colspan="2" valign="bottom" width="16%" style="border-bottom: black thin solid;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Weighted</font></div>
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Average</font></div>
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Exercise</font></div>
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Price</font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff solid;">&#160;</td>
                </tr>
                <tr>
                  <td align="left" valign="bottom" width="62%" style="border-bottom: medium none;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Options
                      outstanding at January 1, 2005</font></div>
                  </td>
                  <td width="2%" style="border-bottom: medium none;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                  <td align="right" valign="bottom" width="15%" style="border-bottom: medium none;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">212,000</font></div>
                  </td>
                  <td align="left" valign="bottom" width="3%" style="border-bottom: medium none;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
                  </td>
                  <td align="right" valign="bottom" width="15%" style="border-bottom: medium none;">
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                  <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
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                <tr>
                  <td align="left" valign="bottom" width="62%" style="border-bottom: medium none;">
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                  <td width="2%" style="border-bottom: medium none;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                  <td align="right" valign="bottom" width="15%" style="border-bottom: medium none;">
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                  <td align="left" valign="bottom" width="3%" style="border-bottom: medium none;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                  <td align="right" valign="bottom" width="15%" style="border-bottom: medium none;">
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                  <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                </tr>
                <tr>
                  <td align="left" valign="bottom" width="62%" style="border-bottom: medium none;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Canceled</font></div>
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                  <td width="2%" style="border-bottom: medium none;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                  <td align="right" valign="bottom" width="15%" style="border-bottom: medium none;">
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                  <td align="left" valign="bottom" width="3%" style="border-bottom: medium none;">
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                  <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                  <td align="right" valign="bottom" width="15%" style="border-bottom: medium none;">
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                  <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                </tr>
                <tr>
                  <td align="left" valign="bottom" width="62%" style="border-bottom: #ffffff solid;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Exercised</font></div>
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                  <td width="2%" style="border-bottom: #ffffff solid;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                  <td align="right" valign="bottom" width="15%" style="border-bottom: black thin solid;">
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                  <td align="left" valign="bottom" width="3%" style="border-bottom: #ffffff solid;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;">&#160;</td>
                  <td align="right" valign="bottom" width="15%" style="border-bottom: #ffffff thin solid;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff solid;">&#160;</td>
                </tr>
                <tr>
                  <td align="left" valign="bottom" width="62%" style="border-bottom: medium none;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Options
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                  </td>
                  <td width="2%" style="border-bottom: medium none;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                  <td align="right" valign="bottom" width="15%" style="border-bottom: medium none;">
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                  <td align="left" valign="bottom" width="3%" style="border-bottom: medium none;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                  <td align="right" valign="bottom" width="15%" style="border-bottom: medium none;">
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                  <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                </tr>
                <tr>
                  <td align="left" valign="bottom" width="62%" style="border-bottom: medium none;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Granted</font></div>
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                  <td width="2%" style="border-bottom: medium none;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                  <td align="right" valign="bottom" width="15%" style="border-bottom: medium none;">
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                  <td align="left" valign="bottom" width="3%" style="border-bottom: medium none;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                  <td align="right" valign="bottom" width="15%" style="border-bottom: medium none;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">1.50</font></div>
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                  <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                </tr>
                <tr>
                  <td align="left" valign="bottom" width="62%" style="border-bottom: medium none;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Canceled</font></div>
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                  <td width="2%" style="border-bottom: medium none;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                  <td align="right" valign="bottom" width="15%" style="border-bottom: medium none;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(56,000</font></div>
                  </td>
                  <td align="left" valign="bottom" width="3%" style="border-bottom: medium none;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
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                  <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                  <td align="right" valign="bottom" width="15%" style="border-bottom: medium none;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">1.58</font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                </tr>
                <tr>
                  <td align="left" valign="bottom" width="62%" style="border-bottom: #ffffff solid;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Exercised</font></div>
                  </td>
                  <td width="2%" style="border-bottom: #ffffff solid;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                  <td align="right" valign="bottom" width="15%" style="border-bottom: black thin solid;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px">
                      <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman">&#8212;</font></font></div>
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                  </td>
                  <td align="left" valign="bottom" width="3%" style="border-bottom: #ffffff solid;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;">&#160;</td>
                  <td align="right" valign="bottom" width="15%" style="border-bottom: #ffffff thin solid;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff solid;">&#160;</td>
                </tr>
                <tr>
                  <td align="left" valign="bottom" width="62%" style="border-bottom: #ffffff solid;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Options
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                  </td>
                  <td width="2%" style="border-bottom: #ffffff solid;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">&#160;</td>
                  <td align="right" valign="bottom" width="15%" style="border-bottom: black double;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">241,000</font></div>
                  </td>
                  <td align="left" valign="bottom" width="3%" style="border-bottom: #ffffff solid;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff solid;">&#160;</td>
                  <td align="right" valign="bottom" width="15%" style="border-bottom: #ffffff solid;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">1.85</font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff solid;">&#160;</td>
                </tr>

            </table>
          </div>
        </div>
        <div>&#160;</div>
        <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Summarized
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          follows:</font></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">
          <div align="left">
            <table cellpadding="0" cellspacing="0" id="ftable" width="100%">

                <tr>
                  <td align="left" valign="bottom" width="25%" style="border-bottom: #ffffff solid;">&#160;</td>
                  <td width="2%" style="border-bottom: #ffffff solid;">&#160;</td>
                  <td align="left" colspan="2" valign="bottom" width="12%" style="border-bottom: #ffffff solid;">&#160;</td>
                  <td align="left" valign="bottom" width="3%" style="border-bottom: #ffffff solid;">&#160;</td>
                  <td align="left" colspan="2" valign="bottom" width="12%" style="border-bottom: #ffffff solid;">&#160;</td>
                  <td align="left" valign="bottom" width="3%" style="border-bottom: #ffffff solid;">&#160;</td>
                  <td align="left" colspan="2" valign="bottom" width="12%" style="border-bottom: #ffffff solid;">&#160;</td>
                  <td align="left" valign="bottom" width="3%" style="border-bottom: #ffffff solid;">&#160;</td>
                  <td align="left" colspan="5" valign="bottom" width="27%" style="border-bottom: black thin solid;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Exercisable</font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff solid;">&#160;</td>
                </tr>
                <tr>
                  <td align="left" valign="bottom" width="25%" style="border-bottom: black thin solid;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Range
                      of Exercise Prices</font></div>
                  </td>
                  <td width="2%" style="border-bottom: #ffffff solid;">&#160;</td>
                  <td align="left" colspan="2" valign="bottom" width="12%" style="border-bottom: black thin solid;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Number
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                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Options</font></div>
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Outstanding</font></div>
                  </td>
                  <td align="left" valign="bottom" width="3%" style="border-bottom: #ffffff solid;">&#160;</td>
                  <td align="left" colspan="2" valign="bottom" width="12%" style="border-bottom: black thin solid;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Weighted</font></div>
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Average</font></div>
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                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Contractual</font></div>
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                  </td>
                  <td align="left" valign="bottom" width="3%" style="border-bottom: #ffffff solid;">&#160;</td>
                  <td align="left" colspan="2" valign="bottom" width="12%" style="border-bottom: black thin solid;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Weighted</font></div>
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Average</font></div>
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                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Price</font></div>
                  </td>
                  <td align="left" valign="bottom" width="3%" style="border-bottom: #ffffff solid;">&#160;</td>
                  <td align="left" colspan="2" valign="bottom" width="12%" style="border-bottom: black thin solid;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Number
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                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Options</font></div>
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Outstanding</font></div>
                  </td>
                  <td align="left" valign="bottom" width="3%" style="border-bottom: #ffffff solid;">&#160;</td>
                  <td align="left" colspan="2" valign="bottom" width="12%" style="border-bottom: black thin solid;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Weighted</font></div>
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Average</font></div>
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Remaining</font></div>
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Contractual</font></div>
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Life</font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff solid;">&#160;</td>
                </tr>
                <tr>
                  <td align="left" valign="bottom" width="25%" style="border-bottom: medium none;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$0.50</font></div>
                  </td>
                  <td width="2%" style="border-bottom: medium none;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">1,000</font></div>
                  </td>
                  <td align="left" valign="bottom" width="3%" style="border-bottom: medium none;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">4.67</font></div>
                  </td>
                  <td align="left" valign="bottom" width="3%" style="border-bottom: medium none;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
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                  <td align="left" valign="bottom" width="3%" style="border-bottom: medium none;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
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                  <td align="left" valign="bottom" width="3%" style="border-bottom: medium none;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
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                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;
                      1.50</font></div>
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                  <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">70,000</font></div>
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                  <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
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                  <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
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                  <td align="left" valign="bottom" width="3%" style="border-bottom: medium none;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
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                  <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
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                  <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
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                <tr>
                  <td align="left" valign="bottom" width="25%" style="border-bottom: medium none;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;
                      2.00</font></div>
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                  <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">170,000</font></div>
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                  <td align="left" valign="bottom" width="3%" style="border-bottom: medium none;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
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                  <td align="left" valign="bottom" width="3%" style="border-bottom: medium none;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">2.00</font></div>
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                  <td align="left" valign="bottom" width="3%" style="border-bottom: medium none;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">149,000</font></div>
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                  <td align="left" valign="bottom" width="3%" style="border-bottom: medium none;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">9.42</font></div>
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                  <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                </tr>
                <tr>
                  <td align="left" valign="bottom" width="25%" style="border-bottom: medium none;">&#160;</td>
                  <td width="2%" style="border-bottom: medium none;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">241,000</font></div>
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                  <td align="left" valign="bottom" width="3%" style="border-bottom: medium none;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">9.50</font></div>
                  </td>
                  <td align="left" valign="bottom" width="3%" style="border-bottom: medium none;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">1.91</font></div>
                  </td>
                  <td align="left" valign="bottom" width="3%" style="border-bottom: medium none;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">180,000</font></div>
                  </td>
                  <td align="left" valign="bottom" width="3%" style="border-bottom: medium none;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">9.50</font></div>
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                  <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
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            </table>
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        <div>&#160;</div>
        <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">At
          April
          24, 2006, options to purchase 180,000 shares at a weighted average exercise
          price of $1.91 of common stock were exercisable with the remaining options
          becoming exercisable at various dates through March 13, 2008 and having
          expiration dates through April 21, 2016</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">.
          </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Upon
          the
          sale of the Company on April 25, 2006 (See Note 13), the outstanding 241,000
          NewTilt options were converted to Bridgeline options at a conversion rate
          of
          1:4.28 with no change to the original vesting schedule.</font></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>11.
          &#160;Retirement Plan: </strong></font></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
          Company has established a 401(k) plan for the benefit of employees effective
          January 1, 2004. This plan allows for employees to contribute up to 100%
          of
          their pay up to the IRS maximum allowable contribution per year. The Company
          has
          not made any contributions to the plan since its inception. </font></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
        <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 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="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">F
              -
              68</font></div>
            <div style="WIDTH: 100%; TEXT-ALIGN: center">
              <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="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><strong><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></strong>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>New
            Tilt, Inc.</strong></font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Notes
            to Financial Statements</strong></font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>For
            the period January 1, 2006 thru April 24, 2006 and for the year ended
            December
            31, 2005</strong></font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>(Amounts
            in thousands, except share and per share
            amounts)</strong></font><br>&#160;</div>
        </div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>12.&#160;&#160;
          Subsequent Event:</strong></font></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">On
          April
          25, 2006, all of the net assets of the Company were acquired by Bridgeline
          Software, Inc. (<font style="DISPLAY: inline; FONT-FAMILY: Times New Roman">&#8220;</font>Bridgeline<font style="DISPLAY: inline; FONT-FAMILY: Times New Roman">&#8221;</font>),
          a developer of
          Web applications and software tools headquartered in Woburn, Massachusetts.
          Purchase consideration was paid in the form of $550 cash, contingent cash
          consideration of up to $750 to be paid quarterly over the next three years,
          and
          320,000 shares of Bridgeline common stock.</font></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
        <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 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="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">F
              -
              69</font></div>
            <div style="WIDTH: 100%; TEXT-ALIGN: center">
              <hr style="COLOR: black" noshade size="2">
            </div>
          </div>
          <div id="HDR">&#160;</div>
        </div>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify">
        <div align="left">
          <table border="0" cellpadding="0" cellspacing="0" width="100%">

              <tr>
                <td align="left" valign="top" width="45%" style="border-bottom: black double;">&#160;</td>
                <td width="2%" style="border-bottom: black double;">&#160;</td>
                <td align="right" valign="top" width="6%" style="border-bottom: #ffffff solid;">&#160;</td>
                <td width="47%" style="border-bottom: black double;">&#160;</td>
              </tr>
              <tr>
                <td align="left" valign="top" width="45%">&#160;</td>
                <td width="2%">&#160;</td>
                <td align="right" valign="top" width="6%">&#160;</td>
                <td width="47%">&#160;</td>
              </tr>
              <tr>
                <td align="left" colspan="2" valign="top" width="47%"><strong><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Until
                  &#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;,
                  2007 (25&#160;days after the date of this prospectus), all dealers
                  effecting transactions in the shares offered by this prospectus
                  whether or
                  not participating in the offering may be required to deliver a
                  copy of
                  this prospectus. Dealers may also be required to deliver a copy
                  of this
                  prospectus when acting as underwriters and for their unsold allotments
                  or
                  subscriptions.</font></strong>&#160;</td>
                <td align="right" valign="top" width="6%">&#160;</td>
                <td width="47%">
                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><img src="logo_14663.jpg" alt="LOGO"></div>
                </td>
              </tr>
              <tr>
                <td align="left" valign="top" width="45%" style="border-bottom: medium none;">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>TABLE
                    OF CONTENTS </strong></font></div>
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 9pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Prospectus
                    Summary</font></div>
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 9pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
                    Offering</font></div>
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 9pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Summary
                    Financial Data</font></div>
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 9pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Risk
                    Factors</font></div>
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 9pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Cautionary
                    Note Regarding Forward</font></div>
                  <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 9pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Looking
                    Statements</font></div>
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 9pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Determination
                    of Offering Price</font></div>
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 9pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Use
                    of Proceeds</font></div>
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 9pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Dividend
                    Policy</font></div>
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 9pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Capitalization</font></div>
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 9pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Unaudited
                    Condensed Pro Forma Financial Data</font></div>
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 9pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Dilution</font></div>
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 9pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Selected
                    Financial Data</font></div>
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 9pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Management&#8217;s
                    Discussion and Analysis</font></div>
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 9pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Business</font></div>
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 9pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Management</font></div>
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 9pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Executive
                    Compensation</font></div>
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 9pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Certain
                    Relationships and Related</font></div>
                  <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 9pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Transactions</font></div>
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 9pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Security
                    Ownership of Certain Beneficial</font></div>
                  <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 9pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Owners
                    and Management</font></div>
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 9pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Description
                    of Capital Stock</font></div>
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 9pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Shares
                    Eligible for Future Sale</font></div>
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 9pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Underwriting</font></div>
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 9pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Legal
                    Matters</font></div>
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 9pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Experts</font></div>
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 9pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Additional
                    Information</font></div>
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 9pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Index
                    to Financial Statements</font></div>
                </td>
                <td valign="bottom" width="2%">&#160;

                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2</font></div>
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">5</font></div>
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">6</font></div>
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">9</font></div>
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="right">&#160;</div>
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">17</font></div>
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">17</font></div>
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">18</font></div>
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">18</font></div>
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">19</font></div>
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">20</font></div>
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">22</font></div>
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">24</font></div>
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">26</font></div>
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">38</font></div>
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">56</font></div>
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">62</font></div>
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="right">&#160;</div>
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">65</font></div>
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="right">&#160;</div>
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">67</font></div>
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">69</font></div>
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">73</font></div>
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">75</font></div>
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">77</font></div>
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">77</font></div>
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">77</font></div>
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 9pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">F-1</font></div>
                </td>
                <td align="right" valign="top" width="6%" style="border-bottom: medium none;">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="right">&#160;</div>
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="right">&#160;</div>
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="right">&#160;</div>
                </td>
                <td width="47%" style="border-bottom: medium none;">&#160;<br>
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><br></div>
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><br></div>
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 18pt; FONT-FAMILY: Times New Roman"><strong>&#160;</strong></font><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><strong>Bridgeline
                    Software, Inc.</strong></font></div>
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><br></div>
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><br></div>
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><br></div>
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><br></div>
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><strong>3,000,000
                    Shares</strong></font></div>
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><br></div>
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><br></div>
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><br></div>
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><br></div>
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>_____________</strong></font></div>
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><br></div>
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Prospectus</strong></font></div>
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>_____________</strong></font></div>
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><br></div>
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
                </td>
              </tr>
              <tr>
                <td align="left" colspan="2" valign="top" width="47%">&#160;<br>
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>You
                    should rely only on the information contained in this prospectus.
                    We have
                    not authorized anyone to provide you with different information.
                    If anyone
                    provides you with different information, you should not rely
                    on it. We are
                    not making an offer to sell these shares in any jurisdiction
                    where the
                    offer or sale is not permitted. You should assume that the information
                    contained in this prospectus is accurate only as of the date
                    on the front
                    cover of the prospectus. Our business, financial condition, results
                    of
                    operations and prospects may have changes since that
                    date.</strong></font></div>
                </td>
                <td align="right" valign="top" width="6%">&#160;</td>
                <td width="47%"><br>
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><br></div>
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><br></div>
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><strong>Joseph
                    Gunnar &amp; Co., LLC</strong></font></div>
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><br></div>
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><br></div>
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><br></div>
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><br></div>
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;,
                    2006</font></div>&#160;</td>
              </tr>
              <tr>
                <td align="left" valign="top" width="45%" style="border-bottom: black double;">&#160;</td>
                <td width="2%" style="border-bottom: black double;">&#160;</td>
                <td align="right" valign="top" width="6%" style="border-bottom: #ffffff solid;">&#160;</td>
                <td width="47%" style="border-bottom: black double;">&#160;</td>
              </tr>

          </table>
        </div>
      </div><br>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
      <div>&#160;</div>
    </div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 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="WIDTH: 100%; TEXT-ALIGN: center">
        </div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <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="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">[Alternate
      Front Cover Page for Selling Shareholder Prospectus]</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
    <div>
      <table cellpadding="0" cellspacing="0" width="100%">

          <tr>
            <td align="justify" valign="middle" width="78%" bgcolor="#ffffff">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: red; FONT-FAMILY: Times New Roman">The
                information in this prospectus is not complete and may be changed.
                We may
                not sell these securities until the registration statement filed
                with the
                Securities and Exchange Commission is effective. The prospectus is
                not an
                offer to sell these securities and it is not soliciting an offer
                to buy
                these securities in any state where the offer or sale is not
                permitted.</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div>&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: red; FONT-FAMILY: Times New Roman"><strong>SUBJECT
      TO COMPLETION, DATED DECEMBER 13, 2006</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>PROSPECTUS</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><img src="logo_14663.jpg" alt="LOGO"></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 24pt; FONT-FAMILY: Times New Roman"><strong>Bridgeline
      Software, Inc.</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><strong>Common
      Stock</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">This
      prospectus covers the selling stockholders&#8217; resale of (1) up to 392,000 shares
      of common stock they now own or have the right to acquire upon exercise of
      outstanding warrants and (2) up to 300,000 shares of common stock underlying
      warrants granted to the lead underwriter in our initial public offering. We
      will
      not receive any proceeds from the resale of the common stock by the selling
      stockholders, but we will receive the proceeds of their warrant exercises.
      The
      proceeds to the selling stockholders of their resale of the common stock will
      depend on the market price at the time of sale.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Prior
      to
      our initial public offering, there has been no public market for our common
      stock. We have applied for quotation of our common stock on the Nasdaq Capital
      Market and the Boston Stock Exchange under the symbols &#8220;BLSW&#8221; and &#8220;BLS&#8221;,
      respectively. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Investing
      in our common stock involves risks. See &#8220;Risk Factors&#8221; beginning on
      page&#160;___ for a discussion of certain factors that should be considered by
      prospective purchasers of our shares.</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>These
      securities have not been approved or disapproved by the Securities and Exchange
      Commission or any state securities commission, nor has the Securities and
      Exchange Commission or any state securities commission passed upon the accuracy
      or adequacy of this prospectus. Any representation to the contrary is a criminal
      offense.</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br>
      <div align="left">
        <table border="0" cellpadding="0" cellspacing="0" width="100%">

            <tr>
              <td align="justify" valign="top" width="35%" style="border-bottom: medium none;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Public
                  offering Price</font></div>
              </td>
              <td align="justify" valign="top" width="65%" style="border-bottom: medium none;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
                  shares will sell at prevailing market prices or privately negotiated
                  prices if and when the shares are listed on the Nasdaq Capital
                  Market or
                  the Boston Stock Exchange.</font></div>
              </td>
            </tr>
            <tr>
              <td align="justify" valign="top" width="35%" style="border-bottom: medium none;">&#160;</td>
              <td align="justify" valign="top" width="65%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="justify" valign="top" width="35%" style="border-bottom: medium none;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Commission</font></div>
              </td>
              <td align="justify" valign="top" width="65%" style="border-bottom: medium none;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Customary
                  for the type of transaction involved.</font></div>
              </td>
            </tr>
            <tr>
              <td align="justify" valign="top" width="35%" style="border-bottom: medium none;">&#160;</td>
              <td align="justify" valign="top" width="65%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="justify" valign="top" width="35%" style="border-bottom: medium none;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Proceeds
                  to Selling Stockholders</font></div>
              </td>
              <td align="justify" valign="top" width="65%" style="border-bottom: medium none;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Market
                  price, from time to time, a price related to the market price or
                  negotiated price, net of customary commission for execution of
                  the type of
                  transaction.</font></div>
              </td>
            </tr>

        </table>
      </div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 180pt; TEXT-INDENT: -180pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Public
      offering Price</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      shares will sell at prevailing market prices or privately negotiated prices
      if
      and when the shares are listed on the Nasdaq Capital Market or the Boston Stock
      Exchange.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 180pt; TEXT-INDENT: -180pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 180pt; TEXT-INDENT: -180pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Commission</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Customary
      for the type of transaction involved.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 180pt; TEXT-INDENT: -180pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 180pt; TEXT-INDENT: -180pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Proceeds
      to Selling Stockholders</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Market
      price, from time to time, a price related to the market price or negotiated
      price, net of customary commission for execution of the type of
      transaction.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      date
      of this prospectus is
&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;,
      2007.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">
      <div>&#160;

        <div>
          <hr style="COLOR: black" align="left" noshade size="1" width="100%">
        </div>
      </div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; WIDTH: 100%; TEXT-INDENT: 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="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Alt
          -
          1</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="2">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">
        </div>
      </div>
    </div><br>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">[Alternate
      Page for Selling Shareholder Prospectus (to replace the &#8220;Offering&#8221;
section)]</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>THE
      OFFERING</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div align="center">
      <table bgcolor="white" cellpadding="0" cellspacing="0" width="90%">

          <tr bgcolor="white">
            <td width="50%">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Common
                Stock Presently Outstanding:</strong>&#160;</font>&#160;</div>
            </td>
            <td width="50%">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center">&#160;<font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">7,273,833
                shares</font></div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td width="50%">&#160;</td>
            <td width="50%">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td width="50%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Common
              Stock Issuable upon Exercise of Selling Stockholder
              Warrants:</strong></font></td>
            <td width="50%">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center">&#160;<font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">692,000
                shares</font></div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td width="50%">&#160;</td>
            <td width="50%">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td width="50%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Common
              Stock to be Outstanding Immediately <font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">after
              Selling Stockholder Offering:</font></strong></font></td>
            <td width="50%">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center">&#160;<font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">7,965,833
                shares</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">________________</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 94.5pt" align="left">
      <div align="left">&#160;</div>
      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        number of shares of common stock presently outstanding is based on 7,273,833
        shares outstanding immediately following the initial public offering and
        does
        not include:</font></div>
    </div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">345,000
                shares issuable if the over-allotment option is exercised in full
                by the
                underwriters;</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">490,909
                shares issuable upon the release of the closing escrow related to
                the
                acquisition of Objectware;</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">932,911
                </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">shares
                issuable upon the exercise of outstanding options at a weighted average
                exercise price of $2.96 per share;</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">578,269
                </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">shares
                issuable upon the exercise of outstanding warrants;
                and</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">300,000
                shares issuable upon the exercise of the underwriter&#8217;s warrants issued in
                connection with the initial public
                offering.</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div>&#160;</div>
    <div><br>
      <div align="left">
        <table border="0" cellpadding="0" cellspacing="0" width="100%">

            <tr>
              <td align="justify" valign="top" width="25%" style="border-bottom: medium none;">&#160;</td>
              <td align="justify" valign="top" width="75%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="justify" valign="top" width="25%" style="border-bottom: medium none;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Common
                  Stock </strong></font></div>
              </td>
              <td align="justify" valign="top" width="75%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="justify" valign="top" width="25%" style="border-bottom: medium none;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Offered:</strong></font></div>
              </td>
              <td align="justify" valign="top" width="75%" style="border-bottom: medium none;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">All
                  of the 692,000 shares offered by this prospectus are being sold
                  by the
                  selling stockholders who hold or have the right to acquire shares
                  of
                  common stock </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">upon
                  exercise of outstanding warrants. </font></div>
              </td>
            </tr>
            <tr>
              <td align="justify" valign="top" width="25%" style="border-bottom: medium none;">&#160;</td>
              <td align="justify" valign="top" width="75%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="justify" valign="top" width="25%" style="border-bottom: medium none;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Use
                  of Proceeds:</strong></font></div>
              </td>
              <td align="justify" valign="top" width="75%" style="border-bottom: medium none;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">We
                  will not receive any proceeds from the resale of the common stock
                  by the
                  selling stockholders, but we will receive the proceeds of their
                  warrant
                  exercises. The proceeds to the selling stockholders of their resale
                  of the
                  common stock will depend on the market price at the time of
                  sale.</font></div>
              </td>
            </tr>
            <tr>
              <td align="left" valign="top" width="25%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="top" width="75%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="justify" valign="top" width="25%" style="border-bottom: medium none;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Risk
                  Factors:</strong></font></div>
              </td>
              <td align="justify" valign="top" width="75%" style="border-bottom: medium none;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">You
                  should consider carefully all of the information set forth in this
                  prospectus, and, in particular, the specific factors set forth
                  under &#8220;Risk
                  Factors&#8221; beginning at page 9, before deciding whether or not to invest in
                  our shares.</font></div>
              </td>
            </tr>
            <tr>
              <td align="justify" valign="top" width="25%" style="border-bottom: medium none;">&#160;</td>
              <td align="justify" valign="top" width="75%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="justify" valign="top" width="25%" style="border-bottom: medium none;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Trading
                  Symbols:</strong></font></div>
              </td>
              <td align="justify" valign="top" width="75%" style="border-bottom: medium none;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">We
                  have applied for listing of our common stock on the Nasdaq Capital
                  Market
                  and the Boston Stock Exchange under the symbols &#8220;BLSW&#8221; and &#8220;BLS,&#8221;
                  respectively. </font></div>
              </td>
            </tr>

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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Unless
      otherwise indicated, all information in this prospectus assumes no exercise
      of
      the over-allotment option granted to the underwriters.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">_______________________</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8220;Bridgeline,&#8221;
      &#8220;Bridgeline Software,&#8221; &#8220;iapps,&#8221; &#8220;netEDITOR,&#8221; &#8220;netEDITOR-pro&#8221; and &#8220;Orgitecture&#8221;
are our trademarks and service marks. We have registered the trademarks
&#8220;Bridgeline,&#8221; &#8220;iapps&#8221; and &#8220;netEDITOR&#8221; with the United States Patent and
      Trademark Office, and have filed applications to register &#8220;netEDITOR-pro&#8221; and
&#8220;Orgitecture,&#8221; and claim common law rights in such marks. </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">This
      prospectus refers to the trade names, service marks and trademarks of other
      companies. These references are made with due recognition of the rights of
      these
      companies and without any intent to misappropriate these names or
      marks.</font></div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; WIDTH: 100%; TEXT-INDENT: 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="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Alt
          -
          2</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="2">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">
        </div>
      </div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">[Alternate
      Page for Selling Shareholder Prospectus (to replace the &#8220;Underwriting&#8221;
section)]</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>SELLING
      STOCKHOLDERS</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      following is a list of the selling stockholders who own or who have the right
      to
      acquire the 692,000 shares of common stock covered by this prospectus. As set
      forth below and elsewhere in this prospectus, some of these selling stockholders
      hold or within the past three years have held, a position, office or other
      material relationship with us.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      following table sets forth information concerning the selling stockholders,
      including:</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div>
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            <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
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              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">the
                number of shares currently held;</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">the
                number of shares issuable upon exercise of warrants;
                and</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">the
                number of shares offered by each selling
                shareholder.</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">We
      have
      no knowledge of the intentions of any selling shareholder to actually sell
      any
      of the securities listed under the columns &#8220;Shares Being Offered.&#8221;</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 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="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Alt
          -
          3</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <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="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br>
      <div>
        <table cellpadding="0" cellspacing="0" id="ftable" width="100%">

            <tr>
              <td valign="bottom" width="43%" style="border-bottom: #ffffff solid;">&#160;</td>
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                <div align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Shares
                  Owned at Closing </strong></font></div>
                <div align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>of
                  Initial Public Offering </strong></font></div>
                <div align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>(1)</strong></font></div>
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              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
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                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Being
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                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Offered</strong></font></div>
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                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Resale
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                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>(2)</strong></font></div>
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              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
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              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
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              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
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              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
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              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
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              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">*</font></div>
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              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
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              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
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                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">0</font></div>
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              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">*</font></div>
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              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
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                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Paul
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              </td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
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              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">*</font></div>
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              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
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              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
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              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">*</font></div>
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              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
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              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
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              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">*</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
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              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">26,667</font></div>
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              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
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              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">*</font></div>
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              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
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              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
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              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">*</font></div>
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              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="43%" style="border-bottom: medium none;">
                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Burg
                  Family Trust</font></div>
              </td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">5,000</font></div>
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              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">*</font></div>
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              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">5,000</font></div>
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              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">0</font></div>
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              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">*</font></div>
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              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="43%" style="border-bottom: medium none;">
                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Brian
                  Callahan</font></div>
              </td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">10,000</font></div>
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              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">*</font></div>
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              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">10,000</font></div>
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              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">0</font></div>
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              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">*</font></div>
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              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="43%" style="border-bottom: medium none;">
                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">William
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              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">57,223</font></div>
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              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">0.8%</font></div>
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              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px">&#160;</div>
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              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">10,000</font></div>
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              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">47,223</font></div>
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              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">0.6%</font></div>
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              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
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            <tr>
              <td align="left" valign="bottom" width="43%" style="border-bottom: medium none;">
                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Edward
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              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">5,000</font></div>
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              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">*</font></div>
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              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">5,000</font></div>
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              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">0</font></div>
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              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">*</font></div>
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              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="43%" style="border-bottom: medium none;">
                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">James
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              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">25,000</font></div>
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              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">*</font></div>
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              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">25,000</font></div>
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              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">0</font></div>
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              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">*</font></div>
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              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="43%" style="border-bottom: medium none;">
                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Thomas
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              </td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">10,000</font></div>
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              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">*</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">10,000</font></div>
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              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">0</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">*</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="43%" style="border-bottom: medium none;">
                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Fortune
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              </td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">5,000</font></div>
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              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">*</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
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              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">*</font></div>
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                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Albert
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              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">*</font></div>
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              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
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              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">0</font></div>
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              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">*</font></div>
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              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
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              <td align="left" valign="bottom" width="43%" style="border-bottom: medium none;">
                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Ronald
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              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">65,231</font></div>
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              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">*</font></div>
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              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">10,000</font></div>
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              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">55,231</font></div>
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              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">*</font></div>
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              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="43%" style="border-bottom: medium none;">
                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Herbert
                  Wrabel Living Trust</font></div>
              </td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">5,000</font></div>
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              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">*</font></div>
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              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">5,000</font></div>
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              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">0</font></div>
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              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">*</font></div>
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              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="43%" style="border-bottom: medium none;">
                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">High
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              </td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">10,000</font></div>
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              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">*</font></div>
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              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">10,000</font></div>
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              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">0</font></div>
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              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">*</font></div>
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              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="43%" style="border-bottom: medium none;">
                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Charles
                  Jia</font></div>
              </td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">5,000</font></div>
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              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">*</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">5,000</font></div>
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              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">0</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">*</font></div>
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              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="43%" style="border-bottom: medium none;">
                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Mitchell
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              </td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">5,000</font></div>
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              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">*</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">5,000</font></div>
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              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">0</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">*</font></div>
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              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="43%" style="border-bottom: medium none;">
                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Elia
                  Kotler</font></div>
              </td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">5,000</font></div>
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              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">*</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">5,000</font></div>
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              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">0</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">*</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="43%" style="border-bottom: medium none;">
                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">John
                  Landy</font></div>
              </td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">30,000</font></div>
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              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">*</font></div>
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              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
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              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
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              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">*</font></div>
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              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
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            <tr>
              <td align="left" valign="bottom" width="43%" style="border-bottom: medium none;">
                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Scott
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              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">5,000</font></div>
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              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">*</font></div>
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              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">5,000</font></div>
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              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">0</font></div>
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              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">*</font></div>
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              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="43%" style="border-bottom: medium none;">
                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Larry
                  Lowrance</font></div>
              </td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">10,000</font></div>
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              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">*</font></div>
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              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">10,000</font></div>
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              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">0</font></div>
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              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">*</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="43%" style="border-bottom: medium none;">
                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Thomas
                  L. and Theresa M. Massie (4)</font></div>
              </td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">916,667</font></div>
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              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">12.5%</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px">&#160;</div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">10,000</font></div>
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              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">906,667</font></div>
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              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">11.3%</font></div>
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              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px">&#160;</div>
              </td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="43%" style="border-bottom: medium none;">
                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Robert
                  S. McCoy</font></div>
              </td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">5,000</font></div>
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              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">*</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">5,000</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">0</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">*</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="43%" style="border-bottom: medium none;">
                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Robert
                  McLemore</font></div>
              </td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">41,667</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">*</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">5,000</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">36,667</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">*</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="43%" style="border-bottom: medium none;">
                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Ian
                  D. Mead</font></div>
              </td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">10,000</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">*</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">10,000</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">0</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">*</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="43%" style="border-bottom: medium none;">
                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">John
                  and Betty Panagolpolous</font></div>
              </td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">10,000</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">*</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">10,000</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">0</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">*</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="43%" style="border-bottom: medium none;">
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              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
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              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
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              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
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              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
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              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
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              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
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              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
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              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
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              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
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              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
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                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">John
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              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">5,000</font></div>
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              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">*</font></div>
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              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">5,000</font></div>
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              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">0</font></div>
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              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">*</font></div>
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              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="43%" style="border-bottom: medium none;">
                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Joseph
                  A. Alagna</font></div>
              </td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">37,216</font></div>
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              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">*</font></div>
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              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">37,216</font></div>
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              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">0</font></div>
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              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">*</font></div>
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              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="43%" style="border-bottom: medium none;">
                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Joseph
                  Duarte</font></div>
              </td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">16,363</font></div>
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              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">*</font></div>
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              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">16,363</font></div>
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              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">0</font></div>
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              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">*</font></div>
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              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="43%" style="border-bottom: medium none;">
                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Michael
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              </td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">1,300</font></div>
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              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">*</font></div>
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              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">1,300</font></div>
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              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">0</font></div>
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              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">*</font></div>
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              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="43%" style="border-bottom: medium none;">
                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Bradford
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              </td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">1,750</font></div>
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              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">*</font></div>
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              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">1,750</font></div>
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              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">0</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">*</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="43%" style="border-bottom: medium none;">
                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Anthony
                  Sica</font></div>
              </td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">4,406</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">*</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">4,406</font></div>
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              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">0</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">*</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="43%" style="border-bottom: medium none;">
                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Stephan
                  A. Stein</font></div>
              </td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">34,015</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">*</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">34,015</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">0</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">*</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="43%" style="border-bottom: medium none;">
                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Abner
                  Zalaznick</font></div>
              </td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">2,000</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">*</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">2,000</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">0</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">*</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="43%" style="border-bottom: medium none;">
                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Nicholas
                  Lobasso</font></div>
              </td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">3,000</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">*</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">3,000</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">0</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">*</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="43%" style="border-bottom: medium none;">
                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Gary
                  Saccaro</font></div>
              </td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">3,000</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">*</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">3,000</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">0</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">*</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="43%" style="border-bottom: medium none;">
                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Joseph
                  Gunnar &amp; Co., LLC</font></div>
              </td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">308,950</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">4.1%</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px">&#160;</div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">308,950</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">0</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="9%" style="border-bottom: medium none;">
                <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">*</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>

        </table>
      </div>
      <div>&#160;</div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">*
      Less
      than 1%.</font></div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">

          <tr valign="top" style="line-height: 1;">
            <td align="left" style="width: 18pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(1)</font></td>
            <td align="left">
              <div align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Based
                on 7,273,833 shares outstanding immediately following the initial
                public
                offering, plus, for each person, such number of shares of common
                stock
                that the selling stockholder has the right to acquire beneficial
                ownership
                of within 60 days after October 31,
                2006.</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">

          <tr valign="top" style="line-height: 1;">
            <td align="left" style="width: 18pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(2)</font></td>
            <td align="left">
              <div align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">This
                table assumes that each selling stockholder will sell all shares
                offered
                for sale by it under this registration statement. Stockholders are
                not
                required to sell their shares.</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">

          <tr valign="top" style="line-height: 1;">
            <td align="left" style="width: 18pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(3)</font></td>
            <td align="left">
              <div align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Mr.
                Coldrick is a Director of the company. Includes 5,556 shares subject
                to
                options that are exercisable within</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 36.8pt">&#160;</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 36.8pt">&#160;</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 36.8pt">&#160;</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 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="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Alt
          -
          4</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="2">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">
        </div>
      </div>
      <div>
        <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">

            <tr valign="top" style="line-height: 1;">
              <td align="left" style="width: 18pt;">&#160;</td>
              <td align="left">
                <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">60
                  days of October 31,
                  2006.</font></font></div>
              </td>
            </tr>

        </table>
      </div>
    </div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">

          <tr valign="top" style="line-height: 1;">
            <td align="left" style="width: 18pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(4)</font></td>
            <td align="left">
              <div align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Mr.
                Massie is President, Chief Executive Officer and a Director of the
                company. Includes 40,000 shares subject to options that are exercisable
                within 60 days of October 31, 2006.
</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">

          <tr valign="top" style="line-height: 1;">
            <td align="left" style="width: 18pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(5)</font></td>
            <td align="left">
              <div align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Mr.
                Seeger is Senior Vice President of Business Development of the company.
                Includes 68,164 shares subject to options that are exercisable within
                60
                days of October 31, 2006.</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 36.8pt">&#160;</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 36.8pt">&#160;</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 36.8pt">&#160;</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div>&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>PLAN
      OF DISTRIBUTION</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">We
      are
      registering the shares of common stock on behalf of the selling stockholders.
      As
      used in this prospectus, &#8220;selling stockholders&#8221; includes the pledges, donees,
      transferees or others who may later hold the selling stockholders&#8217; interests. We
      have agreed to pay the costs and fees of registering the shares, but the selling
      stockholders will pay any brokerage commissions, discounts or other expenses
      relating to the sale of the shares, including attorneys&#8217; fees.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      stockholders and any of their pledgees, assignees and successors-in-interest
      may, from time to time, sell any or all of their shares of common stock on
      any
      stock exchange, market or trading facility on which the shares are traded or
      in
      private transactions. These sales may be at fixed or negotiated prices. The
      stockholders may use any one or more of the following methods when selling
      shares:</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">ordinary
                brokerage transactions and transactions in which the broker dealer
                solicits purchasers;</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">block
                trades in which the broker-dealer will attempt to sell the shares
                as agent
                but may position and resell a portion of the block as principal to
                facilitate the transaction;</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">purchases
                by a broker-dealer as principal and resale by the broker dealer for
                its
                account;</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">an
                exchange distribution in accordance with the rules of the applicable
                exchange;</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">privately
                negotiated transactions;</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">settlement
                of short sales;</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">broker-dealers
                may agree with the stockholders to sell a specified number of such
                shares
                at a stipulated price per share;</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">a
                combination of any such methods of sale;
                and</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">any
                other method permitted pursuant to applicable
                law.</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      stockholders may also sell shares under Rule 144 under the Securities Act,
      if
      available, rather than under this prospectus.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Broker-dealers
      engaged by the stockholders may arrange for other brokers dealers to participate
      in sales. Broker-dealers may receive commissions or discounts from the
      stockholders (or, if any broker-dealer acts as agent for the purchaser of
      shares, from the purchaser) in amounts to be negotiated. The stockholders do
      not
      expect these commissions and discounts to exceed what is customary in the types
      of transactions involved.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      stockholders may from time to time pledge or grant a security interest in some
      or all of the shares of common stock owned by them and, if they default in
      the
      performance of their secured obligations, the pledgees or secured parties may
      offer and sell the shares of common stock from time to time under this
      prospectus, or under an amendment to this prospectus under Rule 424(b)(3) or
      other applicable provision of the Securities Act of 1933, as amended, amending
      the list of stockholders to include the pledgee, transferee or other successors
      in interest as stockholders under this prospectus.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      stockholders and any broker-dealers or agents that are involved in selling
      the
      shares may be deemed to be &#8220;underwriters&#8221; within the meaning of the Securities
      Act in connection with such sales. In such event, any commissions received
      by
      such broker-dealers or agents and any profit on the resale of the shares
      purchased by them may be deemed to be underwriting commissions or discounts
      under the Securities Act.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      selling stockholders have advised us that they have not entered into any
      agreements, understandings or arrangements with any underwriters or
      broker-dealers regarding the sale of their securities. Under the rules and
      regulations of the NASD, any such broker-dealer may not receive discounts,
      concessions or commissions in excess</font></div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 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="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Alt
          -
          5</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <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="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">of
      8% in
      connection with the sale of any securities being registered
      hereunder.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">We
      are
      required to pay all fees and expenses incident to the registration of the
      shares. We have agreed to indemnify the stockholders against certain losses,
      claims, damages and liabilities, including liabilities under the Securities
      Act.
      The selling stockholders will be subject to the prospectus delivery requirements
      of the Securities Act. We have informed the selling stockholders that the
      anti-manipulative provisions of Regulation M promulgated under the Securities
      Exchange Act of 1934 may apply to their sales in the market.</font></div>
    <div>&#160;</div>
    <div>&#160;</div>
    <div>&#160;</div>
    <div>&#160;</div>
    <div>&#160;</div>
    <div>&#160;</div>
    <div>&#160;</div>
    <div>&#160;</div>
    <div>&#160;</div>
    <div>&#160;</div>
    <div>&#160;</div>
    <div>&#160;</div>
    <div>&#160;</div>
    <div>&#160;</div>
    <div>&#160;</div>
    <div>&#160;</div>
    <div>&#160;</div>
    <div>&#160;</div>
    <div>&#160;</div>
    <div><br>&#160;</div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; WIDTH: 100%; TEXT-INDENT: 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="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Alt
          -
          6</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="2">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">
        </div>
      </div>
    </div><br>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">[Alternate
      Back Cover Page for Selling Shareholder Prospectus]</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
    <div>
      <hr style="MARGIN-TOP: -5px; COLOR: #000000" noshade size="4">
      <hr style="MARGIN-TOP: -10px; COLOR: #000000" noshade size="1">
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div align="left">
      <table border="0" cellpadding="0" cellspacing="0" width="100%">

          <tr>
            <td align="left" colspan="2" valign="top" width="80%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Until
                &#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;,
                2007 (25&#160;days after the date of this prospectus), all dealers
                effecting transactions in the shares offered by this prospectus whether
                or
                not participating in the offering may be required to deliver a copy
                of
                this prospectus. Dealers may also be required to deliver a copy of
                this
                prospectus when acting as underwriters and for their unsold allotments
                or
                subscriptions.</strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div>&#160;</div>
    <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><strong><u><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">TABLE
      OF
      CONTENTS</font></u></strong><br>
      <div align="left">
        <table border="0" cellpadding="0" cellspacing="0" width="100%">

            <tr>
              <td align="left" valign="top" width="59%" style="border-bottom: medium none;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Prospectus
                  Summary</font></div>
              </td>
              <td align="left" valign="top" width="9%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="top" width="9%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="top" width="59%" style="border-bottom: medium none;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
                  Offering</font></div>
              </td>
              <td align="left" valign="top" width="9%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="top" width="9%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="top" width="59%" style="border-bottom: medium none;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Summary
                  Financial Data</font></div>
              </td>
              <td align="left" valign="top" width="9%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="top" width="9%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="top" width="59%" style="border-bottom: medium none;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Risk
                  Factors</font></div>
              </td>
              <td align="left" valign="top" width="9%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="top" width="9%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="top" width="59%" style="border-bottom: medium none;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Cautionary
                  Note Regarding Forward Looking Statements</font></div>
              </td>
              <td align="left" valign="top" width="9%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="top" width="9%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="top" width="59%" style="border-bottom: medium none;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Determination
                  of Offering Price</font></div>
              </td>
              <td align="left" valign="top" width="9%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="top" width="9%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="top" width="59%" style="border-bottom: medium none;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Use
                  of Proceeds</font></div>
              </td>
              <td align="left" valign="top" width="9%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="top" width="9%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="top" width="59%" style="border-bottom: medium none;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Dividend
                  Policy</font></div>
              </td>
              <td align="left" valign="top" width="9%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="top" width="9%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="top" width="59%" style="border-bottom: medium none;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Capitalization</font></div>
              </td>
              <td align="left" valign="top" width="9%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="top" width="9%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="top" width="59%" style="border-bottom: medium none;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Unaudited
                  Condensed Pro Forma Financial Data</font></div>
              </td>
              <td align="left" valign="top" width="9%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="top" width="9%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="top" width="59%" style="border-bottom: medium none;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Dilution</font></div>
              </td>
              <td align="left" valign="top" width="9%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="top" width="9%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="top" width="59%" style="border-bottom: medium none;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Selected
                  Financial Data</font></div>
              </td>
              <td align="left" valign="top" width="9%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="top" width="9%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="top" width="59%" style="border-bottom: medium none;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Management&#8217;s
                  Discussion and Analysis <font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Business</font></font></div>
              </td>
              <td align="left" valign="top" width="9%" style="border-bottom: medium none;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
              </td>
              <td align="left" valign="top" width="9%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="top" width="59%" style="border-bottom: medium none;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Business</font></div>
              </td>
              <td align="left" valign="top" width="9%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="top" width="9%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="top" width="59%" style="border-bottom: medium none;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Management</font></div>
              </td>
              <td align="left" valign="top" width="9%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="top" width="9%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="top" width="59%" style="border-bottom: medium none;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Executive
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              <td align="left" valign="top" width="9%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="top" width="9%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="top" width="59%" style="border-bottom: medium none;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Certain
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              <td align="left" valign="top" width="9%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="top" width="9%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="top" width="59%" style="border-bottom: medium none;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Security
                  Ownership of Certain Beneficial Owners and Management</font></div>
              </td>
              <td align="left" valign="top" width="9%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="top" width="9%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="top" width="59%" style="border-bottom: medium none;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Description
                  of Capital Stock</font></div>
              </td>
              <td align="left" valign="top" width="9%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="top" width="9%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="top" width="59%" style="border-bottom: medium none;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Shares
                  Eligible for Future Sale</font></div>
              </td>
              <td align="left" valign="top" width="9%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="top" width="9%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="top" width="59%" style="border-bottom: medium none;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Selling
                  Stockholders</font></div>
              </td>
              <td align="left" valign="top" width="9%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="top" width="9%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="top" width="59%" style="border-bottom: medium none;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Plan
                  of Distribution</font></div>
              </td>
              <td align="left" valign="top" width="9%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="top" width="9%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="top" width="59%" style="border-bottom: medium none;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Legal
                  Matters</font></div>
              </td>
              <td align="left" valign="top" width="9%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="top" width="9%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="top" width="59%" style="border-bottom: medium none;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Experts</font></div>
              </td>
              <td align="left" valign="top" width="9%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="top" width="9%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="top" width="59%" style="border-bottom: medium none;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Index
                  to Financial Statements</font></div>
              </td>
              <td align="left" valign="top" width="9%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="top" width="9%" style="border-bottom: medium none;">&#160;</td>
            </tr>

        </table>
      </div>&#160;</div>
    <div>&#160;</div>
    <div>&#160;</div>
    <div>&#160;</div>
    <div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>You
        should rely only on the information contained in this prospectus. We have
        not
        authorized anyone to provide you with different information. If anyone provides
        you with different information, you should not rely on it. We are not making
        an
        offer to sell these shares in any jurisdiction where the offer or sale is
        not
        permitted. You should assume that the information contained in this prospectus
        is accurate only as of the date on the front cover of the prospectus. Our
        business, financial condition, results of operations and prospects may have
        changes since that date.</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><strong>692,000
        Shares</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 18pt; FONT-FAMILY: Times New Roman"><strong>Bridgeline
        Software, Inc.</strong></font></div>
    </div>
    <div>&#160;</div>
    <div>&#160;</div>
    <div>&#160;</div>
    <div>&#160;</div>
    <div>
      <hr style="MARGIN-TOP: -5px; COLOR: #000000" noshade size="1">
      <hr style="MARGIN-TOP: -13px; COLOR: #000000" noshade size="4">
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 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="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Alt
          -
          7</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="2">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">
        </div>
      </div>
    </div><br>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>PART&#160;II</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Information
      Not Required In Prospectus</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Item
      24.</strong></font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>
      Indemnification of Directors and Officers</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Section&#160;102
      of the General Corporation Law of the State of Delaware permits a corporation
      to
      eliminate the personal liability of directors of a corporation to the
      corporation or its shareholders for monetary damages for a breach of fiduciary
      duty as a director, except for breaches of the director&#8217;s duty of loyalty to the
      corporation or its shareholders, acts or omissions not in good faith or which
      involve intentional misconduct or a knowing violation of a law, authorizations
      of the payments of a dividend or approval of a stock repurchase or redemption
      in
      violation of Delaware corporate law or for any transactions from which the
      director derived an improper personal benefit. Our Amended and Restated
      Certificate of Incorporation provides that no director will be liable to us
      or
      our shareholders for monetary damages for breach of fiduciary duties as a
      director, subject to the same exceptions as described above. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Section&#160;145
      of the General Corporation Law of the State of Delaware provides that a
      corporation has the power to indemnify a director, officer, employee, or agent
      of the corporation and certain other persons serving at the request of the
      corporation in related capacities against expenses (including attorneys&#8217; fees),
      judgments, fines, and amounts paid in settlements actually and reasonably
      incurred by the person in connection with a threatened, pending, or completed
      action, suit or proceeding to which he or she is or is threatened to be made
      a
      party by reason of such position, if such person acted in good faith and in
      a
      manner he or she reasonably believed to be in or not opposed to the best
      interests of the corporation, and, in any criminal action or proceeding, had
      no
      reasonable cause to believe his or her conduct was unlawful, except that, in
      the
      case of actions brought by or in the right of the corporation, indemnification
      is limited to expenses (including attorneys&#8217; fees) actually and reasonably
      incurred by the person in connection with defense or settlement of such action
      or suit and no indemnification shall be made with respect to any claim, issue,
      or matter as to which such person shall have been adjudged to be liable to
      the
      corporation unless and only to the extent that the Court of Chancery or other
      adjudicating court determines that, despite the adjudication of liability but
      in
      view of all of the circumstances of the case, such person is fairly and
      reasonably entitled to indemnity for such expenses which the Court of Chancery
      or such other court shall deem proper. In addition, to the extent that a present
      or former director or officer of a corporation has been successful on the merits
      or otherwise in defense of any action, suit, or proceeding described above
      (or
      claim, issue, or matter therein), such person shall be indemnified against
      expenses (including attorneys&#8217; fees) actually and reasonably incurred by such
      person in connection therewith. Expenses (including attorneys&#8217; fees) incurred by
      an officer or director in defending any civil, criminal, administrative, or
      investigative action, suit, or proceeding may be advanced by the corporation
      upon receipt of an undertaking by such person to repay such amount if it is
      ultimately determined that such indemnification is not required under
      Section&#160;145 of the General Corporation Law of the State of
      Delaware.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Our
      Amended and Restated Certificate of Incorporation and Amended and Restated
      By-laws provide that each person who was or is made a party or is threatened
      to
      be made a party to or is otherwise involved in any threatened, pending or
      completed action, suit or proceeding, whether civil, criminal, administrative
      or
      investigative, by reason of the fact that he or she is or was our director
      or
      officer or is or was serving at our request as a director, officer, employee
      or
      agent of another corporation or of a partnership, joint venture, trust or other
      enterprise, will be indemnified and held harmless by us to the fullest extent
      required under Delaware law, against all expense, liability and loss (including
      attorneys&#8217; fees) judgments, fines and amounts paid in settlement) reasonably
      incurred by such indemnities. We are also required to indemnify and advance
      costs or to agree to indemnify and advance costs to any person that is or was
      our officer, director, agent or employee, will be indemnified and held harmless
      by us to the fullest extent permitted under Delaware law against all expense,
      liability and loss (including attorneys&#8217; fees) judgments, fines and amounts paid
      in settlement reasonably incurred by the indemnities. We also agree to pay
      the</font><a name="page_0_1_104"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      expenses
      (including attorneys&#8217; fees) incurred in defending any such proceeding in advance
      of its final disposition to the extent required under Delaware
      law.</font></a></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      preceding discussion gives effect our Amended and Restated Certificate of
      Incorporation, which will become effective shortly before </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">the
      completion of this offering</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">.</font></div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; WIDTH: 100%; TEXT-INDENT: 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="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">II
          -
          1</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <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="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Insofar
      as indemnification for liabilities arising under the Securities Act may be
      permitted to directors, officers and controlling persons of the registrant
      pursuant to the foregoing provisions, or otherwise, the registrant has been
      advised that in the opinion of the Securities and Exchange Commission such
      indemnification is against public policy as expressed in the Securities Act
      and
      is, therefore, unenforceable.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Item
      25. Other Expenses of Issuance and Distribution</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      following table sets forth estimates expected to be incurred in connection
      with
      the issuance and distribution of the securities being registered. We will pay
      all fees, disbursements and expenses in connection with the proposed
      offering.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div align="center">
      <table cellpadding="0" cellspacing="0" id="ftable" width="90%">

          <tr>
            <td align="left" valign="bottom" width="71%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
            </td>
            <td width="2%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" colspan="2" valign="bottom" width="12%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
            </td>
          </tr>
          <tr>
            <td align="left" valign="bottom" width="71%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">SEC
                Registration Fee</font></div>
            </td>
            <td width="2%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
            </td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">2,660</font></div>
            </td>
          </tr>
          <tr>
            <td align="left" valign="bottom" width="71%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">NASD
                Filing Fee</font></div>
            </td>
            <td width="2%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">2,985</font></div>
            </td>
          </tr>
          <tr>
            <td align="left" valign="bottom" width="71%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Nasdaq
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            </td>
            <td width="2%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">35,000</font></div>
            </td>
          </tr>
          <tr>
            <td align="left" valign="bottom" width="71%" style="border-bottom: medium none;">
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                Stock Exchange Listing Fee </font></div>
            </td>
            <td width="2%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">10,000</font></div>
            </td>
          </tr>
          <tr>
            <td align="left" valign="bottom" width="71%" style="border-bottom: medium none;">
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                Fees and Expenses</font></div>
            </td>
            <td width="2%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
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            </td>
          </tr>
          <tr>
            <td align="left" valign="bottom" width="71%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Legal
                Fees and Expenses</font></div>
            </td>
            <td width="2%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">150,000</font></div>
            </td>
          </tr>
          <tr>
            <td align="left" valign="bottom" width="71%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Blue
                Sky Fees and Expenses</font></div>
            </td>
            <td width="2%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">20,000</font></div>
            </td>
          </tr>
          <tr>
            <td align="left" valign="bottom" width="71%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Printing
                and Engraving Expenses</font></div>
            </td>
            <td width="2%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">50,000</font></div>
            </td>
          </tr>
          <tr>
            <td align="left" valign="bottom" width="71%" style="border-bottom: #ffffff solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Miscellaneous</font></div>
            </td>
            <td width="2%" style="border-bottom: #ffffff solid;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">100,000</font></div>
            </td>
          </tr>
          <tr>
            <td align="left" valign="bottom" width="71%" style="border-bottom: #ffffff solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Total</strong></font></div>
            </td>
            <td width="2%" style="border-bottom: #ffffff solid;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
            </td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: black double;">
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            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff solid;">&#160;</td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Item
      26. Recent Sales of Unregistered Securities</strong></font></div>
    <div>&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      following summarizes all sales of our unregistered securities within the past
      three years. The securities in each one of the below-referenced transactions
      were (i)&#160;made without registration and (ii)&#160;were subject to
      restrictions under the Securities Act and the securities laws of certain states,
      in reliance on the private offering exemptions contained in Sections&#160;4(2),
      4(6) and/or 3(b) of the Securities Act and on Regulation&#160;D promulgated
      thereunder, and in reliance on similar exemptions under applicable state laws
      as
      a transaction not involving a public offering. Unless stated otherwise, no
      placement or underwriting fees were paid in connection with these transactions.
      Proceeds from the sales of these securities were used for&#160;general working
      capital purposes.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>Acquisitions</em></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>Objectware</em></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      - The
      acquisition of Objectware, Inc. will close in escrow shortly before the
      completion of this offering. At that time, we will issue 490,909 shares of
      our
      common stock to the escrow agent as partial consideration in our acquisition.
      Once this offering is completed, the consideration for the acquisition then
      held
      in escrow will be released to a single individual. We will pay Joseph Gunnar
      &amp; Co., LLC cash compensation of approximately $375,000 for services related
      to this acquisition.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>New
        Tilt, Inc.</em></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
        - On
        April 24, 2006, we issued 320,000 shares of our common stock to two individuals
        as partial consideration in our acquisition of New Tilt, Inc. We paid Joseph
        Gunnar &amp; Co., LLC cash compensation of $150,000 for services related to this
        acquisition.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>Interactive
        Applications Group, Inc.</em></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
        - On
        December 15, 2004, we issued 476,667 shares of our common stock to one
        individual as partial consideration in our acquisition of Interactive
        Applications Group, Inc. We issued Fin Net, LLC warrants to purchase 72,527
        shares of common stock at an exercise price of $4.68 per share.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>April
        2006 Private Placement</em></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;On
        April 21, 2006, we issued a total of 22.5 units, each unit consisting of
        a
        secured note in the principal amount of $100,000 and a five year warrant
        to
        purchase 10,000 shares of our common stock at an exercise price of $.001.
        </font></div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 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="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">II
          -
          2</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <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="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;On
      April 27, 2006, we issued a total of 5.5 units, each unit consisting of a
      secured note in the principal amount of $100,000 and a five year warrant to
      purchase 10,000 shares of our common stock at an exercise price of
      $.001.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      units
      were offered on our behalf by Joseph Gunnar &amp; Co., LLC (the &#8220;Placement
      Agent&#8221;). The total offering price was $2,800,000 and sales commissions paid to
      our Placement Agent were $280,000. We issued our Placement Agent a five year
      warrant to purchase 112,000 shares of our common stock at an exercise price
      equal to the offering price in the initial public offering of our common
      stock.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>2004
      Private Placement</em></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Between
      July 2004 and September 2004, we issued a total of 416,065 shares of common
      stock at a purchase price of $3.75 per share for a total offering price of
      $1,560,244. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>2003
      Private Placement</em></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Between
      July and September 2003, we issued a total of 194,334 shares of common stock
      at
      a purchase price of $3.00 per share for a total offering price of $583,002.
      </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">WEC
      served as our placement agent in connection with our 2004 and 2003 private
      placements. We paid WEC a total of $214,324 in sales commissions and issued
      WEC,
      and affiliates of WEC, warrants as follows: (i) in August 2005 we issue warrants
      to purchase an aggregate of 57,207 shares of our common stock at an exercise
      price of $4.68; (ii) in June 2004 we issued warrants to purchase an aggregate
      of
      36,667 shares of our common stock at an exercise price of $3.75; and (iii)
      in
      January 2004 we issued warrants to purchase an aggregate of 1,667 shares of
      our
      common stock at an exercise price of $3.75. </font></div>
    <div>&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
      return
      for investment banking advisory services, in January 2004 we issued Fin Net,
      LLC
      warrants to purchase 31,667 shares of our common stock at an exercise price
      of
      $3.75.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>Financing
      Arrangements</em></font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
      March
      2005, we issue a warrant to purchase 3,200 shares of our common stock at an
      exercise price of $4.68 to Sand Hill Finance, LLC, a financial institution,
      as
      part of a </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">short-term
      accounts receivable </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">financing
      arrangement. Indebtedness to Sand Hill </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Finance
      was retired upon the completion of the April 2006 private placement financing.
      </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>Exercise
      of Options</em></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
      fiscal
      year 2004 we issued 22,000 shares of our common stock pursuant to the exercise
      of vested stock options. We did not issue any shares of common stock pursuant
      to
      the exercise of vested stock options in either fiscal year 2005 or fiscal year
      2006. Since the end of fiscal year 2006, we have not issued any&#160;shares of
      common stock pursuant to such exercises of stock options. </font></div>
    <div>&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Within
      the past three years, we have granted options to purchase equity shares on
      the
      following dates and amounts:</font>&#160;</div>
    <div>&#160;</div>
    <div align="center">
      <table cellpadding="0" cellspacing="0" id="ftable" width="90%">

          <tr>
            <td align="left" valign="bottom" width="67%" style="border-bottom: black thin solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>D<font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">ate</font></strong></font></td>
            <td width="2%" style="border-bottom: black thin solid;">&#160;</td>
            <td align="right" colspan="2" valign="bottom" width="12%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Number</strong></font>&#160;&#160;&#160;</div>
            </td>
            <td align="left" valign="bottom" width="6%" style="border-bottom: black thin solid;">&#160;</td>
            <td align="right" colspan="2" valign="bottom" width="12%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Exercise
                Price</strong></font>&#160;&#160;</div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff solid;">&#160;</td>
          </tr>
          <tr>
            <td align="left" valign="bottom" width="67%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">October
                21, 2003</font></div>
            </td>
            <td width="2%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">11,667</font></div>
            </td>
            <td align="left" valign="bottom" width="6%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
            </td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">3.00</font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
          </tr>
          <tr>
            <td align="left" valign="bottom" width="67%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">November
                17, 2003</font></div>
            </td>
            <td width="2%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">16,667</font></div>
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            <td align="left" valign="bottom" width="6%" style="border-bottom: medium none;">&#160;</td>
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            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
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            <td align="left" valign="bottom" width="67%" style="border-bottom: medium none;">
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            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
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            <td align="left" valign="bottom" width="6%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
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            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
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          <tr>
            <td align="left" valign="bottom" width="67%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">April
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            <td width="2%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">3,333</font></div>
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            <td align="left" valign="bottom" width="6%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
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            <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
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            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
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          <tr>
            <td align="left" valign="bottom" width="67%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">April
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            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">6,667</font></div>
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            <td align="left" valign="bottom" width="6%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
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            <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">3.00</font></div>
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            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
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            <td align="left" valign="bottom" width="67%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">May
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            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">18,067</font></div>
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            <td align="left" valign="bottom" width="6%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
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            <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">3.00</font></div>
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            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
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          <tr>
            <td align="left" valign="bottom" width="67%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">June
                14, 2004</font></div>
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            <td width="2%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">3,333</font></div>
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            <td align="left" valign="bottom" width="6%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
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            <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">3.00</font></div>
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            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
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    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
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        <div id="GLFTR" style="WIDTH: 100%" align="left">
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          -
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      <div id="HDR">
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      </div>
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    <div>&#160;</div>
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          <tr>
            <td align="left" valign="bottom" width="67%" style="border-bottom: medium none;">
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                21, 2004</font></div>
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            <td width="2%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">667</font></div>
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            <td align="left" valign="bottom" width="6%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
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            <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
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            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
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            <td align="left" valign="bottom" width="67%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">July
                1, 2004</font></div>
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            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">3,336</font></div>
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            <td align="left" valign="bottom" width="6%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
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            <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">3.00</font></div>
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            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
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            <td align="left" valign="bottom" width="67%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">July
                16, 2004</font></div>
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            <td width="2%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">16,667</font></div>
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            <td align="left" valign="bottom" width="6%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
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            <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">3.75</font></div>
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            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
          </tr>
          <tr>
            <td align="left" valign="bottom" width="67%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">October
                14, 2004</font></div>
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            <td width="2%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">1,667</font></div>
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            <td align="left" valign="bottom" width="6%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
            </td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">3.75</font></div>
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            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
          </tr>
          <tr>
            <td align="left" valign="bottom" width="67%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">October
                20, 2004</font></div>
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            <td width="2%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
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                15, 2004</font></div>
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            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
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            <td align="left" valign="bottom" width="6%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
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            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
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            <td align="left" valign="bottom" width="67%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">December
                15, 2004</font></div>
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            <td width="2%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">36,502</font></div>
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            <td align="left" valign="bottom" width="6%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
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            <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
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            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
          </tr>
          <tr>
            <td align="left" valign="bottom" width="67%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">February
                1, 2005</font></div>
            </td>
            <td width="2%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">1,667</font></div>
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            <td align="left" valign="bottom" width="6%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
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            <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">3.75</font></div>
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            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
          </tr>
          <tr>
            <td align="left" valign="bottom" width="67%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">March
                1, 2005</font></div>
            </td>
            <td width="2%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">1,000</font></div>
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            <td align="left" valign="bottom" width="6%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
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            <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">3.75</font></div>
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            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
          </tr>
          <tr>
            <td align="left" valign="bottom" width="67%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">March
                1, 2005</font></div>
            </td>
            <td width="2%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">5,001</font></div>
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            <td align="left" valign="bottom" width="6%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
            </td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">3.00</font></div>
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            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
          </tr>
          <tr>
            <td align="left" valign="bottom" width="67%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">April
                1, 2005</font></div>
            </td>
            <td width="2%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">4,833</font></div>
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            <td align="left" valign="bottom" width="6%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
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            <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">3.75</font></div>
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            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
          </tr>
          <tr>
            <td align="left" valign="bottom" width="67%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">June
                1, 2005</font></div>
            </td>
            <td width="2%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">250,000</font></div>
            </td>
            <td align="left" valign="bottom" width="6%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
            </td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">3.00</font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
          </tr>
          <tr>
            <td align="left" valign="bottom" width="67%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">June
                1, 2005</font></div>
            </td>
            <td width="2%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">66,667</font></div>
            </td>
            <td align="left" valign="bottom" width="6%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
            </td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">3.75</font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
          </tr>
          <tr>
            <td align="left" valign="bottom" width="67%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">July
                1, 2005</font></div>
            </td>
            <td width="2%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">6,666</font></div>
            </td>
            <td align="left" valign="bottom" width="6%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
            </td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">3.75</font></div>
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            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
          </tr>
          <tr>
            <td align="left" valign="bottom" width="67%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">December
                31, 2005</font></div>
            </td>
            <td width="2%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">16,667</font></div>
            </td>
            <td align="left" valign="bottom" width="6%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
            </td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">3.75</font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
          </tr>
          <tr>
            <td align="left" valign="bottom" width="67%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">January
                21, 2006</font></div>
            </td>
            <td width="2%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">16,667</font></div>
            </td>
            <td align="left" valign="bottom" width="6%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
            </td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">3.75</font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
          </tr>
          <tr>
            <td align="left" valign="bottom" width="67%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">February
                1, 2006</font></div>
            </td>
            <td width="2%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">8,333</font></div>
            </td>
            <td align="left" valign="bottom" width="6%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
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            <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
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            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
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            <td align="left" valign="bottom" width="67%" style="border-bottom: medium none;">
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            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
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            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
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            <td align="left" valign="bottom" width="67%" style="border-bottom: medium none;">
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            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
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            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">
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            <td align="left" valign="bottom" width="67%" style="border-bottom: medium none;">
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      securities were issued exclusively to our directors, executive officers,
      employees and consultants. </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      issuance of options and the shares of common stock issuable upon the exercise
      of
      such options as described above were issued pursuant to written compensatory
      plans or arrangements with our employees, directors and consultants, in reliance
      on the exemption provided by Rule&#160;701 promulgated under the Securities
      Act.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
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      securities issued as consideration in our acquisitions were issued to U.S.
      investors in reliance upon exemptions from the registration provisions of the
      Securities Act set forth in Section 4(2) thereof relative to sales by an issuer
      not involving any public offering, to the extent an exemption from such
      registration was required.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
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      securities issued in the April 2006, the 2004 and the 2003 private placements
      were issued in accordance with, and in reliance upon exemptions from the
      registration provisions of the Securities Act set forth in Rule 506 of the
      Securities Act and were issued to accredited investors and who were acquiring
      the shares for investment and not distribution, and who represented that they
      could bear the risks of the investment and could hold the securities for an
      indefinite period of time. Such purchasers received written disclosures that
      the
      securities had not been registered under the Securities Act and that any resale
      must be made pursuant to a registration or an available exemption from such
      registration. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
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      of the foregoing securities are deemed restricted securities for purposes of
      the
      Securities Act. All certificates representing the issued shares of common stock
      described in this Item 15 included appropriate legends setting forth that the
      securities had not been registered and the applicable restrictions on
      transfer.</font></div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; WIDTH: 100%; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
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        <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">II
          -
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    <div>&#160;</div>
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      following Exhibits are filed as part of this Registration Statement pursuant
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
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              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
            </td>
            <td valign="middle" width="62%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Title</strong></font></div>
            </td>
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          <tr>
            <td align="right" valign="top" width="2%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right">&#160;</div>
            </td>
            <td colspan="3" valign="top" width="8%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">1.1&#8224;</font></div>
            </td>
            <td align="left" valign="top" width="2%">&#160;</td>
            <td align="left" valign="middle" width="3%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
            </td>
            <td align="left" valign="top" width="62%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Underwriting
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          <tr>
            <td align="right" valign="top" width="2%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right">&#160;</div>
            </td>
            <td colspan="3" valign="top" width="8%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2.1</font></div>
            </td>
            <td align="left" valign="top" width="2%">&#160;</td>
            <td align="left" valign="middle" width="3%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
            </td>
            <td align="left" valign="top" width="62%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">New
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          <tr>
            <td align="right" valign="top" width="2%">&#160;</td>
            <td colspan="3" valign="top" width="8%">
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            <td align="left" valign="top" width="2%">&#160;</td>
            <td align="left" valign="middle" width="3%">&#160;</td>
            <td align="left" valign="top" width="62%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Interactive
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                Agreement**</font></div>
            </td>
          </tr>
          <tr>
            <td align="right" valign="top" width="2%">&#160;</td>
            <td colspan="3" valign="top" width="8%">
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            </td>
            <td align="left" valign="top" width="2%">&#160;</td>
            <td align="left" valign="middle" width="3%">&#160;</td>
            <td align="left" valign="top" width="62%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Objectware,
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            </td>
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            <td align="left" valign="top" width="2%">&#160;</td>
            <td align="left" valign="middle" width="3%">&#160;</td>
            <td align="left" valign="top" width="62%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Lead
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            <td align="right" valign="top" width="2%">&#160;</td>
            <td colspan="3" valign="top" width="8%">
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            <td align="left" valign="top" width="2%">&#160;</td>
            <td align="left" valign="middle" width="3%">&#160;</td>
            <td align="left" valign="top" width="62%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Streamline
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            <td align="right" valign="top" width="2%">&#160;</td>
            <td colspan="3" valign="top" width="8%">
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            <td align="left" valign="top" width="2%">&#160;</td>
            <td align="left" valign="middle" width="3%">&#160;</td>
            <td align="left" valign="top" width="62%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Certificate
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            </td>
          </tr>
          <tr>
            <td align="right" valign="top" width="2%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right">&#160;</div>
            </td>
            <td colspan="3" valign="top" width="8%">
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            <td align="left" valign="top" width="2%">&#160;</td>
            <td align="left" valign="middle" width="3%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
            </td>
            <td align="left" valign="top" width="62%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Form
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            <td align="right" valign="top" width="2%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right">&#160;</div>
            </td>
            <td colspan="3" valign="top" width="8%">
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            <td align="left" valign="top" width="2%">&#160;</td>
            <td align="left" valign="middle" width="3%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
            </td>
            <td align="left" valign="top" width="62%">
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          </tr>
          <tr>
            <td align="right" valign="top" width="2%">
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            <td align="left" valign="top" width="62%">
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            <td align="left" valign="top" width="62%">
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                Ltd. and
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            <td align="left" valign="middle" width="3%">&#160;</td>
            <td align="left" valign="top" width="62%">
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            <td align="left" valign="middle" width="3%">&#160;</td>
            <td align="left" valign="top" width="62%">
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              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right">&#160;</div>
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            <td align="left" valign="top" width="62%">
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            <td align="left" valign="middle" width="3%">
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            <td align="left" valign="middle" width="3%">&#160;</td>
            <td align="left" valign="top" width="62%">
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            <td align="left" valign="middle" width="3%">&#160;</td>
            <td align="left" valign="top" width="62%">
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          <tr>
            <td align="right" valign="top" width="2%">&#160;</td>
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                Option Grant by Bridgeline Software, Inc. to Robert Seeger, dated
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            <td align="left" valign="middle" width="3%">&#160;</td>
            <td align="left" valign="top" width="62%">
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                Option Grant by Bridgeline Software, Inc. to Gary Cebula, dated August
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            <td align="left" valign="middle" width="3%">&#160;</td>
            <td align="left" valign="top" width="62%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Stock
                Option Grant by Bridgeline Software, Inc. to Gary Cebula, dated September
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            <td align="right" valign="top" width="2%">&#160;</td>
            <td colspan="3" valign="top" width="8%">
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            <td align="left" valign="middle" width="3%">&#160;</td>
            <td align="left" valign="top" width="62%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Stock
                Option Grant by Bridgeline Software, Inc. to Gary Cebula, dated June
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            <td align="right" valign="top" width="2%">&#160;</td>
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            <td align="left" valign="middle" width="3%">&#160;</td>
            <td align="left" valign="top" width="62%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Stock
                Option Grant by Bridgeline Software, Inc. to Gary Cebula, dated June
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            <td align="right" valign="top" width="2%">&#160;</td>
            <td colspan="3" valign="top" width="8%">
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            <td align="left" valign="middle" width="3%">&#160;</td>
            <td align="left" valign="top" width="62%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Stock
                Option Grant by Bridgeline Software, Inc. to William Coldrick, dated
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            <td align="right" valign="top" width="2%">&#160;</td>
            <td colspan="3" valign="top" width="8%">
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            <td align="left" valign="middle" width="3%">&#160;</td>
            <td align="left" valign="top" width="62%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Stock
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            <td align="right" valign="top" width="2%">&#160;</td>
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            <td align="left" valign="top" width="62%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Stock
                Option Grant by Bridgeline Software, Inc. to Thomas Massie, dated
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            <td align="right" valign="top" width="2%">&#160;</td>
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            <td align="left" valign="middle" width="3%">&#160;</td>
            <td align="left" valign="top" width="62%">
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            <td align="right" valign="top" width="2%">&#160;</td>
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            <td align="left" valign="top" width="2%">&#160;</td>
            <td align="left" valign="middle" width="3%">&#160;</td>
            <td align="left" valign="top" width="62%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Stock
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            <td align="right" valign="top" width="2%">&#160;</td>
            <td colspan="3" valign="top" width="8%">
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            <td align="left" valign="top" width="2%">&#160;</td>
            <td align="left" valign="middle" width="3%">&#160;</td>
            <td align="left" valign="top" width="62%">
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            <td align="right" valign="top" width="2%">&#160;</td>
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            <td align="left" valign="top" width="2%">&#160;</td>
            <td align="left" valign="middle" width="3%">&#160;</td>
            <td align="left" valign="top" width="62%">
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            <td align="right" valign="top" width="2%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right">&#160;</div>
            </td>
            <td colspan="3" valign="top" width="8%">
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            <td align="left" valign="top" width="2%">&#160;</td>
            <td align="left" valign="middle" width="3%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
            </td>
            <td align="left" valign="top" width="62%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Consent
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            <td align="right" valign="top" width="2%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right">&#160;</div>
            </td>
            <td colspan="3" valign="top" width="8%">
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            <td align="left" valign="top" width="2%">&#160;</td>
            <td align="left" valign="middle" width="3%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
            </td>
            <td align="left" valign="top" width="62%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Consent
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            <td align="right" valign="top" width="2%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right">&#160;</div>
            </td>
            <td colspan="3" valign="top" width="8%">
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            <td align="left" valign="top" width="2%">&#160;</td>
            <td align="left" valign="middle" width="3%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
            </td>
            <td align="left" valign="top" width="62%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Power
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            </td>
          </tr>
          <tr>
            <td align="right" valign="top" width="2%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right">&#160;</div>
            </td>
            <td colspan="3" valign="top" width="8%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">99.1</font></div>
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            <td align="left" valign="top" width="2%">&#160;</td>
            <td align="left" valign="middle" width="3%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
            </td>
            <td align="left" valign="top" width="62%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Audit
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            <td align="right" valign="top" width="2%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right">&#160;</div>
            </td>
            <td colspan="3" valign="top" width="8%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">99.2</font></div>
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            <td align="left" valign="top" width="2%">&#160;</td>
            <td align="left" valign="middle" width="3%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
            </td>
            <td align="left" valign="top" width="62%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Compensation
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            </td>
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          <tr>
            <td align="right" valign="top" width="2%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right">&#160;</div>
            </td>
            <td colspan="3" valign="top" width="8%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">99.3</font></div>
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            <td align="left" valign="top" width="2%">&#160;</td>
            <td align="left" valign="middle" width="3%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
            </td>
            <td align="left" valign="top" width="62%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Nominating
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">________________________</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#8224;&#160;
      &#160;To be filed by amendment.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
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        <div id="GLFTR" style="WIDTH: 100%" align="left">
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        <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">II
          -
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        <div style="WIDTH: 100%; TEXT-ALIGN: center">
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        </div>
      </div>
      <div id="HDR">
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        </div>
      </div>
    </div>
    <div>
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            <td style="width: 18pt;">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">*</font></div>
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            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Management
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            </td>
          </tr>

      </table>
    </div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td style="width: 18pt;">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">**</font></div>
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                and attachments to this exhibit have been omitted in reliance on
                Item
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                l</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">isted
                in the index to the exhibit and will be provided to the Commission
                upon
                request</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">.
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            </td>
          </tr>

      </table>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Item
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            <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(1)&#160;&#160;</font></td>
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                during any period in which offers or sales are being made, a
                post-effective amendment to this registration statement
                to:</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 54pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(i)&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Include
                any prospectus required by Section&#160;10(a)(3) of the Securities Act of
                1933, as amended (the &#8220;Securities
                Act&#8221;);</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 54pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(ii)&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Reflect
                in the prospectus any facts or events which, individually or together,
                represent a fundamental change in the information in the registration
                statement. Notwithstanding the foregoing, any increase or decrease
                in
                volume of securities offered (if the total dollar value of the securities
                offered would not exceed that which was registered) and any deviation
                from
                the low or high end of the estimated maximum offering range may be
                reflected in the form of a prospectus filed with the Commission pursuant
                to Rule&#160;424(b) under the Securities Act if, in the aggregate, the
                changes in volume and price represent no more than a 20% change in
                the
                maximum aggregate offering price set forth in the &#8220;Calculation of
                Registration Fee&#8221; table in the effective registration
                statement,&#160;and</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 54pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(iii)&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Include
                any additional or changed material information on the plan of
                distribution.</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(2)&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">For
                determining liability under the Securities Act, treat each post-effective
                amendment as a new registration statement of the securities offered,
                and
                the offering of the securities at that time to be the initial bona
                fide
                offering.</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(3)&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">File
                a post-effective amendment to remove from registration any of the
                securities that remain unsold at the end of the
                offering.</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(4)&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">For
                determining liability of the undersigned small business issuer under
                the
                Securities Act to any purchaser in the initial distribution of the
                securities, the undersigned undertakes that in a primary offering
                of
                securities of the undersigned small business issuer pursuant to this
                registration statement, regardless of the underwriting method used
                to sell
                the securities to the purchaser, if the securities are offered or
                sold to
                such purchaser by means of any of the following communications, the
                undersigned small business issuer will be a seller to the purchaser
                and
                will be considered to offer or sell such securities to such
                purchaser:</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 54pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(i)&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Any
                preliminary prospectus or prospectus of the undersigned small business
                issuer relating to the offering required to be filed pursuant to
                Rule&#160;424;</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 54pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(ii)&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Any
                free writing prospectus relating to the offering prepared by or on
                behalf
                of the undersigned small business issuer or used or referred to by
                the
                undersigned small business issuer;</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 54pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(iii)&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
                portion of any other free writing prospectus relating to the offering
                containing material information about the undersigned small business
                issuer or its securities provided by or on behalf of the undersigned
                small
                business issuer;&#160;and</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 54pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(iv)&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Any
                other communication that is an offer in the offering made by the
                undersigned small business issuer to the
                purchaser.</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(5)&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
                small business issuer hereby undertakes to provide to the underwriters,
                at
                the closing specified in the underwriting agreement, certificates
                in such
                denominations and registered in such names as required by the underwriters
                to permit prompt delivery to each
                purchaser.</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 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="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">II
          -
          7</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="2">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">
        </div>
      </div>
    </div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(6)&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Insofar
                as indemnification for liabilities arising under the Securities Act
                may be
                permitted to directors, officers and controlling persons of the registrant
                pursuant to the foregoing provisions, or otherwise, the registrant
                has
                been advised that in the opinion of the Securities and Exchange Commission
                such indemnification is against public policy as expressed in the
                Securities Act and is, therefore,
                unenforceable.</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(7)&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
                the event that a claim for indemnification against such liabilities
                (other
                than the payment by the registrant of expenses incurred or paid by
                a
                director, officer or controlling person of the registrant in the
                successful defense of any action, suit or proceeding) is asserted
                by such
                director, officer or controlling person in connection with the securities
                being registered, the registrant will, unless in the opinion of its
                counsel the matter has been settled by controlling precedent, submit
                to a
                court of appropriate jurisdiction the question whether such
                indemnification by it is against public policy as expressed in the
                Securities Act and will be governed by the final adjudication of
                such
                issue.</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(8)&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
                undersigned registrant&#160;hereby undertakes
                that:</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><a name="page_0_1_108"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font>&#160;</a></div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td style="width: 36pt;">&#160;</td>
            <td style="width: 18pt;">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;
                (i)&#160;</font></div>
            </td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">For
                purposes of determining any liability under the Securities Act, the
                information omitted from the form of prospectus filed as part of
                this
                registration statement in reliance upon Rule&#160;430A and contained in a
                form of prospectus filed by the registrant pursuant to Rule&#160;424(b)(1)
                or (4), or 497(h) under the Securities Act shall be deemed to be
                part of
                this registration statement as of the time it was declared
                effective</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div>&#160;</div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 54pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(ii)&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">For
                the purpose of determining any liability under the Securities Act,
                each
                post-effective amendment that contains a form of prospectus shall
                be
                deemed to be a new registration statement relating to the securities
                offered therein, and the offering of such securities at that time
                shall be
                deemed to be the initial bona fide offering
                thereof.</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">
        <table cellpadding="0" cellspacing="0" id="list" width="100%">

            <tr valign="top" style="line-height: 1.25;">
              <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(9)&#160;&#160;</font></td>
              <td>
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">For
                  the purpose of determining liability under the Securities Act to
                  any
                  purchaser:</font></div>
              </td>
            </tr>

        </table>
      </div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Each
      prospectus filed pursuant to Rule&#160;424(b) under the Securities Act as part
      of a registration statement relating to an offering, other than registration
      statements relying on Rule&#160;430B or other than prospectuses filed in
      reliance on Rule&#160;430A (&#167;&#160;230.430A of this chapter), shall be deemed to
      be part of and included in the registration statement as of the date it is
      first
      used after effectiveness.</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>
      Provided however,</em></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      that no
      statement made in a registration statement or prospectus that is part of the
      registration statement or made in a document incorporated or deemed incorporated
      by reference into the registration statement or prospectus that is part of
      the
      registration statement will, as to a purchaser with a time of contract of sale
      prior to such first use, supersede or modify any statement that was made in
      the
      registration statement or prospectus that was part of the registration statement
      or made in any such document immediately prior to such date of first
      use.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div><br>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; WIDTH: 100%; TEXT-INDENT: 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="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">II
          -
          8</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <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="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Signatures</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
      accordance with the requirements of the Securities Act of 1933, as amended,
      the
      registrant certifies that it has reasonable grounds to believe that it meets
      all
      of the requirements for filing on Form&#160;SB-2 and authorized this
      Registration Statement to be signed on its behalf by the undersigned, in the
      City of Woburn, Commonwealth of Massachusetts, on December 12,
      2006.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">
      <table align="center" bgcolor="#ffffff" border="0" cellpadding="0" cellspacing="0" width="100%">

          <tr valign="top" bgcolor="#ffffff">
            <td width="50%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
            <td width="1%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
            <td width="49%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
          </tr>
          <tr valign="top" bgcolor="#ffffff">
            <td>&#160;</td>
            <td colspan="2">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>BRIDGELINE
                SOFTWARE, INC.</strong></font>&#160;</div>
            </td>
          </tr>
          <tr valign="top" bgcolor="#ffffff">
            <td><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
            <td colspan="2">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">a
                Delaware corporation</font></div>
            </td>
          </tr>
          <tr valign="top" bgcolor="#ffffff">
            <td><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;<br>&#160;</font></td>
            <td><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;<br>&#160;</font></td>
            <td><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;<br>&#160;</font></td>
          </tr>
          <tr valign="top" bgcolor="#ffffff">
            <td><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
            <td><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">By:&#160;&#160;</font></td>
            <td><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">/s/&#160;Thomas
              Massie</font></td>
          </tr>
          <tr valign="top" bgcolor="#ffffff">
            <td colspan="2"><font size="1">&#160;</font></td>
            <td align="left">
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      the
      undersigned directors and officers of Bridgeline Software, Inc. hereby severally
      constitute and appoint Thomas Massie, our true and lawful attorney-in-fact
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      agent, with full power of substitution and re-substitution for him/her and
      in
      his name, place and stead, in any and all capacities, to sign any and all
      amendments (including post-effective amendments) to this Registration Statement,
      and any subsequent registration statements pursuant to Rule&#160;462 of the
      Securities Act of 1933, as amended, and to file the same, with all exhibits
      thereto, and other documents in connection therewith, with the Securities and
      Exchange Commission, granting unto said attorney-in-fact and agent, full power
      and authority to do and perform each and every act and thing requisite and
      necessary to be done in and about the premises, as fully to all intents and
      purposes as he might or could do in person, hereby ratifying and confirming
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      that said attorney-in-fact or his substitute or substitutes, may lawfully do
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      capacities with Bridgeline Software, Inc., and on the dates
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          <tr>
            <td colspan="3" valign="middle" width="30%" style="border-bottom: black thin solid;">
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            <td valign="middle" width="14%" style="border-bottom: black thin solid;">
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          <tr>
            <td colspan="3" valign="middle" width="30%">&#160;</td>
            <td align="left" valign="middle" width="3%">&#160;</td>
            <td valign="middle" width="29%">&#160;</td>
            <td align="left" valign="middle" width="3%">&#160;</td>
            <td valign="middle" width="14%">&#160;</td>
          </tr>

      </table>
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    <div align="left">
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          <tr>
            <td align="left" colspan="3" valign="top" width="30%">
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                Thomas Massie </font>
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                Thomas Massie</font></div>
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            <td align="left" valign="middle" width="3%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
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            </td>
            <td align="left" valign="middle" width="3%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
            </td>
            <td valign="top" width="14%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">December
                12, 2006</font></div>
            </td>
          </tr>
          <tr>
            <td align="left" colspan="3" valign="top" width="30%">&#160;</td>
            <td align="left" valign="middle" width="3%">&#160;</td>
            <td valign="top" width="29%">&#160;</td>
            <td align="left" valign="middle" width="3%">&#160;</td>
            <td valign="top" width="14%">&#160;</td>
          </tr>
          <tr>
            <td align="left" colspan="3" valign="top" width="30%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">/s/
                Gary Cebula </font>
                <hr style="COLOR: black" align="left" noshade size="1" width="50%">
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            </td>
            <td align="left" valign="middle" width="3%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
            </td>
            <td valign="top" width="29%">
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            <td align="left" valign="middle" width="3%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
            </td>
            <td valign="top" width="14%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">December
                12, 2006</font></div>
            </td>
          </tr>
          <tr>
            <td align="left" colspan="3" valign="top" width="30%">&#160;</td>
            <td align="left" valign="middle" width="3%">&#160;</td>
            <td valign="top" width="29%">&#160;</td>
            <td align="left" valign="middle" width="3%">&#160;</td>
            <td valign="top" width="14%">&#160;</td>
          </tr>
          <tr>
            <td align="left" colspan="3" valign="top" width="30%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">/s/
                William Coldrick </font>
                <hr style="COLOR: black" align="left" noshade size="1" width="50%">
              </div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">William
                Coldrick</font></div>
            </td>
            <td align="left" valign="middle" width="3%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
            </td>
            <td valign="top" width="29%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Director</font></div>
            </td>
            <td align="left" valign="middle" width="3%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
            </td>
            <td valign="top" width="14%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">December
                12, 2006</font></div>
            </td>
          </tr>
          <tr>
            <td align="left" colspan="3" valign="top" width="30%">&#160;</td>
            <td align="left" valign="middle" width="3%">&#160;</td>
            <td valign="top" width="29%">&#160;</td>
            <td align="left" valign="middle" width="3%">&#160;</td>
            <td valign="top" width="14%">&#160;</td>
          </tr>
          <tr>
            <td align="left" colspan="3" valign="top" width="30%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">/s/
                </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Kenneth
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                <hr style="COLOR: black" align="left" noshade size="1" width="50%">
              </div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Kenneth
                Galaznik </font></div>
            </td>
            <td align="left" valign="middle" width="3%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
            </td>
            <td valign="top" width="29%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Director</font></div>
            </td>
            <td align="left" valign="middle" width="3%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
            </td>
            <td valign="top" width="14%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">December
                12, 2006</font></div>
            </td>
          </tr>
          <tr>
            <td align="left" colspan="3" valign="top" width="30%">&#160;</td>
            <td align="left" valign="middle" width="3%">&#160;</td>
            <td valign="top" width="29%">&#160;</td>
            <td align="left" valign="middle" width="3%">&#160;</td>
            <td valign="top" width="14%">&#160;</td>
          </tr>
          <tr>
            <td align="left" colspan="3" valign="top" width="30%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">/s/
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                <hr style="COLOR: black" align="left" noshade size="1" width="50%">
              </div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Robert
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            </td>
            <td align="left" valign="middle" width="3%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
            </td>
            <td valign="top" width="29%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Director</font></div>
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            <td align="left" valign="middle" width="3%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
            </td>
            <td valign="top" width="14%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">December
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            </td>
          </tr>
          <tr>
            <td align="left" colspan="3" valign="top" width="30%">&#160;</td>
            <td align="left" valign="middle" width="3%">&#160;</td>
            <td valign="top" width="29%">&#160;</td>
            <td align="left" valign="middle" width="3%">&#160;</td>
            <td valign="top" width="14%">&#160;</td>
          </tr>

      </table>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div><br>
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      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="left">
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      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">II
          -
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        <div style="WIDTH: 100%; TEXT-ALIGN: center">
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      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">
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      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div>
        <table cellpadding="0" cellspacing="0" width="100%">

            <tr>
              <td colspan="5" valign="middle" width="13%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Item</strong></font></div>
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              <td align="left" valign="middle" width="3%" style="border-bottom: #ffffff thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
              </td>
              <td valign="middle" width="62%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Title</strong></font></div>
              </td>
            </tr>
            <tr>
              <td align="right" valign="top" width="2%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right">&#160;</div>
              </td>
              <td colspan="3" valign="top" width="8%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">1.1&#8224;</font></div>
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              <td align="left" valign="top" width="2%">&#160;</td>
              <td align="left" valign="middle" width="3%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
              </td>
              <td align="left" valign="top" width="62%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Underwriting
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            </tr>
            <tr>
              <td align="right" valign="top" width="2%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right">&#160;</div>
              </td>
              <td colspan="3" valign="top" width="8%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2.1</font></div>
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              <td align="left" valign="top" width="2%">&#160;</td>
              <td align="left" valign="middle" width="3%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
              </td>
              <td align="left" valign="top" width="62%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">New
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            <tr>
              <td align="right" valign="top" width="2%">&#160;</td>
              <td colspan="3" valign="top" width="8%">
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              </td>
              <td align="left" valign="top" width="2%">&#160;</td>
              <td align="left" valign="middle" width="3%">&#160;</td>
              <td align="left" valign="top" width="62%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Interactive
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              </td>
            </tr>
            <tr>
              <td align="right" valign="top" width="2%">&#160;</td>
              <td colspan="3" valign="top" width="8%">
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              </td>
              <td align="left" valign="top" width="2%">&#160;</td>
              <td align="left" valign="middle" width="3%">&#160;</td>
              <td align="left" valign="top" width="62%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Objectware,
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              </td>
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                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Streamline
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                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Certificate
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                  of Amended and Restated Certificate of Incorporation (to become
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                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
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              <td align="left" valign="top" width="62%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Amended
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              <td align="right" valign="top" width="2%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right">&#160;</div>
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              <td align="left" valign="top" width="2%">&#160;</td>
              <td align="left" valign="middle" width="3%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
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              <td align="left" valign="top" width="62%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Specimen
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              <td align="right" valign="top" width="2%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right">&#160;</div>
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              <td align="left" valign="top" width="2%">&#160;</td>
              <td align="left" valign="middle" width="3%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
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              <td align="left" valign="top" width="62%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Opinion
                  of Morse, Barnes-Brown &amp; Pendleton, P.C. regarding the legality of the
                  shares offered hereby</font></div>
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              <td align="right" valign="top" width="2%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right">&#160;</div>
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              <td align="left" valign="top" width="2%">&#160;</td>
              <td align="left" valign="middle" width="3%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
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              <td align="left" valign="top" width="62%">
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                  Inc., dated May 5, 2005</font></div>
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            <tr>
              <td align="right" valign="top" width="2%">&#160;</td>
              <td colspan="3" valign="top" width="8%">
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              <td align="left" valign="top" width="2%">&#160;</td>
              <td align="left" valign="middle" width="3%">&#160;</td>
              <td align="left" valign="top" width="62%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Office
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                  Street Partners LLC and Bridgeline Software, Inc., dated November
                  26,
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              <td align="right" valign="top" width="2%">&#160;</td>
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              <td align="left" valign="top" width="2%">&#160;</td>
              <td align="left" valign="middle" width="3%">&#160;</td>
              <td align="left" valign="top" width="62%">
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              <td align="right" valign="top" width="2%">&#160;</td>
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              <td align="left" valign="middle" width="3%">&#160;</td>
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                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">First
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                  Ltd. and
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                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
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                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right">&#160;</div>
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                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
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              <td align="left" valign="middle" width="3%">&#160;</td>
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              <td align="left" valign="middle" width="3%">&#160;</td>
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              <td align="left" valign="middle" width="3%">&#160;</td>
              <td align="left" valign="top" width="62%">
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            <tr>
              <td align="right" valign="top" width="2%">&#160;</td>
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              <td align="left" valign="middle" width="3%">&#160;</td>
              <td align="left" valign="top" width="62%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">First
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            </tr>
            <tr>
              <td align="right" valign="top" width="2%">
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              <td align="left" valign="middle" width="3%">&#160;</td>
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                  Option Grant by Bridgeline Software, Inc. to Brett Zucker, dated
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                  Option Grant by Bridgeline Software, Inc. to Robert Seeger, dated
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                  Option Grant by Bridgeline Software, Inc. to Robert Seeger, dated
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              <td align="right" valign="top" width="2%">&#160;</td>
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              <td align="left" valign="top" width="62%">
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                  Option Grant by Bridgeline Software, Inc. to Gary Cebula, dated
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            <tr>
              <td align="right" valign="top" width="2%">&#160;</td>
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              <td align="left" valign="top" width="62%">
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                  Option Grant by Bridgeline Software, Inc. to Gary Cebula, dated
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              <td align="right" valign="top" width="2%">&#160;</td>
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              <td align="left" valign="top" width="2%">&#160;</td>
              <td align="left" valign="middle" width="3%">&#160;</td>
              <td align="left" valign="top" width="62%">
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                  Option Grant by Bridgeline Software, Inc. to Gary Cebula, dated
                  June 1,
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            <tr>
              <td align="right" valign="top" width="2%">&#160;</td>
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              <td align="left" valign="top" width="62%">
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              <td align="left" valign="top" width="2%">&#160;</td>
              <td align="left" valign="middle" width="3%">&#160;</td>
              <td align="left" valign="top" width="62%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Stock
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            <tr>
              <td align="right" valign="top" width="2%">&#160;</td>
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              <td align="left" valign="top" width="2%">&#160;</td>
              <td align="left" valign="middle" width="3%">&#160;</td>
              <td align="left" valign="top" width="62%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Stock
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              <td align="right" valign="top" width="2%">&#160;</td>
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              <td align="left" valign="top" width="2%">&#160;</td>
              <td align="left" valign="middle" width="3%">&#160;</td>
              <td align="left" valign="top" width="62%">
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            </tr>
            <tr>
              <td align="right" valign="top" width="2%">&#160;</td>
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              <td align="left" valign="top" width="2%">&#160;</td>
              <td align="left" valign="middle" width="3%">&#160;</td>
              <td align="left" valign="top" width="62%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Stock
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            <tr>
              <td align="right" valign="top" width="2%">&#160;</td>
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              <td align="left" valign="top" width="2%">&#160;</td>
              <td align="left" valign="middle" width="3%">&#160;</td>
              <td align="left" valign="top" width="62%">
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              <td align="right" valign="top" width="2%">&#160;</td>
              <td colspan="3" valign="top" width="8%">
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              <td align="left" valign="top" width="2%">&#160;</td>
              <td align="left" valign="middle" width="3%">&#160;</td>
              <td align="left" valign="top" width="62%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Subsidiaries
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              <td align="right" valign="top" width="2%">
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              <td colspan="3" valign="top" width="8%">
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              <td align="left" valign="top" width="2%">&#160;</td>
              <td align="left" valign="middle" width="3%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
              </td>
              <td align="left" valign="top" width="62%">
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              <td align="right" valign="top" width="2%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right">&#160;</div>
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              <td colspan="3" valign="top" width="8%">
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              <td align="left" valign="top" width="2%">&#160;</td>
              <td align="left" valign="middle" width="3%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
              </td>
              <td align="left" valign="top" width="62%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Consent
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              <td align="right" valign="top" width="2%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right">&#160;</div>
              </td>
              <td colspan="3" valign="top" width="8%">
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              <td align="left" valign="top" width="2%">&#160;</td>
              <td align="left" valign="middle" width="3%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
              </td>
              <td align="left" valign="top" width="62%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Power
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              <td align="right" valign="top" width="2%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right">&#160;</div>
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              <td colspan="3" valign="top" width="8%">
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              <td align="left" valign="top" width="2%">&#160;</td>
              <td align="left" valign="middle" width="3%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
              </td>
              <td align="left" valign="top" width="62%">
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            <tr>
              <td align="right" valign="top" width="2%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right">&#160;</div>
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              <td colspan="3" valign="top" width="8%">
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              <td align="left" valign="top" width="2%">&#160;</td>
              <td align="left" valign="middle" width="3%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
              </td>
              <td align="left" valign="top" width="62%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Compensation
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              </td>
            </tr>
            <tr>
              <td align="right" valign="top" width="2%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right">&#160;</div>
              </td>
              <td colspan="3" valign="top" width="8%">
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              <td align="left" valign="top" width="2%">&#160;</td>
              <td align="left" valign="middle" width="3%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
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end
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-2.1
<SEQUENCE>10
<FILENAME>ex2-1_14663.txt
<DESCRIPTION>NEW TILT, INC. ACQUISITION AGREEMENT
<TEXT>
                                                                     EXHIBIT 2.1
                                                                     -----------


                                                                  EXECUTION COPY
                                                                  --------------



                          AGREEMENT AND PLAN OF MERGER

                                  BY AND AMONG

                           BRIDGELINE SOFTWARE, INC.,


                                 NEW TILT, INC.,


                                MICHELLE CHAMBERS

                                       AND

                                DONNA TRAMONTOZZI

                                 APRIL 24, 2006




<PAGE>

                          AGREEMENT AND PLAN OF MERGER
                          ----------------------------

         This Agreement and Plan of Merger (the "AGREEMENT") is made as of this
24th day of April, 2006 by and among Bridgeline Software, Inc., a Delaware
corporation, with a principal place of business at 10 Sixth Road, Woburn,
Massachusetts 01801 ("Bridgeline"), New Tilt, Inc. (the "COMPANY" or "NEW
TILT"), a Delaware subchapter S corporation, with a principal place of business
at 36 Cameron Avenue, Cambridge, MA 02140 and Michelle Chambers and Donna
Tramontozzi (together, the "SHAREHOLDERS").

                                    RECITALS
                                    --------

         WHEREAS, the Shareholders own 100% of the issued and outstanding shares
of the Common Stock, $0.001 par value per share, of New Tilt (the "SHARES");

         WHEREAS, the Boards of Directors of each of Bridgeline and New Tilt
have, in accordance with the laws of the State of Delaware, approved the merger
of New Tilt with and into Bridgeline, pursuant to which all of the Shares will
be converted into common stock of Bridgeline, $0.001 par value per share (the
"BRIDGELINE COMMON STOCK") and New Tilt will merge with and into Bridgeline,
with Bridgeline being the surviving corporation; and;

         WHEREAS, it is the intention of the parties that the merger shall
qualify as a reorganization within the meaning of Section 368(a)(1)(A) of the
Internal Revenue Code of 1986, as amended (the "CODE") and that this Agreement
shall constitute a "plan of reorganization" for the purposes of Section 368 of
the Code;

         WHEREAS, each of the parties to the Agreement desires to make certain
representations, warranties, and agreements in connection with the transaction
between the parties and to prescribe various conditions thereto.

         NOW, THEREFORE, in consideration of the mutual covenants and agreements
herein contained, and for other good and valuable consideration, the receipt,
adequacy and sufficiency of which are hereby acknowledged, the parties hereto
agree as follows:

                                    ARTICLE I

                                   THE MERGER
                                   ----------

         1.1 THE MERGER. Subject to and upon the terms and conditions of this
Agreement, at the effective time of the merger of the Company with and into
Bridgeline, and pursuant to the Delaware General Corporation Law ("DGCL"), the
Company will be merged with and into Bridgeline (the "MERGER") and the separate
existence of the Company shall thereupon cease, in accordance with the
applicable provisions of the DGCL. As a result of the Merger, Bridgeline will be
the surviving corporation and shall survive as a going concern (sometimes
referred to herein as the "SURVIVING COMPANY" or "BRIDGELINE"). The Certificate
of Incorporation and By-laws of the Surviving Company shall be those of
Bridgeline as they are in existence immediately prior to the Merger. The
separate corporate existence of New Tilt with all its rights, privileges,
powers, assets, liabilities, operations, intellectual property, contract rights,
employees, and franchises shall be extinguished in the Merger. The name of the
Surviving

                                       -2-
<PAGE>

Company shall be "Bridgeline  Software,  Inc." On the Closing Date (as such term
is defined below), the parties shall cause a Certificate of Merger,  meeting the
requirements  of Section 251 of the DGCL (the  "CERTIFICATE  OF MERGER"),  to be
promptly  executed  and  filed  with the  Secretary  of  State  of the  State of
Delaware.  The Merger shall become  effective  (the  "EFFECTIVE  TIME") upon the
close of business on the date that the filing of the  Certificate of Merger with
the  Secretary of State of the State of Delaware  has been  completed or at such
other time or date that may otherwise be indicated in the Certificate of Merger.

         1.2 CONVERSION OF SHARES; EXCHANGE PROCEDURES AND BOOT; TREATMENT OF
NEW TILT STOCK OPTIONS.

                  (a) By virtue of the Merger, automatically and without any
action on the part of the holder thereof, the Shares outstanding immediately
prior to the Effective Time (other than any shares held as treasury stock by the
Company, which shall be cancelled, retired and cease to exist, and for which no
payment hereunder shall be made) shall become and be converted into (i) 320,000
shares of Bridgeline Common Stock (the "BRIDGELINE STOCK"); (ii) $550,000 in
immediately available funds, each to be delivered as of the Closing (as defined
below) and (iii) the Earn-Out Consideration (as defined below) (collectively,
the "MERGER CONSIDERATION"), all as allocated to each Shareholder as set forth
on Exhibit 1.1.

                  (b) The Company and Shareholders shall cause to be delivered
to Bridgeline on the Closing Date the certificates representing all of the
Shares of New Tilt issued and outstanding immediately prior to the Closing, as
evidenced by the stock ledger and stock transfer records of the Company
(collectively, the "COMPANY CERTIFICATES"), and stock powers separate from the
certificates transferring ownership to Bridgeline. Upon surrender of the Company
Certificates for exchange and cancellation to Bridgeline together with the stock
powers, each of the Shareholders shall receive a certificate representing the
number of shares of Bridgeline Stock set forth on Exhibit 1.1.

                  (c) No dividend or other distribution payable after the
Closing with respect to Bridgeline Stock shall be paid to the holder of any
unsurrendered Company Certificate until the holder thereof surrenders such
Company Certificate, at which time such holder shall receive all dividends and
distributions, without interest thereon, previously payable but withheld from
such holder pursuant hereto.

                  (d) After the Closing, the holders of any shares of the
capital stock of the Company shall cease to be, and shall have no rights as,
stockholders of the Company, other than to receive the Merger Consideration
pursuant to the provisions hereof.

                  (e) Notwithstanding the foregoing, neither Bridgeline nor the
Company or any other person shall be liable to any former holder of shares of
any capital stock of the Company for any shares or any dividends or
distributions with respect thereto properly delivered to a public official
pursuant to applicable abandoned property, escheat or similar laws.

                  (f) In the event any Company Certificates shall have been
lost, stolen or destroyed, upon receipt of an affidavit of lost stock
certificate as to such loss, theft or destruction and to the ownership of such
certificate by the person claiming such certificate to be lost, stolen

                                       -3-
<PAGE>

or destroyed, and the receipt by Bridgeline of appropriate indemnification,
Bridgeline will cause to be delivered in exchange for such lost, stolen or
destroyed certificate the shares of Bridgeline Stock deliverable in respect
thereof.

                  (g) If any certificate representing shares of Bridgeline Stock
is to be issued in a name other than that in which the Company Certificates
surrendered and exchanged therefore is registered, it shall be a condition of
the issuance thereof that the certificate so surrendered shall be properly
endorsed (or accompanied by an appropriate instrument of transfer) and otherwise
in proper form for transfer (including, but not limited to, that the signature
of the transferor shall be properly guaranteed by a commercial bank, trust
company, member firm of a national or regional securities exchange or other
eligible guarantor institution), and that the person requesting such exchange
shall pay to Bridgeline in advance any transfer or other taxes required by
reason of the issuance of a certificate representing shares of Bridgeline Stock
in any name other than that of the registered holder of the Company certificate
representing the Shares surrendered, or required for any other reason, or shall
establish to the satisfaction of Bridgeline that such tax has been paid or is
not payable.

         1.3 EARN-OUT CONSIDERATION.

                  (a) The Shareholders shall be entitled to earn additional cash
consideration (collectively, the "EARN-OUT") in an amount, up to $750,000 in the
aggregate (the "MAXIMUM EARN-OUT"), equal to 100% of the positive Earnings
Before Interest, Taxes, Depreciation and Amortization ("EBITDA") of the New Tilt
Business (as defined below) beginning on the Closing Date (as defined below) and
continuing for the twelve (12) calendar quarters immediately following the
Closing (the "EARN-OUT PERIODS" and each individually, an "EARN-OUT PERIOD"),
with the first Earn-Out Period to include the calendar quarter ending June 30,
2006, all in accordance with the terms and conditions of this Section.

                  (b) Within thirty (30) calendar days after the end of each
calendar quarter (i.e., the three (3) months ended March 31, June 30, September
30 and December 31 of each relevant calendar year) or portion thereof that is
included within the Earn-Out Periods, Bridgeline shall prepare an income
statement reflecting solely the business and operations associated exclusively
with the operations of (x) the Company and (y) the division of Bridgeline
headquartered in Woburn, Massachusetts and known as "Bridgeline New England"
following the completion of the Acquisition independent of the remaining
business and operations of Bridgeline (the "NEW TILT BUSINESS") calculated in
accordance with generally accepted accounting principles consistently applied
("GAAP") for such Earn-Out Period, except as provided below, and a related
calculation of EBITDA of the New Tilt Business for such Earn-Out Period, such
calculation of EBITDA to be completed in accordance with GAAP and to reflect as
closely as reasonably possible the EBITDA that would have been achieved by the
New Tilt Business during such Earn-Out Period if the Acquisition had not
occurred (each such income statement and EBITDA calculation are collectively
referred to herein as the "INCOME STATEMENT"). The corporate overhead allocation
("G&A AND CORPORATION MARKETING ALLOCATION") that will be charged by Bridgeline
to the New Tilt Business on a monthly basis shall be determined reasonably using
a headcount and revenue comparison metric between the New Tilt Business and
Bridgeline as a whole. The maximum G&A and Corporate Marketing Allocation that
will be charged by Bridgeline to the New Tilt Business (operating as the New

                                       -4-
<PAGE>

England office of Bridgeline) for a specified Earn-Out Period shall not exceed
fifteen percent (15%) of the total revenues generated by the New Tilt Business
in such Earn-Out Period. Other than the aforesaid G&A and Corporate Marketing
Allocation, for purposes of computing the EBITDA of the New Tilt Business, the
following rules shall apply: (i) there shall be no (A) allocations of any other
Bridgeline costs, expenses, losses due to impairment of assets or otherwise or
other financial items charged to the New Tilt Business Unit except to the extent
directly incurred by the New Tilt Business, (B) compensation charge to the New
Tilt Business Unit for issuance of stock options (regardless of whether required
by GAAP), (C) allocation to the New Tilt Business of any expenses incurred by
New Tilt in connection with any move by the Company from its current offices;
(D) allocation to the New Tilt Business of any expenses incurred in connection
with the Merger, including but not limited to legal and accounting fees incurred
in connection with the Merger; (E) allocations to the New Tilt Business of any
impairment losses relating to the Merger, including but not limited to any
losses or charges relating to impairment of goodwill of the Company established
by Bridgeline in connection with the Merger under FASB 142 or losses relating to
impairment of the value established by Bridgeline for the Company's intangible
assets in the Merger; (F) allocation to the New Tilt Business of any expenses or
losses attributable to any impairment charges, expenses or losses that are
incurred and recorded after the Merger that are associated with any assets on
the balance sheet of Bridgeline New England as of the Merger or any assets
recorded after the Merger but connected with activities prior to the Merger; or
(G) allocation to the New Tilt Business of the compensation of employees whose
expenses are in the ordinary course expenses of the New Tilt Business Unit for
any billable hours spent by such employees on projects for the benefit of one or
more other Bridgeline business units (which determination shall be based on an
equitable allocation of such employee's total billable time for the New Tilt
Business Unit, on the one hand, and for other Bridgeline business units, on the
other hand) and (ii) without the prior written consent of each of the
Shareholders there shall be, for purposes of determining the Earn-Out and
regardless of GAAP, no (A) incurrence by Bridgeline of reimbursable expenditures
on behalf of the New Tilt Business Unit, (B) charge-offs against the New Tilt
Business Unit (other than charge-offs that directly relate to the New Tilt
Business and are required by GAAP), or (C) other accounting adjustments with
respect to the New Tilt Business by Bridgeline that adversely affect the
Earn-Out (except adjustments that relate directly to the New Tilt Business and
are required to be made in accordance with GAAP). Promptly following
Bridgeline's determination of such EBITDA for an Earn-Out Period, Bridgeline
shall deliver the Income Statement to Michelle Chambers, as the representative
duly authorized by, and acting on behalf of, the Shareholders (or her
successor(s) as duly elected by a majority in interest of the former
Shareholders) (referred to in this capacity as the "NEW TILT REPRESENTATIVE"),
which shall include a statement of the total amount owed collectively to the
Shareholders, if any, based on the calculation set forth above (each Income
Statement and each such accompanying statement of the Earn-Out Amount, if any,
are collectively referred to herein as the "EARN-OUT NOTICE").

                  (c) The New Tilt Representative shall have fourteen (14) days
from the date of her receipt of an Earn-Out Notice to either (i) accept the
calculations and conclusions made in the Earn-Out Notice or (ii) give notice to
Bridgeline in writing that the New Tilt Representative intends to dispute the
amounts included in the Earn-Out Notice, and such notice shall set forth in
reasonable detail the disputed amount and the basis for such dispute. Any such
dispute by the New Tilt Representative must be reasonable and made in good
faith.

                                       -5-
<PAGE>

                  (d) If, within the 14 day period provided for in Section
1.3(c), the New Tilt Representative either affirmatively notifies Bridgeline
that she accepts the calculations and conclusions made in the Earn-Out Notice or
does not otherwise give notice to Bridgeline in writing that she intends to
dispute the amounts included in the Earn-Out Notice, then within five (5)
business days following the expiration of such fourteen day period provided for
in Section 1.3(c) or, if earlier, the date of Bridgeline's receipt of such
affirmative notice of the New Tilt Representative's acceptance of the
calculations and conclusions made in the Earn-Out Notice, Bridgeline shall pay
to the Shareholders their respective portions of the Earnout Amount. All Earnout
Amounts that may be paid to the Shareholders hereunder shall be divided and
allocated among the Shareholders on the basis of the same relevant shares of the
Merger Consideration as are set forth in Exhibit 1.1 and shall be paid in
immediately available funds or by Bridgeline company check.

                  (e) (i) If the New Tilt Representative notifies Bridgeline
that she intends to dispute the amounts included in the Earn-Out Notice in
accordance with Section 1.3(c)(ii) above, then Bridgeline and the New Tilt
Representative shall negotiate in good faith to resolve the dispute. If
Bridgeline and the New Tilt Representative are unable to reach a resolution
within ten (10) business days after receipt by Bridgeline of the New Tilt
Representative's written notice of dispute, then Bridgeline and the New Tilt
Representative shall submit the matter to a mutually acceptable independent
public accounting firm registered with the Public Company Accounting Oversight
Board (PCAOB) (the "INDEPENDENT ACCOUNTING FIRM"), which shall, within thirty
(30) calendar days after such submission, determine the Earn-Out Amount, if any,
based on the principles specified in this Section 1.3 (including the intent to
reflect the New Tilt Business as a stand-alone business). The determination of
the Earn-Out Amount by the Independent Accounting Firm shall be final,
non-appealable and binding on the parties.

                           (ii) In the event that the Independent Accounting
Firm determines that the Earn-Out Amount stated by
Bridgeline under Section 1.3(b) is accurate and correct in all material
respects, then (A) the Shareholders shall pay all costs and expenses charged by
the Independent Accounting Firm (the "EARN-OUT IAF FEE") and (B) if an Earn-Out
Amount is due under such Earn-Out Notice, within five (5) business days of the
parties' receipt of such report by the Independent Accounting Firm, Bridgeline
shall pay such Earn-Out Amount to the Shareholders (which payment may be in an
amount net of the Earn-Out IAF Fee otherwise due from the Shareholders to the
Independent Accounting Firm, if Bridgeline chooses in its sole discretion to pay
directly to the Independent Accounting Firm the Earn-Out IAF Fee due from the
Shareholders).

                           (iii) In the event that the Independent Accounting
Firm determines that Bridgeline's calculations and
conclusions made in the Earn-Out Notice are inaccurate or misstated such that
the Earn-Out Notice includes no Earn-Out Amount or otherwise references an
Earn-Out Amount lower than the accurate Earn-Out Amount, then (A) Bridgeline
shall pay the Earn-Out IAF Fee and (B) within five (5) business days of the
parties' receipt of such report by the Independent Accounting Firm, Bridgeline
shall pay to the Shareholders the Earn-Out Amount determined by the Independent
Accounting Firm.

                  (f) Notwithstanding any of the foregoing contained in this
Section 1.3, in no event shall any Earn-Out Amount for any individual Earn-Out
Period exceed the aggregate

                                       -6-
<PAGE>

amount of $62,500.00.

                  (g) The Earn-Out is computed on a quarter-by-quarter basis and
is not cumulative. In the event that the Shareholders have not earned the
aggregate Maximum Earn-Out during the collective initial twelve (12) Earn-Out
Periods, but have earned at least fifty percent (50%) of such Maximum Earn-Out,
the provisions of this Section 1.3 shall automatically extend and continue for
an additional four (4) calendar quarters.

                  (h) In the event of (x) a sale of the New Tilt Business by any
means, (y) the consolidation of the New Tilt Business with or into any other
existing or future business unit or affiliate of Bridgeline or (z) any other
recapitalization, reorganization or other event, in each case the consequences
of which are that the operations of the New Tilt Business are no longer able to
be clearly separated from those of other businesses or business units, then the
provisions of this Section 1.3 shall be modified to provide that the
Shareholders shall receive the Maximum Earn-Out ratably over the remaining
Earn-Out Periods.

         1.4 TAX-FREE REORGANIZATION. It is the intention of the parties hereto
that the Merger shall qualify as a "reorganization" within the meaning of
Section 368(a) of the Code and that this Agreement shall constitute a "plan of
reorganization" for the purposes of Section 368 of the Code. All aspects of the
transactions contemplated by this Agreement shall be implemented in a manner
consistent with this intent.

         1.5 CLOSING. The closing (the "CLOSING") of the transactions
contemplated by this Agreement is taking place simultaneously with the execution
and delivery of this Agreement at the offices of Morse, Barnes-Brown &
Pendleton, P.C., 1601 Trapelo Road, Waltham, MA 02451. The date of the Closing
is sometimes referred to as the "CLOSING DATE".

         1.6 AGREEMENTS REGARDING STOCK OPTIONS.

                  (a) In connection with the Closing, all outstanding options to
acquire New Tilt common stock (the "New Tilt Options") shall be terminated and
Bridgeline shall issue to such optionholders (the "New Tilt Optionholders")
options to purchase Bridgeline Common Stock at the same ratio of stock
valuations used to determine the merger consideration payable by Bridgeline for
New Tilt, and at each optionholder's current vesting schedule of such New Tilt
Options (exclusive of any acceleration otherwise resulting from the Merger and
except for New Tilt Options granted in 2006 which shall vest according to
Bridgeline's standard vesting schedule for employees), all as set forth on
Exhibit 1.6 to this Agreement.

                  (b) In connection with the Merger, (i) the Shareholders shall
deliver to Bridgeline, agreements signed by the New Tilt Optionholders which
will provide for the consent of each of the New Tilt Optionholders to the
termination of the existing New Tilt Options and (ii) Bridgeline shall deliver
to the New Tilt Optionholders stock option agreements for the Bridgeline
options.

         1.7 OTHER AGREEMENTS AND DOCUMENTS.  At the Closing:

                  (a) Bridgeline will enter into an employment agreement with
each of Michelle Chambers and Donna Tramontozzi, each such agreement to be
substantially in the form included

                                       -7-
<PAGE>

as Exhibit 1.7A hereto (collectively, the "EMPLOYMENT AGREEMENTS").

                  (b) The Company shall deliver to Bridgeline the unaudited
balance sheet of New Tilt as at the Closing Date, which shall show total cash on
hand equal to at least one months operating costs for the Company.

                  (c) The parties are executing and delivering the documents
specified on the Closing Agenda attached hereto as Exhibit 1.7B.



                                   ARTICLE II

         REPRESENTATIONS AND WARRANTIES OF NEW TILT AND THE SHAREHOLDERS
         ---------------------------------------------------------------

         In order to induce Bridgeline to enter into this transaction, the
Company and the Shareholders make the following representations and warranties,
to and for the benefit of Bridgeline. The New Tilt Disclosure Schedule will be
arranged in paragraphs corresponding to the numbered and lettered sections
contained in this Article II and the disclosure in any paragraph shall qualify
other sections in this Article II to the extent that it is apparent from a
reading of such disclosure that it also qualifies or applies to such other
sections. Whenever in this Article II the term "to the knowledge of the Company"
is used, it shall mean the knowledge of each of Michelle Chambers and Donna
Tramontozzi, after a relevant inquiry and due investigation is made of the
operations, intellectual property, human resources, financial statements, assets
and liabilities of the Company and on the assumption that each of the foregoing
individuals has read and inquired into the representations and warranties made
by the Company in this Article II.

         2.1 ORGANIZATION AND CORPORATE POWER. New Tilt is a corporation duly
organized, validly existing and in corporate good standing under the laws of the
State of Delaware and has the power and authority to carry on its business as
presently conducted. New Tilt is duly licensed or qualified to do business as a
foreign corporation in the Commonwealth of Massachusetts and there is no other
jurisdiction wherein the character of its property, or the nature of the
activities presently conducted by it, makes such qualification necessary, except
where the failure to be so qualified will not have a Material Adverse Effect on
the Company. For purposes of this Agreement, the term "MATERIAL ADVERSE EFFECT",
when used with respect to any party to this Agreement, means a material adverse
effect upon the results of operations, financial condition, assets, liabilities,
intellectual property, tangible properties or business of such entity, taken as
a whole.

         2.2 AUTHORIZATION. New Tilt has the right, power and legal capacity and
has taken all necessary legal director and shareholder action required for the
due and valid authorization, execution, delivery and performance by New Tilt of
this Agreement and any other agreement or instrument executed by New Tilt in
connection herewith (collectively, the "TRANSACTION DOCUMENTS") and the
consummation of the transactions contemplated herein or therein. This Agreement
is, and to the extent that New Tilt is a party thereto, each of the Transaction
Documents is, a valid and binding obligation of New Tilt enforceable in
accordance with its

                                       -8-
<PAGE>

respective terms, except to the extent that such enforcement may be subject to
applicable bankruptcy, reorganization, insolvency, fraudulent conveyance or
other laws affecting creditors' rights generally and to the application of
general equitable principles.

         2.3 NO CONFLICTS. Except as set forth on the Disclosure Schedule, the
execution, delivery and performance of this Agreement and the Transaction
Documents and the consummation of the transactions contemplated hereby and
thereby by New Tilt do not and will not violate, conflict with, result in a
breach of or constitute a default under (or which with notice or lapse of time,
or both, would constitute a breach of or default under), or result in the
creation of any lien, security interest or other encumbrance under (a) any note,
agreement, contract, license, instrument, lease or other obligation to which New
Tilt is a party or by which New Tilt is bound, and for which New Tilt has not
previously obtained a written waiver of such breach or default, which waiver has
been delivered to Bridgeline, except where such violation would not have a
Material Adverse Effect, (b) any judgment, order, decree, ruling or injunction
known and applicable to New Tilt, (c) any statute, law, regulation or rule of
any governmental agency or authority, or (d) the articles of incorporation,
by-laws, organizational documents or equivalent documents of New Tilt (the "NEW
TILT CHARTER"). This Agreement and the transactions contemplated hereby have
been unanimously approved by New Tilt's Board of Directors and approved by the
Shareholders, as required by the New Tilt Charter, and do not require any
further legal action or authorization, and are not and will not be subject to
any right of first refusal, put, call or similar right.

         2.4 GOVERNMENT APPROVALS. Except for filing with and acceptance by the
Delaware Secretary of State of applicable merger certificates, no consent,
approval, license or authorization, governmental or otherwise, or designation,
declaration or filing with, any court or governmental authority is or will be
required on the part of the Shareholders or New Tilt in connection with the
execution, delivery and performance of this Agreement, the other Transaction
Documents and any other agreements or instruments executed by New Tilt or the
Shareholders in connection herewith or therewith, the failure of which would
have a Material Adverse Effect.

         2.5 AUTHORIZED AND OUTSTANDING EQUITY INTERESTS. The Disclosure
Schedule sets forth the issued and outstanding capital stock of New Tilt, all of
which is validly issued and outstanding, and all options and warrants to acquire
capital stock of New Tilt. Such equity interests are all of the issued and
outstanding equity interests, actual or contingent, in New Tilt and are validly
issued and free from any restrictions on transfer, except for restrictions
imposed by federal or state securities laws. Except as set forth in the New Tilt
Charter, there are no voting agreements, voting trusts, registration rights,
rights of first refusal, preemptive rights, buy-sell agreements, co-sale rights,
or other restrictions applicable to any capital stock or equity interests in New
Tilt. All of the issued and outstanding capital stock in New Tilt were issued in
transactions complying with or exempt from the registration requirements of the
Securities Act of 1933, as amended (the "SECURITIES ACT") and any applicable
state "blue sky" laws. Any equity interests in New Tilt that consist of
contractual or so-called "phantom" equity interests are separately identified on
the Disclosure Schedule, and all of such interests have been effectively
terminated prior to the Closing without any direct or indirect payment by New
Tilt in respect thereof.

                                       -9-
<PAGE>

         2.6 SUBSIDIARIES. New Tilt does not have, and at no time during its
existence has it had, any subsidiaries. Except as set forth on the Disclosure
Schedule, New Tilt does not have any investment or other interest in, or any
outstanding loan or advance to or from, any person or entity, including, without
limitation, any officer, manager or shareholder.

         2.7 FINANCIAL INFORMATION. New Tilt has previously delivered to
Bridgeline the unaudited balance sheets of New Tilt as of December 31, 2003,
December 31, 2004, December 31, 2005 and the profit and loss statements for the
years then ended (collectively, the "ANNUAL NEW TILT FINANCIAL STATEMENTS"). In
addition, New Tilt has previously delivered to Bridgeline the unaudited balance
sheet of New Tilt at February 28, 2006, and the related statements of earnings
and cash flows for the two months then ended ( the "INTERIM NEW TILT FINANCIAL
STATEMENTS") The Annual and Interim New Tilt Financial Statements present
fairly, in all material respects, the financial condition and results of
operations of New Tilt as of and for the relevant periods in accordance with
GAAP applied on a basis consistent with prior periods, except that none of such
financial statements contain footnotes and the Interim New Tilt Financial
Statements are subject to normal year-end adjustments, which adjustments will
neither individually or in the aggregate have a Material Adverse Effect. Except
as set forth on the Disclosure Schedule, New Tilt has no liability, contingent
or otherwise, which is not adequately reflected in or reserved against in the
Annual or Interim New Tilt Financial Statements that is reasonably likely to
materially and adversely affect the financial condition of New Tilt. Except as
set forth in the Interim New Tilt Financial Statements or on the Disclosure
Schedule, since December 31, 2005 (the "BALANCE SHEET DATE"), (i) there has been
no change in the business, property, assets, liabilities, condition (financial
or otherwise), operations, results of operations, affairs or prospects of New
Tilt except for changes in the ordinary course of business which, in the
aggregate, would not have a Material Adverse Effect, and (ii) none of the
business, property, assets, liabilities, condition (financial or otherwise),
operations, results of operations, affairs or prospects of New Tilt have been
materially adversely affected by any occurrence or development, in the
aggregate, whether or not insured against.

         2.8 EVENTS SUBSEQUENT TO THE DATE OF THE FINANCIAL STATEMENTS. Except
as set forth on the Disclosure Schedule, or in the Annual or Interim New Tilt
Financial Statements, since the Balance Sheet Date, New Tilt has not, in excess
of $10,000 (i) issued any equity interest, (ii) borrowed any amount or incurred
or become subject to any material liability (absolute, accrued or contingent),
except liabilities under contracts entered into in the ordinary course of
business, (iii) discharged or satisfied any lien or encumbrance or incurred or
paid any obligation or liability (absolute, accrued or contingent) other than
current liabilities shown on the Interim or Annual New Tilt Financial Statements
and incurred in the ordinary course of business, (iv) declared or made any
payment, other than ordinary payments of compensation in amounts consistent with
the historic levels, or distribution to any shareholder or purchased or redeemed
any Shares or other equity interests, except for the exercise of stock options
or similar rights, and distributions in the ordinary course of business of a
subchapter S-corporation and required under applicable tax laws, (v) mortgaged,
pledged or subjected to lien any of its assets, tangible or intangible, other
than liens of current real property taxes not yet due and payable or such
liabilities or obligations which would not have a Material Adverse Effect, (vi)
sold, assigned or transferred any of its tangible assets except in the ordinary
course of business, or canceled any material debt or claim, except in the
ordinary course of business, in an individual amount in excess of $2,500, or
$7,500 in the aggregate, (vii) sold, assigned, transferred or granted any

                                      -10-
<PAGE>

license with respect to any patent, trademark, trade name, service mark,
copyright, trade secret or other intangible asset, except pursuant to license or
other agreements entered into in the ordinary course of business, in an
individual amount in excess of $2,500, or $7,500 in the aggregate, (viii)
suffered any material loss of property or knowingly waived any right of
substantial value whether or not in the ordinary course of business, (ix) made
any change in officer compensation, (x) made any material change in the manner
of business or operations of New Tilt, (xi) entered into any transaction except
in the ordinary course of business or as otherwise contemplated hereby, or (xii)
entered into any commitment (contingent or otherwise) to do any of the
foregoing.

         2.9 LITIGATION. Except as otherwise set forth on the Disclosure
Schedule, there is no litigation or governmental proceeding or investigation,
pending or, to New Tilt's and the Shareholders' knowledge, threatened, against
New Tilt or affecting any of New Tilt's properties or assets, or, to New Tilt's
and the Shareholders' knowledge, pending or threatened, against any director,
officer, key employee, present or former shareholder of New Tilt in his capacity
as such, nor to New Tilt's or the Shareholders' knowledge has there occurred any
event or does there exist any condition on the basis of which any litigation,
proceeding or investigation might properly be instituted. Except as set forth on
the Disclosure Schedule, each incident or proceeding described on the Disclosure
Schedule in response to this Section 2.9 is fully covered by insurance except to
the extent of applicable insurance deductibles. To New Tilt's or the
Shareholders' knowledge, New Tilt is not in default with respect to any order,
writ, injunction, decree, ruling or decision of any court, commission, board or
other government agency, except for such order, writ, injunction, decree, ruling
or decision which would not have a Material Adverse Effect.

         2.10 COMPLIANCE WITH LAWS AND OTHER INSTRUMENTS. Except as set forth on
the Disclosure Schedule, the Company is in compliance with the New Tilt Charter,
and in all material respects with the provisions of each mortgage, indenture,
lease, license, other agreement or instrument, judgment, decree, judicial order,
statute and regulation by which it is bound or to which its properties are
subject and where non-compliance would have a Material Adverse Effect.

         2.11 TAXES.

                  (a) The term "TAXES" as used in this Agreement means all
federal, state, local, foreign net income, alternative or add-on minimum tax,
estimated, gross income, gross receipts, sales, use, ad valorem, value added,
transfer, franchise, capital profits, lease, service, license, withholding,
payroll, employment, excise, severance, stamp, occupation, premium, property,
environmental or windfall profit taxes, customs, duties and other taxes,
governmental fees and other like assessments and charges, together with all
interest, penalties, additions to tax and additional amounts with respect
thereto, and the term "TAX" means any one of the foregoing Taxes. The term "TAX
RETURNS" as used herein means all returns, declarations, reports, claims for
refund, information statements and other documents relating to Taxes, including
all schedules and attachments thereto, and including all amendments thereof, and
the term "Tax Return" means any one of the foregoing Tax Returns. "TAX
AUTHORITY" means any governmental authority responsible for the imposition of
any Tax.

                                      -11-
<PAGE>

                  (b) The Company has timely filed all Tax Returns required to
be filed by it and has paid all Taxes owed (whether or not shown as due on such
returns), including, without limitation, all Taxes which the Company is
obligated to withhold for amounts paid or owing to employees, creditors and
third parties; provided, however, that due to the Company's subchapter S status,
the Shareholders file certain Tax Returns and pay certain Taxes with respect to
their allocable share of Company taxable income as described in the Disclosure
Schedule. All Tax Returns filed by the Company were complete and correct in all
material respects. Except as set forth on the Disclosure Schedule, none of the
Tax Returns filed by the Company or Taxes payable by the Company have been the
subject of an audit, action, suit, proceeding, claim, examination, deficiency or
assessment by any governmental authority, and no such audit, action, suit,
proceeding, claim, examination, deficiency or assessment is currently pending
or, to the knowledge of the Company or the Shareholders, threatened. Except as
set forth on the Disclosure Schedule, the Company is not currently the
beneficiary of any extension of time within which to file any Tax Return, and
the Company has not waived any statute of limitation with respect to any Tax or
agreed to any extension of time with respect to a Tax assessment or deficiency.
All material elections with respect to Taxes with respect to the Company, as of
the date hereof, are set forth in the Company Financial Statements or in the
Company Disclosure Schedule.

                  (c) To the best of the Company's or the Shareholders'
knowledge, no circumstances exist or have existed which would constitute grounds
for assessment against the Company of any tax liability with respect to any
period for which Tax Returns have been filed, including, but not limited to, any
circumstances relating to the existence of a valid subchapter S corporation
election for the Company for any such period. The Company's election to be taxed
as a subchapter S corporation under Section 1361 of the Code has been in effect
throughout the existence of the Company and, accordingly, the Company has never
been subject to any federal income tax by reason of being a "C Corporation" ( as
that term is defined in the Code). No Shareholder is a nonresident alien for
purposes of U.S. income taxation, including for purposes of Section 897 of the
Code.

                  (d) The Company is not a party to any Tax sharing agreement or
similar arrangement. The Company has never been a member of a group filing a
consolidated federal income Tax Return (other than a group the common parent of
which was the Company), and the Company has no liability for the Taxes of any
Person.

                  (e) There are no liens for Taxes upon any of the assets, other
than for ad valorem Taxes not yet due and payable. The unpaid Taxes of the
Company did not, as of December 31, 2005, exceed by any material amount the
reserve for actual Taxes (as opposed to any reserve for deferred Taxes
established to reflect timing differences between book and Tax income) as shown
on the Annual New Tilt Financial Statements, and will not exceed by any material
amount such reserve as adjusted for the passage of time through the Closing Date
in accordance with the past custom and practice of the Company in filing its Tax
Returns. The Company has not incurred any liability for Taxes from January 1,
2006 through the Closing Date other than in the ordinary course of business
consistent with past practice. The Company is not obligated to file any Tax
Return in any jurisdiction (whether foreign or domestic) other than those
jurisdictions in which it currently files Tax Returns.

                                      -12-
<PAGE>

                  (f) Each Company Plan (as defined in Section 2.20) that is a
non-qualified deferred compensation plan subject to Section 409A of the Code has
been operated in good faith compliance with Section 409A of the Code and IRS
Notice 2005-1 since January 1, 2005 and the Company does not have, and does not
expect to have any future, Tax withholding obligation in respect of Section 409A
under any Company Plan.

                  (g) The Company has not been a United States real property
holding corporation within the meaning of Section 897(c)(2) of the Code during
the applicable period specified in Section 897(c)(1)(A)(2) of the Code.


         2.12 REAL PROPERTY.

                  (a) The Disclosure Schedule sets forth the addresses and uses
of all real property that New Tilt owns, leases or subleases, and any lien or
encumbrance on any such owned real property or New Tilt's leasehold interest
therein, specifying in the case of each such lease or sublease, the name of the
lessor or sublessor, as the case may be, the lease term and the rental
obligations of the lessee thereunder.

                  (b) There are no defaults by New Tilt under any existing
leases, subleases or other contractual obligations pertaining to real property
that New Tilt owns, leases or subleases, and to the best knowledge of New Tilt,
by any other party, which might curtail in any material respect the present use
of New Tilt's property listed on the Disclosure Schedule.

         2.13 PERSONAL PROPERTY & CAPITAL EQUIPMENT. The Disclosure Schedule
sets forth a full and complete list of all personal property, including capital
equipment, owned or leased by New Tilt. Except as set forth on the Disclosure
Schedule, except for property sold or otherwise disposed of in the ordinary
course of business, and except for liens for taxes not yet due and payable, New
Tilt has good and marketable title, free and clear of any lien, charge,
restriction or encumbrance, to all of such personal property. All material items
of such personal property used in the operation of the business of New Tilt are
in good operating condition, normal wear and tear accepted.

         2.14 INTELLECTUAL PROPERTY.

                  (a) The "COMPANY INTELLECTUAL PROPERTY" consists of all trade
secrets, copyrights, patents, trademarks, service marks, trade dress, all
registrations and applications with respect thereto and all licenses or rights
under the same, that are owned or used by the Company and are necessary or
incidental to the operation of the business, including without limitation, any
of the foregoing embodied or contained in any of the following: net lists;
domain names and URLs and textual information contained in web sites;
schematics; processes; customer and supplier lists; know-how and show-how;
computer software programs, source code and object code; complete system build
software; development and test tools, documentation, specifications, programmer
and user manuals used by the Company to install, operate, maintain, correct,
test, repair enhance, extend, modify, prepare derivative works based upon,
design, develop, reproduce and package software; all license and other rights in
any third-party product, intellectual property, proprietary or personal rights,
documentation, or tangible or intangible

                                      -13-
<PAGE>

property; all documents, record and electronic files relating to the design, end
user documentation, manufacturing, quality control, sales, marketing, or
customer support; and all products of the Company currently being licensed or
sold or that are currently being developed, including all hardware products and
tools, software products and tools, and services that are currently licensed,
offered or under development by the Company (such products and services, the
"COMPANY PRODUCTS & SERVICES").

         As used in this Agreement "software" means any and all current and
prior and currently under development versions and releases, and predecessors of
the software and computer programs and applications of the Company to the extent
related to the business as currently being conducted or as currently required or
as reasonably can be anticipated to be conducted in the future, including all
such software and computer programs in machine readable source code forms and in
machine executable object code forms and all related specifications (including
all logic architectures, algorithms and logic flows and all physical,
functional, operating and design parameters), any data used by or related to
software, work in progress relating to corrections, modifications, revisions,
upgrades, translations or enhancements, all Company and third party development
and test tools used to develop or test the software, third party application
program interfaces to the software written by them and all methods of
implementation and packaging, together with all associated know-how and show-how
and all related Documentation. As used in this Agreement, "DOCUMENTATION" means
all documentation, specifications, manuals and other materials relating to the
software, including programmer and user manuals which are used by the Company to
install, operate, maintain, correct, test, repair, enhance, extend, modify,
prepare derivative works based upon, design, develop, reproduce and package such
software.

                  (b) The Disclosure Schedule lists: (i) all patents, copyright
registrations, mask works, trademarks, service marks, trade dress, any renewal
rights for any of the foregoing, and any applications and registrations for any
of the foregoing, which are included in the Company Intellectual Property and
owned or licensed by or on behalf of the Company and are necessary to its
business (except for standard off-the-shelf software such as Microsoft Office);
(ii) all Company Products & Services; and (iii) all licenses, sublicenses and
other agreements to which the Company is a party and pursuant to which the
Company or any other person is authorized to use the Company Intellectual
Property or exercise any other right with regard thereto. The Company has
delivered to Bridgeline true and complete copies of the agreements described in
(iii) hereof.

                  (c) The Company Intellectual Property consists solely of items
and rights which are either: (i) owned by the Company; (ii) in the public
domain; or (iii) rightfully used and authorized for use by the Company and its
successors pursuant to a valid license. All Company Intellectual Property which
consists of licenses or other rights to third party intellectual property is set
forth on the Disclosure Schedule. The Company has all rights in the Company
Intellectual Property necessary to commercially exploit the same in connection
with the Company's current, former, and planned or scheduled (whether for
release or development) activities in all geographic locations and fields of use
in which the Company currently operates or is scheduled to operate, and to
sublicense any or all such rights to third parties, including the right to grant
further sublicenses. All software created by the Company is as described in the
Documentation and performs in all material respects in accordance with the
specifications included in the Documentation (subject to software errors or bugs
which do not interfere with the operation of

                                      -14-
<PAGE>

the software). The Company has taken all commercially reasonable measures to
protect the proprietary nature of each item of Company Intellectual Property. No
other person or entity has any rights to any of the Company Intellectual
Property (except pursuant to agreements or licenses specified on the Disclosure
Schedule), and to the knowledge of the Company and the Shareholders, no other
person or entity is infringing, violating or misappropriating any of the Company
Intellectual Property. The Company owns or has the right to use all Intellectual
Property necessary (i) to use, market and distribute the products marketed, sold
or licensed, and to provide the services provided, by the Company to other
parties, or (ii) to operate the Company's internal systems that are material to
the business or operations of the Company, including, without limitation,
computer hardware systems, software applications and embedded systems (the
"COMPANY INTERNAL SYSTEMS"). Each item of Company Intellectual Property will be
owned or available for use by Bridgeline immediately following the Closing on
substantially identical terms and conditions as it was immediately prior to the
Closing, except for any changes that do not, either individually or on the
aggregate, have a Material Adverse Effect. Except as set forth on the Disclosure
Schedule, to the Company's knowledge, the Company's software and the Company
Internal Systems are free from significant defects or programming errors which
interfere with the operation and use of the software and Company Internal
Systems and conform in all material respects to the written documentation and
specifications therefor.

                  (d) The Company is not, nor as a result of the execution or
delivery of this Agreement, the other Transaction Documents and all other
agreements contemplated hereby, or performance of the Company's obligations
hereunder, will the Company be, in violation of any license, sublicense or other
agreement relating to the Company Intellectual Property to which the Company is
a party. The Disclosure Schedule lists all contracts or agreements under which
the Company is obligated to provide any consideration (whether financial or
otherwise) to any third party, or under which any third party otherwise would be
entitled to any consideration, with respect to any exercise of rights by the
Company in the Company Intellectual Property. The Disclosure Schedule identifies
each item of Company Intellectual Property that is owned by a party other than
the Company, and the license or agreement pursuant to which the Company uses it
(excluding off-the-shelf software programs licensed by the Company pursuant to
"shrink wrap" or "click wrap" licenses, such exclusion only extending to
programs used by the Company solely for non-revenue generating administrative
functions).

                  (e) Except as set forth on the Disclosure Schedules, to the
knowledge of the Company, the use, reproduction, modification, distribution,
licensing, sublicensing, sale or any other exercise of rights by the Company
with respect to any of the Company Products & Services does not infringe any
intellectual property right, right of privacy, or right in personal data of any
person or entity. No claims (i) challenging the validity, effectiveness or
ownership by the Company of any of the Company Intellectual Property, or (ii) to
the effect that the use, reproduction, modification, manufacturing,
distribution, licensing, sublicensing, sale or any other exercise of rights by
the Company with respect to any of the Company Products and Services infringes
or will infringe on any intellectual property or other proprietary or personal
right of any person, have been asserted to the Company or, to the knowledge of
the Company or the Shareholders, are threatened by any person, nor to the
knowledge of the Company or the Shareholders, are there any valid grounds for
any bona fide claim of any such kind. All granted or issued patents and mask
works and all registered trademarks listed on the Disclosure Schedule and all
registered copyrights held by the Company are valid, enforceable and subsisting.
To the

                                      -15-
<PAGE>

knowledge of the Company and the Shareholders, there are no pending or unissued
patent rights which infringe upon or impair the Company Intellectual Property.
To the knowledge of the Company and the Shareholders, there is no unauthorized
use, infringement or misappropriation of any of the Company Intellectual
Property by any third party, employee or former employee.

                  (f) The Company has not disclosed the source code for any of
the software owned by the Company or other confidential information
constituting, embodied in or pertaining to the software to any person or entity,
except pursuant to the agreements listed on the Disclosure Schedule, and the
Company has taken reasonable measures to prevent disclosure of such source code.
No parties other than the Company possess any current or contingent rights to
any source code that is part of the Company Intellectual Property.

                  (g) Except as set forth on the Disclosure Schedule, all of the
copyrightable materials (including software) incorporated in or bundled with the
Company's Products & Services have been created by employees of the Company
within the scope of their employment by the Company or by independent
contractors of the Company who have executed agreements expressly assigning all
right, title and interest in such copyrightable materials to the Company. No
portion of such copyrightable materials was jointly developed with any third
party. The Disclosure Schedule lists all parties who have created any portion
of, or otherwise have any rights in or to, the Company Intellectual Property,
other than employees of the Company who have no rights in or to any Company
Intellectual Property. Except as set forth on the Disclosure Schedule, the
Company has secured from all parties who have created any portion of, or
otherwise have any rights in or to, the Company Intellectual Property valid and
enforceable written assignments of any such work or other rights to Company and
has provided true and complete copies of such assignments to Bridgeline.

                  (h) The Disclosure Schedule identifies each license or other
agreement (or type of license or other agreement) pursuant to which the Company
has licensed, distributed or otherwise granted any rights to any third party
with respect to, any Company Intellectual Property. The Disclosure Schedule
includes a true and complete list of support and maintenance agreements relating
to Company Intellectual Property including the identity of the parties entitled
to receive such service or maintenance, and the term of such agreements.

                  (i) Except as set forth on the Disclosure Schedule, the
Company has obtained written agreements from all employees and third parties
with whom Company has shared confidential proprietary information (i) of the
Company, or (ii) received from others which the Company is obligated to treat as
confidential, which agreements require such employees and third parties to keep
such information confidential. The Company has delivered or given access to all
copies of such written agreements, as executed, to Bridgeline. None of the
present or former employees, officers or directors of the Company owns directly
or indirectly, in whole or in part, any Company Intellectual Property or
application therefor.

                  (j) To the knowledge of the Company and the Shareholder, none
of the Company Internal Systems, or the use thereof, infringes or violates, or
constitutes a misappropriation of, any Intellectual Property rights of any
person or entity. The Disclosure Schedule lists any complaint, claim or notice,
or written threat thereof, received by the Company alleging any such
infringement, violation or misappropriation; and the Company has provided to

                                      -16-
<PAGE>

Bridgeline complete and accurate copies of all written documentation in the
possession of the Company relating to any such complaint, claim, notice or
threat. The Company has provided to Bridgeline complete and accurate copies of
all written documentation in the Company's possession relating to claims or
disputes known to the Company concerning any Company Intellectual Property.

         2.15 AGREEMENTS OF DIRECTORS, OFFICERS, EMPLOYEES AND CONSULTANTS.
Except as set forth on the Disclosure Schedule, to New Tilt's and the
Shareholders' knowledge, no current or former officer or employee of or
consultant to New Tilt is in violation of any term of any employment contract,
non-competition agreement, non-disclosure agreement, patent disclosure or
assignment agreement or other contract or agreement containing restrictive
covenants relating to the conduct of any such current or former shareholder,
officer, employee, or consultant or otherwise relating to the use of trade
secrets or proprietary information of others by any such person. The Disclosure
Schedule sets forth the name and address of each person currently serving as an
officer or a director of New Tilt, and each person listed on the Disclosure
Schedule as an officer was duly elected and is presently serving as such officer
or director. Other than as listed on the Disclosure Schedule, all current or
former employees and consultants of New Tilt have (i) executed a non-disclosure
agreement with New Tilt or (ii) executed a non-competition agreement with New
Tilt. Except as disclosed on the Disclosure Schedule, since January 1, 2006, New
Tilt has not paid or become committed to pay any bonus or similar additional
compensation to any officer, director or employee of New Tilt.

         2.16 GOVERNMENTAL LICENSES. New Tilt has all permits, licenses, orders,
franchises and other rights and privileges of all federal, state, local or
foreign governmental or regulatory bodies necessary for New Tilt to conduct its
business as presently conducted, except where such failure would not have a
Material Adverse Effect. All such permits, licenses, orders, franchises and
other rights and privileges are in full force and effect and, to New Tilt's
knowledge, no suspension or cancellation of any of them is threatened, and none
of such permits, licenses, orders, franchises or other rights and privileges
will be Materially Adversely Affected by the consummation of the transactions
contemplated by this Agreement or any of the Transaction Documents.

         2.17 LIST OF MATERIAL CONTRACTS AND COMMITMENTS. The Disclosure
Schedule sets forth a complete and accurate list of all material contracts
currently in effect to which New Tilt is a party or by or to which any of its
assets or properties is bound or subject. As used on the Disclosure Schedule,
the phrase "COMPANY MATERIAL CONTRACT" means and includes every material
agreement or material understanding of any kind, written or oral, which is
legally enforceable by or against New Tilt, and specifically includes without
limitation (a) contracts and other agreements with any current or former
officer, director, employee, consultant or shareholder or any partnership,
company, joint venture or any other entity in which any such person or entity
has an interest; (b) agreements with any labor union or association representing
any New Tilt employee; (c) contracts and other agreements for the provision of
services other than by employees of New Tilt which entail a reasonably
foreseeable financial consequence to any contracting party of at least $15,000;
(d) bonds or other security agreements provided by any party in connection with
the business of New Tilt; (e) contracts and other agreements for the sale of any
of the assets or properties of New Tilt other than in the ordinary course of
business or for the grant to any person or entity of any preferential rights to
purchase any of said assets or

                                      -17-
<PAGE>

properties; (f) joint venture agreements relating to the assets, properties or
business of New Tilt or by or to which any of its assets or properties are bound
or subject; (g) contracts or other agreements under which New Tilt agrees to
indemnify any party, to share tax liability of any party, or to refrain from
competing with any party; (h) any contracts or other agreements with regard to
any indebtedness of New Tilt; or (i) any other contract or other agreement
whether or not made in the ordinary course of business and involving a
reasonably foreseeable financial consequence to any contracting party of at
least $15,000. New Tilt has delivered to Bridgeline true, correct and complete
copies of all such contracts, together with all modifications and supplements
thereto. Except as set forth on the Disclosure Schedule, each of the contracts
listed on the Disclosure Schedule is in full force and effect. New Tilt is not
in breach of any of the material provisions of any such Company Material
Contract, nor, to the best knowledge of New Tilt and the Shareholders, (x) is
any other party to any such contract in default thereunder or (y) does any event
or condition exist which with notice or the passage of time or both would
constitute a default of a material provision thereunder, except for any such
breach or default that individually and in the aggregate would not have a
Material Adverse Effect. New Tilt has performed in all material respects all
obligations required to be performed by it under each such contract as of the
Closing.

         2.18 ACCOUNTS RECEIVABLE. The Disclosure Schedule sets forth a full and
complete list of New Tilt's accounts receivable and accounts receivable reserve
as of close of business on the date immediately preceding the Closing Date.
Except as set forth on the Disclosure Schedule, all accounts and notes
receivable reflected on the Annual and Interim New Tilt Financial Statements,
and all accounts and notes receivable arising subsequent to the date of such
balance sheets, have arisen in the ordinary course of business and represent
valid obligations owing to New Tilt. Except as set forth on the Disclosure
Schedule, to the best knowledge of New Tilt and the Shareholders, none of New
Tilt's receivables are subject to any claim of offset, recoupment, setoff or
counterclaim and neither New Tilt nor any Shareholder has knowledge of any
specific facts or circumstances (whether asserted or unasserted) that could give
rise to any such claim. No material amount of receivables are contingent upon
the performance by New Tilt of any obligation or contract other than normal
warranty repair and replacement. No person has any lien on any such receivables
and no agreement for deduction or discount has been made with respect to any
such receivables. Except as set forth on the Disclosure Schedule, to the best
knowledge of New Tilt and the Shareholders, all of New Tilt's accounts and notes
receivable reflected on the Annual and Interim New Tilt Financial Statements and
all accounts and notes receivable arising subsequent to the date of such balance
sheets through the date hereof are collectible in full by New Tilt in the
ordinary course of business.

         2.19 INSURANCE COVERAGE. The Disclosure Schedule hereto contains an
accurate summary of the insurance policies currently maintained by New Tilt.
Except as described on the Disclosure Schedule, there are currently no claims
pending against New Tilt pursuant to any insurance policy currently in effect
and covering the property, the business or the employees of New Tilt.

         2.20 EMPLOYEE MATTERS. Except as set forth on the Disclosure Schedule,
neither the Company nor any person that together with the Company would be
treated as a single employer (an "ERISA AFFILIATE") under Section 414 of the
Code has established or maintains or is obligated to contribute to (a) any
bonus, severance, stock option, or other type of incentive

                                      -18-
<PAGE>

compensation plan, program, agreement, policy, commitment, contract or
arrangement (written or oral), (b) any pension, profit-sharing, retirement or
other plan, program or arrangement, or (c) any other employee benefit plan, fund
or program, including, but not limited to, those described in Section 3(3) of
the Employee Retirement Income Security Act of 1974, as amended ("ERISA"). All
such plans (individually, a "PLAN" and collectively, the "PLANS") have been
operated and administered in all material respects in accordance with their
terms and, as applicable, with the requirements prescribed by any and all
statutes, orders, rules and regulations, including but not limited to ERISA and
the Code. No act or failure to act by the Company has resulted in, nor does the
Company or the Shareholders have knowledge of a non-exempt "prohibited
transaction" (as defined in ERISA) with respect to the Plans. Neither the
Company nor any ERISA Affiliate maintains or has ever maintained or contributed
to any Plan subject to Title IV of ERISA. With respect to the employees and
former employees of the Company, there are no employee post-retirement medical
or health plans in effect, except as required by Section 4980B of the Code. The
Company has funded, or made adequate reserves for, the full amounts of the
employer contributions that are required under the terms of any of the Company's
employee benefit plans to be paid by the Company with respect to the year ended
December 31, 2005 and the period from January 1, 2006 through and including the
Closing Date.

         2.21 CUSTOMERS. Except as set forth on the Disclosure Schedule:

                  (a) The relationships of New Tilt with its significant
customers are good commercial working relationships and no significant customer
of New Tilt has canceled or otherwise terminated, or to New Tilt's or the
Shareholders' knowledge, threatened to cancel or otherwise to terminate its
relationship with New Tilt, or has during the last twelve (12) months decreased
materially, or threatened to decrease or limit materially, its usage or purchase
of the Company Products & Services except for normal cyclical changes related to
customers' businesses and except for changes which have not had a Material
Adverse Effect on New Tilt.

                  (b) No supplier or customer has notified New Tilt that it
intends to cancel or otherwise substantially modify its relationship with New
Tilt or to decrease materially or limit its services, supplies or materials to
New Tilt, or its usage or purchase of the services of New Tilt, and, to the best
knowledge of New Tilt and the Shareholders, the consummation of the transactions
contemplated hereby will not materially adversely affect the relationship of
Bridgeline with any such supplier or customer.

         2.22 NO BROKERS OR FINDERS. Except as set forth on the Disclosure
Schedule, no person or entity has or will have, as a result of the actions of
New Tilt or the Shareholders, any right, interest or claim against or upon New
Tilt or Bridgeline for any commission, fee or other compensation as a finder or
broker arising from the transactions contemplated by this Agreement.

         2.23 TRANSACTIONS WITH INSIDERS. Except as set forth on the Disclosure
Schedule, there are no currently outstanding loans, leases or other contracts
between New Tilt and any officer or manager of New Tilt, or any person or entity
owning five percent (5%) or more of the total number of Shares, or any
respective family member or affiliate of any such officer, manager or
shareholder.

                                      -19-
<PAGE>

         2.24 GUARANTEES. Except as set forth on the Disclosure Schedule, New
Tilt has not assumed, guaranteed, endorsed or otherwise become directly or
contingently liable on or for any indebtedness of any other person or entity,
except guarantees by endorsement of negotiable instruments for deposit or
collection or similar transactions in the ordinary course of business.

         2.25 BANK ACCOUNTS, SIGNING AUTHORITY, POWERS OF ATTORNEY. Except as
set forth on the Disclosure Schedule, New Tilt has no account or safe deposit
box in any bank and no person or entity has any power, whether singly or
jointly, to sign any checks on behalf of New Tilt, to withdraw any money or
other property from any bank, brokerage or other account of New Tilt, or to act
pursuant to any power of attorney granted by New Tilt at any time for any
purpose.

         2.26 BOOKS AND RECORDS. The books and records of New Tilt made
available to Bridgeline for inspection include copies of the by-laws and other
governing documents as currently in effect and accurately record therein in all
material respects all actions, proceedings, consents and meetings of the Board
and shareholders of New Tilt and any committees thereof.

         2.27 PRIVACY AND DATA COLLECTION. The Company has at all times complied
in all respects with all laws and regulations relating or applicable to privacy,
publicity, data protection, collection, storage, transfer, release and use of
personal information and user information gathered or accessed in the course of
the business and operations of the Company, except where the failure to comply
therewith would not have a Material Adverse Effect. The Company has at all times
complied in all material respects with all rules, policies and procedures
established by the Company from time to time with respect to privacy, publicity,
data protection, collection, storage, transfer and use of personal information
and user information gathered or accessed in the course of the business and
operations of the Company (collectively, the "COMPANY PRIVACY POLICIES"),
noncompliance with which would result in a Material Adverse Effect. No claims
have been asserted or, to the knowledge of the Company and the Shareholders,
threatened against the Company by any Person or governmental entity alleging a
violation of such Person's, or any other Person's, privacy, publicity, personal
or confidentiality rights under any such laws, or a breach or other violation of
any of the Company Privacy Policies, where such violation would have a Material
Adverse Effect. The Company has taken commercially reasonable measures
(including but not limited to, implementing and monitoring compliance with
adequate measures with respect to technical and physical security) to ensure
that personal and consumer information is protected against loss and against
unauthorized access, use, modification, disclosure or other misuse. To the
knowledge of the Company and the Shareholders, there has been no unauthorized
access to, use, modification, disclosure or other misuse of such information.
Neither the execution, delivery nor performance of this Agreement or the
consummation of the transactions contemplated hereby shall result in any breach
or violation of the Company Privacy Policies or violate any Law with respect to
such data or information.

                                   ARTICLE III

              REPRESENTATIONS, COVENANTS AND RIGHTS OF SHAREHOLDER
              ----------------------------------------------------

         In order to induce Bridgeline to enter into this transaction, each
Shareholder, severally and not jointly, makes the following representations and
warranties. The Shareholders Disclosure Schedule will be arranged in paragraphs
corresponding to the numbered and lettered

                                      -20-
<PAGE>

sections contained in this Article III and the disclosure in any paragraph shall
qualify other sections in this Article III to the extent that it is apparent
from a reading of such disclosure that it also qualifies or applies to such
other sections.

         3.1 OWNERSHIP OF SHARES. The Shareholder has valid title to and owns
beneficially and of record all of the Shares set forth opposite such
Shareholder's name on Exhibit 1.1, and has good and marketable title to such
Shares, free and clear of any and all transfer restrictions (other than those
imposed by relevant securities laws), options, liens, claims, pledges, voting
trusts and agreements, security interests, charges and other restrictions or
encumbrances of any kind or nature. The Shareholder has the absolute and
unconditional right, power, authority and capacity to execute and perform this
Agreement and any of the Transaction Documents (as such term is defined below)
to which she is a party and to consummate the transactions contemplated hereby.
Except as set forth on the Shareholders Disclosure Schedule, the Shareholder has
not granted any option or other commitment or is not otherwise a party to or
bound by any agreement obligating such Shareholder to sell, pledge or otherwise
grant any interest in the Shares to any person or entity.

         3.2 AUTHORIZATION. The Transaction Documents shall include all
documents executed and delivered at the Closing to which the Shareholder is a
party. This Agreement and each of the Transaction Documents to which the
Shareholder is a party have been duly executed and delivered by the Shareholder
and constitute the valid and binding obligations of the Shareholder enforceable
against the Shareholder in accordance with their respective terms, except to the
extent that such enforcement may be subject to applicable bankruptcy,
reorganization, insolvency, fraudulent conveyance or other laws affecting
creditors' rights generally and to the application of general equitable
principles.

         3.3 NO CONFLICTS. Except as set forth on the Shareholder Disclosure
Schedule, the execution, delivery and performance of this Agreement and the
Transaction Documents and the consummation of the transactions contemplated
hereby and thereby by the Shareholder do not and will not violate, conflict
with, result in a breach of or constitute a default under (or which with notice
or lapse of time, or both, would constitute a breach of or default under), or
result in the creation of any lien, security interest or other encumbrance under
(a) any note, agreement, contract, license, instrument, lease or other
obligation to which the Shareholders is a party or by which the Shareholder is
bound, and for which the Shareholder has not previously obtained a written
waiver of such breach or default, which waiver has been delivered to Bridgeline,
except where such violation would not have a Material Adverse Effect, (b) any
judgment, order, decree, ruling or injunction known and applicable to the
Shareholder, or (c) any statute, law, regulation or rule of any governmental
agency or authority.

         3.4 TAXES.

                  (a) The Shareholder has timely filed all Tax Returns required
to be filed by her that relate to the Company, including but not limited to
personal income tax returns, and has paid all Taxes owed (whether or not shown
as due on such returns), including, without limitation, all Taxes (if any) which
the Shareholder is obligated to withhold for amounts paid or owing to employees,
creditors and third parties. All Tax Returns filed by the Shareholder were
complete and correct in all material respects. Except as set forth on the
Disclosure Schedule, none of the

                                      -21-
<PAGE>

Tax Returns filed by the Shareholder or Taxes payable by the Shareholder have
been the subject of an audit, action, suit, proceeding, claim, examination,
deficiency or assessment by any governmental authority, and no such audit,
action, suit, proceeding, claim, examination, deficiency or assessment is
currently pending or, to the knowledge of the Shareholder or the Shareholders,
threatened. Except as set forth on the Disclosure Schedule, the Shareholder is
not currently the beneficiary of any extension of time within which to file any
Tax Return, and the Shareholder has not waived any statute of limitation with
respect to any Tax or agreed to any extension of time with respect to a Tax
assessment or deficiency. All material elections with respect to Taxes with
respect to the Shareholder, as of the date hereof, are set forth in the Company
Financial Statements or in the Shareholder Disclosure Schedule.

                  (b) The Shareholder is not a nonresident alien for purposes of
U.S. income taxation, including for purposes of Section 897 of the Code.

                  (c) The Shareholder is not a party to any Tax sharing
agreement or similar arrangement and has no liability for the Taxes of any
Person.

                  (d) The Shareholder is not obligated to file any Tax Return
which relates to the Company in any jurisdiction (whether foreign or domestic)
other than those jurisdictions in which she currently files Tax Returns.

         3.4 SHAREHOLDER INVESTMENT REPRESENTATIONS.

         NOTWITHSTANDING THE REPRESENTATIONS AND WARRANTIES SET FORTH IN THIS
SECTION 3.4 WHICH ARE INTENDED TO COMPLY WITH THE REQUIREMENTS OF FEDERAL AND
STATE SECURITIES LAWS, FOR PURPOSES OF THIS AGREEMENT, INCLUDING WITHOUT
LIMITATION THE INDEMNITY OBLIGATIONS OF BRIDGELINE SET FORTH HEREIN, BRIDGELINE
ACKNOWLEDGES AND AGREES THAT (1) THE SHAREHOLDERS ARE RELYING ON THE
REPRESENTATIONS AND WARRANTIES OF BRIDGELINE SET FORTH IN THIS AGREEMENT, (2)
SUCH REPRESENTATIONS AND WARRANTIES OF BRIDGELINE ARE A MATERIAL INDUCEMENT TO
THE SHAREHOLDERS TO ENTER INTO THIS AGREEMENT AND TO EFFECTUATE THE TRANSACTIONS
CONTEMPLATED HEREIN AND (3) THE REPRESENTATIONS AND WARRANTIES OF SHAREHOLDERS
IN THIS SECTION 3.1 SHALL NOT LIMIT OR OTHERWISE ABROGATE IN ANY RESPECT THE
REPRESENTATIONS AND WARRANTIES OF BRIDGELINE IN THIS AGREEMENT.

         Each of the Shareholders represents individually that her present
intention is to acquire the Bridgeline Stock to be issued in connection with
this Agreement for her own account and that such Bridgeline Stock is being and
will be acquired for the purpose of investment and not with a view to
distribution or resale thereof. Each of the Shareholders represents that she has
had an opportunity to ask questions of and receive answers from the authorized
representatives of Bridgeline and to review any relevant documents and records
concerning the business of Bridgeline and the terms and conditions of this
investment and that any such questions have been answered to such Shareholder's
satisfaction. Each Shareholder acknowledges that it has been called to her
attention that this investment involves a high degree of risk and that
Bridgeline and has a limited operating history. Each Shareholder acknowledges
that she can bear the economic

                                      -22-
<PAGE>

risks of her investment in the Bridgeline Stock and that she has such knowledge
and experience in financial or business matters that she is capable of
evaluating the merits and risks of this investment in the Bridgeline Stock and
protecting her own interests in connection with this investment. Except as set
forth on the Disclosure Schedule attached hereto, the Shareholder represents and
warrants to Bridgeline that she is an "accredited investor" as such term is
defined under Section 501(a) of Regulation D promulgated under the Securities
Act. Each Shareholder understands that the Bridgeline Stock to be issued in
connection with the transactions contemplated hereby has not been registered
under the Securities Act and that such shares must be held indefinitely unless a
subsequent disposition thereof is permitted under the Securities Act or is
exempt from such registration. Each Shareholder further represents that she
understands and agrees that until registered for sale as herein provided, or
transferred pursuant to the provisions of Rule 144 of the Securities Act, all
certificates evidencing the Bridgeline Stock to be issued in connection with the
Closing, whether upon initial issuance or upon transfer thereof, shall bear a
legend (and Bridgeline will make a notation on its transfer books to such
effect) prominently stamped or printed thereon reading substantially as follows:

         THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED
         UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE
         SECURITIES LAWS. THESE SECURITIES HAVE BEEN ACQUIRED FOR INVESTMENT AND
         NOT WITH A VIEW TO DISTRIBUTION OR RESALE AND MAY NOT BE SOLD,
         MORTGAGED, PLEDGED, HYPOTHECATED, OR OTHERWISE TRANSFERRED WITHOUT AN
         EFFECTIVE REGISTRATION STATEMENT FOR SUCH SECURITIES UNDER THE
         SECURITIES ACT OF 1933, AS AMENDED, AND APPLICABLE STATE SECURITIES
         LAWS, OR UNLESS AN EXEMPTION FROM REGISTRATION UNDER SUCH ACT IS
         AVAILABLE.

         3.5 AGREEMENTS REQUIRED IN A PUBLIC OFFERING. Each Shareholder agrees
that upon request by any underwriter managing a public offering of shares of
Bridgeline Common Stock but only if all executive officers and directors of
Bridgeline and their affiliated entities have signed the same agreements, such
Shareholder will agree to any lockup or other provisions affecting the
transferability of the shares of Bridgeline Common Stock owned by such
Shareholder, and will provide such underwriter and its counsel with such
information with respect to the Shareholder as is reasonably required to carry
out such public offering.

         3.6 REGISTRATION RIGHTS AND OTHER RIGHTS AFFECTING STOCK.

                  (a) (i) Bridgeline has no registration rights with any
stockholders. If at any time following the Effective Time Bridgeline shall
determine to register in a public offering for its own account under the
Securities Act any Bridgeline Common Stock and shall include in such offering
shares of Bridgeline Common Stock held of record or beneficially by any members
of its management team or by any shareholders of Bridgeline capital stock who
have acquired or in the future acquire their shares in connection with the sale
of their businesses to Bridgeline, Bridgeline shall send to the Shareholders
written notice of such determination and, if within ten (10) days after receipt
of such notice, any such Shareholder shall so request in writing, Bridgeline
shall use its best efforts to include in such registration statement all or any
part of

                                      -23-
<PAGE>

such Shareholder's Bridgeline Common Stock the Shareholder requests to be
registered. This right shall not apply to a registration of shares of Bridgeline
Common Stock on Form S-4 or Form S-8 (or their then equivalents) relating to
shares of Bridgeline Common Stock to be issued by Bridgeline in connection with
any acquisition of any entity or other business combination involving
Bridgeline, or shares of Bridgeline Common Stock issuable in connection with any
stock option, stock compensation or other employee benefits plan of Bridgeline
for the benefit of directors, officers, employees or consultants of Bridgeline.

                           (ii) If, in connection with any offering involving an
underwriting of Bridgeline Common Stock to be issued by Bridgeline and/or
selling stockholders, the managing underwriter shall impose a limitation on the
number of shares of such Bridgeline Common Stock which may be included in any
such registration statement because, in its judgment, such limitation is
necessary to effect an orderly public distribution of the Bridgeline Common
Stock and to maintain a stable market for the securities of Bridgeline, then
Bridgeline shall be obligated to include in such registration statement only
such limited portion (which may be none) of the Shares with respect to which any
Shareholder has requested inclusion hereunder, PRO RATA based upon the number of
shares originally requested for inclusion in such registration statement by all
selling stockholders with registration rights requesting inclusion.

                  (b) Bridgeline covenants and agrees that from and after the
Effective Date until the registration of the Shareholders' Bridgeline Common
Stock, the Shareholders shall be granted and their shares of Bridgeline Common
Stock shall be accorded any and all anti-dilution protection or pre-emptive,
registration, tag along, first refusal or other preferential rights as have in
the past been granted or shall be granted by Bridgeline to any person with
respect to any shares of Bridgeline Common Stock, any member of Bridgeline
management, or any shareholder of Bridgeline capital stock who has acquired or
shall in the future acquire his or her shares in connection with a sale of his
or her business to Bridgeline, and upon the same terms and conditions as such
other recipients.

                  (c) Notwithstanding anything in this Section 3.6 to the
contrary, the Shareholders acknowledge and agree that such Shareholders shall
not be entitled to receive any anti-dilution protection or pre-emptive,
registration, tag along, first refusal or other preferential rights as a result
of or in connection with Bridgeline's offering of those certain Units consisting
of Promissory Notes and Warrants to purchase Common Stock, pursuant to the
Private Placement Memorandum, dated as of April 7, 2006 (the "Unit Offering"),
including without limitation as a result of any executive officer or affiliate's
participation in the Unit Offering.

         3.7 RESTRICTIVE UNDERTAKINGS.

                  (a) NONCOMPETITION COVENANT. The restrictive covenants set
forth in this Section 3.7 are a material inducement for Bridgeline to enter into
this Agreement. For good and valuable consideration provided pursuant to this
Agreement, the receipt and sufficiency of which is hereby acknowledged, each the
Shareholders agree that, during the Restrictive Period (as hereinafter defined),
she shall not, directly or indirectly, (i) engage in any activities either on
her own behalf or that of any other business organization (whether as principal,
partner, shareholder, member, officer, director, stockholder, agent, joint
venturer, consultant, creditor, investor or

                                      -24-
<PAGE>

otherwise) which are in direct or indirect competition with or similar to the
business, products or services of the Company in the area of web services, web
content management and design, whether for non-profit or for-profit
organizations, in the United States (the "COMPETITIVE SERVICES"), (ii) offer
Competitive Services, or (iii) combine or collaborate with other employees or
representatives of Bridgeline or any third party for the purposes of organizing,
engaging in, or offering Competitive Services. The foregoing restrictive
covenant shall not restrict the Shareholders from providing the Competitive
Services to any organization as an employee of or consultant to such
organization in the event either Shareholder's employment by Bridgeline is
terminated following the closing without "cause" or for "good reason" in
accordance with the terms of their Employment Agreements.

                  (b) NONSOLICITATION OF CUSTOMERS. Each of the Shareholders
agrees that, during the Restrictive Period, she shall not directly or
indirectly, either for herself or for any other person, corporation,
partnership, limited liability company or any other business entity, service or
supervise or assist the servicing or supervision of, divert or take away or
attempt to divert or take away, or directly or indirectly call on or solicit or
attempt to call on or solicit any of the Clients (as hereinafter defined) of
Bridgeline, or communicate, advise or consult with, write or respond to, or
inform any such Client for the purpose of soliciting, selling or recommending
Competitive Services, or otherwise attempt to induce any such Client to
terminate, modify or reduce such Client's relationship with Bridgeline.

                  (c) NONSOLICITATION OF EMPLOYEES. Each of the Shareholders
agrees that, during the Restrictive Period, she shall not directly or indirectly
(including but not limited to, through the use of "headhunters," recruiters or
employment agencies, and whether on-line or off-line recruiting activities) or
by action in concert with others, hire, recruit or otherwise induce or influence
(or seek to induce or influence) any person who is or shall be hereafter engaged
(as an employee, agent, independent contractor or otherwise) to terminate such
Person's employment or engagement, or employ or engage, seek to employ or
engage, or cause any other Person, corporation, partnership, limited liability
company or other business entity (whether for-profit or non-profit) to employ or
engage or seek to employ or engage any such person. This restriction includes
that the Shareholders shall not (i) disclose to any third party the names,
backgrounds or qualification of any of Bridgeline's employees or otherwise
identify them as potential candidates for employment, or (ii) participate in any
pre-employment interviews or consultations with such employee.

                  (d) RESTRICTIVE PERIOD. For purposes of this Section, the term
Bridgeline shall include Bridgeline and any of its subsidiaries, divisions or
business units. For purposes of this Section, the term "Restrictive Period"
shall mean the period commencing on the Closing Date and ending on the later of:
(i) three-year anniversary thereof, or (ii) twelve (12) months following the
termination of any employment relationship between Bridgeline. For the purposes
of this Section, "Client" shall mean any person or entity to which Bridgeline
has provided services to or made Proposals to at any time within the twelve (12)
months preceding this Agreement or thereafter. "Proposal" shall mean any
Client-specific, BONA FIDE proposal for services that included a description of
services, time line and proposed fees for the project.

                  (e) GEOGRAPHIC RESTRICTIONS REASONABLE. The Shareholders
expressly declare that the territorial and time limitations contained in this
Section are entirely reasonable

                                      -25-
<PAGE>

and are properly and necessarily required for the adequate protection of the
business, operations, trade secrets and goodwill of Bridgeline and are given as
an integral part of the acquisition, but for which Bridgeline would not have
entered into this Agreement. It is the desire and intent of the Shareholders and
Bridgeline that the provisions of this Section shall be enforced to the fullest
extent permissible under the laws and public policies applied in each
jurisdiction in which enforcement is sought. Accordingly, if any particular
provision of this Section, including but not limited to, any territorial or time
limitations set forth in this Section, shall be adjudicated to be invalid or
unenforceable by a court of competent jurisdiction, whether due to passage of
time, change of circumstances or otherwise, the provisions of this Section shall
be deemed amended to delete therefrom the portion thus adjudicated to be invalid
or unenforceable, or to reduce said territorial or time limitations to such
areas or periods of time as said court shall deem reasonable, such deletion or
reduction to apply only with respect to the operation of this Section in the
particular jurisdiction in which such adjudication is made.

                  (f) RIGHTS CUMULATIVE. The non-competition and
non-solicitation provisions contained herein are in addition to, and not in
limitation of, any rights that Bridgeline may have under any other contract, law
or otherwise, including but not limit to, the respective Employment Agreements
between Bridgeline and the Shareholders. The Shareholders acknowledge that the
remedy at law for any breach of this Section may be inadequate. The Shareholders
agree that upon any such breach of this Section, Bridgeline or shall, in
addition to all other available remedies (including but not limited to, seeking
an injunction or other equitable relief), be entitled to injunctive relief
without having to prove the inadequacy of the remedies available at law and
without being required to post bond or other security.

                  (g) COMPUTATION OF RESTRICTIVE PERIOD. All time periods in
this Section shall be computed by excluding from such computation any time
during which a Shareholder is in violation of any provision of this Section and
any time during which there is pending in any court of competent jurisdiction
any action (including any appeal from any final judgment) in which action
Bridgeline seeks to enforce the agreements and covenants in this Section or in
which any person or entity contests the validity of such agreements and
covenants or their enforceability or seeks to avoid their performance or
enforcement which is determined adversely against the Shareholders or such other
party.

                  (h) BREACH OF EARN-OUT. Notwithstanding any provision of this
Section 3.7 to the contrary, if Bridgeline fails to pay any installment of the
Earn-Out (which has been finally determined in accordance with Section 1.3
hereof and not the subject of a dispute of any kind permitted by the terms of
this Agreement) within five (5) business days of when due in accordance with
Section 1.3, then the restrictive covenants contained herein shall cease upon
the Shareholders' termination of employment under their respective Employment
Agreements for any reason (and such Employment Agreements shall be deemed
similarly amended), if such nonpayment is not cured within thirty (30) days
following the giving of notice by the New Tilt Representative of any such of
nonpayment.

                                      -26-
<PAGE>

                                   ARTICLE IV

                  REPRESENTATIONS AND WARRANTIES OF BRIDGELINE
                  --------------------------------------------

         References to "Bridgeline" in this Article IV shall mean Bridgeline and
its subsidiaries, as set forth on the Bridgeline Disclosure Schedule attached
hereto, except where the context reasonably contemplates a specific reference
solely to Bridgeline. In order to induce the Company and the Shareholders to
enter into this transaction, Bridgeline makes the following representations and
warranties. The Bridgeline Disclosure Schedule will be arranged in paragraphs
corresponding to the numbered and lettered sections contained in this Article IV
and the disclosure in any paragraph shall qualify other sections in this Article
IV to the extent that it is apparent from a reading of such disclosure that it
also qualifies or applies to such other sections.

         4.1 ORGANIZATION AND QUALIFICATION. Bridgeline is a corporation duly
organized, validly existing and in corporate good standing in the State of
Delaware and has the power and authority to carry on its business as presently
conducted. Bridgeline is duly qualified to do business and is in good standing
in all jurisdictions in which its ownership of property or the character of its
business requires such qualification, except where the failure to be so
qualified will not have a Material Adverse Effect on Bridgeline. Each subsidiary
of Bridgeline is a Company duly organized, validly existing and in corporate
good standing under the laws of its jurisdiction of incorporation.

         4.2 AUTHORITY. This Agreement, and to the extent Bridgeline is a party
to the Transaction Documents, each of the Transaction Documents, has been duly
authorized, executed and delivered by Bridgeline and constitutes a legal, valid
and binding obligation of Bridgeline, enforceable against it in accordance with
its terms. Bridgeline has the right, power and authority to enter into this
Agreement and to carry out the terms and provisions of this Agreement, and to
enter into and carry out the terms of all agreements and instruments required to
be delivered by Bridgeline by the terms of this Agreement, without obtaining the
consent of any third parties or authorities. This Agreement and the transactions
contemplated hereby have been unanimously approved by the Board of Directors of
Bridgeline and no additional corporate action or authorization is required by
Bridgeline in connection with the consummation of the transactions contemplated
by this Agreement.

         4.3 NO CONFLICTS. The execution, delivery and performance of this
Agreement and the Transaction Documents, and the consummation of the
transactions contemplated hereby and thereby by Bridgeline, and compliance with
the provisions hereof, do not and will not: (a) violate, conflict with or result
in a breach of any provision or constitute a default under (i) the Certificate
of Incorporation or By-laws of Bridgeline, or (ii) any contract or agreement to
which Bridgeline is a party or to which the assets or business of Bridgeline may
be subject, except where such violation would not have a Material Adverse
Effect; or (b) violate any judgment, ruling, order, writ, injunction, award,
decree, statute, law, ordinance, code, rule or regulation of any court or
foreign, federal, state, county or local government or any other governmental,
regulatory or administrative agency or authority which is applicable to the
assets, properties or business of Bridgeline, except where such violation would
not have a Material Adverse Effect.

                                      -27-
<PAGE>

         4.4 GOVERNMENT APPROVALS. Except for filing with and acceptance by the
Delaware Secretary of State of applicable merger certificates, no consent,
approval, license or authorization, governmental or otherwise, or designation,
declaration or filing with, any court or governmental authority is or will be
required on the part of Bridgeline in connection with the execution, delivery
and performance of this Agreement, the other Transaction Documents and any other
agreements or instruments executed by Bridgeline in connection herewith or
therewith the failure of which would have a Material Adverse Effect.

         4.5 AUTHORIZED AND OUTSTANDING STOCK. Before giving effect to the
transactions to be consummated at the Closing, the authorized capital stock of
Bridgeline consists of 15,000,000 shares of Common Stock, of which 3,903,833
shares are validly issued and outstanding. All of the issued and outstanding
shares of capital stock of Bridgeline were issued (i) in transactions complying
with or exempt from the registration provisions of the Securities Act, and (ii)
in compliance with or in transactions exempt from the registration provisions of
applicable state securities or "blue-sky" laws. There are no outstanding
warrants, options, commitments, preemptive rights, rights to acquire or
purchase, conversion rights or demands of any character relating to the capital
stock or other securities of Bridgeline, except that Bridgeline has granted
options to purchase up to 814,343 shares of Bridgeline Common Stock to various
employees, officers and directors of Bridgeline, and there are warrants
outstanding to purchase 502,873 shares of Common Stock. There are no voting
trusts or voting agreements with respect to any shares of Bridgeline Common
Stock. Bridgeline is the sole owner of all shares of capital stock of its
subsidiaries. Other than as set forth in this Section 4.5, there are no
outstanding warrants, options, commitments, preemptive rights, rights to acquire
or purchase, conversion rights or demands of any character relating to the
capital stock or other securities of any of the subsidiaries of Bridgeline.
There are no voting trusts or voting agreements with respect to any shares of
capital stock of any subsidiary of Bridgeline. All of the issued and outstanding
shares of capital stock of Bridgeline were issued in transactions complying with
or exempt from the registration requirements of the Securities Act. Any equity
interests in Bridgeline that consist of contractual or so-called "phantom"
equity interests are separately identified on the Disclosure Schedule.

         4.6 SUBSIDIARIES. Except as set forth on the Bridgeline Disclosure
Schedule, Bridgeline does not have, and at no time during its existence has it
had, any Subsidiaries. Except as set forth on the Bridgeline Disclosure
Schedule, Bridgeline does not have any investment or other interest in, or any
outstanding loan or advance to or from, any person or entity, including, without
limitation, any officer, director or shareholder.

         4.7 FINANCIAL INFORMATION. Bridgeline has previously delivered to New
Tilt the unaudited balance sheets of Bridgeline at December 31, 2003 and
December 31, 2004 and December 31, 2005, and the related statements of earnings
and cash flows for the years then ended (the "ANNUAL BRIDGELINE FINANCIAL
STATEMENTS"). In addition, Bridgeline has previously delivered to New Tilt the
unaudited balance sheet of Bridgeline at February 28, 2006, and the related
statements of earnings and cash flows for the two months then ended (the
"INTERIM BRIDGELINE FINANCIAL STATEMENTS"). The Annual and Interim Bridgeline
Financial Statements present fairly, in all material respects, the financial
condition and results of operations of Bridgeline as of and for the relevant
periods in accordance with GAAP applied on a basis consistent with prior
periods, except that none of such financial statements contain footnotes and

                                      -28-
<PAGE>

the Interim Bridgeline Financial Statements are subject to normal year-end
adjustments, which adjustments will neither individually nor in the aggregate
have a Material Adverse Effect. Bridgeline has no liability, contingent or
otherwise, which is not adequately reflected in or reserved against in the
Interim Bridgeline Financial Statements that could materially and adversely
affect the financial condition of Bridgeline. Except as set forth in the Interim
Bridgeline Financial Statements or the Bridgeline Disclosure Schedule, since
February 28, 2006 (i) there has been no change in the business, property,
assets, liabilities, condition (financial or otherwise), operations, results of
operations, affairs or prospects of Bridgeline except for changes in the
ordinary course of business which, in the aggregate, would not have a Material
Adverse Effect on Bridgeline, and (ii) none of the business, property, assets,
liabilities, condition (financial or otherwise), operations, result of
operations, affairs or prospects of Bridgeline have been materially adversely
affected by any occurrence or development, in the aggregate, whether or not
insured against.

         4.8 EVENTS SUBSEQUENT TO THE DATE OF THE FINANCIAL STATEMENTS. Except
as set forth on the Bridgeline Disclosure Schedule, or in Annual or Interim
Bridgeline Financial Statements, since December 31, 2005, Bridgeline has not (i)
issued any stock, bond or other corporate security; (ii) borrowed any amount or
incurred or become subject to any material liability (absolute, accrued or
contingent), except liabilities under contracts entered into in the ordinary
course of business; (iii) discharged or satisfied any lien or encumbrance or
incurred or paid any obligation or liability (absolute, accrued or contingent)
other than current liabilities shown on Bridgeline Financial Statements and
incurred in the ordinary course of business or such liabilities which would not
have a Material Adverse Effect; (iv) declared or made any payment, other than
ordinary payments of compensation in amounts consistent with the historic
levels, or distribution to stockholders or purchased or redeemed any shares of
its capital stock or other securities, except for the exercise of stock options
or similar, and distributions in the ordinary course of business and required
under applicable tax law; (v) mortgaged, pledged or subjected to lien any of its
assets, tangible or intangible, other than liens of current real property taxes
not yet due and payable; (vi) sold, assigned or transferred any of its tangible
assets except in the ordinary course of business, or canceled any material debt
or claim, except in the ordinary course of business; (vii) sold, assigned,
transferred or granted any license with respect to any patent, trademark, trade
name, service mark, copyright, trade secret or other intangible asset, except
pursuant to license or other agreements entered into in the ordinary course of
business; (viii) suffered any material loss of property or waived any right of
substantial value whether or not in the ordinary course of business; (ix) made
any change in officer compensation; (x) made any material change in the manner
of business or operations of Bridgeline; (xi) entered into any transaction
except in the ordinary course of business or as otherwise contemplated hereby;
or (xii) entered into any commitment (contingent or otherwise) to do any of the
foregoing.

         4.9 LITIGATION. Except as otherwise set forth on the Bridgeline
Disclosure Schedule, there is no litigation or governmental proceeding or
investigation, pending or, to Bridgeline's knowledge, threatened, against
Bridgeline or affecting any of Bridgeline's properties or assets, or to
Bridgeline's knowledge, pending or threatened, against any officer, director, or
key employee of Bridgeline in his capacity as such, nor has there occurred any
event or, to Bridgeline's knowledge, does there exist any condition on the basis
of which any litigation, proceeding or investigation might properly be
instituted. Except as set forth on the Bridgeline Disclosure Schedule, each
incident or proceeding described on the Bridgeline Disclosure Schedule is fully

                                      -29-
<PAGE>

covered by insurance. To the best of Bridgeline's knowledge, Bridgeline is not
in default with respect to any order, writ, injunction, decree, ruling or
decision of any court, commission, board or other government agency, except for
such order, writ, injunction, decree, ruling or decision which would not have a
Material Adverse Effect.

         4.10 COMPLIANCE WITH LAWS AND OTHER INSTRUMENTS. Bridgeline is in
compliance with all of the provisions of this Agreement, its Certificate of
Incorporation and By-laws, and in all material respects with the provisions of
each mortgage, indenture, lease, license, other agreement or instrument,
judgment, decree, judicial order, statute and regulation by which it is bound or
to which its properties are subject, and where non-compliance would not have a
Material Adverse Effect.

         4.11 ABSENCE OF CHANGES. No event, occurrence, fact, condition, change,
development or effect that has not been disclosed on the Bridgeline Disclosure
Schedule hereto shall exist or have occurred or come to exist or been threatened
that, individually or in the aggregate, has had or resulted in or could be
expected to become or result in a Material Adverse Effect, and the Company shall
have received a certificate dated as of the Closing Date from Bridgeline, signed
by an authorized officer of Bridgeline, to that effect.

         4.12 TAXES.

                  (a) Bridgeline has timely filed all Tax Returns required to be
filed and has paid all Taxes owed (whether or not shown as due on such returns),
including, without limitation, all Taxes which Bridgeline is obligated to
withhold for amounts paid or owing to employees, creditors and third parties.
All Tax Returns filed by Bridgeline were complete and correct in all material
respects. Except as set forth on Bridgeline Disclosure Schedule, none of the Tax
Returns filed by Bridgeline or Taxes payable by Bridgeline have been the subject
of an audit, action, suit, proceeding, claim, examination, deficiency or
assessment by any governmental authority, and no such audit, action, suit,
proceeding, claim, examination, deficiency or assessment is currently pending
or, to the knowledge of Bridgeline, threatened. Except as set forth on
Bridgeline Disclosure Schedule, Bridgeline is not currently the beneficiary of
any extension of time within which to file any Tax Return, and Bridgeline has
not waived any statute of limitation with respect to any Tax or agreed to any
extension of time with respect to a Tax assessment or deficiency. All material
elections with respect to Taxes with respect to Bridgeline, as of the date
hereof, are set forth in Bridgeline Financial Statements or in Bridgeline
Disclosure Schedule.

                  (b) Bridgeline is not a party to any Tax sharing agreement or
similar arrangement. Bridgeline has never been a member of a group filing a
consolidated federal income Tax Return (other than a group the common parent of
which was Bridgeline), and Bridgeline does not have any liability for the Taxes
of any Person.

                  (c) There are no liens for Taxes upon any of the assets, other
than for ad valorem Taxes not yet due and payable. The unpaid Taxes of
Bridgeline did not, as of December 31, 2005, exceed by any material amount the
reserve for actual Taxes (as opposed to any reserve for deferred Taxes
established to reflect timing differences between book and Tax income) as shown
on Bridgeline Balance Sheet dated February 28, 2006, and will not exceed by any

                                      -30-
<PAGE>

material amount such reserve as adjusted for the passage of time through the
Closing Date in accordance with the past custom and practice of Bridgeline in
filing its Tax Returns. Bridgeline has not incurred any liability for Taxes from
January 1, 2006 through the Closing Date other than in the ordinary course of
business consistent with past practice. Bridgeline is not obligated to file any
Tax Return in any jurisdiction (whether foreign or domestic) other than those
jurisdictions in which it currently files Tax Returns.

         4.13 REAL PROPERTY.

                  (a) The Bridgeline Disclosure Schedule sets forth the
addresses and uses of all real property that Bridgeline owns, leases or
subleases, and any lien or encumbrance on any such owned real property or
Bridgeline's leasehold interest therein, specifying in the case of each such
lease or sublease, the name of the lessor or sublessor, as the case may be, the
lease term and the rental obligations of the lessee thereunder.

                  (b) There are no defaults under any existing leases, subleases
or other contractual obligations pertaining to real property that Bridgeline
owns, leases or subleases, and to the best knowledge of Bridgeline, by any other
party, which might curtail in any material respect the present use of
Bridgeline's property listed on the Bridgeline Disclosure Schedule.

         4.14 PERSONAL PROPERTY & CAPITAL EQUIPMENT. The Bridgeline Disclosure
Schedule sets forth a full and complete list of all personal property, including
capital equipment, owned or leased by Bridgeline. Except as set forth on the
Bridgeline Disclosure Schedule, and except for property sold or otherwise
disposed of in the ordinary course of business, and except for liens for taxes
not yet due and payable, Bridgeline has good and marketable title, free and
clear of any lien, charge, restriction or encumbrance, to all of such personal
property. All material items of such personal property used in the operation of
the business of Bridgeline are in good operating condition, normal wear and tear
accepted.

         4.15 INTELLECTUAL PROPERTY.

                  (a) The "BRIDGELINE INTELLECTUAL PROPERTY" consists of all
material trade secrets, copyrights, patents, trademarks, service marks, trade
dress, all registrations and applications with respect thereto and all licenses
or rights under the same, that are owned or used by Bridgeline, including
without limitation, any of the foregoing embodied or contained in any of the
following: net lists; domain names and URLs and textual information contained in
web sites; schematics; manufacturing processes; customer lists and supplier
lists; know-how and show-how; computer software programs, source code and object
code; complete system build software; development and test tools, documentation,
specifications, programmer and user manuals used by Bridgeline to install,
operate, maintain, correct, test, repair enhance, extend, modify, prepare
derivative works based upon, design, develop, reproduce and package software;
all license and other rights in any third-party product, intellectual property,
proprietary or personal rights, documentation, or tangible or intangible
property; all documents, record and electronic files relating to the design, end
user documentation, manufacturing, quality control, sales, marketing, or
customer support; and all products of Bridgeline currently being licensed or
sold or that are currently being developed, including all hardware products and
tools, software products and tools, and services that are currently licensed,
offered or under development by

                                      -31-
<PAGE>

Bridgeline (such products and services, the "BRIDGELINE PRODUCTS AND SERVICES").

                  (b) The Bridgeline Disclosure Schedule lists: (i) all patents,
copyright registrations, mask works, trademarks, service marks, trade dress, any
renewal rights for any of the foregoing, and any applications and registrations
for any of the foregoing, which are included in Bridgeline Intellectual Property
and owned by or on behalf of Bridgeline; (ii) all Bridgeline Products; and (iii)
all licenses, sublicenses and other agreements to which Bridgeline is a party
and pursuant to which Bridgeline or any other person is authorized to use
Bridgeline Intellectual Property or exercise any other right with regard
thereto. Bridgeline has delivered to the Company true and complete copies of the
agreements described in (iii) hereof.

                  (c) Bridgeline Intellectual Property consists solely of items
and rights which are either: (i) owned by Bridgeline; (ii) in the public domain;
or (iii) rightfully used and authorized for use by Bridgeline and its successors
pursuant to a valid license. All Bridgeline Intellectual Property which consists
of licenses or other rights to third party intellectual property is set forth in
Bridgeline Disclosure Schedule. Bridgeline has all rights in Bridgeline
Intellectual Property necessary to commercially exploit the same in connection
with Bridgeline's current, former, and planned or scheduled (whether for release
or development) activities in all geographic locations and fields of use in
which Bridgeline currently operates or is scheduled to operate, and to
sublicense any or all such rights to third parties, including the right to grant
further sublicenses. All software created by Bridgeline is as described in the
Documentation and performs in all material respects in accordance with the
specifications included in the Documentation. Bridgeline has taken all
commercially reasonable measures to protect the proprietary nature of each item
of Bridgeline Intellectual Property. No other person or entity has any rights to
any of Bridgeline Intellectual Property (except pursuant to agreements or
licenses specified in Bridgeline Disclosure Schedule), and to the knowledge of
Bridgeline, no other person or entity is infringing, violating or
misappropriating any of the Bridgeline Intellectual Property. Bridgeline owns or
has the right to use all Intellectual Property necessary (i) to use, market and
distribute the products, marketed, sold or licensed, and to provide the services
provided, by Bridgeline to other parties, or (ii) to operate Bridgeline's
internal systems that are material to the business or operations of Bridgeline,
including, without limitation, computer hardware systems, software applications
and embedded systems (the "BRIDGELINE INTERNAL SYSTEMS"). Each item of
Bridgeline Intellectual Property will be owned or available for use by
Bridgeline immediately following the Closing on substantially identical terms
and conditions as it was immediately prior to the Closing, except for any
changes that do not, either individually or on the aggregate, have a Material
Adverse Effect. Except as set forth on the Bridgeline Disclosure Schedule,
Bridgeline's software, to Bridgeline's knowledge, and the Bridgeline Internal
Systems are free from significant defects or programming errors and conform in
all material respects to the written documentation and specifications therefor.

                  (d) Bridgeline is not, nor as a result of the execution or
delivery of this Agreement, the other Transaction Documents and all other
agreements contemplated hereby, or performance of Bridgeline's obligations
hereunder, will Bridgeline be, in violation of any license, sublicense or other
agreement relating to Bridgeline Intellectual Property to which Bridgeline is a
party. The Bridgeline Disclosure Schedule lists all contracts or agreements
under which Bridgeline is obligated to provide any consideration (whether
financial or otherwise) to any third party, or under which any third party
otherwise would be entitled to any consideration,

                                      -32-
<PAGE>

with respect to any exercise of rights by Bridgeline in Bridgeline Intellectual
Property. The Bridgeline Disclosure Schedule identifies each item of Bridgeline
Intellectual Property that is owned by a party other than Bridgeline, and the
license or agreement pursuant to which Bridgeline uses it (excluding
off-the-shelf software programs licensed by Bridgeline pursuant to "shrink wrap"
or "click wrap" licenses, such exclusion only extending to programs used by
Bridgeline solely for non-revenue generating administrative functions).

                  (e) Except as set forth on the Bridgeline Disclosure Schedule,
to the knowledge of Bridgeline, the use, reproduction, modification,
distribution, licensing, sublicensing, sale or any other exercise of rights by
Bridgeline with respect to any of the Bridgeline Products does not infringe any
copyright, trade secret, trademark, service mark, trade name, trade dress or
mask work, or any patent, moral right or other intellectual property right,
right of privacy, or right in personal data of any person. No claims (i)
challenging the validity, effectiveness or ownership by Bridgeline of any of the
Bridgeline Intellectual Property, or (ii) to the effect that the use,
reproduction, modification, manufacturing, distribution, licensing,
sublicensing, sale or any other exercise of rights by Bridgeline with respect to
any of the Bridgeline Products infringes or will infringe on any intellectual
property or other proprietary or personal right of any person, have been
asserted to Bridgeline or, to the knowledge of Bridgeline, are threatened by any
person, nor to the knowledge of Bridgeline are there any valid grounds for any
bona fide claim of any such kind. All granted or issued patents and mask works
and all registered trademarks listed on the Bridgeline Disclosure Schedule and
all registered copyrights held by Bridgeline are valid, enforceable and
subsisting. To the knowledge of Bridgeline, there are no pending or unissued
patent rights which infringe upon or impair the Bridgeline Intellectual
Property. To the knowledge of Bridgeline, there is no unauthorized use,
infringement or misappropriation of any of Bridgeline Intellectual Property by
any third party, employee or former employee.

                  (f) Bridgeline has not disclosed the source code for any of
the software owned by Bridgeline or other confidential information constituting,
embodied in or pertaining to the software to any person or entity, except
pursuant to the agreements listed on the Bridgeline Disclosure Schedule, and
Bridgeline has taken reasonable measures to prevent disclosure of such source
code. No parties other than Bridgeline possess any current or contingent rights
to any source code that is part of Bridgeline Intellectual Property.

                  (g) Except as set forth on the Bridgeline Disclosure
Schedules, all of the copyrightable materials (including software) incorporated
in or bundled with Bridgeline's products have been created by employees of
Bridgeline within the scope of their employment by Bridgeline or by independent
contractors of Bridgeline who have executed agreements expressly assigning all
right, title and interest in such copyrightable materials to Bridgeline. No
portion of such copyrightable materials was jointly developed with any third
party. The Bridgeline Disclosure Schedule lists all parties who have created any
portion of, or otherwise have any rights in or to, Bridgeline Intellectual
Property, other than employees of Bridgeline who have no rights in or to any
Company Intellectual Property. Except as set forth on the Bridgeline Disclosure
Schedule, Bridgeline has secured from all parties who have created any portion
of, or otherwise have any rights in or to, Bridgeline Intellectual Property
valid and enforceable written assignments of any such work or other rights to
Company and has provided true and complete copies of such assignments to
Bridgeline.

                                      -33-
<PAGE>

                  (h) The Bridgeline Disclosure Schedule identifies each license
or other agreement (or type of license or other agreement) pursuant to which
Bridgeline has licensed, distributed or otherwise granted any rights to any
third party with respect to, any Bridgeline Intellectual Property. The
Bridgeline Disclosure Schedule includes a true and complete list of support and
maintenance agreements relating to Bridgeline Intellectual Property including
the identity of the parties entitled to receive such service or maintenance, and
the term of such agreements.

                  (i) Except as set forth on the Bridgeline Disclosure Schedule,
Bridgeline has obtained written agreements from all employees and third parties
with whom Bridgeline has shared confidential proprietary information (i) of
Bridgeline, or (ii) received from others which Bridgeline is obligated to treat
as confidential, which agreements require such employees and third parties to
keep such information confidential. None of the present or former employees,
officers or directors of Bridgeline owns directly or indirectly, in whole or in
part, any Bridgeline Intellectual Property or application therefor.

                  (j) To the knowledge of Bridgeline, none of the Bridgeline
Internal Systems, or the use thereof, infringes or violates, or constitutes a
misappropriation of, any Intellectual Property rights of any person or entity.
The Disclosure Schedule lists any complaint, claim or notice, or written threat
thereof, received by Bridgeline alleging any such infringement, violation or
misappropriation; and Bridgeline has provided to the Company complete and
accurate copies of all written documentation in the possession of Bridgeline
relating to any such complaint, claim, notice or threat. Bridgeline has provided
to the Company complete and accurate copies of all written documentation in
Bridgeline's possession relating to claims or disputes known to Bridgeline
concerning any Bridgeline Intellectual Property.

         4.16 AGREEMENTS OF DIRECTORS, OFFICERS, EMPLOYEES AND CONSULTANTS. No
current or former director, officer or employee of or consultant to Bridgeline
is in violation of any term of any employment contract, non-competition
agreement, non-disclosure agreement, patent disclosure or assignment agreement
or other contract or agreement containing restrictive covenants relating to the
conduct of any such current or former director, officer, employee, or consultant
or otherwise relating to the use of trade secrets or proprietary information of
others by any such person. The Bridgeline Disclosure Schedule hereto sets forth
the name and address of each person currently serving as an officer or a
director of Bridgeline, and each person listed on the Bridgeline Disclosure
Schedule was duly elected and is presently serving as such officer or director.
Set forth on the Bridgeline Disclosure Schedule is a list of all current or
former employees and consultants of Bridgeline who have (i) executed a
non-disclosure agreement with Bridgeline or (ii) executed a non-competition
agreement with Bridgeline. Except as disclosed on the Bridgeline Disclosure
Schedule, since December 31, 2005, Bridgeline has not paid or become committed
to pay any bonus or similar additional compensation to any officer, director or
employee of Bridgeline.

         4.17 GOVERNMENTAL LICENSES. Bridgeline has all permits, licenses,
orders, franchises and other rights and privileges of all federal, state, local
or foreign governmental or regulatory bodies necessary for the Bridgeline to
conduct its business as presently conducted, except where such failure would not
have a Material Adverse Effect. All such permits, licenses, orders, franchises
and other rights and privileges are in full force and effect and no suspension
or

                                      -34-
<PAGE>

cancellation of any of them is threatened, and none of such permits, licenses,
orders, franchises or other rights and privileges will be affected by the
consummation of the transactions contemplated by this Agreement or the
Transaction Documents.

         4.18 SECURITIES ACTS. Bridgeline has complied with all applicable
federal or state securities laws in connection with the transactions
contemplated by this Agreement and all previous issuances of securities. Neither
Bridgeline nor anyone acting on its behalf has offered any of its shares, or
similar securities, or solicited any offer to purchase any of such securities,
so as to bring this transaction within the scope of the registration provisions
of the Securities Act.

         4.19 INSURANCE COVERAGE. The Bridgeline Disclosure Schedule contains an
accurate summary of the insurance policies currently maintained by Bridgeline.
Except as described on the Bridgeline Disclosure Schedule, there are currently
no claims pending against Bridgeline pursuant to any insurance policy currently
in effect and covering the property, the business or the employees of
Bridgeline. All such policies (a) are in full force and effect and (b) are
sufficient for compliance by Bridgeline with all requirements of all agreements
to which Bridgeline is a party.

         4.20 EMPLOYEE MATTERS. Except as set forth in the Bridgeline's
Disclosure Schedule, neither Bridgeline nor any person that together with
Bridgeline would be treated as an ERISA Affiliate under Section 414 of the Code
has established or maintains or is obligated to contribute to (a) any bonus,
severance, stock option, or other type of incentive compensation plan, program,
agreement, policy, commitment, contract or arrangement (written or oral); (b)
any pension, profit-sharing, retirement or other plan, program or arrangement;
or (c) any other employee benefit plan, fund or program, including, but not
limited to, those described in Section 3(3) of ERISA. All such Plans have been
operated and administered in all material respects in accordance with their
terms, as applicable, with the requirements prescribed by any and all statutes,
orders, rules and regulations, including but not limited to ERISA and the Code.
No act or failure to act by Bridgeline has resulted in, nor does Bridgeline have
knowledge of a non-exempt "prohibited transaction" (as defined in ERISA) with
respect to the Plans. Neither Bridgeline nor any ERISA Affiliate maintains or
has ever maintained or contributed to any Plan subject to Title IV of ERISA.
With respect to the employees and former employees of Bridgeline, there are no
employee post-retirement medical or health plans in effect, except as required
by Section 4980B of the Code.

         4.21 CUSTOMERS. Except as set forth on the Bridgeline Disclosure
Schedule:

                  (a) The relationships of Bridgeline with its significant
suppliers and customers are good commercial working relationships and no
significant supplier or customer of Bridgeline has canceled or otherwise
terminated, or to Bridgeline's knowledge, threatened to cancel or otherwise to
terminate its relationship with Bridgeline, or has during the last twelve (12)
months decreased materially, or threatened to decrease or limit materially, its
services, supplies or materials for use by Bridgeline or its usage or purchase
of the services or products of Bridgeline, except for normal cyclical changes
related to customers' businesses and except for changes which have not had a
Material Adverse Effect on Bridgeline.

                                      -35-
<PAGE>

                  (b) No supplier or customer has notified Bridgeline that it
intends to cancel or otherwise substantially modify its relationship with
Bridgeline or to decrease materially or limit its services, supplies or
materials to Bridgeline, or its usage or purchase of the services of Bridgeline,
and, to the best knowledge of Bridgeline, the consummation of the transactions
contemplated hereby will not materially adversely affect the relationship of
Bridgeline with any such supplier or customer.

         4.22 NO BROKERS OR FINDERS. Except as set forth on the Bridgeline
Disclosure Schedule, no person or entity has or will have, as a result of the
actions of Bridgeline, any right, interest or claim against or upon the
Shareholders or New Tilt for any commission, fee or other compensation as a
finder or broker arising from the transactions contemplated by this Agreement.

         4.23 TRANSACTIONS WITH INSIDERS. Except as set forth on the Bridgeline
Disclosure Schedule, there are no loans, leases or other contracts between
Bridgeline and any officer or director of Bridgeline, or any person or entity
owning five percent (5%) or more of the total number of issued and outstanding
shares of Bridgeline Common Stock or any respective family member or affiliate
of any such officer, director or shareholder.

         4.24 ASSUMPTIONS, GUARANTEES. Except as set forth on the Bridgeline
Disclosure Schedule, Bridgeline has not assumed, guaranteed, endorsed or
otherwise become directly or contingently liable on or for any indebtedness of
any other person or entity, except guarantees by endorsement of negotiable
instruments for deposit or collection or similar transactions in the ordinary
course of business.

         4.25 BANK ACCOUNTS, SIGNING AUTHORITY, POWERS OF ATTORNEY. Except as
set forth on the Bridgeline Disclosure Schedule, Bridgeline has no account or
safe deposit box in any bank and no person or entity has any power, whether
singly or jointly, to sign any checks on behalf of Bridgeline, to withdraw any
money or other property from any bank, brokerage or other account of Bridgeline,
or to act pursuant to any power of attorney granted by Bridgeline at any time
for any purpose.

         4.26 CORPORATE BOOKS. The books and records of Bridgeline made
available to New Tilt and the Shareholders for inspection include copies of its
Certificate of Incorporation and By-laws as currently in effect and accurately
record therein in all material respects all actions, proceedings, consents and
meetings of the Board of Directors and shareholders of Bridgeline and any
committees thereof. The books and records of Bridgeline have been, and are
being, maintained in accordance with any applicable legal and regulatory
requirements and reflect only actual transactions.

         4.27 LIST OF MATERIAL CONTRACTS AND COMMITMENTS. The Disclosure
Schedule sets forth a complete and accurate list of all material contracts
currently in effect to which Bridgeline is a party or by or to which any of its
assets or properties is bound or subject. As used on the Bridgeline Disclosure
Schedule, the phrase "BRIDGELINE MATERIAL CONTRACT" means and includes every
material agreement or material understanding of any kind, written or oral, which
is legally enforceable by or against Bridgeline, and specifically includes
without limitation (a) contracts and other agreements with any current or former
officer, manager, employee, consultant or

                                      -36-
<PAGE>

shareholder or any partnership, company, joint venture or any other entity in
which any such person or entity has an interest; (b) agreements with any labor
union or association representing any Bridgeline employee; (c) contracts and
other agreements for the provision of services other than by employees of
Bridgeline which entail a reasonably foreseeable financial consequence to any
contracting party of at least $15,000; (d) bonds or other security agreements
provided by any party in connection with the business of Bridgeline; (e)
contracts and other agreements for the sale of any of the assets or properties
of Bridgeline other than in the ordinary course of business or for the grant to
any person or entity of any preferential rights to purchase any of said assets
or properties; (f) joint venture agreements relating to the assets, properties
or business of Bridgeline or by or to which any of its assets or properties are
bound or subject; (g) contracts or other agreements under which Bridgeline
agrees to indemnify any party, to share tax liability of any party, or to
refrain from competing with any party; (h) any contracts or other agreements
with regard to any indebtedness of Bridgeline; or (i) any other contract or
other agreement whether or not made in the ordinary course of business and
involving a reasonably foreseeable financial consequence to any contracting
party of at least $15,000. Bridgeline has delivered to Bridgeline true, correct
and complete copies of all such contracts, together with all modifications and
supplements thereto. Except as set forth on the Bridgeline Disclosure Schedule,
each of the contracts listed on the Bridgeline Disclosure Schedule is in full
force and effect. Bridgeline is not in breach of any of the material provisions
of any such Bridgeline Material Contract, nor, to the best knowledge of
Bridgeline, is any other party to any such contract in default thereunder, nor
does any event or condition exist which with notice or the passage of time or
both would constitute a default of a material provision thereunder, except for
any such breach or default that individually and in the aggregate would not have
a Material Adverse Effect on the business of Bridgeline. Bridgeline has
performed in all material respects all obligations required to be performed by
it under each such contract as of the Closing.

         4.28 PRIVACY AND DATA COLLECTION. Bridgeline has at all times complied
with all laws and regulations relating or applicable to privacy, publicity, data
protection, collection, storage, transfer, release and use of personal
information and user information gathered or accessed in the course of the
business and operations of Bridgeline, except where such failure to comply
therewith would not have a Material Adverse Effect. Bridgeline has at all times
complied in all material respects with all rules, policies and procedures
established by Bridgeline from time to time with respect to privacy, publicity,
data protection, collection, storage, transfer and use of personal information
and user information gathered or accessed in the course of the business and
operations of Bridgeline (collectively, the "BRIDGELINE PRIVACY POLICIES"),
noncompliance with which would result in a Material Adverse Effect. No claims
have been asserted or, to the knowledge of Bridgeline, threatened against
Bridgeline by any Person or governmental entity alleging a violation of such
Person's, or any other Person's, privacy, publicity, personal or confidentiality
rights under any such laws, or a breach or other violation of any of the
Bridgeline Privacy Policies, where such violation would have a Material Adverse
Effect. Bridgeline has taken commercially reasonable measures (including but not
limited to, implementing and monitoring compliance with adequate measures with
respect to technical and physical security) to ensure that personal and consumer
information is protected against loss and against unauthorized access, use,
modification, disclosure or other misuse. To the knowledge of Bridgeline, there
has been no unauthorized access to, use, modification, disclosure or other
misuse of such information. Neither the execution, delivery nor performance of
this Agreement nor the consummation of the transactions contemplated hereby
shall result in any breach or

                                      -37-
<PAGE>

violation of the Bridgeline Privacy Policies or violate any Law with respect to
such data or information.

         4.29 ACCOUNTS RECEIVABLE. The Disclosure Schedule sets forth a full and
complete list of Bridgeline's accounts receivable and accounts receivable
reserve as of close of business on the date immediately preceding the Closing
Date. Except as set forth on the Disclosure Schedule, all accounts and notes
receivable reflected on the Annual and Interim Bridgeline Financial Statements,
and all accounts and notes receivable arising subsequent to the date of such
balance sheets, have arisen in the ordinary course of business and represent
valid obligations owing to Bridgeline. Except as set forth on the Disclosure
Schedule, to the best knowledge of Bridgeline, none of Bridgeline's receivables
is subject to any claim of offset, recoupment, setoff or counterclaim and
Bridgeline has no knowledge of any specific facts or circumstances (whether
asserted or unasserted) that could give rise to any such claim. No material
amount of receivables are contingent upon the performance by Bridgeline of any
obligation or contract other than normal warranty repair and replacement. No
person has any lien on any such receivables and no agreement for deduction or
discount has been made with respect to any such receivables. Except as set forth
on the Disclosure Schedule, to the best knowledge of Bridgeline, all of
Bridgeline's accounts and notes receivable reflected on the Annual and Interim
Bridgeline Financial Statements and all accounts and notes receivable arising
subsequent to the date of such balance sheets are collectible in full by
Bridgeline in the ordinary course of business.

         4.30 TERMINATION OF BENEFIT PLAN(S). Following the Closing, Company's
employees shall be eligible to participate in Bridgeline's employee benefits,
including health, dental, long-term disability, and group term life insurance,
as well as Bridgeline's 401K Profit Sharing Plan and Flexible Spending Account
program, and Bridgeline shall treat, and cause the applicable benefit plans to
treat, the service of Company employees with the Company attributable to any
period before the Effective Time as service rendered to Bridgeline for purposes
of eligibility to participate, vesting and for other appropriate benefits,
including, but not limited to, applicability of minimum waiting periods for
participation. The employee benefits sponsored by Bridgeline may change from
time to time and some benefits require premium contributions from employees.
Following the Closing, Bridgeline will take all necessary actions required to
authorize the termination of the Company's employee benefit plans (including,
but may not be limited to, health, dental, disability, and group term life
insurance and a 401K or other retirement plan). Pursuant to the 401K or other
retirement plan, subject to the consummation of the Acquisition, and the
adoption of appropriate Board of Directors' resolutions, Bridgeline shall
prepare appropriate notices to plan participants and shall provide an
appropriate notice to the plan sponsor.

                                    ARTICLE V

                      GENERAL RELEASE AND INDEMNIFICATIONS
                      ------------------------------------

         5.1 SHAREHOLDER RELEASES. Each of the Shareholders, effective at the
Closing, hereby releases and discharges New Tilt from and against any and all
claims, demands and liabilities which such Shareholders may have against New
Tilt immediately prior to the Closing, and each of the Shareholders specifically
agrees to indemnify, defend and hold New Tilt and Bridgeline harmless against
any and all obligations, debts, bills, liabilities, causes of action and claims
of

                                      -38-
<PAGE>

every nature of such Shareholder against New Tilt which accrue or have arisen
prior to the Closing.

         5.2 SHAREHOLDER INDEMNIFICATION. Subject to the limitations set forth
in Section 5.5 below, the Shareholders, severally and not jointly with respect
to the representations and warranties in Section 3 hereof, and jointly and
severally with respect to the representations and warranties in Section 2 hereof
and the matters discussed in Section 5.2(ii) herein, agree to indemnify and hold
harmless Bridgeline and its respective officers, directors, agents and employees
to the fullest extent lawful, from and against any and all actions, suits,
claims, counterclaims, proceedings, costs, losses, liabilities, obligations,
demands, damages, judgments, amounts paid in settlement and reasonable expenses,
including, without limitation, reasonable attorneys' fees and disbursements
(hereinafter collectively referred to as a "CLAIM," "LOSS" or "LOSSES") suffered
or incurred by Bridgeline to the extent relating to or arising out of (i) any
inaccuracy in or breach, violation or nonobservance of the representations,
warranties, covenants or other agreements made by New Tilt or the Shareholders
herein or the Transaction Documents or failure of any certificate, document or
instrument delivered by or on behalf of New Tilt or the Shareholders pursuant
hereto or in connection herewith to be true and correct as of the Closing or
(ii) as a result of the failure of one or more New Tilt Optionholders to execute
and deliver the agreement described in Section 1.6 in connection with the
termination of the New Tilt Options. Notwithstanding the foregoing, to the
extent that Bridgeline receives and collects any insurance proceeds relating to
a Claim or Loss covered by insurance purchased by New Tilt prior to the Closing,
then Bridgeline's claim for indemnification hereunder shall be reduced,
dollar-for-dollar, by the amount of such proceeds received by Bridgeline for any
insurable Claim or Loss.

         5.3 BRIDGELINE'S INDEMNIFICATION. Subject to the limitations set forth
in Section 5.5 below, Bridgeline agrees to indemnify and hold harmless the
Shareholders to the fullest extent lawful, from and against any and all Claims
or Losses suffered or incurred by the Shareholders to the extent relating to or
arising out of any inaccuracy in or breach, violation or nonobservance of the
representations, warranties, covenants or other agreements made by Bridgeline
herein or failure of any certificate, document or instrument delivered by or on
behalf of Bridgeline pursuant hereto or in connection herewith to be true and
correct as of the Closing.

         5.4 THIRD PARTY CLAIMS. In the event that a party (the "INDEMNITEE")
desires to make a claim against another party (the "INDEMNITOR") pursuant to
Section 5.2 or Section 5.3 in connection with any action, suit, proceeding or
demand at any time instituted against or made upon the Indemnitee by any third
party for which the Indemnitee may seek indemnification hereunder (a "THIRD
PARTY CLAIM"), the Indemnitee shall promptly notify, in writing, the Indemnitor
of such Third Party Claim and of the Indemnitee's claim of indemnification with
respect thereto. The Indemnitor shall have thirty (30) days after receipt of
such notice to notify the Indemnitee if he/she or it has elected to assume the
defense of such Third Party Claim. If the Indemnitor elects to assume the
defense of such Third Party Claim, the Indemnitor shall be entitled at his/her
or its own expense to conduct and control the defense and settlement of such
Third Party Claim through counsel of his/her or its own choosing; PROVIDED,
HOWEVER, that the Indemnitee may participate in the defense of such Third Party
Claim with his/her or its own counsel at his/her or its own expense and the
Indemnitor may not settle any Third Party Claim without the Indemnitee's
consent, which shall not be unreasonably withheld. If the Indemnitor fails to
notify the Indemnitee within thirty (30) days after receipt of the Indemnitee's
written

                                      -39-
<PAGE>

notice of a Third Party Claim, the Indemnitee shall be entitled to assume the
defense of such Third Party Claim at the expense of the Indemnitor; PROVIDED,
HOWEVER, that the Indemnitee may not settle any Third Party Claim without the
Indemnitor's consent, which shall not be unreasonably withheld.

         5.5 LIMITATIONS OF LIABILITY.

                  (a) Solely for purposes of determining the amount of any Claim
or Loss with regard to any representation, warranty, covenant, agreement,
certificate, document or instrument that has been breached by a party, such
amount shall be determined without regard to any "materiality" qualifier,
including without limitation any reference to a "Material Adverse Effect" on
such party, or words of similar effect, which may be contained in any such
representation, warranty, covenant, agreement, certificate, document or
instrument.

                  (b) The Shareholders and Bridgeline shall have no liability
with respect to the matters described in Sections 5.2 and 5.3, respectively, for
any individual Claim or Loss less than $5,000 (the "MINIMUM CLAIM AMOUNT") and
until the total of all Claims or Losses, including those less than the Minimum
Claim Amount, exceeds $50,000, at which point the Shareholders or Bridgeline, as
the case may be, shall be obligated to indemnify the other party from and
against all such Claims or Losses (including Claims or Losses below the Minimum
Claim Amount), relating back to the first dollar; PROVIDED, HOWEVER, that these
limitations shall not apply to (i) any Claims or Losses incurred by Bridgeline
as a result of or with respect to any breach of the representations contained in
Sections 2.1 (Ownership of Shares) and 2.11 (Taxes); (ii) any Claims or Losses
incurred by Bridgeline as a result of or with respect to the matters described
in Section 5.2(ii), and (iii) any Claims or Losses incurred by the Shareholders
as a result of or with respect to any breach of the representations contained in
Section 4.11(Absence of Changes). Notwithstanding anything contained in this
Agreement to the contrary, except for (x) the representations set forth in
Sections 2.1 (Ownership of Shares) and 2.11 (Taxes) and (y) the matters
described in Section 5.2(ii) which shall be uncapped, the aggregate indemnity
obligation of the Shareholders and Bridgeline under this Agreement with respect
to all other claims, shall not exceed the sum of $550,000.

                  (c) In any situation in which an indemnification payment is
due from the Shareholders hereunder, Bridgeline shall seek to satisfy such
obligation, in whole or in part, in the following manner: (i) first, by
withholding or setting off the amount of the Earn-Out payments that may then be
due or may subsequently become payable to the Shareholders, and (ii) second, by
withholding or setting against the Bridgeline Common Stock such number of shares
as is equal to the value of the Claim or Loss (the value for computing the
number of shares to be set-of shall be equal to the greater of (i) fair market
value of the Bridgeline Stock at the time of set-off or (ii) $3.75 per share).
In any situation in which an indemnification payment is due from Bridgeline
hereunder, the Shareholders shall seek to satisfy such obligation, in whole or
in part, in either of the following manners or any combination thereof, solely
in Bridgeline's discretion: (i) by issuance of additional shares of Bridgeline
Stock and such number of shares as is equal to the value of the Claim or Loss)
(the value for computing the number of shares to be issued shall be equal to the
fair market value of the Bridgeline Stock at the time of the Claim) or (ii) by
acceptance of a cash payment by Bridgeline equal to the fair value of the Claim
or Loss as of the time the Claim or Loss is incurred by the Shareholders. For
purposes of this Section

                                      -40-
<PAGE>

5.5(c), the fair market value of the Bridgeline Stock shall be computed as
follows: (x) if the shares of Bridgeline Stock are publicly traded, then the
fair market value of such shares shall be equal to the average closing price of
such shares during the thirty (30) day period preceding the Claim; or (y) if the
shares of Bridgeline Stock are not publicly traded, then the fair market value
of such shares shall be determined in good faith by Bridgeline's Board of
Directors (the "Board Fair Market Value Determination"); provided, however, that
the Shareholders may contest the Board Fair Market Value Determination by
providing written notice to Bridgeline within twenty (20) calendar days of their
receipt of notice of such valuation and shall be entitled to obtain an
independent appraisal of such shares. The costs of any appraisal conducted
pursuant to this Section 5.5 shall be borne by (i) Bridgeline if the appraised
value of the shares represents a 10% or greater increase or reduction, as the
case may be, from the Board Fair Market Value Determination and (ii) the
Shareholders if the appraised value of the shares represents no more than a 10%
increase or reduction, as the case may be, from the Board Fair Market Value
Determination.

                  (d) No action or claim for Losses pursuant to this Article V
shall be brought or asserted after the relevant date of survival referred to in
Article VI hereof (the "REPRESENTATION EXPIRATION DATE"). The amount of any
Claims or Losses suffered by an Indemnitee shall be reduced by any tax benefit
that has been realized or that is certain to be realized, and any insurance
benefits or claims against third parties which are actually received by such
party in respect of or as a result of such Claims or Losses, or the facts or
circumstances relating thereto. If any Losses for which indemnification is made
hereunder are subsequently reduced by any tax benefit or insurance payment, the
value of such tax benefit or other benefit or the amount of such payment or
other recovery shall be remitted to the Indemnitor.

                  (e) Bridgeline and the Shareholders acknowledge and agree
that, except as to Claims or Losses attributable to fraud, their sole remedy
against the other for any matter arising out of a breach, violation or
nonobservance of any representation, warranty, covenant or other agreement
contained in this Agreement is set forth in this Article V, and that except to
the extent a party has asserted a claim for indemnification prior to the
Representation Expiration Date, neither party shall have any remedy against the
other party for any breach, violation or nonobservance of a representation,
warranty, covenant or other agreement made by such other party in this
Agreement. The parties acknowledge that this Section 5.5 has been negotiated
fully by the parties and that neither party would have entered into this
Agreement but for the inclusion of this Section 5.5.

         5.6 EXPENSES; REIMBURSEMENT. Subject to the limitations set forth in
Section 5.5 above, an Indemnitor hereunder promptly shall reimburse the
Indemnitee for all Losses constituting reasonable expenses (including reasonable
attorneys' fees and disbursements) as they are incurred in connection with
investigating, preparing to defend or defending any third-party action, suit,
claim or proceeding (including any inquiry or investigation) for which indemnity
is available under either Section 5.2 or Section 5.3, as applicable.

         5.7 NOTICE. Each party shall provide written notice to the other of any
claim with respect to which it seeks indemnification promptly after the
discovery of any matters giving rise to a claim for indemnification; PROVIDED,
HOWEVER, that the failure of such party to give notice as

                                      -41-
<PAGE>

provided herein shall not relieve the Indemnitor of its obligations under this
Article V, except if and to the extent that the Indemnitor has been materially
prejudiced thereby.

         5.8 SURVIVAL. Subject to the provisions and limitations set forth in
Section 5.5(d) and in Article VI below, the obligations of Bridgeline and the
Shareholders under this Article V shall survive and continue in effect following
the Closing until all Claims or Losses are resolved.

                                   ARTICLE VI

                   SURVIVAL OF REPRESENTATIONS AND WARRANTIES
                   ------------------------------------------

         Except as provided herein, all representations, warranties, covenants
and other agreements of the parties contained herein shall survive the execution
and delivery of this Agreement and continue in effect following the Closing for
a period commencing on the Closing Date and ending on the date that is 18 months
after the Closing Date. Notwithstanding that set forth in the preceding
sentence, the representations set forth in Section 3.1 (Ownership of Shares)
with respect to the Shareholder's ownership of the Shares shall survive and
continue in effect indefinitely after the Closing, and the representations set
forth in Section 2.11 (Taxes) shall survive until the expiration of the
applicable statute of limitations relating to any applicable Tax Return referred
to therein.

                                   ARTICLE VII

                                   TAX MATTERS
                                   -----------

         Bridgeline, the Company and Shareholders shall use reasonable efforts
to cause the Merger to be treated as a reorganization within the meaning of
Section 368(a) of the Code and shall not knowingly take or fail to take any
action which action or failure to act would jeopardize the qualification of the
Merger as a reorganization within the meaning of Section 368(a) of the Code. The
Company and Shareholders (a) without Bridgeline's prior approval, shall not file
any Tax Return or take any position inconsistent with the treatment of the
Merger as a reorganization described in Section 368(a) of the Code and shall not
settle any tax dispute with respect to any pre-closing period to the extent that
the issue relates to the income, gain or losses of the Company, and (b) shall
comply with the record keeping and information-reporting requirements set forth
in Treas. Reg. 1.368-3.

                                  ARTICLE VIII

                                  MISCELLANEOUS
                                  -------------

         8.1 PARTIES IN INTEREST. Except as otherwise set forth herein, all
covenants, agreements, representations, warranties and undertakings contained in
this Agreement shall be binding on and shall inure to the benefit of the
respective heirs, successors and assigns of the parties hereto (including
permitted transferees of any of the Shares or Bridgeline Stock). Except as may
be required to be disclosed by order of a court or otherwise required by law,
the parties agree to maintain in confidence the terms of this Agreement, except
that the parties hereto may disclose such terms to its accountants, lawyers,
bankers and advisors in the ordinary course. Except as otherwise specifically
provided herein, this Agreement shall not confer any rights or

                                      -42-
<PAGE>

remedies upon any person other than the parties hereto and their respective
heirs, successors and assigns.

         8.2 AMENDMENTS AND WAIVERS. Amendments, modifications or additions to
this Agreement may be made and compliance with any term, covenant, agreement,
condition or provision set forth herein may be omitted or waived (either
generally or in a particular instance and either retroactively or prospectively)
upon the written consent of the parties hereto. This Agreement (including the
Schedules and Exhibits annexed hereto, which are an integral part of this
Agreement) and the Transaction Documents constitutes the full and complete
agreement of the parties with respect to the subject matter hereof.

         8.3 NOTICES. All notices, requests, consents, reports and demands shall
be in writing and shall be hand delivered, sent by fax or other electronic
medium, or sent by Federal Express or other overnight courier service providing
proof of delivery, to Bridgeline or the Shareholders, at the addresses set forth
below or to such other address for any such party as may be furnished in writing
to the other parties hereto:

Bridgeline:                               Thomas L. Massie, President
                                          Bridgeline Software, Inc.
                                          10 Sixth Road
                                          Woburn, MA 01801
                                          Fax No.: 781-376-5033

With copy to:                             Joseph C. Marrow, Esq.
                                          Morse, Barnes-Brown & Pendleton, P.C.
                                          1601 Trapelo Road
                                          Waltham, MA 02451
                                          Fax No.: 781-622-5933

The New Tilt Representative:              The address set forth with respect
                                          to the New Tilt Representative in
                                          Exhibit 1.1 to this Agreement.

With copy to:                             Andrea M. Teichman, Esq.
                                          Day, Berry & Howard LLP
                                          One International Place
                                          Boston, MA 02110
                                          Fax No:  (617) 345-4745

         8.4 EXPENSES. Each party hereto will pay its own expenses in connection
with the transactions contemplated hereby; PROVIDED, HOWEVER, that Bridgeline
shall pay a portion of the costs and expenses incurred by New Tilt in connection
with legal and accounting services and other transactional costs incurred by it
in connection with the parties' negotiation, execution and delivery of this
Agreement and the consummation of the transactions contemplated hereby, provided
such costs and expenses shall not exceed a maximum of $35,000 in the aggregate,
it being acknowledged and agreed to by the parties that the Shareholders shall
be personally responsible for any such expenses of New Tilt exceeding this
limit.

                                      -43-
<PAGE>

         8.5 SEVERABILITY. All agreements and covenants contained in this
Agreement are severable, and in the event that any of them shall be held to be
invalid or unenforceable by any court of competent jurisdiction, then this
Agreement shall be interpreted as if such invalid agreements or covenants were
not contained herein.

         8.6 COUNTERPARTS. This Agreement and any exhibit hereto may be executed
in multiple counterparts, each of which shall constitute an original, but all of
which shall constitute but one and the same instrument. One or more counterparts
of this Agreement or any exhibit hereto may be delivered via fax, with the
intention that they shall have the same effect as an original counterpart
hereof.

         8.7 EFFECT OF HEADINGS/GENDER REFERENCES. The article and section
headings herein are for convenience only and shall not affect the construction
or interpretation hereof. The use of any gender in the Agreement shall be deemed
to include the other genders, and the use of the singular in this Agreement
shall be deemed to include the plural (and vice versa), wherever appropriate.

         8.8 GOVERNING LAW. This Agreement shall be deemed a contract made under
the laws of the State of Delaware and together with the rights and obligations
of the parties hereunder, shall be construed under and governed by the laws of
such state. Any action or proceeding seeking to enforce any provision of, or
based on any right arising out of, this Agreement or any of the transactions
contemplated hereby, shall be brought against any of the parties in the courts
of the Commonwealth of Massachusetts, and each of the parties irrevocably
submits to the exclusive jurisdiction of such courts (and of the appropriate
appellate courts) in any such action or proceeding, waives any objection to
venue laid therein, agrees that all claims in respect of any action or
proceeding shall be heard and determined only in any such court and agrees not
to bring any action or proceeding arising out of or relating to this Agreement
or any transaction contemplated hereby in any other court. Process in any action
or proceeding referred to in the preceding sentence may be served on any party
anywhere in the world.

         8.9 PRESS RELEASES AND PUBLIC ANNOUNCEMENTS. No party hereto shall
issue any press release or make any public announcement relating to the subject
matter of this Agreement without the prior written approval of the other party,
which approval shall not be unreasonably withheld.

         8.10 POST-CLOSING TAX MATTERS. Bridgeline agrees that it will cooperate
with the preparation of all tax returns of New Tilt for the period up to the
Closing Date. The Shareholders agree that such tax returns shall be prepared in
a manner consistent with New Tilt's historical practices.

         8.11 NON-TRANSFERABILITY OF EARN-OUT PAYMENTS. Any rights of the
Shareholders to receive Earn-Out payments pursuant to this Agreement shall be
non-transferable without the prior written consent of Bridgeline.
Notwithstanding the foregoing, the Shareholders may transfer all or any of such
rights (a) as a gift to any member of his or her family or to any trust for the
benefit of any such family member or such Shareholder, PROVIDED THAT any such
transferee shall agree in writing with Bridgeline, as a condition precedent to
such transfer, to be bound by all of the provisions of this Agreement relating
to the Earn-Out payments, or (b) by will or the

                                      -44-
<PAGE>

laws of descent and distribution, in which event each such transferee shall be
bound by all of the provisions of this Agreement relating to the Earn-Out
payments or (c) by court order, in which event each such transferee shall be
bound by all of the provisions of this Agreement relating to the Earn-Out
payments,. As used herein, the word "family" shall include any spouse, lineal
ancestor or descendant, brother or sister.

         8.12 BOARD OBSERVER RIGHTS; APPOINTMENT TO MANAGEMENT COMMITTEE. Until
the later of (i) the date on which the Shareholders no longer collectively own
at least five percent (5%) of the voting capital stock of Bridgeline or (ii)
December 31, 2007, the Shareholders shall be entitled to appoint a
representative to receive notice of and all documents and materials provided to
board members, attend and participate in all meetings of the Board of Directors
of Bridgeline, and any and all committees or subcommittees thereof, subject to
customary limitations (such as sensitive confidential information, conflicts of
interest or interested party transactions). Michelle Chambers shall be the
initial observer, and Shareholders holding a majority of the aggregate number of
shares of the Bridgeline Stock received by the Shareholders at the Closing shall
have the right to remove the representative and appoint a successor (which
successor shall be subject to the approval of Bridgeline, such approval not to
be unreasonably withheld). The foregoing right shall be personal to the
Shareholders and not to any transferees of a Shareholder's interest in
Bridgeline. If at any time any other non-board member receives board
observations rights with a lower percentage ownership requirement, the
Shareholders will be granted observation rights based upon the same lower
percentage limit. Additionally, Michelle Chambers and Donna Tramontozzi shall be
appointed as members of the Executive Committee of Bridgeline for so long as
each remains as Executive Vice President & General Manager of the New England
office and Executive Vice President of Strategy, respectively, of Bridgeline.

         8.13 DISCLOSURE. Certain information set forth in the Schedules has
been included and disclosed solely for informational purposes and may not be
required to be disclosed pursuant to the terms and conditions of the Agreement.
The disclosure of any such information shall not be deemed to constitute an
acknowledgement or agreement that the information is required to be disclosed in
connection with the representations and warranties made in the Agreement or that
the information is material, nor shall any information so included and disclosed
be deemed to establish a standard of materiality or otherwise used to determine
whether any other information is material.

         8.14 ABSENCE OF CHANGES AS OF THE CLOSING.

                  (a) As of and simultaneous with the Closing, no event,
occurrence, fact, condition, change, development or effect that has not been
disclosed in the New Tilt Financial Statements or on the Disclosure Schedule
hereto shall exist or have occurred or come to exist or been threatened that,
individually or in the aggregate, has had or resulted in or could be expected to
become or result in a Material Adverse Effect on New Tilt, and Bridgeline shall
have received from the Company a certificate dated as of the Closing Date,
signed by an authorized officer of the Company, to that effect.

                  (b) As of and simultaneous with the Closing, no event,
occurrence, fact, condition, change, development or effect that has not been
disclosed in the Annual or Interim

                                      -45-
<PAGE>

Bridgeline Financial Statements or on the Disclosure Schedule hereto shall exist
or have occurred or come to exist or been threatened that, individually or in
the aggregate, has had or resulted in or could be expected to become or result
in a Material Adverse Effect on Bridgeline, and the Shareholders shall have
received from Bridgeline a certificate dated as of the Closing Date, signed by
an authorized officer of Bridgeline, to that effect.

                      [SIGNATURE PAGE IMMEDIATELY FOLLOWS]
                      ------------------------------------































                                      -46-
<PAGE>

                       SIGNATURE PAGE TO MERGER AGREEMENT


         IN WITNESS WHEREOF, the parties hereto have executed this Merger
Agreement on the date written above.


                              BRIDGELINE SOFTWARE, INC.


                                    By: /S/ THOMAS L. MASSIE
                                        ----------------------------
                                    Name: THOMAS L. MASSIE
                                    Title: President and Chief Executive Officer



                              NEW TILT, INC.


                                    By: /S/ MICHELLE CHAMBERS
                                        ----------------------------
                                    Name: MICHELLE CHAMBERS
                                    Title: President



                              SHAREHOLDERS:


                              /S/ MICHELLE CHAMBERS
                              ----------------------------
                              MICHELLE CHAMBERS

                              /S/ DONNA TRAMONTOZZI
                              ----------------------------
                              DONNA TRAMONTOZZI


                                      -47-
<PAGE>

                                      INDEX


Exhibit 1.1
Exhibit 1.6
Exhibit 1.7A
Exhibit 1.7B

New Tilt Disclosure Schedule
Shareholder Disclosure Schedule
Bridgeline Disclosure Schedule

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-2.2
<SEQUENCE>11
<FILENAME>ex2-2_14663.txt
<DESCRIPTION>INTERACTIVE APPLICATIONS ACQUISITION AGREEMENT
<TEXT>
                                                                     EXHIBIT 2.2
                                                                     -----------

                          AGREEMENT AND PLAN OF MERGER
                                  by and among

                           BRIDGELINE SOFTWARE, INC.,

                      INTERACTIVE APPLICATIONS GROUP, INC.

                                       and

                                  MILES FAWCETT

                                December 15, 2004


<PAGE>
                          AGREEMENT AND PLAN OF MERGER
                          ----------------------------

         This Agreement and Plan of Merger (the "AGREEMENT") is made as of this
15th day of December, 2004 by and among Bridgeline Software, Inc., a Delaware
corporation, with a principal place of business at 130 New Boston Street,
Woburn, Massachusetts 01801 ("BRIDGELINE"), Interactive Applications Group, Inc.
(the "COMPANY" or "IAPPS"), a Delaware subchapter S corporation, with a
principal place of business at 2639 Connecticut Ave, Suite 210, Washington, DC
20008, and the sole shareholder of Iapps, Miles Fawcett (the "SHAREHOLDER"),
with a mailing address of 4424 Fessenden Street, NW Washington, DC 20016.

                                    RECITALS
                                    --------

         WHEREAS, the Shareholder owns 100% of the issued and outstanding shares
of the Common Stock of the Iapps (the "SHARES");

         WHEREAS, the Boards of Directors of each of the Acquirer and the
Corporation have, in accordance with the laws of the State of Delaware,
respectively, approved the merger of the Corporation with and into the Acquirer,
pursuant to which all of the Shares will be converted into common stock of the
Acquirer, $0.001 par value per share (the "Acquirer Stock") and the Corporation
will merge with and into the Acquirer, with the Acquirer being the surviving
corporation; and;

         WHEREAS, it is the intention of the parties that the merger shall
qualify as a reorganization within the meaning of Section 368(a)(1)(A) of the
Internal Revenue Code of 1986, as amended (the "Code") and that this Agreement
shall constitute a "plan of reorganization" for the purposes of Section 368 of
the Code;

         WHEREAS, each of the parties to the Agreement desires to make certain
representations, warranties, and agreements in connection with the transaction
between the parties and to prescribe various conditions thereto.

         NOW, THEREFORE, in consideration of the mutual covenants and agreements
herein contained, and for other good and valuable consideration, the receipt,
adequacy and sufficiency of which are hereby acknowledged, the parties hereto
agree as follows:

                                    ARTICLE I

                                   THE MERGER
                                   ----------

         1.1   THE MERGER. Subject to and upon the terms and conditions of this
Agreement, at the effective time of the merger of the Company with and into
Bridgeline, and pursuant to the Delaware General Corporation Law ("DGCL"), the
Company will be merged with and into Bridgeline (the "MERGER") and the separate
existence of the Company shall thereupon cease, in accordance with the
applicable provisions of the DGCL. As a result of the Merger, Bridgeline will be
the surviving corporation and shall survive as a going concern (sometimes
referred to herein as the "SURVIVING COMPANY" or "BRIDGELINE"). The Certificate
of Incorporation and By-


                                       -2-
<PAGE>
laws of the Surviving Company shall be those of Bridgeline as they are in
existence immediately prior to the Merger. The separate corporate existence of
Iapps with all its rights, privileges, powers, assets, liabilities, operations,
intellectual property, contract rights, employees, and franchises shall be
extinguished in the Merger. The name of the Surviving Company shall "Bridgeline
Software, Inc." On the Closing Date (as such term is defined below), the parties
shall cause a Certificate of Merger, meeting the requirements of Section 251 of
the DGCL (the "CERTIFICATE OF MERGER"), to be promptly executed and filed with
each of the Secretary of State of the State of Delaware. The Merger shall become
effective (the "EFFECTIVE TIME") upon the close of business on the date that the
filing of the Certificate of Merger with the Secretary of State of the State of
Delaware has been completed or at such other time or date than may otherwise be
indicated in the Certificate of Merger.

         1.2   CONVERSION OF SHARES; EXCHANGE PROCEDURES AND BOOT.

               (a) By virtue of the Merger, automatically and without any action
on the part of the holder thereof, the Shares outstanding immediately prior to
the Effective Time (other than any shares held as treasury stock by the
Corporation, which shall be cancelled, retired and cease to exist, and for which
no payment hereunder shall be made) shall become and be converted into 1,430,000
shares of Bridgeline's Common Stock (the "BRIDGELINE STOCK"); (ii) $100,000 in
immediately available funds, each to be delivered as of the Closing (as defined
below) and the Earn-Out Consideration (as defined below) (collectively, the
"MERGER CONSIDERATION").

               (b) The Company shall cause to be delivered to Bridgeline on the
Closing Date the certificates representing all of the Shares of Iapps issued and
outstanding immediately prior to the Closing, as evidenced by the stock ledger
and stock transfer records of the Company (collectively, the "COMPANY
CERTIFICATES"), and a stock power separate from the certificate transferring
ownership to Bridgeline. Upon surrender of the Company Certificates for exchange
and cancellation to Bridgeline together with stock power, the Shareholder shall
receive a certificate representing 1,430,000 shares of Bridgeline Stock.

               (c) No dividend or other distribution payable after the Closing
with respect to Bridgeline Stock shall be paid to the holder of any
unsurrendered Company Certificate until the holder thereof surrenders such
Company Certificate, at which time such holder shall receive all dividends and
distributions, without interest thereon, previously payable but withheld from
such holder pursuant hereto.

               (d) After the Closing, the holders of any shares of the capital
stock of the Company shall cease to be, and shall have no rights as,
stockholders of the Company, other than to receive the Acquisition Consideration
pursuant to the provisions hereof.

               (e) Notwithstanding the foregoing, neither Bridgeline nor the
Company or any other person shall be liable to any former holder of shares of
any capital stock of the Company for any shares or any dividends or
distributions with respect thereto properly delivered to a public official
pursuant to applicable abandoned property, escheat or similar laws.

               (f) In the event any Company Certificate shall have been lost,
stolen or destroyed, upon receipt of an affidavit of lost stock certificate as
to such loss, theft or destruction

                                       -3-
<PAGE>
and to the ownership of such certificate by the person claiming such certificate
to be lost, stolen or destroyed, and the receipt by Bridgeline of appropriate
indemnification, Bridgeline will cause to be delivered in exchange for such
lost, stolen or destroyed certificate the shares of Bridgeline Stock deliverable
in respect thereof.

               (g) If any certificate representing shares of Bridgeline Stock is
to be issued in a name other than that in which the Company Certificate
surrendered and exchanged therefore is registered, it shall be a condition of
the issuance thereof that the certificate so surrendered shall be properly
endorsed (or accompanied by an appropriate instrument of transfer) and otherwise
in proper form for transfer (including, but not limited to, that the signature
of the transferor shall be properly guaranteed by a commercial bank, trust
company, member firm of a national or regional securities exchange or other
eligible guarantor institution), and that the person requesting such exchange
shall pay to Bridgeline in advance any transfer or other taxes required by
reason of the issuance of a certificate representing shares of Bridgeline Stock
in any name other than that of the registered holder of the Company certificate
representing the Shares surrendered, or required for any other reason, or shall
establish to the satisfaction of Bridgeline that such tax has been paid or is
not payable.

         1.3   EARN-OUT CONSIDERATION.

               (a) The Shareholder shall be entitled to earn additional cash
consideration (collectively, the "EARN-OUT") in an amount, up to $300,000 in the
aggregate (the "MAXIMUM EARN-OUT"), equal to 33% of the positive Earnings Before
Interest, Taxes, Depreciation and Amortization ("EBITDA") beginning on the
Closing Date (as defined below) and continuing for the twelve (12) calendar
quarters immediately following the Closing (the "EARN-OUT PERIODS" and each
individually, an "EARN-OUT PERIOD"), with the first Earn-Out Period to include
the first full calendar quarter following the Closing Date plus the period
between the Closing Date and the first day of such first calendar quarter, all
in accordance with the terms and conditions of this Section.

               (b) Within thirty (30) calendar days after the end of each
calendar quarter (i.e., the three (3) months ended March 31, June 30, September
30 and December 31 of each relevant calendar year) or portion thereof that is
included within the Earn-Out Periods, Bridgeline shall prepare an income
statement reflecting solely the business and operations associated exclusively
with the operations of Company following the completion of the Acquisition
independent of the remaining business and operations of Bridgeline (the "IAPPS
BUSINESS") calculated in accordance with generally accepted accounting
principles consistently applied ("GAAP") for such Earn-Out Period, and a related
calculation of EBITDA of the Iapps Business for such Earn-Out Period, such
calculation of EBITDA to be completed in accordance with GAAP and to reflect as
closely as reasonably possible the EBITDA that would have been achieved by the
Company during such Earn-Out Period if the Acquisition had not occurred (each
such income statement and EBITDA calculation are collectively referred to herein
as the "INCOME STATEMENT"). The maximum allocation of corporate overhead ("G&A
ALLOCATION") that will be charged by Bridgeline to the Iapps Business (operating
as a division of Bridgeline) on a monthly basis shall not exceed $12,000.00 per
month. This G&A Allocation assumes that the Iapps business unit or division will
provide all research and development and sales and marketing activity and
related expenses within its own internal expense budgets, operating as a

                                       -4-
<PAGE>
division of Bridgeline. Other than the aforesaid G&A Allocation, for purposes of
computing the EBITDA of the Iapps Business, the following rules shall apply: (i)
there shall be no (A) allocations of any other Bridgeline costs, expenses or
other financial items charged to the Iapps Business Unit except to the extent
directly incurred by the Iapps Business or (B) compensation charge to the Iapps
Business Unit for issuance of stock options (regardless of whether required by
GAAP) and (ii) without the prior written consent of the Shareholder (which shall
not be unreasonably withheld, conditioned or delayed) there shall be no (A)
incurrence by Bridgeline of reimbursable expenditures on behalf of the Iapps
Business Unit, (B) charge-offs against the Iapps Business Unit (other than
charge-offs required by GAAP), or (C) other accounting adjustments with respect
to the Iapps Business by Bridgeline that adversely affect the Earn-Out (except
as required to be made in accordance with GAAP). Promptly following Bridgeline's
determination of such EBITDA for an Earn-Out Period, Bridgeline shall deliver
the Income Statement to the Shareholder, which shall include a statement of the
total amount owed collectively to the Shareholder, if any, based on the
calculation set forth above (each Income Statement and each such accompanying
statement of the Earn-Out Amount, if any, are collectively referred to herein as
the "EARN-OUT NOTICE").

               (c) The Shareholder shall have fifteen (15) business days from
the date of his receipt of an Earn-Out Notice to either (i) accept the
calculations and conclusions made in the Earn-Out Notice or (ii) give notice to
Bridgeline in writing that the Shareholder intends to dispute the amounts
included in the Earn-Out Notice, and such notice shall set forth in reasonable
detail the disputed amount and the basis for such dispute. Any such dispute by
the Shareholder must be reasonable and made in good faith. If the Shareholder
accepts the Earn-Out computation, Bridgeline shall pay the Earn-Out amount no
later than five (5) days following acceptance of such computation.

               (d) If, within the 15-business day period provided for in Section
1.3(c), the Shareholder either affirmatively notifies Bridgeline that he accepts
the calculations and conclusions made in the Earn-Out Notice or does not
otherwise give notice to Bridgeline in writing that he intends to dispute the
amounts included in the Earn-Out Notice, then within five (5) business days
following the expiration of such ten-business day period provided for in Section
1.3(c) or, if earlier, the date of Bridgeline's receipt of such affirmative
notice of the Shareholder's acceptance of the calculations and conclusions made
in the Earn-Out Notice, Bridgeline shall pay the relevant Earn-Out Amount, if
any, to the Shareholder.

               (e) (i) If the Shareholder notifies Bridgeline that he intends to
dispute the amounts included in the Earn-Out Notice in accordance with Section
1.3(c)(ii) above, then Bridgeline and the Shareholder shall negotiate in good
faith to resolve the dispute. If Bridgeline and the Shareholder are unable to
reach a resolution within ten (10) business days after receipt by Bridgeline of
the Shareholder's written notice of dispute, then Bridgeline and the Shareholder
shall submit the matter to a mutually acceptable independent public accounting
firm (the "INDEPENDENT ACCOUNTING FIRM"), which shall, within thirty (30)
calendar days after such submission, determine the Earn-Out Amount, if any. The
determination of the Earn-Out Amount by the Independent Accounting Firm shall be
final, non-appealable and binding on the parties.

                   (ii) In the event that the Independent Accounting Firm
determines that the Earn-Out Amount stated by Bridgeline under Section 1.3(b) is
accurate and correct in all

                                       -5-
<PAGE>
material respects, then (A) the Shareholder shall pay all costs and expenses
charged by the Independent Accounting Firm (the "EARN-OUT IAF FEE") and (B) if
an Earn-Out Amount is due under such Earn-Out Notice, within five (5) business
days of the parties' receipt of such report by the Independent Accounting Firm,
Bridgeline shall pay such Earn-Out Amount to the Shareholder (which payment may
be in an amount net of the Earn-Out IAF Fee otherwise due from the Shareholder
to the Independent Accounting Firm, if Bridgeline chooses in its sole discretion
to pay directly to the Independent Accounting Firm the Earn-Out IAF Fee due from
the Shareholder).

                   (iii) In the event that the Independent Accounting Firm
determines that Bridgeline's calculations and conclusions made in the Earn-Out
Notice are inaccurate or misstated such that the Earn-Out Notice includes no
Earn-Out Amount or otherwise references an Earn-Out Amount lower than the
accurate Earn-Out Amount, then (A) Bridgeline shall pay the Earn-Out IAF Fee and
(B) within five (5) business days of the parties' receipt of such report by the
Independent Accounting Firm, Bridgeline shall pay to the Shareholder the
Earn-Out Amount determined by the Independent Accounting Firm.

               (f) Notwithstanding any of the foregoing contained in this
Section 1.3, in no event shall any Earn-Out Amount for any individual Earn-Out
Period exceed the aggregate amount of $25,000.00.

               (g) The Earn-Out is computed on a quarter-by-quarter basis and is
not cumulative. In the event that the Shareholder has not earned the aggregate
Maximum Earn-Out during the collective initial twelve (12) Earn-Out Periods, the
provisions of this Section 1.3 and shall automatically extend and continue for
an additional twelve (12) months.

         1.4   TAX-FREE REORGANIZATION. It is the intention of the parties
hereto that the Merger shall qualify as a "reorganization" within the meaning of
Section 368(a) of the Code and that this Agreement shall constitute a "plan of
reorganization" for the purposes of Section 368 of the Code. All aspects of the
transactions contemplated by this Agreement shall be implemented in a manner
consistent with this intent.

         1.5   CLOSING. The closing (the "CLOSING") of the transactions
contemplated by this Agreement is taking place simultaneously with the execution
and delivery of this Agreement at the offices of McDermott Will & Emery, LLP,
600 13th Street, Washington, DC 20005-3096. The date of the Closing is sometimes
referred to as the "CLOSING DATE".

         1.6.  AGREEMENT REGARDING DEBTS OF THE COMPANY. Bridgeline shall
pay-off Iapps' long-term debt identified in Exhibit 1.5 attached hereto and (ii)
the outstanding balance, up to a maximum amount of Thirty-five Thousand and
00/100 Dollars ($35,000.00), owing by Iapps under its line of credit to the
extent borrowed after September 30, 2004 in the ordinary course of business (the
"Guaranteed Indebtedness"). At the time of Closing, Bridgeline shall pay the
amount of the Guaranteed Indebtedness into an escrow account, such funds to be
disbursed in payment of the Guaranteed Indebtedness in the manner and at the
time as agreed by Bridgeline and the Company, in any case not more than 30
calendar days after Closing, unless otherwise agreed by Bridgeline and the
Company. In addition, Bridgeline will pay any interest that accrues on the
Guaranteed Indebtedness between the Closing and the eventual payment of the

                                       -6-
<PAGE>
Guaranteed Indebtedness. Iapps represents that long-term indebted for money
borrowed or capital lease obligations shall not exceed Two Hundred Fifty
Thousand and 00/100 Dollars ($250,000.00) plus any amounts Iapps may have
borrowed under its line of credit in the ordinary course of business after
September 30, 2004 (up to a maximum amount of Thirty-five Thousand and 00/100
Dollars ($35,000.00)).

         1.7   AGREEMENTS REGARDING STOCK OPTIONS. At the time of the Closing,
all outstanding options to acquire Iapps common stock shall be converted to
options to acquire Bridgeline Common Stock at the same ratio of stock valuations
used to determine the merger consideration payable by Bridgeline for Iapps, and
at each option holder's current vesting schedule of such options, all as set
forth on Exhibit 1.7 to this Agreement.

         Additionally, Bridgeline will provide all employees of Iapps with stock
options of Bridgeline based on the current stock option table maintained by
Bridgeline at the same rate and price as options granted to employees hired by
Bridgeline within thirty (30) days before or after the Closing, or if no such
options are granted to Bridgeline employees during such sixty (60) day period,
at the same rate and exercise price of the option last issued by Bridgeline.

         1.8   OTHER AGREEMENTS AND DOCUMENTS. At the Closing, Bridgeline will
enter into an employment agreement with each of Miles Fawcett, Alf Gracombe and
David Goldsmith, each such agreement to be substantially in the form included as
Exhibit 1.7A hereto (collectively, the "EMPLOYMENT AGREEMENTS"). In addition, at
the Closing the parties are executing and delivering the documents specified on
the Closing Agenda attached hereto as Exhibit 1.7B.

                                   ARTICLE II

           REPRESENTATIONS AND WARRANTIES OF IAPPS AND THE SHAREHOLDER
           -----------------------------------------------------------

         In order to induce Bridgeline to enter into this transaction, the
Company and the Shareholder make the following representations and warranties.
The Iapps Disclosure Schedule will be arranged in paragraphs corresponding to
the numbered and lettered sections contained in this Article II and the
disclosure in any paragraph shall qualify other sections in this Article II to
the extent that it is apparent from a reading of such disclosure that it also
qualifies or applies to such other sections. Whenever in this Article II the
term "to the knowledge of the Company" is used, it shall mean the knowledge of
each of Miles Fawcett, Scott Desimone, Alf Gracombe and David Goldsmith, after a
relevant inquiry and due investigation is made of the operations, intellectual
property, human resources, financial statements, assets and liabilities of the
Company, including without limitation, events or circumstances which an officer
or key employee of the Company should be investigating or viewing, and on the
assumption that each of the foregoing individuals has read and inquired into the
representations and warranties made by the Company in this Article II.

         2.1   OWNERSHIP OF SHARES. The Shareholder has valid title to and owns
beneficially and of record all of the Shares of Iapps, and has good and
marketable title to such Shares, free and clear of any and all transfer
restrictions (other than those imposed by relevant securities laws), options,
liens, claims, pledges, voting trusts and agreements, security interests,
charges and other restrictions or encumbrances of any kind or nature. Iapps and
the Shareholder have the

                                       -7-
<PAGE>
absolute and unconditional right, power, authority and capacity to execute and
perform this Agreement and any of the Transaction Documents (as such term is
defined below) to which it or he is a party and to consummate the transactions
contemplated hereby. Except as set forth on the Disclosure Schedule, neither
Iapps nor the Shareholder has granted any option or other commitment or is
otherwise a party to or bound by any agreement obligating Iapps or the
Shareholder to sell, pledge or otherwise grant any interest in the Shares or any
other equity interest in Iapps, actual or contingent, to any person or entity.

         2.2   ORGANIZATION AND CORPORATE POWER. Iapps is a corporation duly
organized, validly existing and in corporate good standing under the laws of the
State of Delaware and has the power and authority to carry on its business as
presently conducted. Iapps is duly licensed or qualified to do business as a
foreign corporation in each jurisdiction set forth on the Disclosure Schedule
and there is no other jurisdiction wherein the character of its property, or the
nature of the activities presently conducted by it, makes such qualification
necessary, except where the failure to be so qualified will not have a Material
Adverse Effect on the Company. For purposes of this Agreement, the term
"MATERIAL ADVERSE EFFECT", when used with respect to any party to this
Agreement, means a material adverse effect upon the results of operations,
financial condition, assets, liabilities, intellectual property, tangible
properties or business of such entity, taken as a whole.

         2.3   AUTHORIZATION.

               (a) IAPPS. Iapps has the right, power and legal capacity and has
taken all necessary legal director and shareholder action required for the due
and valid authorization, execution, delivery and performance by Iapps of this
Agreement and any other agreement or instrument executed by Iapps in connection
herewith (collectively, the "TRANSACTION DOCUMENTS") and the consummation of the
transactions contemplated herein or therein. This Agreement is, and to the
extent that Iapps is a party thereto, each of the Transaction Documents is, a
valid and binding obligation of Iapps enforceable in accordance with its
respective terms, except to the extent that such enforcement may be subject to
applicable bankruptcy, reorganization, insolvency, fraudulent conveyance or
other laws affecting creditors' rights generally and to the application of
general equitable principles.

               (b) SHAREHOLDER. The Transaction Documents shall include all
documents executed and delivered at the Closing to which the Shareholder is a
party. This Agreement and each of the Transaction Documents to which the
Shareholder is a party has been duly executed and delivered by the Shareholder
and constitute the valid and binding obligations of the Shareholder enforceable
against the Shareholder in accordance with its respective terms, except to the
extent that such enforcement may be subject to applicable bankruptcy,
reorganization, insolvency, fraudulent conveyance or other laws affecting
creditors' rights generally and to the application of general equitable
principles.

         2.4   NO CONFLICTS. Except as set forth on the Disclosure Schedule, the
execution, delivery and performance of this Agreement and the Transaction
Documents and the consummation of the transactions contemplated hereby and
thereby by Iapps and the Shareholder do not and will not violate, conflict with,
result in a breach of or constitute a default under (or which with notice or
lapse of time, or both, would constitute a breach of or default under), or

                                       -8-
<PAGE>
result in the creation of any lien, security interest or other encumbrance under
(a) any note, agreement, contract, license, instrument, lease or other
obligation to which Iapps or the Shareholder is a party or by which Iapps or the
Shareholder is bound, and for which Iapps or the Shareholder have not previously
obtained a written waiver of such breach or default, which waiver has been
delivered to Bridgeline, except where such violation would not have Material
Adverse Effect, (b) any judgment, order, decree, ruling or injunction known and
applicable to Iapps or the Shareholder, (c) any statute, law, regulation or rule
of any governmental agency or authority, or (d) the articles of incorporation,
by-laws, organizational documents or equivalent documents of Iapps (the "IAPPS
CHARTER"). This Agreement and the transactions contemplated hereby have been
unanimously approved by Iapps' Board of Directors and approved by the
Shareholder, as required by the Iapps Charter, and do not require any further
legal action or authorization, and are not and will not be subject to any right
of first refusal, put, call or similar right.

         2.5   GOVERNMENT APPROVALS. Except for filing with and acceptance by
the Delaware Secretary of State of applicable merger certificates, no consent,
approval, license or authorization, governmental or otherwise, or designation,
declaration or filing with, any court or governmental authority is or will be
required on the part of the Shareholder or Iapps in connection with the
execution, delivery and performance of this Agreement, the other Transaction
Documents and any other agreements or instruments executed by Iapps or the
Shareholder in connection herewith or therewith, the failure of which would have
a Material Adverse Effect.

         2.6   AUTHORIZED AND OUTSTANDING EQUITY INTERESTS. The Disclosure
Schedule sets forth the issued and outstanding capital stock of Iapps, all of
which are validly issued and outstanding, and all options and warrants to
acquire capital stock of Iapps. Such equity interests are all of the issued and
outstanding equity interests, actual or contingent, in Iapps and are validly
issued and free from any restrictions on transfer, except for restrictions
imposed by federal or state securities laws. Except as set forth in the Iapps
Charter, there are no voting agreements, voting trusts, registration rights,
rights of first refusal, preemptive rights, buy-sell agreements, co-sale rights,
or other restrictions applicable to any capital stock or equity interests in
Iapps. All of the issued and outstanding capital stock in Iapps were issued in
transactions complying with or exempt from the registration requirements of the
Securities Act of 1933, as amended (the "SECURITIES ACT"). Any equity interests
in Iapps that consist of contractual or so-called "phantom" equity interests are
separately identified on the Disclosure Schedule, and all of such interests have
been effectively terminated prior to the Closing without any direct or indirect
payment by Iapps in respect thereof.

         2.7   SUBSIDIARIES. Iapps does not have, and at no time during its
existence has it had, any subsidiaries. Except as set forth on the Disclosure
Schedule, Iapps does not have any investment or other interest in, or any
outstanding loan or advance to or from, any person or entity, including, without
limitation, any officer, manager or shareholder.

         2.8   FINANCIAL INFORMATION. Iapps has previously delivered to
Bridgeline the unaudited balance sheets of Iapps as of October 31, 2002,
October, 2003, and October 31, 2004, and the profit and loss statements for the
years then ended (collectively, the "IAPPS FINANCIAL STATEMENTS"). The Iapps
Financial Statements present fairly, in all material respects, the

                                       -9-
<PAGE>
financial condition and results of operations of Iapps as of and for the
relevant periods in accordance with GAAP applied on a basis consistent with
prior periods, except that none of such financial statements contain footnotes.
Except as set forth on the Disclosure Schedule, Iapps has no liability,
contingent or otherwise, which is not adequately reflected in or reserved
against in the Iapps Financial Statements that could materially and adversely
affect the financial condition of Iapps. Except as set forth in the Iapps
Financial Statements or on the Disclosure Schedule,, since October 31, 2004 (the
"BALANCE SHEET DATE"), (i) there has been no change in the business, property,
assets, liabilities, condition (financial or otherwise), operations, results of
operations, affairs or prospects of Iapps except for changes in the ordinary
course of business which, in the aggregate, would not have a Material Adverse
Effect, and (ii) none of the business, property, assets, liabilities, condition
(financial or otherwise), operations, results of operations, affairs or
prospects of Iapps have been materially adversely affected by any occurrence or
development, in the aggregate, whether or not insured against.

         2.9   EVENTS SUBSEQUENT TO THE DATE OF THE FINANCIAL STATEMENTS. Except
as set forth on the Disclosure Schedule, or in the Iapps Financial Statements,
since the Balance Sheet Date, Iapps has not, in the excess of $10,000 (i) issued
any equity interest, (ii) borrowed any amount or incurred or become subject to
any material liability (absolute, accrued or contingent), except liabilities
under contracts entered into in the ordinary course of business, (iii)
discharged or satisfied any lien or encumbrance or incurred or paid any
obligation or liability (absolute, accrued or contingent) other than current
liabilities shown on the Iapps Financial Statements and incurred in the ordinary
course of business, (iv) declared or made any payment, other than ordinary
payments of compensation in amounts consistent with the historic levels, or
distribution to shareholder or purchased or redeemed any Shares or other equity
interests, except for the exercise of stock options or similar rights, and
distributions in the ordinary course of business of a subchapter S-corporation
and required under applicable tax laws, (v) mortgaged, pledged or subjected to
lien any of its assets, tangible or intangible, other than liens of current real
property taxes not yet due and payable or such liabilities or obligations which
would not have a Material Adverse Effect, (vi) sold, assigned or transferred any
of its tangible assets except in the ordinary course of business, or canceled
any material debt or claim, except in the ordinary course of business, in an
individual amount in excess of $2,500, or $7,500 in the aggregate, (vii) sold,
assigned, transferred or granted any license with respect to any patent,
trademark, trade name, service mark, copyright, trade secret or other intangible
asset, except pursuant to license or other agreements entered into in the
ordinary course of business, in an individual amount in excess of $2,500, or
$7,500 in the aggregate, (viii) suffered any material loss of property or
knowingly waived any right of substantial value whether or not in the ordinary
course of business, (ix) made any change in officer compensation, (x) made any
material change in the manner of business or operations of Iapps, (xi) entered
into any transaction except in the ordinary course of business or as otherwise
contemplated hereby, or (xii) entered into any commitment (contingent or
otherwise) to do any of the foregoing.

         2.10  LITIGATION. Except as otherwise set forth on the Disclosure
Schedule, there is no litigation or governmental proceeding or investigation,
pending or, to Iapps' and the Shareholder's knowledge, threatened, against Iapps
or affecting any of Iapps' properties or assets, or against any manager,
officer, key employee, present or former shareholder of Iapps in his capacity as
such, nor to Iapps' or the Shareholder's knowledge has there occurred any event
or does there exist any condition on the basis of which any litigation,
proceeding or investigation

                                      -10-
<PAGE>
might properly be instituted. Except as set forth on the Disclosure Schedule,
each incident or proceeding described on the Disclosure Schedule is fully
covered by insurance except to the extent of applicable insurance deductibles.
To Iapps' or the Shareholder's knowledge, Iapps is not in default with respect
to any order, writ, injunction, decree, ruling or decision of any court,
commission, board or other government agency, except for such order, writ,
injunction, decree, ruling or decision which would not have a Material Adverse
Effect.

         2.11  COMPLIANCE WITH LAWS AND OTHER INSTRUMENTS. Except as set forth
on the Disclosure Schedule, the Company is in compliance with its organization
and governing documents, and in all material respects with the provisions of
each mortgage, indenture, lease, license, other agreement or instrument,
judgment, decree, judicial order, statute and regulation by which it is bound or
to which its properties are subject and where non-compliance would not have a
Material Adverse Effect.

         2.12  ABSENCE OF CHANGES. No event, occurrence, fact, condition,
change, development or effect that has not been disclosed in the Iapps Financial
Statements or on the Disclosure Schedule hereto shall exist or have occurred or
come to exist or been threatened that, individually or in the aggregate, has had
or resulted in or could be expected to become or result in a Material Adverse
Effect on Iapps.

         2.13  TAXES.

               (a) The term "TAXES" as used in this Agreement means all federal,
state, local, foreign net income, alternative or add-on minimum tax, estimated,
gross income, gross receipts, sales, use, ad valorem, value added, transfer,
franchise, capital profits, lease, service, license, withholding, payroll,
employment, excise, severance, stamp, occupation, premium, property,
environmental or windfall profit taxes, customs, duties and other taxes,
governmental fees and other like assessments and charges of any kind whatsoever,
together with all interest, penalties, additions to tax and additional amounts
with respect thereto, and the term "TAX" means any one of the foregoing Taxes.
The term "TAX RETURNS" as used herein means all returns, declarations, reports,
claims for refund, information statements and other documents relating to Taxes,
including all schedules and attachments thereto, and including all amendments
thereof, and the term "Tax Return" means any one of the foregoing Tax Returns.
"TAX AUTHORITY" means any governmental authority responsible for the imposition
of any Tax.

               (b) The Company and the Shareholder each has timely filed all Tax
Returns required to be filed by it or him and has paid all Taxes owed (whether
or not shown as due on such returns), including, without limitation, all Taxes
which the Company (or the Shareholder) is obligated to withhold for amounts paid
or owing to employees, creditors and third parties. All Tax Returns filed by the
Company (or the Shareholder) were complete and correct in all material respects.
Except as set forth on the Disclosure Schedule, none of the Tax Returns filed by
the Company or the Shareholder or Taxes payable by the Company or the
Shareholder have been the subject of an audit, action, suit, proceeding, claim,
examination, deficiency or assessment by any governmental authority, and no such
audit, action, suit, proceeding, claim, examination, deficiency or assessment is
currently pending or, to the knowledge of the Company or the Shareholder,
threatened. Except as set forth on the Disclosure Schedule, the Company or the
Shareholder is not currently the beneficiary of any extension of time within
which to file any Tax

                                      -11-
<PAGE>
Return, and the Company or the Shareholder has not waived any statute of
limitation with respect to any Tax or agreed to any extension of time with
respect to a Tax assessment or deficiency. All material elections with respect
to Taxes with respect to the Company or the Shareholder, as of the date hereof,
are set forth in the Company Audited Financial Statements or in the Company
Disclosure Schedule.

               (c) To the best of the Company's or the Shareholder's knowledge,
no circumstances exist or have existed which would constitute grounds for
assessment against the Company of any tax liability with respect to any period
for which Tax Returns have been filed, including, but not limited to, any
circumstances relating to the existence of a valid subchapter S corporation
election for the Company for any such period. The Company has not filed any
consent to the application of Section 341(0(2) of the Code, to any assets held,
acquired or to be acquired by it. The Company's election to be taxed as a
subchapter S corporation under Section 1361 of the Code has been in effect
throughout the existence of the Company and, accordingly, the Company has never
been subject to any federal income tax by reason of being a "C Corporation" ( as
that term is defined in the Code). No shareholder is a nonresident alien for
purposes of U.S. income taxation, including for purposes of Section 897 of the
Code.

               (d) The Company or the Shareholder is not a party to any Tax
sharing agreement or similar arrangement. The Company has never been a member of
a group filing a consolidated federal income Tax Return (other than a group the
common parent of which was the Company), and the Company or the Shareholder does
not have any liability for the Taxes of any Person.

               (e) There are no liens for Taxes upon any of the assets, other
than for ad valorem Taxes not yet due and payable. The unpaid Taxes of the
Company did not, as of the Balance Sheet Date, exceed by any material amount the
reserve for actual Taxes (as opposed to any reserve for deferred Taxes
established to reflect timing differences between book and Tax income) as shown
on the Iapps Financial Statements, and will not exceed by any material amount
such reserve as adjusted for the passage of time through the Closing Date in
accordance with the past custom and practice of the Company in filing their Tax
Returns. The Company has not incurred any liability for Taxes from January 1,
2004 through the Closing Date other than in the ordinary course of business
consistent with past practice. The Company or the Shareholder is not obligated
to file any Tax Return in any jurisdiction (whether foreign or domestic) other
than those jurisdictions in which it currently files Tax Returns.

         2.14  REAL PROPERTY.

               (a) The Disclosure Schedule sets forth the addresses and uses of
all real property that Iapps owns, leases or subleases, and any lien or
encumbrance on any such owned real property or Iapps' leasehold interest
therein, specifying in the case of each such lease or sublease, the name of the
lessor or sublessor, as the case may be, the lease term and the rental
obligations of the lessee thereunder.

               (b) There are no defaults by Iapps under any existing leases,
subleases or other contractual obligations pertaining to real property that
Iapps owns, leases or subleases, and

                                      -12-
<PAGE>
to the best knowledge of Iapps, by any other party, which might curtail in any
material respect the present use of Iapps' property listed on the Disclosure
Schedule.

         2.15  PERSONAL PROPERTY& CAPITAL EQUIPMENT. The Disclosure Schedule
sets forth a full and complete list of all personal property, including capital
equipment, owned or leased by Iapps. Except as set forth on the Disclosure
Schedule, and except for property sold or otherwise disposed of in the ordinary
course of business, Iapps has good and marketable title, free and clear of any
lien, charge, restriction or encumbrance, to all of such personal property. All
material items of such personal property used in the operation of the business
of Iapps are in good operating condition, normal wear and tear accepted.

         2.16  INTELLECTUAL PROPERTY.

               (a) The "COMPANY INTELLECTUAL PROPERTY" consists of all trade
secrets, copyrights, patents, trademarks, service marks, trade dress, all
registrations and applications with respect thereto and all licenses or rights
under the same, that are owned or used by the Company and are necessary or
incidental to the operation of the business, including without limitation, any
of the foregoing embodied or contained in any of the following: net lists;
domain names and URLs and textual information contained in web sites;
schematics; processes; customer and supplier lists; know-how and show-how;
computer software programs, source code and object code; complete system build
software; development and test tools, documentation, specifications, programmer
and user manuals used by the Company to install, operate, maintain, correct,
test, repair enhance, extend, modify, prepare derivative works based upon,
design, develop, reproduce and package software; all license and other rights in
any third-party product, intellectual property, proprietary or personal rights,
documentation, or tangible or intangible property; all documents, record and
electronic files relating to the design, end user documentation, manufacturing,
quality control, sales, marketing, or customer support; and all products of the
Company currently being licensed or sold or that are currently being developed,
including all hardware products and tools, software products and tools, and
services that are currently licensed, offered or under development by the
Company (the "COMPANY PRODUCTS & SERVICES").

               As used in this Agreement "software" means any and all current
and prior and currently under development versions and releases, and
predecessors of the software and computer programs and applications of the
Company to the extent related to the business as currently being conducted or as
currently required or as reasonably can be anticipated to be conducted in the
future, including all such software and computer programs in machine readable
source code forms and in machine executable object code forms and all related
specifications (including all logic architectures, algorithms and logic flows
and all physical, functional, operating and design parameters), any data used by
or related to software, work in progress relating to corrections, modifications,
revisions, upgrades, translations or enhancements, all Company and third party
development and test tools used to develop or test the software, third party
application program interfaces to the software written by them and all methods
of implementation and packaging, together with all associated know-how and
show-how and all related Documentation. As used in this Agreement,
"DOCUMENTATION" means all documentation, specifications, manuals and other
materials relating to the software, including programmer and user manuals which
are used by the Company to install, operate, maintain, correct, test, repair,
enhance, extend, modify, prepare

                                      -13-
<PAGE>
derivative works based upon, design, develop, reproduce and package such
software.

               (b) The Disclosure Schedule lists: (i) all patents, copyright
registrations, mask works, trademarks, service marks, trade dress, any renewal
rights for any of the foregoing, and any applications and registrations for any
of the foregoing, which are included in the Company Intellectual Property and
owned or licensed by or on behalf of the Company and are necessary to its
business (except for standard off-the-shelf software such as Microsoft Office);
(ii) all Company Products & Services; and (iii) all licenses, sublicenses and
other agreements to which the Company is a party and pursuant to which the
Company or any other person is authorized to use the Company Intellectual
Property or exercise any other right with regard thereto. The Company has
delivered to Bridgeline true and complete copies of the agreements described in
(iii) hereof

               (c) The Company Intellectual Property consists solely of items
and rights which are either: (i) owned by the Company; (ii) in the public
domain; or (iii) rightfully used and authorized for use by the Company and its
successors pursuant to a valid license. All Company Intellectual Property which
consists of licenses or other rights to third party intellectual property is set
forth on the Disclosure Schedule. The Company has all rights in the Company
Intellectual Property necessary to commercially exploit the same in connection
with the Company's current, former, and planned or scheduled (whether for
release or development) activities in all geographic locations and fields of use
in which the Company currently operates or is scheduled to operate, and to
sublicense any or all such rights to third parties, including the right to grant
further sublicenses. All software created by the Company is as described in the
Documentation and performs in all material respects in accordance with the
specifications included in the Documentation (subject to software errors or bugs
which do not interfere with the operation of the software). The Company has
taken all reasonable measures to protect the proprietary nature of each item of
Company Intellectual Property. No other person or entity has any rights to any
of the Company Intellectual Property (except pursuant to agreements or licenses
specified on the Disclosure Schedule), and no other person or entity is
infringing, violating or misappropriating any of the Company Intellectual
Property. The Company owns or has the right to use all Intellectual Property
necessary (i) to use, market and distribute the products, marketed, sold or
licensed, and to provide the services provided, by the Company to other parties,
or (ii) to operate the Company's internal systems that are material to the
business or operations of the Company, including, without limitation, computer
hardware systems, software applications and embedded systems (the "INTERNAL
SYSTEMS"). Each item of Company Intellectual Property will be owned or available
for use by Bridgeline immediately following the Closing on substantially
identical terms and conditions as it was immediately prior to the Closing,
except for any changes that do not, either individually or on the aggregate,
have a Material Adverse Effect. Except as set forth on the Disclosure Schedule,
the Company's software, to the Company's knowledge, and the Internal Systems are
free from significant defects or programming errors which interfere with the
operation and use of the software and Internal Systems and conform in all
material respects to the written documentation and specifications therefor.

               (d) The Company is not, nor as a result of the execution or
delivery of this Agreement, the other Transaction Documents and all other
agreements contemplated hereby, or performance of the Company's obligations
hereunder, will the Company be, in violation of any license, sublicense or other
agreement to which the Company is a party. The Disclosure

                                      -14-
<PAGE>
Schedule lists all contracts or agreements under which the Company is obligated
to provide any consideration (whether financial or otherwise) to any third
party, or under which any third party otherwise would be entitled to any
consideration, with respect to any exercise of rights by the Company or Parent
in the Company Intellectual Property. The Disclosure Schedule identifies each
item of Company Intellectual Property that is owned by a party other than the
Company, and the license or agreement pursuant to which the Company uses it
(excluding off-the-shelf software programs licensed by the Company pursuant to
"shrink wrap" or "click wrap" licenses, such exclusion only extending to
programs used by the Company solely for non-revenue generating administrative
functions).

               (e) Except as set forth on the Disclosure Schedules, the use,
reproduction, modification, distribution, licensing, sublicensing, sale or any
other exercise of rights by the Company with respect to any of the Company
Products & Services does not infringe any intellectual property right, right of
privacy, or right in personal data of any person or entity. No claims (i)
challenging the validity, effectiveness or ownership by the Company of any of
the Company Intellectual Property, or (ii) to the effect that the use,
reproduction, modification, manufacturing, distribution, licensing,
sublicensing, sale or any other exercise of rights by the Company with respect
to any of the Company Products and Services infringes or will infringe on any
intellectual property or other proprietary or personal right of any person, have
been asserted to the Company or, to the knowledge of the Company or the
Shareholder, are threatened by any person, nor to the knowledge of the Company
or the Shareholder, are there any valid grounds for any bona fide claim of any
such kind. All granted or issued patents and mask works and all registered
trademarks listed on the Disclosure Schedule and all registered copyrights held
by the Company are valid, enforceable and subsisting. To the knowledge of the
Company and the Shareholder, there are no pending or unissued patent rights
which infringe upon or impair the Company Intellectual Property. To the
knowledge of the Company and the Shareholder, there is no unauthorized use,
infringement or misappropriation of any of the Company Intellectual Property by
any third party, employee or former employee.

               (f) The Company has not disclosed the source code for any of the
software owned by the Company or other confidential information constituting,
embodied in or pertaining to the software to any person or entity, except
pursuant to the agreements listed on the Disclosure Schedule, and the Company
has taken reasonable measures to prevent disclosure of such source code. No
parties other than the Company possess any current or contingent rights to any
source code that is part of the Company Intellectual Property.

               (g) Except as set forth on the Disclosure Schedule, all of the
copyrightable materials (including software) incorporated in or bundled with the
Company's Products & Services have been created by employees of the Company
within the scope of their employment by the Company or by independent
contractors of the Company who have executed agreements expressly assigning all
right, title and interest in such copyrightable materials to the Company. No
portion of such copyrightable materials was jointly developed with any third
party. The Disclosure Schedule lists all parties who have created any portion
of, or otherwise have any rights in or to, the Company Intellectual Property,
other than employees of the Company who have no rights in or to any Company
Intellectual Property. Except as set forth on the Disclosure Schedule, the
Company has secured from all parties who have created any portion of, or
otherwise have any rights in or to, the Company Intellectual Property valid and
enforceable

                                      -15-
<PAGE>
written assignments of any such work or other rights to Company and has provided
true and complete copies of such assignments to Bridgeline.

               (h) The Disclosure Schedule identifies each license or other
agreement (or type of license or other agreement) pursuant to which the Company
has licensed, distributed or otherwise granted any rights to any third party
with respect to, any Company Intellectual Property. The Disclosure Schedule
includes a true and complete list of support and maintenance agreements relating
to Company Intellectual Property including the identity of the parties entitled
to receive such service or maintenance, and the term of such agreements.

               (i) Except as set forth on the Disclosure Schedule, the Company
has obtained written agreements from all employees and third parties with whom
Company has shared confidential proprietary information (i) of the Company, or
(ii) received from others which the Company is obligated to treat as
confidential, which agreements require such employees and third parties to keep
such information confidential. The Company has delivered or given access to all
copies of such written agreements, as executed, to Bridgeline. None of the
present or former employees, officers or directors of the Company owns directly
or indirectly, in whole or in part, any Company Intellectual Property or
application therefor.

               (j) To the knowledge of the Company and the Shareholder, none of
the Internal Systems, or the use thereof, infringes or violates, or constitutes
a misappropriation of, any Intellectual Property rights of any person or entity.
The Disclosure Schedule lists any complaint, claim or notice, or written threat
thereof, received by the Company alleging any such infringement, violation or
misappropriation; and the Company has provided to Bridgeline complete and
accurate copies of all written documentation in the possession of the Company
relating to any such complaint, claim, notice or threat. The Company has
provided to Bridgeline complete and accurate copies of all written documentation
in the Company's possession relating to claims or disputes known to the Company
concerning any Company Intellectual Property.

         2.17  AGREEMENTS OF MANAGERS, OFFICERS, EMPLOYEES AND CONSULTANTS.
Except as set forth on the Disclosure Schedule, to Iapps' and the Shareholder's
knowledge, no current or former officer or employee of or consultant to Iapps is
in violation of any term of any employment contract, non-competition agreement,
non-disclosure agreement, patent disclosure or assignment agreement or other
contract or agreement containing restrictive covenants relating to the conduct
of any such current or former shareholder, officer, employee, or consultant or
otherwise relating to the use of trade secrets or proprietary information of
others by any such person. The Disclosure Schedule sets forth the name and
address of each person currently serving as an officer or a manager of Iapps,
and each person listed on the Disclosure Schedule was duly elected and is
presently serving as such officer or manager. Other than as set forth on the
Disclosure Schedule, all current or former employees and consultants of Iapps
have (i) executed a non-disclosure agreement with Iapps or (ii) executed a
non-competition agreement with Iapps. Except as disclosed on the Disclosure
Schedule, since the Balance Sheet Date, Iapps has not paid or become committed
to pay any bonus or similar additional compensation to any officer, manager or
employee of Iapps.

         2.18  GOVERNMENTAL LICENSES. Iapps has all the material permits,
licenses, orders, franchises and other rights and privileges of all federal,
state, local or foreign governmental or

                                      -16-
<PAGE>
regulatory bodies necessary for Iapps to conduct its business as presently
conducted. All such permits, licenses, orders, franchises and other rights and
privileges are in full force and effect and, to Iapps' knowledge, no suspension
or cancellation of any of them is threatened, and none of such permits,
licenses, orders, franchises or other rights and privileges will be Materially
Adversely Affected by the consummation of the transactions contemplated by this
Agreement or any of the Transaction Documents.

         2.19  LIST OF MATERIAL CONTRACTS AND COMMITMENTS. The Disclosure
Schedule sets forth a complete and accurate list of all material contracts to
which Iapps is a party or by or to which any of its assets or properties is
bound or subject. As used on the Disclosure Schedule, the phrase "MATERIAL
CONTRACT" means and includes every material agreement or material understanding
of any kind, written or oral, which is legally enforceable by or against Iapps,
and specifically includes without limitation (a) contracts and other agreements
with any current or former officer, manager, employee, consultant or shareholder
or any partnership, company, joint venture or any other entity in which any such
person or entity has an interest; (b) agreements with any labor union or
association representing any Iapps employee; (c) contracts and other agreements
for the provision of services other than by employees of Iapps which entail a
reasonably foreseeable financial consequence to any contracting party of at
least $15,000; (d) bonds or other security agreements provided by any party in
connection with the business of Iapps; (e) contracts and other agreements for
the sale of any of the assets or properties of Iapps other than in the ordinary
course of business or for the grant to any person or entity of any preferential
rights to purchase any of said assets or properties; (f) joint venture
agreements relating to the assets, properties or business of Iapps or by or to
which any of its assets or properties are bound or subject; (g) contracts or
other agreements under which Iapps agrees to indemnify any party, to share tax
liability of any party, or to refrain from competing with any party; (h) any
contracts or other agreements with regard to any indebtedness of Iapps; or (i)
any other contract or other agreement whether or not made in the ordinary course
of business and involving a reasonably foreseeable financial consequence to any
contracting party of at least $15,000. Iapps has delivered to Bridgeline true,
correct and complete copies of all such contracts, together with all
modifications and supplements thereto. Except as set forth on the Disclosure
Schedule, each of the contracts listed on the Disclosure Schedule is in full
force and effect. Iapps is not in breach of any of the material provisions of
any such Material Contract, nor, to the best knowledge of Iapps and the
Shareholder, is any other party to any such contract in default thereunder, nor
does any event or condition exist which with notice or the passage of time or
both would constitute a default of a material provision thereunder, except for
any such breach or default that individually and in the aggregate would not have
a Material Adverse Effect on the business of Iapps. Iapps has performed in all
material respects all obligations required to be performed by it under each such
contract as of the Closing.

         2.20  ACCOUNTS RECEIVABLE. The Disclosure Schedule sets forth a full
and complete list of Iapps' accounts receivable and accounts receivable reserve
as of close of business on the date immediately preceding the Closing Date.
Except as set forth on the Disclosure Schedule, all accounts and notes
receivable reflected on the Iapps' Financial Statements, and all accounts and
notes receivable arising subsequent to the date of such balance sheets, have
arisen in the ordinary course of business and represent valid obligations owing
to Iapps. Except as set forth on the Disclosure Schedule, to the best knowledge
of Iapps and the Shareholder, none of Iapps' receivables is subject to any claim
of offset, recoupment, setoff or counterclaim and neither Iapps

                                      -17-
<PAGE>
nor the Shareholder has knowledge of any specific facts or circumstances
(whether asserted or unasserted) that could give rise to any such claim. No
material amount of receivables are contingent upon the performance by Iapps of
any obligation or contract other than normal warranty repair and replacement. No
person has any lien on any such receivables and no agreement for deduction or
discount has been made with respect to any such receivables. Except as set forth
on the Disclosure Schedule, to the best knowledge of Iapps and the Shareholder,
all of Iapps' accounts and notes receivable reflected on the Iapps' Financial
Statements and all accounts and notes receivable arising subsequent to the date
of such balance sheets are collectible in full by Iapps in the ordinary course
of business.

         2.21  INSURANCE COVERAGE. The Disclosure Schedule hereto contains an
accurate summary of the insurance policies currently maintained by Iapps. Except
as described on the Disclosure Schedule, there are currently no claims pending
against Iapps pursuant to any insurance policy currently in effect and covering
the property, the business or the employees of Iapps.

         2.22  EMPLOYEE MATTERS. Except as set forth on the Disclosure Schedule,
neither the Company nor any person that together with the Company would be
treated as a single employer (an "ERISA AFFILIATE") under Section 414 of the
Code has established or maintains or is obligated to contribute to (a) any
bonus, severance, stock option, or other type of incentive compensation plan,
program, agreement, policy, commitment, contract or arrangement (written or
oral), (b) any pension, profit-sharing, retirement or other plan, program or
arrangement, or (c) any other employee benefit plan, fund or program, including,
but not limited to, those described in Section 3(3) of the Employee Retirement
Income Security Act of 1974, as amended ("ERISA"). All such plans (individually,
a "PLAN" and collectively, the "PLANS") have been operated and administered in
all material respects in accordance with their terms, as applicable, with the
requirements prescribed by any and all statutes, orders, rules and regulations,
including but not limited to ERISA and the Code. No act or failure to act by the
Company has resulted in, nor do the Company have knowledge of a non-exempt
"prohibited transaction" (as defined in ERISA) with respect to the Plans.
Neither the Company nor any ERISA Affiliate maintains or has ever maintained or
contributed to any Plan subject to Title IV of ERISA. With respect to the
employees and former employees of the Company, there are no employee
post-retirement medical or health plans in effect, except as required by Section
4980B of the Code.

         2.23  CUSTOMERS. Except as set forth on the Disclosure Schedule:

               (a) The relationships of Iapps with its significant customers are
good commercial working relationships and no significant customer of Iapps has
canceled or otherwise terminated, or to Iapps' or the Shareholder's knowledge,
threatened to cancel or otherwise to terminate its relationship with Iapps, or
has during the last twelve (12) months decreased materially, or threatened to
decrease or limit materially, its usage or purchase of the Company Products &
Services except for normal cyclical changes related to customers' businesses and
except for changes which have not had a Material Adverse Effect on Iapps.

               (b) No supplier or customer has notified Iapps that it intends to
cancel or otherwise substantially modify its relationship with Iapps or to
decrease materially or limit its services, supplies or materials to Iapps, or
its usage or purchase of the services of Iapps, and, to

                                      -18-
<PAGE>
the best knowledge of Iapps and the Shareholder, the consummation of the
transactions contemplated hereby will not materially adversely affect the
relationship of Bridgeline with any such supplier or customer.

         2.24  NO BROKERS OR FINDERS. Except as set forth on the Disclosure
Schedule, no person or entity has or will have, as a result of the actions of
Iapps or the Shareholder, any right, interest or claim against or upon Iapps or
Bridgeline for any commission, fee or other compensation as a finder or broker
arising from the transactions contemplated by this Agreement.

         2.25  TRANSACTIONS WITH INSIDERS. Except as set forth on the Disclosure
Schedule, there are no currently outstanding loans, leases or other contracts
between Iapps and any officer or manager of Iapps, or any person or entity
owning five percent (5%) or more of the total number of Shares, or any
respective family member or affiliate of any such officer, manager or
shareholder.

         2.26  GUARANTEES. Except as set forth on the Disclosure Schedule, Iapps
has not assumed, guaranteed, endorsed or otherwise become directly or
contingently liable on or for any indebtedness of any other person or entity,
except guarantees by endorsement of negotiable instruments for deposit or
collection or similar transactions in the ordinary course of business.

         2.27  BANK ACCOUNTS, SIGNING AUTHORITY, POWERS OF ATTORNEY. Except as
set forth on the Disclosure Schedule, Iapps has no account or safe deposit box
in any bank and no person or entity has any power, whether singly or jointly, to
sign any checks on behalf of Iapps, to withdraw any money or other property from
any bank, brokerage or other account of Iapps, or to act pursuant to any power
of attorney granted by Iapps at any time for any purpose.

         2.28  BOOKS AND RECORDS. The books and records of Iapps made available
to Bridgeline for inspection include copies of the by-laws and other governing
documents as currently in effect and accurately record therein in all material
respects all actions, proceedings, consents and meetings of the Board and
shareholder of Iapps and any committees thereof.

         2.29  PRIVACY AND DATA COLLECTION. The Company has at all times
complied with all laws and regulations relating or applicable to privacy,
publicity, data protection, collection, storage, transfer, release and use of
personal information and user information gathered or accessed in the course of
the business and operations of the Company. The Company has at all times
complied in all material respects with all rules, policies and procedures
established by the Company from time to time with respect to privacy, publicity,
data protection, collection, storage, transfer and use of personal information
and user information gathered or accessed in the course of the business and
operations of the Company (collectively, the "PRIVACY POLICIES"), noncompliance
with which would result in a Material Adverse Effect. No claims have been
asserted or, to the knowledge of the Company and the Shareholder, threatened
against the Company by any Person or governmental entity alleging a violation of
such Person's, or any other Person's, privacy, publicity, personal or
confidentiality rights under any such laws, or a breach or other violation of
any of the Privacy Policies, where such violation would have a Material Adverse
Effect. The Company has taken commercially reasonable measures (including but
not limited to, implementing and monitoring compliance with adequate measures
with

                                      -19-
<PAGE>
respect to technical and physical security) to ensure that personal and consumer
information is protected against loss and against unauthorized access, use,
modification, disclosure or other misuse. To the knowledge of the Company and
the Shareholder, there has been no unauthorized access to, use, modification,
disclosure or other misuse of such information. Neither the execution, delivery
nor performance of this Agreement nor the consummation of the transactions
contemplated hereby shall result in any breach or violation of the Privacy
Policies or violate any Law with respect to such data or information.

         2.30  TERMINATION OF BENEFIT PLAN(S). Until six (6) months following
the Closing, or earlier if otherwise agreed by the parties hereto, Bridgeline
will continue to provide coverage under the Company's health and disability
plans. Following the closing, Bridgeline will take all necessary actions
required to authorize the termination of the Company's 401K or other retirement
plan, subject to the consummation of the Merger, including without limitation
the adoption of appropriate Board of Directors' resolutions, the preparation of
appropriate notices to plan participants and the sending of an appropriate
notice to the plan sponsor and participants. The Company has funded, or made
adequate reserves for, the full amounts of the employer contributions that are
required under the terms of said plan to be paid by the Company with respect to
the year ended December 31, 2003 and the period from and including January 1,
2004 through and including the Closing Date.

                                   ARTICLE III

              REPRESENTATIONS, COVENANTS AND RIGHTS OF SHAREHOLDER
              ----------------------------------------------------

         3.1   SHAREHOLDER' REPRESENTATIONS.

         NOTWITHSTANDING THE REPRESENTATIONS AND WARRANTIES SET FORTH IN THIS
SECTION 3.1 WHICH ARE INTENDED TO COMPLY WITH THE REQUIREMENTS OF FEDERAL AND
STATE SECURITIES LAWS, FOR PURPOSES OF THIS AGREEMENT, INCLUDING WITHOUT
LIMITATION THE INDEMNITY OBLIGATIONS OF BRIDGELINE SET FORTH HEREIN, BRIDGELINE
ACKNOWLEDGES AND AGREES THAT (1) THE SHAREHOLDER IS RELYING ON THE
REPRESENTATIONS AND WARRANTIES OF BRIDGELINE SET FORTH IN THIS AGREEMENT, (2)
SUCH REPRESENTATIONS AND WARRANTIES OF BRIDGELINE ARE MATERIAL INDUCEMENT TO THE
SHAREHOLDER TO ENTER INTO THIS AGREEMENT AND TO EFFECTUATE THE TRANSACTIONS
CONTEMPLATED HEREIN AND (3) THE REPRESENTATIONS AND WARRANTIES OF SHAREHOLDER IN
THIS SECTION 3.1 SHALL NOT LIMIT OR OTHERWISE ABROGATE IN ANY RESPECT THE
REPRESENTATIONS AND WARRANTIES OF BRIDGELINE IN THIS AGREEMENT.

         The Shareholder represents that his present intention is to acquire the
Bridgeline Stock to be issued in connection with this Agreement for his own
account and that such Bridgeline Stock are being and will be acquired for the
purpose of investment and not with a view to distribution or resale thereof. The
Shareholder represents that he has had an opportunity to ask questions of and
receive answers from the authorized representatives of Bridgeline and to review
any relevant documents and records concerning the business of Bridgeline and the
terms and conditions of this investment and that any such questions have been
answered to the Shareholder's satisfaction.

                                      -20-
<PAGE>
The Shareholder acknowledges that it has been called to his attention that this
investment involves a high degree of risk and that Bridgeline and has a limited
operating history. The Shareholder acknowledges that he can bear the economic
risks of his investment in the Bridgeline Stock and that he has such knowledge
and experience in financial or business matters that he is capable of evaluating
the merits and risks of this investment in the Bridgeline Stock and protecting
his own interests in connection with this investment. Except as set forth on the
Disclosure Schedule attached hereto, the Shareholder hereby represents and
warrants to Bridgeline that he is an "accredited investor" as such term is
defined under Section 501(a) of Regulation D promulgated under the Securities
Act. The Shareholder understands that the Bridgeline Stock to be issued in
connection with the transactions contemplated hereby have not been registered
under the Securities Act and that such shares must be held indefinitely unless a
subsequent disposition thereof is permitted under the Securities Act or is
exempt from such registration. The Shareholder further represents that he
understands and agrees that until transferred as herein provided, or transferred
pursuant to the provisions of Rule 144 of the Securities Act, all certificates
evidencing the Bridgeline Stock to be issued in connection with the Closing,
whether upon initial issuance or upon transfer thereof, shall bear a legend (and
Bridgeline will make a notation on its transfer books to such effect)
prominently stamped or printed thereon reading substantially as follows:

         THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED
         UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE
         SECURITIES LAWS. THESE SECURITIES HAVE BEEN ACQUIRED FOR INVESTMENT AND
         NOT WITH A VIEW TO DISTRIBUTION OR RESALE AND MAY NOT BE SOLD,
         MORTGAGED, PLEDGED, HYPOTHECATED, OR OTHERWISE TRANSFERRED WITHOUT AN
         EFFECTIVE REGISTRATION STATEMENT FOR SUCH SECURITIES UNDER THE
         SECURITIES ACT OF 1933, AS AMENDED, AND APPLICABLE STATE SECURITIES
         LAWS, OR UNLESS AN EXEMPTION FROM REGISTRATION UNDER SUCH ACT IS
         AVAILABLE.

         3.2   AGREEMENTS REQUIRED IN A PUBLIC OFFERING. The Shareholder agrees
that upon request by any underwriter managing a public offering of shares of
Bridgeline Common Stock, the Shareholder will agree to any lockup or other
provisions affecting the transferability of the shares of Bridgeline Common
Stock owned by the Shareholder in the form executed by the executive officers of
Bridgeline, and will provide such underwriter and its counsel with such
information with respect to the Shareholder as is reasonably required to carry
out such public offering.

         3.3   REGISTRATION RIGHTS AND OTHER RIGHTS AFFECTING STOCK.

               (a) (i) Bridgeline has no registration rights with any
stockholders. If at any time following the closing Bridgeline shall determine to
register in a public offering for its own account under the Securities Act any
Bridgeline Common Stock, and shall include in such registration shares of
Bridgeline Common Stock held of record or beneficially by Thomas Massie,
Bridgeline shall send to the Shareholder written notice of such determination
and, if within ten (10) days after receipt of such notice, the Shareholder shall
so request in writing,

                                      -21-
<PAGE>
Bridgeline shall use its best efforts to include in such registration statement
all or any part of the Shareholder's Bridgeline Common Stock the Shareholder
requests to be registered. This right shall not apply to a registration of
shares of Bridgeline Common Stock on Form S-4 or Form S-8 (or their then
equivalents) relating to share of Bridgeline Common Stock to be issued by
Bridgeline in connection with any acquisition of any entity or other business
combination involving Bridgeline, or shares of Bridgeline Common Stock issuable
in connection with any stock option, stock compensation or other employee
benefits plan of Bridgeline for the benefit of directors, officers, employees or
consultants of Bridgeline.

                   (ii) If, in connection with any offering involving an
underwriting of Bridgeline Common Stock to be issued by Bridgeline and/or
selling stockholders, the managing underwriter or Bridgeline shall impose a
limitation on the number of shares of such Bridgeline Common Stock which may be
included in any such registration statement because, in its judgment, such
limitation is necessary to effect an orderly public distribution of the
Bridgeline Common Stock and to maintain a stable market for the securities of
Bridgeline, then Bridgeline shall be obligated to included in such registration
statement only such limited portion (which may be none) of the Shares with
respect to which the Shareholder has requested inclusion hereunder, PRO RATA
based upon the number of shares originally requested for inclusion in such
registration statement by all selling stockholders requesting inclusion.

               (b) Bridgeline covenants and agrees that from and after the
Effective Date until the registration of the Shareholder's Bridgeline Common
Stock, the Shareholder shall be granted and his shares of Bridgeline Common
Stock shall be accorded any and all anti-dilution protection or pre-emptive,
registration, tag along, first refusal or other preferential rights as shall be
granted by Bridgeline to any person with respect to any shares of Bridgeline
Common Stock. The provisions of this Section 3.3(b) shall not apply to future
issuances of Bridgeline capital stock in connection with any public or private
financing of Bridgeline or any subsidiary thereof, whether debt or equity, from
institutional or other accredited investor sources, including but not limited to
a public offering of Bridgeline Common Stock.

         3.4   RESTRICTIVE UNDERTAKINGS.

               (a) NONCOMPETITION COVENANT. The restrictive covenants set forth
in this Section 3.4 are a material inducement for Bridgeline to enter into this
Agreement. For good and valuable consideration provided pursuant to this
Agreement, the receipt and sufficiency of which is hereby acknowledged, the
Shareholder agrees that, during the Restrictive Period (as hereinafter defined),
he shall not, directly or indirectly, without the consent of Bridgeline: (i)
invest (except for the ownership of less than 3% of the capital stock of a
publicly held company), or hold a directorship or other position of authority in
any of Bridgeline's Direct Competitors ("DIRECT COMPETITORS" defined as: any
person or entity, or a department or division of an entity, whereby more than
25% of the person's or entity's total revenues are derived from the Competitive
Services ("COMPETITIVE SERVICES" defined as design and development for third
parties of: Internet and Intranet Web sites and solutions, content management or
document management software, custom web (internet) applications, and/or
multimedia CDs and DVDs or services such as Intranet and Extranet consulting
services or Web hosting services)), (ii) undertake planning for an organization
or offering of Competitive Services, (iii) combine or

                                      -22-
<PAGE>
collaborate with other employees or representatives of Bridgeline or any third
party for the purpose of organizing, engaging in, or offering Competitive
Services, or (iv) be employed by, serve as a consultant to or otherwise provide
services to (whether as principal, partner, shareholder, member, officer,
director, stockholder, agent, joint venturer, creditor, investor or otherwise),
or participate in the management of a Direct Competitor or participate in any
other business that Bridgeline may be engaged in at the date of the termination
of Shareholder's Employment Agreement. The foregoing restrictive covenant shall
not restrict the Shareholder from providing web design services to any
organization, other than a Direct Competitor, as an employee of such
organization in the event the Shareholder's employment by Bridgeline is
terminated following the closing without "cause" or for "good reason in
accordance with the terms of the Shareholder's Employment Agreement with
Bridgeline.

               (b) NONSOLICITATION OF CUSTOMERS. The Shareholder agrees that,
during the Restrictive Period, he shall not directly or indirectly, either for
himself or for any other person, corporation, partnership, limited liability
company or any other business entity, service or supervise or assist the
servicing or supervision of, divert or take away or attempt to divert or take
away, or directly or indirectly call on or solicit or attempt to call on or
solicit any of the Clients (as hereinafter defined) of Bridgeline, or
communicate, advise or consult with, write or respond to, or inform any such
Client for the purpose of soliciting, selling or recommending Competitive
Services, or otherwise attempt to induce any such Client to terminate, modify or
reduce such Client's relationship with Bridgeline.

               (c) NONSOLICITATION OF EMPLOYEES. The Shareholder agrees that,
during the Restrictive Period, he shall not directly or indirectly (including
but not limited to, through the use of "headhunters," recruiters or employment
agencies, and whether on-line or off-line recruiting activities) or by action in
concert with others, hire, recruit or otherwise induce or influence (or seek to
induce or influence) any person who is or shall be hereafter engaged (as an
employee, agent, independent contractor or otherwise) by to terminate such
Person's employment or engagement, or employ or engage, seek to employ or
engage, or cause any other Person, corporation, partnership, limited liability
company or other business entity (whether for-profit or non-profit) to employ or
engage or seek to employ or engage any such person. This restriction includes
that the Shareholder shall not (i) disclose to any third party the names,
backgrounds or qualification of any of Bridgeline's employees or otherwise
identify them as potential candidates for employment, or (ii) participate in any
pre-employment interviews or consultations with such employee.

               (d) RESTRICTIVE PERIOD. For purposes of this Section, the term
Bridgeline shall include Bridgeline and any of its subsidiaries, divisions or
business units. For purposes of this Section, the term "Restrictive Period"
shall mean the period commencing on the Closing Date and ending on the later of:
(i) three-year anniversary thereof, or (ii) twelve (12) months following the
termination of any employment relationship between Bridgeline. For the purposes
of this Section, "Client" shall mean any person or entity to which Bridgeline
has provided services to or made Proposals to at any time within the twelve (12)
months preceding this Agreement or thereafter. "Proposal" shall mean any
Client-specific, BONA FIDE proposal for services that included a description of
services, time line and proposed fees for the project.

                                      -23-
<PAGE>
               (e) GEOGRAPHIC RESTRICTIONS REASONABLE. The Shareholder expressly
declares that the territorial and time limitations contained in this Section are
entirely reasonable and are properly and necessarily required for the adequate
protection of the business, operations, trade secrets and goodwill of the
Bridgeline and are given as an integral part of the acquisition, but for which
Bridgeline would not have entered into this Agreement. It is the desire and
intent of the Shareholder and Bridgeline that the provisions of this Section
shall be enforced to the fullest extent permissible under the laws and public
policies applied in each jurisdiction in which enforcement is sought.
Accordingly, if any particular provision of this Section, including but not
limited to, any territorial or time limitations set forth in this Section, shall
be adjudicated to be invalid or unenforceable by a court of competent
jurisdiction, whether due to passage of time, change of circumstances or
otherwise, the provisions of this Section shall be deemed amended to delete
therefrom the portion thus adjudicated to be invalid or unenforceable, or to
reduce said territorial or time limitations to such areas or periods of time as
said court shall deem reasonable, such deletion or reduction to apply only with
respect to the operation of this Section in the particular jurisdiction in which
such adjudication is made.

               (f) RIGHTS CUMULATIVE. The non-competition and non-solicitation
provisions contained herein are in addition to, and not in limitation of, any
rights that Bridgeline may have under any other under contract, law or
otherwise, including but not limit to, the respective Employment Agreement
between Bridgeline and the Shareholder. The Shareholder acknowledges that the
remedy at law for any breach of this Section may be inadequate. The Shareholder
agrees that upon any such breach of this Section, Bridgeline or shall, in
addition to all other available remedies (including but not limited to, seeking
an injunction or other equitable relief), be entitled to injunctive relief
without having to prove the inadequacy of the remedies available at law and
without being required to post bond or other security.

               (g) COMPUTATION OF RESTRICTIVE PERIOD. All time periods in this
Section shall be computed by excluding from such computation any time during
which the Shareholder is in violation of any provision of this Section and any
time during which there is pending in any court of competent jurisdiction any
action (including any appeal from any final judgment) in which action Bridgeline
seeks to enforce the agreements and covenants in this Section or in which any
person or entity contests the validity of such agreements and covenants or their
enforceability or seeks to avoid their performance or enforcement which is
determined adversely against the Shareholder or such other party.

                                   ARTICLE IV

                  REPRESENTATIONS AND WARRANTIES OF BRIDGELINE
                  --------------------------------------------

         References to the "Bridgeline" in this Article IV shall mean Bridgeline
and its subsidiaries, as set forth on the Bridgeline Disclosure Schedule
attached hereto, except where the context reasonably contemplates a reference
solely to Bridgeline, on its own. In order to induce the Company and the
Shareholder to enter into this transaction, Bridgeline makes the following
representations and warranties. The Bridgeline Disclosure Schedule will be
arranged in paragraphs corresponding to the numbered and lettered sections
contained in this Article IV and the disclosure in any paragraph shall qualify
other sections in this Article IV to the extent that it

                                      -24-
<PAGE>
is apparent from a reading of such disclosure that it also qualifies or applies
to such other sections.

         4.1   ORGANIZATION AND QUALIFICATION. Bridgeline is a corporation duly
organized, validly existing and in corporate good standing in the State of
Delaware and has the power and authority to carry on its business as presently
conducted. Bridgeline is duly qualified to do business and is in good standing
in all jurisdictions in which its ownership of property or the character of its
business requires such qualification, except where the failure to be so
qualified will not have a Material Adverse Effect on Bridgeline. Each subsidiary
of Bridgeline is a Company duly organized, validly existing and in corporate
good standing under the laws of its jurisdiction of incorporation.

         4.2   AUTHORITY. This Agreement, and to the extent Bridgeline is a
party to the Transaction Documents, each of the Transaction Documents, has been
duly authorized, executed and delivered by Bridgeline and constitutes a legal,
valid and binding obligation of Bridgeline, enforceable against it in accordance
with its terms. Bridgeline has the right, power and authority to enter into this
Agreement and to carry out the terms and provisions of this Agreement, and to
enter into and carry out the terms of all agreements and instruments required to
be delivered by Bridgeline by the terms of this Agreement, without obtaining the
consent of any third parties or authorities. This Agreement and the transactions
contemplated hereby have been unanimously approved by the Board of Directors of
Bridgeline and no additional corporate action or authorization is required by
Bridgeline in connection with the consummation of the transactions contemplated
by this Agreement.

         4.3   NO CONFLICTS. The execution, delivery and performance of this
Agreement and the Transaction Documents, and the consummation of the
transactions contemplated hereby and thereby by Bridgeline, and compliance with
the provisions hereof, do not and will not: (a) violate, conflict with or result
in a breach of any provision or constitute a default under (i) the Certificate
of Incorporation or By-laws of Bridgeline, or (ii) any contract or agreement to
which Bridgeline is a party or to which the assets or business of Bridgeline may
be subject, except where such violation would not have a Material Adverse
Effect; or (b) violate any judgment, ruling, order, it, injunction, award,
decree, statute, law, ordinance, code, rule or regulation of any court or
foreign, federal, state, county or local government or any other governmental,
regulatory or administrative agency or authority which is applicable to the
assets, properties or business of Bridgeline, except where such violation would
not have a Material Adverse Effect.

         4.4   GOVERNMENT APPROVALS. No consent, approval, license or
authorization, governmental or otherwise, or designation, declaration or filing
with, any court or governmental authority is or will be required on the part of
Bridgeline in connection with the execution, delivery and performance of this
Agreement, the other Transaction Documents and any other agreements or
instruments executed by Bridgeline in connection herewith or therewith the
failure of which would have a Material Adverse Effect.

         4.5  AUTHORIZED AND OUTSTANDING STOCK. Before giving effect to the
transactions to be consummated at the Closing, the authorized capital stock of
Bridgeline consists of 15,000,000 shares of Common Stock, of which 10,281,498
shares are validly issued and outstanding. All of the issued and outstanding
capital stock of Bridgeline were issued (i) in transactions complying

                                      -25-
<PAGE>
with or exempt from the registration provisions of the Securities Act, and (ii)
in compliance with or in transactions exempt from the registration provisions of
applicable state securities or "blue-sky" laws. There are no outstanding
warrants, options, commitments, preemptive rights, rights to acquire or
purchase, conversion rights or demands of any character relating to the capital
stock or other securities of Bridgeline, except that Bridgeline has granted
options to purchase up to 1,490,176 shares of Bridgeline Common Stock to various
employees, officers and directors of Bridgeline, and there are warrants
outstanding to purchase [310,000] shares of Common Stock. There are no voting
trusts or voting agreements with respect to any shares of Bridgeline Common
Stock. Bridgeline is the sole owner of all capital stock of its subsidiaries.
There are no outstanding warrants, options, commitments, preemptive rights,
rights to acquire or purchase, conversion rights or demands of any character
relating to the capital stock or other securities of any of the subsidiaries of
Bridgeline. There are no voting trusts or voting agreements with respect to any
shares of any subsidiary of Bridgeline. All of the issued and outstanding
capital stock in Bridgeline were issued in transactions complying with or exempt
from the registration requirements of the Securities Act of 1933, as amended
(the "SECURITIES ACT"). Any equity interests in Bridgeline that consist of
contractual or so-called "phantom" equity interests are separately identified on
the Disclosure Schedule.

         4.6   SUBSIDIARIES. Except as set forth on the Bridgeline Disclosure
Schedule, Bridgeline does not have, and at no time during its existence has it
had, any Subsidiaries. Except as set forth on the Bridgeline Disclosure
Schedule, Bridgeline does not have any investment or other interest in, or any
outstanding loan or advance to or from, any person or entity, including, without
limitation, any officer, director or shareholder.

         4.7   FINANCIAL INFORMATION. Bridgeline has previously delivered to
Iapps the audited balance sheets of Bridgeline at both December 31, 2001 and
December 31, 2002 and the related statements of earnings and cash flows for the
years then ended (the "ANNUAL BRIDGELINE FINANCIAL STATEMENTS"). In addition,
Bridgeline has previously delivered to Iapps the unaudited balance sheet of
Bridgeline at December 31, 2003 and October 31, 2004, and the related statements
of earnings and cash flows for the twelve months and ten months then ended (the
"INTERIM BRIDGELINE FINANCIAL STATEMENTS"). The Annual and Interim Bridgeline
Financial Statements present fairly, in all material respects, the financial
condition and results of operations of Bridgeline as of and for the relevant
periods in accordance with GAAP applied on a basis consistent with prior
periods, except that none of such unaudited financial statements contain
footnotes and the Interim Bridgeline Financial Statements are subject to normal
year-end adjustments, which adjustments will neither individually nor in the
aggregate have a Material Adverse Effect. Bridgeline has no liability,
contingent or otherwise, which is not adequately reflected in or reserved
against in the Interim Bridgeline Financial Statements that could materially and
adversely affect the financial condition of Bridgeline. Except as set forth in
the Interim Bridgeline Financial Statements or the Bridgeline Disclosure
Schedule, since December 31, 2003 (i) there has been no change in the business,
property, assets, liabilities, condition (financial or otherwise), operations,
results of operations, affairs or prospects of Bridgeline except for changes in
the ordinary course of business which, in the aggregate, would not have a
Material Adverse Effect on Bridgeline, and (ii) none of the business, property,
assets, liabilities, condition (financial or otherwise), operations, result of
operations, affairs or prospects of Bridgeline have been materially adversely
affected by any occurrence or development, in the aggregate, whether or not
insured against.

                                      -26-
<PAGE>
         4.8   EVENTS SUBSEQUENT TO THE DATE OF THE FINANCIAL STATEMENTS. Except
as set forth on the Bridgeline Disclosure Schedule, or in Annual or Interim
Bridgeline Financial Statements, since October 31, 2004, Bridgeline has not (i)
issued any stock, bond or other corporate security; (ii) borrowed any amount or
incurred or become subject to any material liability (absolute, accrued or
contingent), except liabilities under contracts entered into in the ordinary
course of business; (iii) discharged or satisfied any lien or encumbrance or
incurred or paid any obligation or liability (absolute, accrued or contingent)
other than current liabilities shown on Bridgeline Financial Statements and
incurred in the ordinary course of business or such liabilities which would not
have a Material Adverse Effect; (iv) declared or made any payment, other than
ordinary payments of compensation in amounts consistent with the historic
levels, or distribution to stockholders or purchased or redeemed any shares of
its capital stock or other securities, except for the exercise of stock options
or similar, and distributions in the ordinary course of business and required
under applicable tax law; (v) mortgaged, pledged or subjected to lien any of its
assets, tangible or intangible, other than liens of current real property taxes
not yet due and payable; (vi) sold, assigned or transferred any of its tangible
assets except in the ordinary course of business, or canceled any material debt
or claim, except in the ordinary course of business; (vii) sold, assigned,
transferred or granted any license with respect to any patent, trademark, trade
name, service mark, copyright, trade secret or other intangible asset, except
pursuant to license or other agreements entered into in the ordinary course of
business; (viii) suffered any material loss of property or waived any right of
substantial value whether or not in the ordinary course of business; (ix) made
any change in officer compensation; (x) made any material change in the manner
of business or operations of Bridgeline; (xi) entered into any transaction
except in the ordinary course of business or as otherwise contemplated hereby;
or (xii) entered into any commitment (contingent or otherwise) to do any of the
foregoing.

         4.9   LITIGATION. Except as otherwise set forth on the Bridgeline
Disclosure Schedule, there is no litigation or governmental proceeding or
investigation, pending or, to Bridgeline's knowledge, threatened, against
Bridgeline or affecting any of Bridgeline' s properties or assets, or against
any officer, director, or key employee of Bridgeline in his capacity as such,
nor has there occurred any event or, to Bridgeline's knowledge, does there exist
any condition on the basis of which any litigation, proceeding or investigation
might properly be instituted. Except as set forth on the Bridgeline Disclosure
Schedule, each incident or proceeding described on the Bridgeline Disclosure
Schedule is fully covered by insurance. To the best of Bridgeline's knowledge,
Bridgeline is not in default with respect to any order, it, injunction, decree,
ruling or decision of any court, commission, board or other government agency,
except for such order, writ, injunction, decree, ruling or decision which would
not have a Material Adverse Effect.

         4.10  COMPLIANCE WITH LAWS AND OTHER INSTRUMENTS. Bridgeline is in
compliance with all of the provisions of this Agreement, its Certificate of
Incorporation and By-laws, and in all material respects with the provisions of
each mortgage, indenture, lease, license, other agreement or instrument,
judgment, decree, judicial order, statute and regulation by which it is bound or
to which its properties are subject, and where non-compliance would not have a
Material Adverse Effect.

         4.11  ABSENCE OF CHANGES. No event, occurrence, fact, condition,
change, development or effect that has not been disclosed in the Annual or
Interim Bridgeline Financial Statements or on the Disclosure Schedule hereto
shall exist or have occurred or come to exist or

                                      -27-
<PAGE>
been threatened that, individually or in the aggregate, has had or resulted in
or could be expected to become or result in a Material Adverse Effect on
Bridgeline.

         4.12  TAXES.

               (a) Bridgeline has timely filed all Tax Returns required to be
filed and has paid all Taxes owed (whether or not shown as due on such returns),
including, without limitation, all Taxes which Bridgeline is obligated to
withhold for amounts paid or owing to employees, creditors and third parties.
All Tax Returns filed by Bridgeline were complete and correct in all material
respects. Except as set forth on Bridgeline Disclosure Schedule, none of the Tax
Returns filed by Bridgeline or Taxes payable by Bridgeline have been the subject
of an audit, action, suit, proceeding, claim, examination, deficiency or
assessment by any governmental authority, and no such audit, action, suit,
proceeding, claim, examination, deficiency or assessment is currently pending
or, to the knowledge of Bridgeline, threatened. Except as set forth on
Bridgeline Disclosure Schedule, Bridgeline is not currently the beneficiary of
any extension of time within which to file any Tax Return, and Bridgeline has
not waived any statute of limitation with respect to any Tax or agreed to any
extension of time with respect to a Tax assessment or deficiency. All material
elections with respect to Taxes with respect to Bridgeline, as of the date
hereof, are set forth in Bridgeline Audited Financial Statements or in
Bridgeline Disclosure Schedule.

               (b) Bridgeline is not a party to any Tax sharing agreement or
similar arrangement. Bridgeline has never been a member of a group filing a
consolidated federal income Tax Return (other than a group the common parent of
which was Bridgeline), and Bridgeline does not have any liability for the Taxes
of any Person.

               (c) There are no liens for Taxes upon any of the assets, other
than for ad valorem Taxes not yet due and payable. The unpaid Taxes of
Bridgeline did not, as of October 31, 2004, exceed by any material amount the
reserve for actual Taxes (as opposed to any reserve for deferred Taxes
established to reflect timing differences between book and Tax income) as shown
on Bridgeline Unaudited Balance Sheet dated October 31, 2004, and will not
exceed by any material amount such reserve as adjusted for the passage of time
through the Closing Date in accordance with the past custom and practice of
Bridgeline in filing its Tax Returns. Bridgeline has not incurred any liability
for Taxes from October 31, 2004 through the Closing Date other than in the
ordinary course of business consistent with past practice. Bridgeline is not
obligated to file any Tax Return in any jurisdiction (whether foreign or
domestic) other than those jurisdictions in which it currently files Tax
Returns.

         4.13  REAL PROPERTY.

               (a) The Bridgeline Disclosure Schedule sets forth the addresses
and uses of all real property that Bridgeline owns, leases or subleases, and any
lien or encumbrance on any such owned real property or Bridgeline's leasehold
interest therein, specifying in the case of each such lease or sublease, the
name of the lessor or sublessor, as the case may be, the lease term and the
rental obligations of the lessee thereunder.

                                      -28-
<PAGE>
               (b) There are no defaults under any existing leases, subleases or
other contractual obligations pertaining to real property that Bridgeline owns,
leases or subleases, and to the best knowledge of Bridgeline, by any other
party, which might curtail in any material respect the present use of
Bridgeline's property listed on the Bridgeline Disclosure Schedule.

         4.14  PERSONAL PROPERTY & CAPITAL EQUIPMENT. The Bridgeline Disclosure
Schedule sets forth a full and complete list of all personal property, including
capital equipment, owned or leased by Bridgeline. Except as set forth on the
Bridgeline Disclosure Schedule, and except for property sold or otherwise
disposed of in the ordinary course of business, Bridgeline has good and
marketable title, free and clear of any lien, charge, restriction or
encumbrance, to all of such personal property. All material items of such
personal property used in the operation of the business of Bridgeline are in
good operating condition, normal wear and tear accepted.

         4.15  INTELLECTUAL PROPERTY.

               (a) The "BRIDGELINE INTELLECTUAL PROPERTY" consists of all
material trade secrets, copyrights, patents, trademarks, service marks, trade
dress, all registrations and applications with respect thereto and all licenses
or rights under the same, that are owned or used by Bridgeline, including
without limitation, any of the foregoing embodied or contained in any of the
following: net lists; domain names and URLs and textual information contained in
web sites; schematics; manufacturing processes; customer lists and supplier
lists; know-how and show-how; computer software programs, source code and object
code; complete system build software; development and test tools, documentation,
specifications, programmer and user manuals used by Bridgeline to install,
operate, maintain, correct, test, repair enhance, extend, modify, prepare
derivative works based upon, design, develop, reproduce and package software;
all license and other rights in any third-party product, intellectual property,
proprietary or personal rights, documentation, or tangible or intangible
property; all documents, record and electronic files relating to the design, end
user documentation, manufacturing, quality control, sales, marketing, or
customer support; and all products of Bridgeline currently being licensed or
sold or that are currently being developed, including all hardware products and
tools, software products and tools, and services that are currently licensed,
offered or under development by Bridgeline (the "BRIDGELINE PRODUCTS").

               (b) The Bridgeline Disclosure Schedule lists: (i) all patents,
copyright registrations, mask works, trademarks, service marks, trade dress, any
renewal rights for any of the foregoing, and any applications and registrations
for any of the foregoing, which are included in Bridgeline Intellectual Property
and owned by or on behalf of Bridgeline; (ii) all Bridgeline Products; and (iii)
all licenses, sublicenses and other agreements to which Bridgeline is a party
and pursuant to which Bridgeline or any other person is authorized to use
Bridgeline Intellectual Property or exercise any other right with regard
thereto. Bridgeline has delivered to the Company true and complete copies of the
agreements described in (iii) hereof.

               (c) Bridgeline Intellectual Property consists solely of items and
rights which are either: (i) owned by Bridgeline; (ii) in the public domain; or
(iii) rightfully used and authorized for use by Bridgeline and its successors
pursuant to a valid license. All Bridgeline Intellectual Property which consists
of licenses or other rights to third party intellectual property is set forth in
Bridgeline Disclosure Schedule. Bridgeline has all rights in Bridgeline
Intellectual

                                      -29-
<PAGE>
Property necessary to commercially exploit the same in connection with
Bridgeline's current, former, and planned or scheduled (whether for release or
development) activities in all geographic locations and fields of use in which
Bridgeline currently operates or is scheduled to operate, and to sublicense any
or all such rights to third parties, including the right to grant further
sublicenses. All software created by Bridgeline is as described in the
Documentation and performs in all material respects in accordance with the
specifications included in the Documentation. Bridgeline has taken all
reasonable measures to protect the proprietary nature of each item of Bridgeline
Intellectual Property. No other person or entity has any rights to any of
Bridgeline Intellectual Property (except pursuant to agreements or licenses
specified in Bridgeline Disclosure Schedule), and no other person or entity is
infringing, violating or misappropriating any of the Bridgeline Intellectual
Property. Bridgeline owns or has the right to use all Intellectual Property
necessary (i) to use, market and distribute the products, marketed, sold or
licensed, and to provide the services provided, by Bridgeline to other parties,
or (ii) to operate Bridgeline's internal systems that are material to the
business or operations of Bridgeline, including, without limitation, computer
hardware systems, software applications and embedded systems (the "INTERNAL
SYSTEMS"). Each item of Bridgeline Intellectual Property will be owned or
available for use by Bridgeline immediately following the Closing on
substantially identical terms and conditions as it was immediately prior to the
Closing, except for any changes that do not, either individually or on the
aggregate, have a Material Adverse Effect. Except as set forth on the Bridgeline
Disclosure Schedule, Bridgeline's software, to Bridgeline's knowledge, and the
Internal Systems are free from significant defects or programming errors and
conform in all material respects to the written documentation and specifications
therefor.

               (d) Bridgeline is not, nor as a result of the execution or
delivery of this Agreement, the other Transaction Documents and all other
agreements contemplated hereby, or performance of Bridgeline's obligations
hereunder, will Bridgeline be, in violation of any license, sublicense or other
agreement to which Bridgeline is a party. The Bridgeline Disclosure Schedule
lists all contracts or agreements under which Bridgeline is obligated to provide
any consideration (whether financial or otherwise) to any third party, or under
which any third party otherwise would be entitled to any consideration, with
respect to any exercise of rights by Bridgeline in Bridgeline Intellectual
Property. The Bridgeline Disclosure Schedule identifies each item of Bridgeline
Intellectual Property that is owned by a party other than Bridgeline, and the
license or agreement pursuant to which Bridgeline uses it (excluding
off-the-shelf software programs licensed by Bridgeline pursuant to "shrink wrap"
or "click wrap" licenses, such exclusion only extending to programs used by
Bridgeline solely for non-revenue generating administrative functions).

               (e) Except as set forth on the Bridgeline Disclosure Schedule,
the use, reproduction, modification, distribution, licensing, sublicensing, sale
or any other exercise of rights by Bridgeline with respect to any of the
Bridgeline Products does not infringe any copyright, trade secret, trademark,
service mark, trade name, trade dress or mask work, or any patent, moral right
or other intellectual property right, right of privacy, or right in personal
data of any person. No claims (i) challenging the validity, effectiveness or
ownership by Bridgeline of any of the Bridgeline Intellectual Property, or (ii)
to the effect that the use, reproduction, modification, manufacturing,
distribution, licensing, sublicensing, sale or any other exercise of rights by
Bridgeline with respect to any of the Bridgeline Products infringes or will
infringe on any intellectual property or other proprietary or personal right of
any person, have been asserted

                                      -30-
<PAGE>
to Bridgeline or, to the knowledge of Bridgeline, are threatened by any person,
nor to the knowledge of Bridgeline are there any valid grounds for any bona fide
claim of any such kind. All granted or issued patents and mask works and all
registered trademarks listed on the Bridgeline Disclosure Schedule and all
registered copyrights held by Bridgeline are valid, enforceable and subsisting.
To the knowledge of Bridgeline, there are no pending or unissued patent rights
which infringe upon or impair the Bridgeline Intellectual Property. To the
knowledge of Bridgeline, there is no unauthorized use, infringement or
misappropriation of any of Bridgeline Intellectual Property by any third party,
employee or former employee.

               (f) Bridgeline has not disclosed the source code for any of the
software owned by Bridgeline or other confidential information constituting,
embodied in or pertaining to the software to any person or entity, except
pursuant to the agreements listed on the Bridgeline Disclosure Schedule, and
Bridgeline has taken reasonable measures to prevent disclosure of such source
code. No parties other than Bridgeline possess any current or contingent rights
to any source code that is part of Bridgeline Intellectual Property.

               (g) Except as set forth on the Bridgeline Disclosure Schedules,
all of the copyrightable materials (including software) incorporated in or
bundled with Bridgeline's products have been created by employees of Bridgeline
within the scope of their employment by Bridgeline or by independent contractors
of Bridgeline who have executed agreements expressly assigning all right, title
and interest in such copyrightable materials to Bridgeline. No portion of such
copyrightable materials was jointly developed with any third party. The
Bridgeline Disclosure Schedule lists all parties who have created any portion
of, or otherwise have any rights in or to, Bridgeline Intellectual Property,
other than employees of Bridgeline who have no rights in or to any Company
Intellectual Property. Except as set forth on the Bridgeline Disclosure
Schedule, Bridgeline has secured from all parties who have created any portion
of, or otherwise have any rights in or to, Bridgeline Intellectual Property
valid and enforceable written assignments of any such work or other rights to
Company and has provided true and complete copies of such assignments to
Bridgeline.

               (h) The Bridgeline Disclosure Schedule identifies each license or
other agreement (or type of license or other agreement) pursuant to which
Bridgeline has licensed, distributed or otherwise granted any rights to any
third party with respect to, any Bridgeline Intellectual Property. The
Bridgeline Disclosure Schedule includes a true and complete list of support and
maintenance agreements relating to Bridgeline Intellectual Property including
the identity of the parties entitled to receive such service or maintenance, and
the term of such agreements.

               (i) Except as set forth on the Bridgeline Disclosure Schedule,
Bridgeline has obtained written agreements from all employees and third parties
with whom Bridgeline has shared confidential proprietary information (i) of
Bridgeline, or (ii) received from others which Bridgeline is obligated to treat
as confidential, which agreements require such employees and third parties to
keep such information confidential. None of the present or former employees,
officers or directors of Bridgeline owns directly or indirectly, in whole or in
part, any Bridgeline Intellectual Property or application therefor.

               (j) To the knowledge of Bridgeline, none of the Internal Systems,
or the use

                                      -31-
<PAGE>
thereof, infringes or violates, or constitutes a misappropriation of, any
Intellectual Property rights of any person or entity. The Disclosure Schedule
lists any complaint, claim or notice, or written threat thereof, received by
Bridgeline alleging any such infringement, violation or misappropriation; and
Bridgeline has provided to the Company complete and accurate copies of all
written documentation in the possession of Bridgeline relating to any such
complaint, claim, notice or threat. Bridgeline has provided to the Company
complete and accurate copies of all written documentation in Bridgeline's
possession relating to claims or disputes known to Bridgeline concerning any
Bridgeline Intellectual Property.

         4.16  AGREEMENTS OF DIRECTORS, OFFICERS, EMPLOYEES AND CONSULTANTS. No
current or former director, officer or employee of or consultant to Bridgeline
is in violation of any term of any employment contract, non-competition
agreement, non-disclosure agreement, patent disclosure or assignment agreement
or other contract or agreement containing restrictive covenants relating to the
conduct of any such current or former director, officer, employee, or consultant
or otherwise relating to the use of trade secrets or proprietary information of
others by any such person. The Bridgeline Disclosure Schedule hereto sets forth
the name and address of each person currently serving as an officer or a
director of Bridgeline, and each person listed on the Bridgeline Disclosure
Schedule was duly elected and is presently serving as such officer or director.
Set forth on the Bridgeline Disclosure Schedule is a list of all current or
former employees and consultants of Bridgeline who have (i) executed a
non-disclosure agreement with Bridgeline or (ii) executed a non-competition
agreement with Bridgeline. Except as disclosed on the Bridgeline Disclosure
Schedule, since December 31, 2003, Bridgeline has not paid or become committed
to pay any bonus or similar additional compensation to any officer, director or
employee of Bridgeline.

         4.17  GOVERNMENTAL LICENSES; Bridgeline has all the material permits,
licenses, orders, franchises and other rights and privileges of all federal,
state, local or foreign governmental or regulatory bodies necessary for the
Bridgeline to conduct its business as presently conducted. All such permits,
licenses, orders, franchises and other rights and privileges are in full force
and effect and no suspension or cancellation of any of them is threatened, and
none of such permits, licenses, orders, franchises or other rights and
privileges will be affected by the consummation of the transactions contemplated
by this Agreement or the Transaction Documents.

         4.18  SECURITIES ACTS. Bridgeline has complied with all applicable
federal or state securities laws in connection with the transactions
contemplated by this Agreement and all previous issuances of securities. Neither
Bridgeline nor anyone acting on its behalf has offered any of its shares, or
similar securities, or solicited any offer to purchase any of such securities,
so as to bring this transaction within the scope of the registration provisions
of the Securities Act.

         4.19  INSURANCE COVERAGE. The Bridgeline Disclosure Schedule contains
an accurate summary of the insurance policies currently maintained by
Bridgeline. Except as described on the Bridgeline Disclosure Schedule, there are
currently no claims pending against Bridgeline pursuant to any insurance policy
currently in effect and covering the property, the business or the employees of
Bridgeline. All such policies (a) are in full force and effect and (b) are
sufficient for compliance by Bridgeline with all requirements of all agreements
to which Bridgeline is a party.

                                      -32-
<PAGE>
         4.20  EMPLOYEE MATTERS. Except as set forth in the Bridgeline's
Disclosure Schedule, neither the Bridgeline nor any person that together with
Bridgeline would be treated as an ERISA Affiliate under Section 414 of the Code
has established or maintains or is obligated to contribute to (a) any bonus,
severance, stock option, or other type of incentive compensation plan, program,
agreement, policy, commitment, contract or arrangement (written or oral); (b)
any pension, profit-sharing, retirement or other plan, program or arrangement;
or (c) any other employee benefit plan, fund or program, including, but not
limited to, those described in Section 3(3) of ERISA. All such Plans have been
operated and administered in all material respects in accordance with their
terms, as applicable, with the requirements prescribed by any and all statutes,
orders, rules and regulations, including but not limited to ERISA and the Code.
No act or failure to act by Bridgeline has resulted in, nor do Bridgeline have
knowledge of a non-exempt "prohibited transaction" (as defined in ERISA) with
respect to the Plans. Neither Bridgeline nor any ERISA Affiliate maintains or
has ever maintained or contributed to any Plan subject to Title IV of ERISA.
With respect to the employees and former employees of Bridgeline, there are no
employee post-retirement medical or health plans in effect, except as required
by Section 4980B of the Code.

         4.21  CUSTOMERS. Except as set forth on the Bridgeline Disclosure
Schedule:

               (a) The relationships of Bridgeline with its significant
suppliers and customers are good commercial working relationships and no
significant supplier or customer of Bridgeline has canceled or otherwise
terminated, or to Bridgeline's knowledge, threatened to cancel or otherwise to
terminate its relationship with Bridgeline, or has during the last twelve (12)
months decreased materially, or threatened to decrease or limit materially, its
services, supplies or materials for use by Bridgeline or its usage or purchase
of the services or products of Bridgeline, except for normal cyclical changes
related to customers' businesses and except for changes which have not had a
Material Adverse Effect on Bridgeline.

               (b) No supplier or customer has notified Bridgeline that it
intends to cancel or otherwise substantially modify its relationship with
Bridgeline or to decrease materially or limit its services, supplies or
materials to Bridgeline, or its usage or purchase of the services of Bridgeline,
and, to the best knowledge of Bridgeline, the consummation of the transactions
contemplated hereby will not materially adversely affect the relationship of
Bridgeline with any such supplier or customer.

         4.22  NO BROKERS OR FINDERS. No person or entity has or will have, as a
result of the actions of Bridgeline, any right, interest or claim against or
upon the Shareholder or Iapps for any commission, fee or other compensation as a
finder or broker arising from the transactions contemplated by this Agreement.

         4.23  TRANSACTIONS WITH INSIDERS. Except as set forth on the Bridgeline
Disclosure Schedule, there are no loans, leases or other contracts between
Bridgeline and any officer or director of Bridgeline, or any person or entity
owning five percent (5%) or more of the total number of issued and outstanding
shares of Bridgeline Common Stock or any respective family member or affiliate
of any such officer, director or shareholder.

                                      -33-
<PAGE>
         4.24  ASSUMPTIONS, GUARANTEES. Except as set forth on the Bridgeline
Disclosure Schedule, Bridgeline has not assumed, guaranteed, endorsed or
otherwise become directly or contingently liable on or for any indebtedness of
any other person or entity, except guarantees by endorsement of negotiable
instruments for deposit or collection or similar transactions in the ordinary
course of business.

         4.25  BANK ACCOUNTS, SIGNING AUTHORITY, POWERS OF ATTORNEY. Except as
set forth on the Bridgeline Disclosure Schedule, Bridgeline has no account or
safe deposit box in any bank and no person or entity has any power, whether
singly or jointly, to sign any checks on behalf of Bridgeline, to withdraw any
money or other property from any bank, brokerage or other account of Bridgeline,
or to act pursuant to any power of attorney granted by Bridgeline at any time
for any purpose.

         4.26  CORPORATE BOOKS. The books and records of Bridgeline made
available to Iapps and the Shareholder for inspection include copies of its
Certificate of Incorporation and By-laws as currently in effect and accurately
record therein in all material respects all actions, proceedings, consents and
meetings of the Board of Directors and shareholders of Bridgeline and any
committees thereof. The books and records of Bridgeline have been, and are
being, maintained in accordance with any applicable legal and regulatory
requirements and reflect only actual transactions.

         4.27  LIST OF MATERIAL CONTRACTS AND COMMITMENTS. The Disclosure
Schedule sets forth a complete and accurate list of all material contracts to
which Bridgeline is a party. As used on the Bridgeline Disclosure Schedule, the
phrase "MATERIAL CONTRACT" means any contract or other agreement whether or not
made in the ordinary course of business and involving a reasonably foreseeable
financial consequence to any contracting party of at least $250,000. Bridgeline
has delivered to the Company copies of all Material Contracts. Except as set
forth on the Bridgeline Disclosure Schedule, each of the contracts listed on the
Bridgeline Disclosure Schedule is in full force and effect. Bridgeline is not in
breach of any of the material provisions of any such Material Contract, nor, to
the best knowledge of Bridgeline, is any other party to any such contract in
default thereunder, except for any such breach or default that individually and
in the aggregate would not have a Material Adverse Effect on the business of
Bridgeline. Bridgeline has performed in all material respects all obligations
required to be performed by it under each such contract as of the Closing.

         4.28  PRIVACY AND DATA COLLECTION. Bridgeline has at all times complied
with all laws and regulations relating or applicable to privacy, publicity, data
protection, collection, storage, transfer, release and use of personal
information and user information gathered or accessed in the course of the
business and operations of Bridgeline. Bridgeline has at all times complied in
all material respects with all rules, policies and procedures established by
Bridgeline from time to time with respect to privacy, publicity, data
protection, collection, storage, transfer and use of personal information and
user information gathered or accessed in the course of the business and
operations of Bridgeline (collectively, the "PRIVACY POLICIES"), noncompliance
with which would result in a Material Adverse Effect. No claims have been
asserted or, to the knowledge of Bridgeline and the Shareholder, threatened
against Bridgeline by any Person or governmental entity alleging a violation of
such Person's, or any other Person's, privacy, publicity, personal or
confidentiality rights under any such laws, or a breach or other violation of
any of the Privacy

                                      -34-
<PAGE>
Policies, where such violation would have a Material Adverse Effect. Bridgeline
has taken commercially reasonable measures (including but not limited to,
implementing and monitoring compliance with adequate measures with respect to
technical and physical security) to ensure that personal and consumer
information is protected against loss and against unauthorized access, use,
modification, disclosure or other misuse. To the knowledge of Bridgeline and the
Shareholder, there has been no unauthorized access to, use, modification,
disclosure or other misuse of such information. Neither the execution, delivery
nor performance of this Agreement nor the consummation of the transactions
contemplated hereby shall result in any breach or violation of the Privacy
Policies or violate any Law with respect to such data or information.

         4.29  ACCOUNTS RECEIVABLE. Except as set forth on the Disclosure
Schedule, all accounts and notes receivable reflected on the Bridgeline'
Financial Statements, and all accounts and notes receivable arising subsequent
to the date of such balance sheets, have arisen in the ordinary course of
business and represent valid obligations owing to Bridgeline. Except as set
forth on the Disclosure Schedule, to the best knowledge of Bridgeline, none of
Bridgeline' receivables is subject to any claim of offset, recoupment, setoff or
counterclaim and Bridgeline has no knowledge of any specific facts or
circumstances (whether asserted or unasserted) that could give rise to any such
claim. No material amount of receivables are contingent upon the performance by
Bridgeline of any obligation or contract other than normal warranty repair and
replacement. No person has any lien on any such receivables and no agreement for
deduction or discount has been made with respect to any such receivables. Except
as set forth on the Disclosure Schedule, to the best knowledge of Bridgeline and
the Shareholder, all of Bridgeline' accounts and notes receivable reflected on
the Bridgeline' Financial Statements and all accounts and notes receivable
arising subsequent to the date of such balance sheets are collectible in full by
Bridgeline in the ordinary course of business.


                                    ARTICLE V

                      GENERAL RELEASE AND INDEMNIFICATIONS
                      ------------------------------------

         5.1   SHAREHOLDER' RELEASES. The Shareholder, effective at the Closing,
hereby releases and discharges Iapps from and against any and all claims,
demands and liabilities which the Shareholder may have against Iapps immediately
prior to the Closing, and the Shareholder specifically agrees to indemnify,
defend and hold Iapps and Bridgeline harmless against any and all obligations,
debts, bills, liabilities, causes of action and claims of every nature of the
Shareholder against Iapps which accrue or have arisen prior to the Closing.

         5.2   SHAREHOLDER' INDEMNIFICATION. Subject to the limitations set
forth in Section 5.5 below, the Shareholder agrees to indemnify and hold
harmless Bridgeline and its respective officers, directors, agents and employees
to the fullest extent lawful, from and against any and all actions, suits,
claims, counterclaims, proceedings, costs, losses, liabilities, obligations,
demands, damages, judgments, amounts paid in settlement and reasonable expenses,
including, without limitation, reasonable attorneys' fees and disbursements
(hereinafter collectively referred to as a "CLAIM," "LOSS" or "LOSSES") suffered
or incurred by Bridgeline to the extent relating to or arising out of any
inaccuracy in or breach, violation or nonobservance of the representations,


                                      -35-
<PAGE>
warranties, covenants or other agreements made by Iapps or the Shareholder
herein or the Transaction Documents or failure of any certificate, document or
instrument delivered by or on behalf of Iapps or the Shareholder pursuant hereto
or in connection herewith to be true and correct as of the Closing.
Notwithstanding the foregoing, to the extent that Bridgeline receives and
collects any insurance proceeds relating to a Claim or Loss covered by insurance
purchased by Iapps prior to the Closing, then Bridgeline's claim for
indemnification hereunder shall be reduced, dollar-for-dollar, by the amount of
such proceeds received by Bridgeline for any insurable Claim or Loss.

         5.3   BRIDGELINE'S INDEMNIFICATION. Subject to the limitations set
forth in Section 5.5 below, Bridgeline agrees to indemnify and hold harmless the
Shareholder to the fullest extent lawful, from and against any and all Claims or
Losses suffered or incurred by the Shareholder to the extent relating to or
arising out of any inaccuracy in or breach, violation or nonobservance of the
representations, warranties, covenants or other agreements made by Bridgeline
herein or failure of any certificate, document or instrument delivered by or on
behalf of Bridgeline pursuant hereto or in connection herewith to be true and
correct as of the Closing.

         5.4   THIRD PARTY CLAIMS. In the event that a party (the "INDEMNITEE")
desires to make a claim against another party (the "INDEMNITOR") pursuant to
Section 5.2 or Section 5.3 in connection with any action, suit, proceeding or
demand at any time instituted against or made upon the Indemnitee by any third
party for which the Indemnitee may seek indemnification hereunder (a "THIRD
PARTY CLAIM"), the Indemnitee shall promptly notify, in writing, the Indemnitor
of such Third Party Claim and of the Indemnitee's claim of indemnification with
respect thereto. The Indemnitor shall have thirty (30) days after receipt of
such notice to notify the Indemnitee if he or it has elected to assume the
defense of such Third Party Claim. If the Indemnitor elects to assume the
defense of such Third Party Claim, the Indemnitor shall be entitled at his or
its own expense to conduct and control the defense and settlement of such Third
Party Claim through counsel of his or its own choosing; PROVIDED, HOWEVER, that
the Indemnitee may participate in the defense of such Third Party Claim with his
or its own counsel at his or its own expense and the Indemnitor may not settle
any Third Party Claim without the Indemnitee's consent, which shall not be
unreasonably withheld. If the Indemnitor fails to notify the Indemnitee within
thirty (30) days after receipt of the Indemnitee's written notice of a Third
Party Claim, the Indemnitee shall be entitled to assume the defense of such
Third Party Claim at the expense of the Indemnitor; PROVIDED, HOWEVER, that the
Indemnitee may not settle any Third Party Claim without the Indemnitor's
consent, which shall not be unreasonably withheld.

         5.5   LIMITATIONS OF LIABILITY.

               (a) Solely for purposes of determining the amount of any Claim or
Loss with regard to any representation, warranty, covenant, agreement,
certificate, document or instrument that has been breached by a party, such
amount shall be determined without regard to any "materiality" or "knowledge"
qualifier, including without limitation any reference to a "Material Adverse
Effect" on such party or to the "knowledge" or "best knowledge" of such party,
or words of similar effect, which may be contained in any such representation,
warranty, covenant, agreement, certificate, document or instrument.

                                      -36-
<PAGE>
               (b) The Shareholder and Bridgeline shall have no liability with
respect to the matters described in Sections 5.2 and 5.3, respectively, for any
individual Claim or Loss less than $2,000 (the "MINIMUM CLAIM AMOUNT") and until
the total of all Claims or Losses, including those less than the Minimum Claim
Amount, exceeds $35,000, at which point the Shareholder or Bridgeline, as the
case may be, shall be obligated to indemnify the other party from and against
all such Claims or Losses (including Claims or Losses below the Minimum Claim
Amount), relating back to the first dollar; PROVIDED, HOWEVER, that these
limitations shall not apply to (i) any Claims or Losses incurred by Bridgeline
as a result of or with respect to any breach of the representations contained in
Sections 2.1 (Ownership of Shares), 2.13 (Taxes) and 2.16 (Intellectual
Property). Notwithstanding anything contained in this Agreement to the contrary,
except for the representations set forth in Sections 2.1 (Ownership of Shares)
and 2.13 (Taxes), each party's indemnity obligation under this Agreement shall
not exceed the sum of $350,000.

               (c) In any situation in which an indemnification payment is due
from the Shareholder hereunder, Bridgeline shall seek to satisfy such
obligation, in whole or in part, in the following manner: (i) first, by
withholding or setting off the amount of the Earn-Out payments that may then be
due or may subsequently become payable to the Shareholder, and (ii) second, by
withholding or setting against the Bridgeline Common Stock and such number of
shares as is equal to the value of the Claim or Loss (the value for computing
the number of shares to be set-of shall be equal to the greater of (i) fair
market value of the Bridgeline Stock at the time of set-off or (ii) $1.25 per
share). In any situation in which an indemnification payment is due from
Bridgeline hereunder, Shareholder shall seek to satisfy such obligation, in
whole or in part, in either of the following manners or any combination thereof,
solely in BRIDGELINE'S discretion: (i) by issuance of additional shares of
Bridgeline Stock and such number of shares as is equal to the value of the Claim
or Loss) (the value for computing the number of shares to be issued shall be
equal to the greater of (i) fair market value of the Bridgeline Stock at the
time of issuance or (ii) $1.25 per share) or (ii) by acceptance of a cash
payment by Bridgeline equal to the fair value of the Claim or Loss as of the
time the Claim or Loss is incurred by the Shareholder.

               (d) No action or claim for Losses pursuant to this Article V
shall be brought or asserted after the relevant date of survival referred to in
Article VI hereof (the "REPRESENTATION EXPIRATION DATE"). The amount of any
Claims or Losses suffered by an Indemnitee shall be reduced by any tax benefit
that has been realized or that is certain to be realized, and any insurance
benefits or claims against third parties which are actually received by such
party in respect of or as a result of such Claims or Losses, or the facts or
circumstances relating thereto. If any Losses for which indemnification is made
hereunder are subsequently reduced by any tax benefit or insurance payment, the
value of such tax benefit or other benefit or the amount of such payment or
other recovery shall be remitted to the Indemnitor.

               (e) Bridgeline and the Shareholder acknowledge and agree that,
except as to Claims or Losses attributable to fraud, their sole remedy against
the other for any matter arising out of a breach, violation or nonobservance of
any representation, warranty, covenant or other agreement contained in this
Agreement is set forth in this Article V, and that except to the extent a party
has asserted a claim for indemnification prior to the Representation Expiration
Date, neither party shall have any remedy against the other party for any
breach, violation or

                                      -37-
<PAGE>
nonobservance of a representation, warranty, covenant or other agreement made by
such other party in this Agreement. The parties acknowledge that this Section
5.5 has been negotiated fully by the parties and that neither party would have
entered into this Agreement but for the inclusion of this Section 5.5.

         5.6   EXPENSES; REIMBURSEMENT. Subject to the limitations set forth in
Section 5.5 above, an Indemnitor hereunder promptly shall reimburse the
Indemnitee for all Losses constituting reasonable expenses (including reasonable
attorneys' fees and disbursements) as they are incurred in connection with
investigating, preparing to defend or defending any third-party action, suit,
claim or proceeding (including any inquiry or investigation) for which indemnity
is available under either Section 5.2 or Section 5.3, as applicable.

           5.7 NOTICE. Each party shall provide written notice to the other of
any claim with respect to which it seeks indemnification promptly after the
discovery of any matters giving rise to a claim for indemnification; PROVIDED,
HOWEVER, that the failure of such party to give notice as provided herein shall
not relieve the Indemnitor of its obligations under this Article V, except if
and to the extent that the Indemnitor has been materially prejudiced thereby.

          5.8 SURVIVAL. Subject to the provisions and limitations set forth in
Section 5.5(d) and in Article VI below, the obligations of Bridgeline and the
Shareholder under this Article V shall survive and continue in effect following
the Closing until all Claims or Losses are resolved.

                                   ARTICLE VI

                   SURVIVAL OF REPRESENTATIONS AND WARRANTIES
                   ------------------------------------------

         Except as provided herein, all representations, warranties, covenants
and other agreements of the parties contained herein shall survive the execution
and delivery of this Agreement and continue in effect following the Closing for
a period commencing on the Closing Date and ending on the date that is 24 months
after the Closing Date. Notwithstanding that set forth in the preceding
sentence, the representations set forth in Section 2.1 (Ownership of Shares)
with respect to the Shareholder's ownership of the Shares shall survive and
continue in effect indefinitely after the Closing, the representations set forth
in Section 2.13 (Taxes) shall survive until the expiration of the applicable
statute of limitations relating to any applicable Tax Return referred to
therein.

                                   ARTICLE VII

                                  MISCELLANEOUS
                                  -------------

         7.1   PARTIES IN INTEREST. Except as otherwise set forth herein, all
covenants, agreements, representations, warranties and undertakings contained in
this Agreement shall be binding on and shall inure to the benefit of the
respective heirs, successors and assigns of the parties hereto (including
permitted transferees of any of the Shares or Bridgeline Stock). Except as may
be required to be disclosed by order of a court or otherwise required by law,
the parties agree to maintain in confidence the terms of this Agreement, except
that the parties hereto may disclose such terms to its accountants, lawyers,
bankers and advisors in the ordinary course. Except as otherwise specifically
provided herein, this Agreement shall not confer any rights or

                                      -38-
<PAGE>
remedies upon any person other than the parties hereto and their respective
heirs, successors and assigns.

         7.2   AMENDMENTS AND WAIVERS. Amendments, modifications or additions to
this Agreement may be made and compliance with any term, covenant, agreement,
condition or provision set forth herein may be omitted or waived (either
generally or in a particular instance and either retroactively or prospectively)
upon the written consent of the parties hereto. This Agreement (including the
Schedules and Exhibits annexed hereto, which are an integral part of this
Agreement) and the Transaction Documents constitutes the full and complete
agreement of the parties with respect to the subject matter hereof.

         7.3   NOTICES. All notices, requests, consents, reports and demands
shall be in writing and shall be hand delivered, sent by fax or other electronic
medium, or sent by Federal Express or other overnight courier service providing
proof of delivery, to Bridgeline or the Shareholder, at the addresses set forth
herein or to such other address for any such party as may be furnished in
writing to the other parties hereto.

         7.4   EXPENSES. Each party hereto will pay its own expenses in
connection with the transactions contemplated hereby; PROVIDED, HOWEVER, that
Bridgeline shall pay a portion of the costs and expenses incurred by Iapps in
connection with legal and accounting services and other transactional costs
incurred by it in connection with the parties' negotiation, execution and
delivery of this Agreement and the consummation of the transactions contemplated
hereby, provided such costs and expenses shall not exceed a maximum of $25,000
in the aggregate, it being acknowledged and agreed to by the parties that the
Shareholder shall be personally responsible for any such expenses of Iapps
exceeding this limit.

         7.5   SEVERABILITY. All agreements and covenants contained in this
Agreement are severable, and in the event that any of them shall be held to be
invalid or unenforceable by any court of competent jurisdiction, then this
Agreement shall be interpreted as if such invalid agreements or covenants were
not contained herein.

         7.6   COUNTERPARTS. This Agreement and any exhibit hereto may be
executed in multiple counterparts, each of which shall constitute an original,
but all of which shall constitute but one and the same instrument. One or more
counterparts of this Agreement or any exhibit hereto may be delivered via fax,
with the intention that they shall have the same effect as an original
counterpart hereof.

         7.7   EFFECT OF HEADINGS/GENDER REFERENCES. The article and section
headings herein are for convenience only and shall not affect the construction
or interpretation hereof. The use of any gender in the Agreement shall be deemed
to include the other genders, and the use of the singular in this Agreement
shall be deemed to include the plural (and vice versa), wherever appropriate.

         7.8   GOVERNING LAW. This Agreement shall be deemed a contract made
under the laws of the State of Delaware and together with the rights and
obligations of the parties hereunder, shall be construed under and governed by
the laws of such state. Any action or proceeding seeking to enforce any
provision of, or based on any right arising out of, this

                                      -39-
<PAGE>
Agreement or any of the transactions contemplated hereby, shall be brought
against any of the parties in the courts of the Commonwealth of Massachusetts,
and each of the parties irrevocably submits to the exclusive jurisdiction of
such courts (and of the appropriate appellate courts) in any such action or
proceeding, waives any objection to venue laid therein, agrees that all claims
in respect of any action or proceeding shall be heard and determined only in any
such court and agrees not to bring any action or proceeding arising out of or
relating to this Agreement or any transaction contemplated hereby in any other
court. Process in any action or proceeding referred to in the preceding sentence
may be served on any party anywhere in the world.

         7.9   PRESS RELEASES AND PUBLIC ANNOUNCEMENTS. No party hereto shall
issue any press release or make any public announcement relating to the subject
matter of this Agreement without the prior written approval of the other party,
which approval shall. not be unreasonably withheld.

         7.10  POST-CLOSING TAX MATTERS. Bridgeline agrees that it will
cooperate with the preparation of all tax returns of Iapps for the period up to
the Closing Date. The Shareholder agrees that such tax returns shall be prepared
in a manner consistent with Iapps' historical practices.

         7.11  NON-TRANSFERABILITY OF EARN-OUT PAYMENTS. Any rights of the
Shareholder to receive Earn-Out payments pursuant to this Agreement shall be
non-transferable without the prior written consent of Bridgeline.
Notwithstanding the foregoing, the Shareholder may transfer all or any of such
rights (a) as a gift to any member of his family or to any trust for the benefit
of any such family member or the Shareholder, PROVIDED THAT any such transferee
shall agree in writing with the Bridgeline, as a condition precedent to such
transfer, to be bound by all of the provisions of this Agreement relating to the
Earn-Out payments, or (b) by will or the laws of descent and distribution, in
which event each such transferee shall be bound by all of the provisions of this
Agreement relating to the Earn-Out payments or (c) by court order, in which
event each such transferee shall be bound by all of the provisions of this
Agreement relating to the Earn-Out payments,. As used herein, the word "family"
shall include any spouse, lineal ancestor or descendant, brother or sister.

         7.12  BOARD OBSERVER RIGHTS; APPOINTMENT TO MANAGEMENT COMMITTEE. So
long as the Shareholder of Iapps collectively owns at least five percent (5%) of
the voting capital stock of Bridgeline, the Shareholder shall have the right to
receive notice of, attend and participate in all meetings of the Board of
Directors of Bridgeline, and any and all committees or subcommittees thereof,
subject to customary limitations (such as sensitive confidential information,
conflicts of interest or interested party transactions). If at any time any
other non-board member receives board observations rights with a lower
percentage ownership requirement, the Shareholder will be granted observation
rights based upon the same lower percentage limit. The Shareholder shall be
appointed as a member of the Management Committee of Bridgeline for so long as
the Shareholder remains as President of the Iapps subsidiary of Bridgeline.

         7.13  DISCLOSURE. Certain information set forth in the Schedules has
been included and disclosed solely for informational purposes and may not be
required to be disclosed pursuant to the terms and conditions of the Agreement.
The disclosure of any such information shall not be

                                      -40-
<PAGE>

deemed to constitute an acknowledgement or agreement that the information is
required to be disclosed in connection with the representations and warranties
made in the Agreement or that the information is material, nor shall any
information so included and disclosed be deemed to establish a standard of
materiality or otherwise used to determine whether any other information is
material.



                      [SIGNATURE PAGE IMMEDIATELY FOLLOWS]

































                                      -41-
<PAGE>
                   SIGNATURE PAGE TO STOCK PURCHASE AGREEMENT



         IN WITNESS WHEREOF, the parties hereto have executed this Stock
Purchase Agreement on the date written above.


                               BRIDGELINE SOFTWARE, INC.
                               130 New Boston Street
                               Woburn, MA 01801

                               By: /s/ Thomas L. Massie
                                   ---------------------------------
                                   Name:  THOMAS L. MASSIE
                                   Title: President and Chief Executive Officer



                               INTERACTIVE APPLICATIONS GROUP, INC.
                               2639 Connecticut Ave., Suite 210
                               Washington, DC 20008

                               By: /s/ Miles Fawcett
                                   ---------------------------------
                                   Name:  MILES FAWCETT
                                   Title: President



                               SHAREHOLDER

                               /s/ Miles Fawcett
                               -------------------------------------
                               MILES FAWCETT
                               c/o Interactive Applications Group
                               2639 Connecticut Ave., Suite 210
                               Washington, DC  20008





                                      -42-
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-2.4
<SEQUENCE>12
<FILENAME>ex2-4_14663.txt
<DESCRIPTION>LEAD DOG DIGITAL, INC. ACQUISITION AGGREMENT
<TEXT>
                                                                     EXHIBIT 2.4
                                                                     -----------



                          AGREEMENT AND PLAN OF MERGER

                                 BY AND BETWEEN

                           BRIDGELINE SOFTWARE, INC.,

                             LEAD DOG DIGITAL, INC.,

                                       AND

                 CERTAIN SHAREHOLDERS OF LEAD DOG DIGITAL, INC.

                                FEBRUARY 26, 2002





<PAGE>

                                      INDEX
                                      -----

ARTICLE I     THE MERGER......................................................2

   1.1        THE MERGER......................................................2

   1.2        OFFICERS AND DIRECTORS..........................................2

   1.3        CONVERSION OF SHARES; EXCHANGE PROCEDURES.......................3

   1.4        TREATMENT OF OUTSTANDING STOCK OPTIONS..........................5

   1.5        EARN-OUT CONSIDERATION..........................................6

   1.6        REPAYMENT OF CORPORATION DEBT AND OTHER OBLIGATIONS.............8

   1.7        MAXIMUM TOTAL CONSIDERATION.....................................9

   1.8        TAX-FREE REORGANIZATION........................................10

   1.9        CLOSING........................................................10

   1.10       OTHER AGREEMENTS...............................................10

   1.11       ADDITIONAL EMPLOYEE STOCK OPTIONS..............................10

   1.12       POST-CLOSING PERFORMANCE OF LDD BUSINESS.......................11

   1.13       ADDITIONAL ACTIONS.............................................13

ARTICLE II    REPRESENTATIONS AND WARRANTIES OF THE CORPORATION AND THE
              PRINCIPAL SHAREHOLDERS.........................................14

   2.1        OWNERSHIP OF SHARES............................................14

   2.2        ORGANIZATION AND CORPORATE POWER...............................14

   2.3        AUTHORIZATION..................................................15

   2.4        NO CONFLICTS...................................................15

   2.5        GOVERNMENT APPROVALS...........................................16

   2.6        AUTHORIZED AND OUTSTANDING STOCK...............................16

   2.7        SUBSIDIARIES...................................................16

   2.8        FINANCIAL INFORMATION/ACCOUNTS PAYABLE/PROJECTIONS.............16

   2.9        EVENTS SUBSEQUENT TO THE DATE OF THE FINANCIAL STATEMENTS......17

   2.10       LITIGATION.....................................................18

   2.11       COMPLIANCE WITH LAWS AND OTHER INSTRUMENTS.....................18

   2.12       TAXES..........................................................18

   2.13       REAL PROPERTY..................................................18

   2.14       ENVIRONMENTAL MATTERS..........................................19

   2.15       PERSONAL PROPERTY/CAPITAL EQUIPMENT............................19

<PAGE>

   2.16       PATENTS, TRADEMARKS, ETC.......................................20

   2.17       AGREEMENTS OF DIRECTORS, OFFICERS, EMPLOYEES AND CONSULTANTS...20

   2.18       GOVERNMENTAL LICENSES..........................................21

   2.19       LIST OF MATERIAL CONTRACTS AND COMMITMENTS.....................21

   2.20       ACCOUNTS RECEIVABLE............................................21

   2.21       SECURITIES ACTS................................................22

   2.22       INSURANCE COVERAGE.............................................22

   2.23       EMPLOYEE MATTERS...............................................22

   2.24       SUPPLIERS AND CUSTOMERS........................................24

   2.25       NO BROKERS OR FINDERS..........................................24

   2.26       TRANSACTIONS WITH INSIDERS.....................................25

   2.27       ASSUMPTIONS, GUARANTEES........................................25

   2.28       BANK ACCOUNTS, SIGNING AUTHORITY, POWERS OF ATTORNEY...........25

   2.29       CORPORATE BOOKS................................................25

   2.30       SIMPLE IRA PLAN................................................25

ARTICLE III   REPRESENTATINS, COVENANTS AND RIGHTS OF PRINCIPAL
              SHAREHOLDERS...................................................25

   3.1        PRINCIPAL SHAREHOLDERS' REPRESENTATIONS........................25

   3.2        AGREEMENTS REQUIRED IN A PUBLIC OFFERING.......................26

   3.3        REGISTRATION RIGHTS............................................27

   3.4        TAG-ALONG RIGHTS...............................................27

   3.5        SURVIVAL.......................................................27

ARTICLE IV    REPRESENTATIONS AND WARRANTIES OF THE ACQUIRER.................27

   4.1        ORGANIZATION AND QUALIFICATION.................................27

   4.2        AUTHORITY......................................................27

   4.3        NO CONFLICTS...................................................28

   4.4        GOVERNMENT APPROVALS...........................................28

   4.5        LITIGATION.....................................................28

   4.6        AUTHORIZED AND OUTSTANDING STOCK...............................28

   4.7        CAPITAL........................................................29

   4.8        SUBSIDIARIES...................................................29

   4.9        FINANCIAL INFORMATION/ACCOUNTS PAYABLE.........................29

                                      -ii-
<PAGE>

   4.10       EVENTS SUBSEQUENT TO THE DATE OF THE FINANCIAL STATEMENTS......30

   4.11       COMPLIANCE WITH LAWS AND OTHER INSTRUMENTS.....................30

   4.12       TAXES..........................................................30

   4.13       REAL PROPERTY..................................................31

   4.14       ENVIRONMENTAL MATTERS..........................................31

   4.15       PERSONAL PROPERTY/CAPITAL EQUIPMENT............................31

   4.16       PATENTS, TRADEMARKS, ETC.......................................31

   4.17       AGREEMENTS OF DIRECTORS, OFFICERS, EMPLOYEES AND CONSULTANTS...32

   4.18       GOVERNMENTAL LICENSES..........................................32

   4.19       SECURITIES ACTS................................................32

   4.20       INSURANCE COVERAGE.............................................33

   4.21       EMPLOYEE MATTERS...............................................33

   4.22       SUPPLIERS AND CUSTOMERS........................................34

   4.23       NO BROKERS OR FINDERS..........................................35

   4.24       TRANSACTIONS WITH INSIDERS.....................................35

   4.25       ASSUMPTIONS, GUARANTEES........................................35

   4.26       BANK ACCOUNTS, SIGNING AUTHORITY, POWERS OF ATTORNEY...........35

   4.27       CORPORATE BOOKS................................................35

ARTICLE V     CONDITIONS TO THE OBLIGATIONS OF THE ACQUIRER AT THE CLOSING...36

   5.1        ACCURACY OF REPRESENTATIONS AND WARRANTIES.....................36

   5.2        PERFORMANCE....................................................36

   5.3        OPINION OF COUNSEL.............................................36

   5.4        NO LITIGATION..................................................36

   5.5        CERTIFICATE AS TO OFFICERS' INCUMBENCY AND CORPORATE
              AUTHORIZATION..................................................37

   5.6        OTHER AGREEMENTS...............................................37

   5.7        STOCK PLEDGE AGREEMENT AND PLEDGED SHARES......................37

   5.8        SIMPLE IRA PLAN................................................37

   5.9        THIRD PARTY CONSENTS...........................................37

   5.10       OTHER MATTERS..................................................37

ARTICLE VI    CONDITIONS TO THE OBLIGATIONS OF THE CORPORATION...............38

   6.1        ACCURACY OF REPRESENTATIONS AND WARRANTIES.....................38

                                      -iii-
<PAGE>

   6.2        PERFORMANCE....................................................38

   6.3        OPINION OF COUNSEL.............................................38

   6.4        NO LITIGATION..................................................38

   6.5        OTHER AGREEMENTS...............................................38

   6.6        CERTIFICATE AS TO OFFICERS' INCUMBENCY AND CORPORATE
              AUTHORIZATION..................................................39

   6.7        STOCK CERTIFICATES.............................................39

   6.8        REPAYMENT OF DEBT..............................................39

   6.9        BOARD OF DIRECTORS.............................................39

   6.10       PRIVATE PLACEMENT..............................................39

   6.11       OTHER MATTERS..................................................39

ARTICLE VII   LICENSE........................................................39

ARTICLE VIII  GENERAL RELEASE AND INDEMNIFICATIONS...........................40

   8.1        PRINCIPAL SHAREHOLDERS' RELEASES...............................40

   8.2        PRINCIPAL SHAREHOLDERS' INDEMNIFICATION........................40

   8.3        ACQUIRER'S INDEMNIFICATION.....................................40

   8.4        THIRD PARTY CLAIMS.............................................41

   8.5        LIMITATIONS OF LIABILITY.......................................41

   8.6        EXPENSES, REIMBURSEMENT........................................43

   8.7        NOTICE.........................................................43

   8.8        SURVIVAL.......................................................43

   8.9        COLLATERAL FOR PRINCIPAL SHAREHOLDERS' INDEMNIFICATION
              OBLIGATION.....................................................43

ARTICLE IX    SURVIVAL OF REPRESENTATIONS AND WARRANTIES.....................43

ARTICLE X     MISCELLANEOUS..................................................44

   10.1        CROSS DISCLOSURE..............................................44

   10.2       PARTIES IN INTEREST............................................44

   10.3       AMENDMENTS AND WAIVERS.........................................44

   10.4       NOTICES........................................................44

   10.5       EXPENSES.......................................................45

   10.6       SEVERABILITY...................................................45

   10.7       COUNTERPARTS...................................................45

                                      -iv-
<PAGE>

   10.8       EFFECT OF HEADINGS/GENDER REFERENCES...........................45

   10.9       GOVERNING LAW..................................................46

   10.10      PRESS RELEASES AND PUBLIC ANNOUNCEMENTS........................46

   10.11      POST-CLOSING TAX MATTERS.......................................46

   10.12      BENEFIT PLAN COVENANTS.........................................46




















                                       -v-
<PAGE>

EXHIBITS AND SCHEDULES
- ----------------------

Exhibit A         Form of Hypnotic Note
Exhibit B         Form of Employment Agreement
Exhibit C         Form of Non-Principal Shareholder's Letter
Exhibit D         Form of Remainder Debt Note
Exhibit E         Form of Noncompetition Agreement
Exhibit F         Form of Stock Pledge Agreement

Schedule 1.3(a)   Shareholders, Shares, Percentage Interest
Schedule 1.4      Corporation Options
Schedule 1.5(b)   Earn-Out Computation
Schedule 1.6      Debt
Schedule 1.10     List of Key Employees of the Corporation
Schedule 1.11     List of Acquirer Options to be Issued to Employees of the
                  Corporation
Schedule 3.1      List of Shareholders who are not "accredited investors"
Schedule 7.0      List of LDD Domain Names
Schedule 8.5(d)   Principal Shareholders' Relative Ownership of Shares and
                  Proportional Share of Indemnification Obligations

Schedules Relating to Representations and Warranties of the Corporation and the
- -------------------------------------------------------------------------------
Shareholders
- ------------

Schedule 2.2      Jurisdictions Qualified To Do Business
Schedule 2.6      Outstanding Warrants, Options and Other Related Commitments
Schedule 2.7      Subsidiaries
Schedule 2.8      Accounts Payable and Projections
Schedule 2.9      Changes in Financial Condition and Subsequent Events
Schedule 2.10     Litigation
Schedule 2.12     Taxes
Schedule 2.13     Real Property and Related Matters
Schedule 2.14     Environmental Matters
Schedule 2.15     Personal Property and Capital Equipment
Schedule 2.16     Intellectual Property
Schedule 2.17     Officers and Directors and Related Matters
Schedule 2.19     Material Contracts
Schedule 2.20     Accounts Receivable
Schedule 2.22     Insurance Policies
Schedule 2.23     Employee Matters
Schedule 2.24     Suppliers and Customers
Schedule 2.26     Transactions with Insiders
Schedule 2.27     Guaranteed Obligations
Schedule 2.28     Bank Accounts and Related Matters

<PAGE>

Schedules Relating to Representations and Warranties of the Acquirer
- --------------------------------------------------------------------

Schedule 4.8      Subsidiaries
Schedule 4.9      Accounts Payable
Schedule 4.10     Changes in Financial Condition and Subsequent Events
Schedule 4.12     Taxes
Schedule 4.13     Real Property and Related Matters
Schedule 4.14     Environmental Matters
Schedule 4.15     Personal Property and Capital Equipment
Schedule 4.16     Intellectual Property
Schedule 4.17     Officers and Directors and Related Matters
Schedule 4.20     Insurance Policies
Schedule 4.21     Employee Matters
Schedule 4.22     Suppliers and Customers
Schedule 4.24     Transactions with Insiders
Schedule 4.25     Guaranteed Obligations
Schedule 4.26     Bank Accounts and Related Matters

















                                      -ii-
<PAGE>

                             INDEX OF DEFINED TERMS
                             ----------------------

TERM                                            SECTION
- ----                                            -------
Acquirer                                        Introductory Paragraph
Acquirer Financial Statements                   4.9
Acquirer Options                                1.11
Acquirer Stock                                  Recitals
Act                                             2.6
Additional Acquirer Stock                       1.12(a)
Agreement                                       Introductory Paragraph
Audited Financial Statements                    2.8
Buyer Benefit Plans or Buyer Plan               4.21
CERCLA                                          2.14(c)
Certificate                                     1.3(b)
Certificate of Merger                           1.1
Closing                                         1.9
Closing Date                                    1.9
Code                                            Recitals
Common Stock                                    2.6
Conversion Ratio                                1.3(a)
Corporation                                     Introductory Paragraph
Corporation Executive Officers                  1.10
Corporation Options                             1.4
Debt                                            1.6(a)
DGCL                                            1.1
Earn-out                                        1.5(a)
Earn-out Amount                                 1.5(b)
Earn-out I.A.F. Fee                             1.5(e)
Earn-out Notice                                 1.5(b)
Earn-out Period or Periods                      1.5(b)
Earn-out Portion                                1.5(d)
EBITDA                                          1.5(b)

<PAGE>

TERM                                            SECTION
- ----                                            -------
Effective Time                                  1.1
Employment Agreements                           1.10
Environmental Law                               2.14(c)
ERISA                                           2.23
ERISA Affiliate                                 2.23
GAAP                                            1.5(b)
Hazardous Substances                            2.14(b)
Heffernan                                       1.2(b)
Heffernan Proportion                            1.6(a)
Hsu                                             1.6(a)
Hypnotic                                        1.6(b)
Hypnotic Notes                                  1.6(b)
Hypnotic Settlement Payment                     1.6(b)
Income Statement                                1.5(b)
Indemnitee                                      8.4
Indemnitor                                      8.4
Independent Accounting Firm                     1.5(e)
Intellectual Property                           2.16
IPO                                             1.2(b)
Key Employee                                    1.10
LDD                                             Introductory Paragraph
LDD Business                                    1.5(b)
LDD Domain Names                                Article VII
LDD Holders                                     1.3(a)
LDD Representative                              1.5(b)
LDD Stock Option Plan                           1.4
Loss or Losses                                  8.2
Massie                                          3.3
material adverse effect                         2.2
material contract                               2.19
Matteo                                          1.2(b)

                                       -2-
<PAGE>

TERM                                            SECTION
- ----                                            -------
Matteo Proportion                               1.6(a)
Maximum Earn-out                                1.5(a)
Merger                                          1.1
Noncompetition Agreements                       1.10
Non-Principal Shareholder's Letters             1.10
NYBCL                                           1.1
OGFRW                                           1.6(b)
Permitted Transfer                              3.5
Pledged Shares                                  8.9
Principal Shareholders                          Introductory Paragraph
Projections                                     2.8
RCRA                                            2.14(c)
Remainder Debt                                  1.6(a)
Remainder Debt Notes                            1.10
Remaining Settlement Balance                    1.6(b)
Representation Expiration Date                  8.5(d)
SARA                                            2.14(c)
Seller Benefit Plan or Seller Plan              2.23
Shares                                          Recitals
Stock Pledge Agreement                          8.9
Subsidiary                                      2.7
Surviving Corporation                           1.1
tax                                             2.12
Third Party Claim                               8.4
Transaction Documents                           2.3(a)
2002 Income Statement                           1.12(b)
2002 Performance I.A.F. Fee                     1.12(g)
2002 Performance Notice                         1.12(b)
Unaudited Financial Statements                  2.8

                                       -3-
<PAGE>

                          AGREEMENT AND PLAN OF MERGER
                          ----------------------------

         This Agreement and Plan of Merger (this "Agreement") is made this 27th
day of February, 2002 by and among Bridgeline Software, Inc., a Delaware
corporation, with a principal place of business at 130 New Boston Street,
Woburn, Massachusetts 01801 (the "Acquirer"), Lead Dog Digital, Inc., a New York
corporation, with a principal place of business at 212 W. 35th Street, New York,
NY 10001 (the "Corporation" or "LDD"), and those shareholders of the Corporation
who are parties hereto (collectively, the "Principal Shareholders" and each
individually, a "Principal Shareholder"), each with a mailing address as set
forth under his or her respective name on Schedule 1.3(a) attached hereto.


                                    RECITALS

         WHEREAS, the Principal Shareholders own, collectively, Eighty-two and
03/100 percent (82.03%) of the issued and outstanding shares of the common
stock, par value $0.001 per share, of the Corporation (such issued and
outstanding shares being the "Shares"); and

         WHEREAS, the Boards of Directors of each of the Acquirer and the
Corporation have, in accordance with the laws of the State of Delaware and the
State of New York, respectively, approved the merger of the Corporation with and
into the Acquirer, pursuant to which all of the Shares will be converted into
common stock of the Acquirer, $0.001 par value per share (the "Acquirer Stock")
and the Corporation will merge with and into the Acquirer, with the Acquirer
being the surviving corporation; and;

         WHEREAS, it is the intention of the parties that the merger shall
qualify as a reorganization within the meaning of Section 368(a) of the Internal
Revenue Code of 1986, as amended (the "Code") and that this Agreement shall
constitute a "plan of reorganization" for the purposes of Section 368 of the
Code;

         WHEREAS, each of the parties to the Agreement desires to make certain
representations, warranties, and agreements in connection with the transaction
between the parties and to prescribe various conditions thereto; and

         WHEREAS, the shareholders of the Corporation who are not the Principal
Shareholders have executed, effective this date, certain Non-Principal
Shareholder's Letters (as such term is defined further below), which incorporate
by reference this Agreement and in which such shareholders agree to be bound by
this Agreement and assert their right to enjoy the benefits of this Agreement,
each as pursuant to the terms of this Agreement.

         NOW, THEREFORE, in consideration of the mutual covenants and agreements
herein contained, and for other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties hereto agree as
follows:

<PAGE>

                                    ARTICLE I

                                   THE MERGER
                                   ----------

         1.1 The Merger. Subject to and upon the terms and conditions of this
Agreement, at the effective time of the merger of the Corporation with and into
the Acquirer, and pursuant to the Delaware General Corporation Law ("DGCL") and
the New York Business Corporation Law ("NYBCL"), the Corporation will be merged
with and into the Acquirer (the "Merger") and the separate existence of the
Corporation shall thereupon cease, in accordance with the applicable provisions
of the DGCL and the NYBCL. As a result of the Merger, the Acquirer will be the
surviving corporation (sometimes referred to herein as the "Surviving
Corporation"). The Certificate of Incorporation and Bylaws of the Surviving
Corporation shall be those of the Acquirer as they are in existence immediately
prior to the Merger. The separate corporate existence of the Acquirer with all
its rights, privileges, powers, and franchises shall continue unaffected by the
Merger. The name of the Surviving Corporation shall continue to be "Bridgeline
Software, Inc." On the Closing Date (as such term is defined below), the parties
shall cause a Certificate of Merger, meeting the requirements of Section 252 of
the DGCL and Section 907 of the NYBCL, respectively (the "Certificate of
Merger"), to be promptly executed and filed with each of the Secretaries of
State of the State of Delaware and the State of New York. The Merger shall
become effective (the "Effective Time") upon the close of business on the date
that the filing of the Certificate of Merger with the Secretaries of State of
the State of Delaware and the State of New York has been completed or at such
other time or date than may otherwise be indicated in the Certificate of Merger.

         1.2 Officers and Directors.

         (a) The officers and directors of the Acquirer immediately prior to the
Effective Time shall be the officers and directors of the Surviving Corporation,
except that Ronald Heffernan and Michael Matteo (pursuant to appropriate actions
by the shareholders and/or Board of Directors of the Acquirer, effective upon
the Effective Time) shall each become a member of the Board of Directors of the
Surviving Corporation at the Effective Time, subject to the conditions set forth
in Section 1.2(b) below. All officers and directors incumbent immediately after
the Effective Time will hold office until their successors are duly elected and
qualified in the manner provided in Section 1.2(b), in the Certificate of
Incorporation and Bylaws of the Acquirer, or as otherwise provided by law, or
until their earlier death, resignation, or removal.

         (b) Ronald Heffernan ("Heffernan"), and each of his successors (each as
appointed by him or any such successor and reasonably acceptable to the
Acquirer), shall be entitled to hold a seat on the Board of Directors of the
Acquirer until the earlier of (i) such time as the Acquirer completes its first
underwritten public offering involving the sale of Acquirer Stock pursuant to an
effective registration statement under the Securities Act of 1933, as amended
(an "IPO"), or (ii) such time as the Principal Shareholders collectively have
sold, transferred or otherwise disposed of fifty percent (50%) or more of the
shares of Acquirer Stock issued to the Principal Shareholders at the Effective
Time pursuant to the terms of the Merger, other than in connection

                                       -2-
<PAGE>

with any Permitted Transfers (as such term is defined in Section 3.5 below).
Michael Matteo ("Matteo"), and each of his successors (each as appointed by him
or any such successor and reasonably acceptable to the Acquirer), shall be
entitled to hold a seat on the Board of Directors of the Acquirer until the
earlier of (i) May 26, 2003, (ii) the completion by the Acquirer of an IPO or
(iii) such time as the Principal Shareholders collectively have sold,
transferred or otherwise disposed of fifty percent (50%) or more of the shares
of Acquirer Stock issued to the Principal Shareholders at the Effective Time
pursuant to the terms of the Merger, other than in connection with any Permitted
Transfers. The Acquirer hereby covenants and agrees that during the period in
which Matteo (or any successor) shall be entitled to hold a seat on the
Acquirer's Board of Directors hereunder, the size of such Board of Directors
shall not be increased beyond six (6) in number without the consent of both
Heffernan and Matteo (or any successors). The rights of Heffernan and Matteo (or
any successors) to hold seats on the Acquirer's Board of Directors as provided
hereunder shall remain subject to the Board of Directors' fiduciary duties, the
applicable provisions of the Acquirer's Certificate of Incorporation and By-laws
and applicable law, including without limitation any rights of the Board of
Directors or shareholders to remove a director for cause.

         1.3 Conversion of Shares; Exchange Procedures.

                  (a) By virtue of the Merger, automatically and without any
action on the part of the holders thereof, the Shares outstanding immediately
prior to the Effective Time (other than any shares held as treasury stock by the
Corporation, which shall be cancelled, retired and cease to exist, and for which
no payment hereunder shall be made) shall become and be converted into and
become exchangeable for (x) the number of shares of Acquirer Stock, rounded to
the nearest whole share, equal to the product of the number of such Shares and
the Conversion Ratio (as such term is defined below) and (y) the right to
receive, to the extent earned, the Earn-out (as such term is defined in Section
1.5 below), such right not being evidenced by any separate instrument other than
this Agreement. The term "Conversion Ratio" shall mean the quotient obtained by
dividing (i) 2,933,000 by (ii) the sum of the total number of Shares issued and
outstanding immediately prior to the Effective Time plus the maximum total
number of shares of the Corporation's common stock that may be issued upon the
exercise of Corporation Options (as such term is defined in Section 1.4 below)
outstanding immediately prior to the Effective Time (whether or not such
Corporation Options are then exercisable). The total number of shares of
Acquirer Stock that shall be issued at the Effective Time in connection with the
conversion and exchange of the Shares outstanding immediately prior to the
Effective Time shall be allocated among all of the holders of such Shares
(collectively, the "LDD Holders" and each, individually, an "LDD Holder") on the
basis of each LDD Holder's respective percentage ownership of the total number
of such Shares. The number of Shares held by each LDD Holder and the
corresponding percentage ownership of the Corporation by each, as well as the
name and address of each such LDD Holder, is set forth in Schedule 1.3(a).

                  (b) Each certificate that immediately prior to the Effective
Time represents any outstanding Shares (each, a "Certificate") shall, on and
after the Effective Time (i) be deemed for all purposes to represent each of (A)
the number of shares of Acquirer Stock into which the Shares represented by such
Certificate shall have been converted pursuant to Section 1.3(a), and (B) the
right to receive the appropriate Earn-out Portion (as such term is defined in

                                       -3-
<PAGE>

Section 1.5(f) below), and (ii) be exchangeable by the holder thereof in the
manner provided in Section 1.3(c) below for a new certificate representing the
shares of Acquirer Stock into which the Shares represented by such Certificate
have been converted pursuant to Section 1.3(a).

                  (c) The Corporation shall cause to be delivered to the
Acquirer on the Closing Date the Certificates representing all of the Shares
outstanding immediately prior to the Effective Time, as evidenced by the stock
ledger and stock transfer records of the Corporation. Upon surrender of a
Certificate for exchange and cancellation to the Acquirer, the holder of such
Certificate shall be entitled to receive in exchange therefor a certificate
representing the number of shares of Acquirer Stock, rounded up or down to the
nearest whole share on a basis that is mutually agreed upon by the parties, that
such holder is entitled to receive under Section 1.3(a) above and such
Certificate shall forthwith be cancelled.

                  (d) No dividend or other distribution payable after the
Effective Time with respect to the Acquirer Stock shall be paid to the holder of
any unsurrendered Certificate until the holder thereof surrenders such
Certificate, at which time such holder shall receive all dividends and
distributions, without interest thereon, previously payable but withheld from
such holder pursuant hereto. After the Effective Time, there shall be no
transfers of any shares of capital stock on the stock transfer books of the
Corporation. If, after the Effective Time, any Certificates are presented for
transfer to the Surviving Corporation, they shall be cancelled in exchange for
the shares of Acquirer Stock deliverable in respect thereof pursuant to Section
1.3(a) above.

                  (e) After the Effective Time, the holders of any shares of the
capital stock of the Corporation shall cease to be, and shall have no rights as,
stockholders of the Corporation, other than to receive the consideration into
which such shares have been converted pursuant to the provisions hereof.

                  (f) Notwithstanding the foregoing, neither the Acquirer nor
the Corporation or any other person shall be liable to any former holder of
shares of any capital stock of the Corporation for any shares or any dividends
or distributions with respect thereto properly delivered to a public official
pursuant to applicable abandoned property, escheat or similar laws.

                  (g) In the event any Certificate shall have been lost, stolen
or destroyed, upon receipt of appropriate evidence as to such loss, theft or
destruction and to the ownership of such Certificate by the person claiming such
Certificate to be lost, stolen or destroyed, and the receipt by the Acquirer of
appropriate and customary indemnification, the Acquirer will cause to be
delivered in exchange for such lost, stolen or destroyed Certificate the shares
of Acquirer Stock deliverable in respect thereof as determined in accordance
with Section 1.3(a) above.

                  (h) If any certificate representing shares of Acquirer Stock
is to be issued in a name other than that in which the Certificate surrendered
and exchanged therefor is registered, it shall be a condition of the issuance
thereof that the Certificate so surrendered shall be properly endorsed (or
accompanied by an appropriate instrument of transfer) and otherwise in proper
form for transfer (including, but not limited to, that the signature of the
transferor shall be properly guaranteed by a commercial bank, trust company,
member firm of a national or regional

                                       -4-
<PAGE>

securities exchange or other eligible guarantor institution), and that the
person requesting such exchange shall pay to the Acquirer in advance any
transfer or other taxes required by reason of the issuance of a certificate
representing shares of Acquirer Stock in any name other than that of the
registered holder of the Certificate surrendered, or required for any other
reason, or shall establish to the satisfaction of the Acquirer that such tax has
been paid or is not payable.

         1.4 Treatment of Outstanding Stock Options.

                  (a) At the Effective Time, each option to purchase shares of
the Corporation's common stock, as set forth in Schedule 1.4 (each, a
"Corporation Option" and collectively, the "Corporation Options"), which has
been issued under the Corporation's 2001 Stock Option Plan (the "LDD Stock
Option Plan") or has been otherwise issued pursuant to a separate agreement
outside of the LDD Stock Option Plan, whether or not such option is then
exercisable thereunder, shall cease to represent an option to purchase shares of
the Corporation's common stock and shall be converted automatically into an
option to purchase shares of Acquirer Stock, and the Acquirer shall assume each
Corporation Option, in accordance with the terms of the LDD Stock Option Plan
(as applicable) and the related stock option agreement executed by the
Corporation and holder by which it is evidenced, including, without limitation,
any such terms pertaining to the acceleration and vesting of the holder's
exercise rights thereunder, except that from and after the Effective Time, (i)
the Acquirer and its Board of Directors and/or any committee appointed by the
Acquirer's Board of Directors shall be substituted for the Corporation and the
Corporation's Board of Directors (including, if applicable, any committee
appointed by such Board of Directors) administering the LDD Stock Option Plan
(as applicable), (ii) each Corporation Option assumed by the Acquirer may be
exercised solely for shares of Acquirer Stock, (iii) the number of shares of
Acquirer Stock subject to such Corporation Option shall be equal to the number
of the Corporation's common stock subject to such Corporation Option immediately
prior to the Effective Time multiplied by the Conversion Ratio, provided that
any fractional shares of Acquirer Stock resulting from such multiplication shall
be rounded down to the nearest share, and (iv) the per-share exercise price
under each such Corporation Option shall be adjusted by dividing the per-share
exercise price under each such Corporation Option by the Conversion Ratio,
provided that such exercise price shall be rounded up to the nearest cent.
Notwithstanding clauses (iii) and (iv) of the preceding sentence, each
Corporation Option which is an "incentive stock option" under the Code shall be
adjusted as required by Section 424 of the Code and the regulations promulgated
thereunder, so as not to constitute a modification, extension or renewal of the
option within the meaning of Section 424(h) of the Code.

                  (b) In the event that any Corporation Option held by an
employee who is not an LDD Holder at the Effective Time shall become void or is
otherwise forfeited or cancelled under the LDD Stock Option Plan or any
applicable agreement upon or following the termination of such employee's
employment with the Acquirer at any time within twenty-four (24) months
following the Closing Date, then the Acquirer's Board of Directors (or the
committee thereof that is responsible for administering the LDD Stock Option
Plan following the Effective Time) shall grant a new option or options under the
LDD Stock Option Plan to purchase such number of shares of Acquirer Stock in the
aggregate as such former employee had a right to purchase under the terms of
such void or otherwise forfeited or cancelled option, such new option or options
to be granted to such current employee or employees of the Acquirer who then
hold(s)

                                       -5-
<PAGE>

validly outstanding options previously granted under the LDD Stock Option Plan
as may be reasonably recommended by Heffernan and Matteo. The terms of any such
new option, including without limitation the vesting schedule and exercise
price, shall be determined by the Acquirer's Board of Directors (or such
applicable committee) and in accordance with the terms of the LDD Stock Option
Plan.

                  (c) The Corporation and the Acquirer agree to take all
necessary steps to effect the foregoing provisions of Sections 1.4(a) and 1.4(b)
above.


         1.5 Earn-Out Consideration.

                  (a) The LDD Holders shall be entitled to earn additional cash
consideration (collectively, the "Earn-out") in an aggregate amount of up to
Three Hundred Forty-two Thousand Three Hundred Ninety-nine and 06/100 Dollars
($342,399.06) (the "Maximum Earn-out") in accordance with the terms and
conditions of this Section 1.5 and subject to the prior repayment of the
Remainder Debt to Heffernan and Matteo pursuant to Section 1.6(a) below and the
Principal Shareholders' indemnification obligations contained in Article VIII
below.

                  (b) Within thirty (30) calendar days after the end of each
calendar quarter (i.e., the three (3) months ended March 31, June 30, September
30 and December 31 of each relevant calendar year) or portion thereof that is
included within the thirty-six (36) month period beginning on the first calendar
day following the Closing Date (the "Earn-out Periods" and each individually, an
"Earn-out Period"), the Acquirer shall prepare an income statement reflecting
solely the business and operations associated exclusively with the Corporation
following the completion of the Merger independent of the remaining business and
operations of the Acquirer (the "LDD Business") calculated in accordance with
generally accepted accounting principles ("GAAP") for such Earn-out Period, and
a related calculation of the Earnings Before Interest, Taxes, Depreciation and
Amortization ("EBITDA") of the LDD Business for such Earn-out Period, such
calculation of EBITDA to be completed in accordance with GAAP and to reflect as
closely as reasonably possible the EBITDA that would have been achieved by the
Corporation during such Earn-out Period if the Merger had not occurred (each
such income statement and EBITDA calculation are collectively referred to herein
as the "Income Statement"). Promptly following the Acquirer's determination of
such EBITDA for an Earn-out Period, the Acquirer shall deliver to Heffernan, as
the representative duly authorized by, and acting on behalf of, the LDD Holders
(or his successor(s) as duly elected by a majority in interest of the LDD
Holders) (referred to in this capacity as the "LDD Representative"), the Income
Statement, which shall include a statement of the total amount owed collectively
to the LDD Holders, if any, based on the calculations set forth on Schedule
1.5(b) hereto (the "Earn-out Amount") (each Income Statement and each such
accompanying statement of the Earn-out Amount, if any, are collectively referred
to herein as the "Earn-out Notice").

                  (c) The LDD Representative shall have ten (10) business days
from the date of his receipt of an Earn-out Notice to either (i) accept the
calculations and conclusions made in the Earn-out Notice or (ii) give notice to
the Acquirer in writing that the LDD Representative intends to dispute the
amounts included in the Earn-out Notice, and such notice shall set forth in

                                       -6-
<PAGE>

reasonable detail the disputed amount and the basis for such dispute. Any such
dispute by the LDD Representative must be reasonable and made in good faith.

                  (d) If, within the 10-business day period provided for in
Section 1.5(c), the LDD Representative either affirmatively notifies the
Acquirer that he accepts the calculations and conclusions made in the Earn-out
Notice or does not otherwise give notice to the Acquirer in writing that he
intends to dispute the amounts included in the Earn-out Notice, then within ten
(10) business days following the expiration of such ten-business day period
provided for in Section 1.5(c) or, if earlier, the date of the Acquirer's
receipt of such affirmative notice of the LDD Representative's acceptance of the
calculations and conclusions made in the Earn-out Notice, the Acquirer shall pay
the relevant Earn-out Amount, if any, to the LDD Holders.

                  (e)      (i) If the LDD Representative notifies the Acquirer
that he intends to dispute the amounts included in the Earn-out Notice in
accordance with Section 1.5(c)(ii) above, then the Acquirer and the LDD
Representative shall negotiate in good faith to resolve the dispute. If the
Acquirer and the LDD Representative are unable to reach a resolution within ten
(10) business days after receipt by the Acquirer of the LDD Representative's
written notice of dispute, then the Acquirer and the LDD Representative shall
submit the matter to a mutually acceptable independent public accounting firm of
international reputation (the "Independent Accounting Firm"), which shall,
within thirty (30) calendar days after such submission, determine the Earn-out
Amount, if any. The determination of the Earn-out Amount by the Independent
Accounting Firm shall be final, non-appealable and binding on the parties hereto
and, under the Non-Principal Shareholder's Letters, each other LDD Holder.

                           (ii) In the event that the Independent Accounting
Firm determines that the Earn-out Amount stated by the Acquirer under Section
1.5(b) is accurate and correct in all material respects, then (A) the LDD
Holders shall pay all costs and expenses charged by the Independent Accounting
Firm (the "Earn-out I.A.F. Fee") and (B) if an Earn-out Amount is due under such
Earn-out Notice, within ten (10) business days of the parties' receipt of such
report by the Independent Accounting Firm, the Acquirer shall pay such Earn-out
Amount to the LDD Holders (which payment may be in an amount net of the Earn-out
I.A.F. Fee otherwise due from the LDD Holders to the Independent Accounting
Firm, if the Acquirer chooses in its sole discretion to pay directly to the
Independent Accounting Firm the Earn-out I.A.F. Fee due from the LDD Holders).

                           (iii) In the event that the Independent Accounting
Firm determines that the Acquirer's calculations and conclusions made in the
Earn-out Notice are inaccurate or misstated such that the Earn-out Notice
includes no Earn-out Amount or otherwise references an Earn-out Amount lower
than the accurate Earn-out Amount, then (A) the Acquirer shall pay the Earn-out
I.A.F. Fee and (B) within ten (10) business days of the parties' receipt of such
report by the Independent Accounting Firm, the Acquirer shall pay to the LDD
Holders the Earn-out Amount determined by the Independent Accounting Firm.

                  (f) Notwithstanding any of the foregoing contained in this
Section 1.5, and subject to Section 1.6(a), in no event shall any Earn-out
Amount for any one Earn-out Period exceed the aggregate amount of Thirty-seven
Thousand Five Hundred Dollars ($37,500.00). All

                                       -7-
<PAGE>

Earn-out Amounts that may be paid to the LDD Holders hereunder shall be divided
and allocated among the LDD Holders on the basis of their respective percentage
ownership of the Shares immediately prior to the Effective Time, as set forth in
Schedule 1.3(a) (with respect to each LDD Holder, the "Earn-out Portion").

                  (g) In the event that the LDD Holders are not paid the Maximum
Earn-out during the collective Earn-out Periods, the LDD Representative may
elect to extend the period during which the Earn-out may be paid for an
additional twelve (12) months by providing to the Acquirer a written notice of
such election at least ninety (90) days prior to the third anniversary of the
Closing Date.

         1.6 Repayment of Debt and Other Obligations.

                  (a) At the Effective Time, the Acquirer will assume the
obligation of the Corporation for the repayment of the principal amount plus
accrued interest (as calculated as of the Effective Time) of certain
indebtedness owed by the Corporation to Heffernan, Matteo and Monica Hsu
("Hsu"), the principal and interest with respect to which totals (as of the
Effective Time) Seven Hundred Seven Thousand Six Hundred and 94/100 Dollars
($707,600.94) (the "Debt"). The Debt, with respect to Heffernan, Matteo and Hsu,
is set forth in Schedule 1.6. At the Effective Time, the Acquirer shall pay Six
Hundred Thousand Dollars ($600,000) in the aggregate to Heffernan, Matteo and
Hsu as repayment of the Debt, which payment shall be made on the basis of the
individual amounts set forth in Schedule 1.6 (it being acknowledged and agreed
to by the parties that the portion of the Debt owed to Hsu shall be paid in full
at the Effective Time). After the Effective Time, the remaining amount of the
Debt, totaling One Hundred Seven Thousand Six Hundred and 94/100 Dollars
($107,600.94) in the aggregate (the "Remainder Debt"), shall be payable by the
Acquirer to Heffernan and Matteo at the end of each calendar quarter; provided,
however, that in each calendar quarter during which the Remainder Debt is repaid
the maximum payment of such debt shall be the Earn-out Amount (if any)
calculated with respect to that calendar quarter under Section 1.5. The
Remainder Debt shall be paid to Heffernan and Matteo, if at all in accordance
with the terms hereof, on the basis of the following relative percentages: with
respect to Heffernan, 77.507% or 0.77507 expressed as a decimal (the "Heffernan
Proportion"), and with respect to Matteo, 22.493% or 0.22493 expressed as a
decimal (the "Matteo Proportion"). The parties acknowledge and agree that
payment (if any) of the Remainder Debt hereunder shall have the effect of
delaying the commencement of the payment (if any) of Earn-out Amounts until the
Remainder Debt is repaid in full. No additional interest on the Remainder Debt
shall accrue or be paid with respect to any period following the Effective Time.
The parties hereto acknowledge that payment of the Remainder Debt is dependent
upon the performance of the LDD Business following the Effective Time and that
therefore it is possible that the Remainder Debt may be repaid only in part or
not at all.

                  (b) The parties acknowledge and agree that the Corporation is
currently engaged in negotiating a settlement of claims between the Corporation
and Hypnotic, Inc. ("Hypnotic"), which will be completed after the Closing Date.
In connection with such settlement, Hypnotic will pay an aggregate amount of One
Hundred Thousand Dollars ($100,000) (the "Hypnotic Settlement Payment") to
Olshan Grundman Frome Rosenzweig &

                                       -8-
<PAGE>

Wolosky, LLP, as counsel to the Corporation in connection with the Corporation's
negotiation and completion of such settlement ("OGFRW"). The Corporation has
agreed with OGFRW that, upon OGFRW's receipt of the Hypnotic Settlement Payment,
OGFRW shall retain a portion of the Hypnotic Settlement Payment as payment for
prior services provided by OGFRW to the Corporation, including services provided
in connection with such settlement and other services provided to the
Corporation prior to the Effective Time, and shall remit the remaining portion
of the Hypnotic Settlement Payment directly to the Acquirer. The Acquirer shall
promptly pay to Heffernan and Matteo any amount remaining from the portion of
the Hypnotic Settlement Payment received by the Acquirer from OGFRW after
deducting (i) the amount of any state and federal taxes that the Acquirer shall
be required to pay with respect to the Hypnotic Settlement Payment and (ii) the
portion of the Hypnotic Settlement Payment that the Corporation and Hypnotic
have agreed under the terms of such settlement constitutes payment by Hypnotic
for future services to be provided to Hypnotic by the Corporation (any such
remaining balance that may be paid to Heffernan and Matteo, the "Remaining
Settlement Balance"). At the time of the Acquirer's payment to Heffernan and
Matteo of the Remaining Settlement Balance, and if there is no Remaining
Settlement Balance to be paid to Heffernan and Matteo after taking into account
the deductions specified in the immediately preceding sentence, then promptly
following any such determination by the Acquirer that there is no Remaining
Settlement Balance, the Acquirer shall execute and deliver to each of Heffernan
and Matteo a promissory note, in substantially the form included as Exhibit A
hereto (each, a "Hypnotic Note" and together, the "Hypnotic Notes"), in
consideration and in full satisfaction of certain additional indebtedness owed
by the Corporation to Heffernan and Matteo at the Effective Time, under the
terms of which the Acquirer shall agree to pay to Heffernan and Matteo, in four
equal quarterly installments and without interest, an aggregate amount equal to
the difference between the Remaining Settlement Balance, if any, and Eighty-five
Thousand Dollars ($85,000); provided, however, that in no event shall the
aggregate principal amount under both of the Hypnotic Notes combined exceed
Sixty-five Thousand Dollars ($65,000). The allocation between Heffernan and
Matteo of any aggregate amount to be paid by the Acquirer to Heffernan and
Matteo under this Section 1.6(b), including without limitation pursuant to the
Hypnotic Notes, shall be calculated on the basis of the Heffernan Proportion and
the Matteo Proportion, respectively.

         1.7 Maximum Total Consideration. The parties acknowledge and agree that
the total maximum consideration that may be paid by the Acquirer in connection
with the Merger pursuant to the terms of this Agreement, including in connection
with the conversion of the Shares into shares of Acquirer Stock pursuant to
Section 1.3 above, the Acquirer's assumption of the Corporation Options as
options to acquire additional shares of Acquirer Stock in accordance with the
terms thereof pursuant to Section 1.4 above, the payment of the Earn-out
pursuant to Section 1.5 above, the repayment of the Debt and certain additional
obligations of the Corporation pursuant to Section 1.6 above, the granting of
the Acquirer Options pursuant to Section 1.11 below and the issuance of the
Additional Acquirer Stock pursuant to Section 1.12 below, shall be (i) up to
4,142,500 shares of Acquirer Stock (of which not less than 2,636,806 shall be
issued at the Effective Time upon the conversion of the Shares outstanding
immediately prior to the Effective Time, up to 296,194 of which may be issued
upon the exercise, if any, of Corporation Options after the Effective Time, up
to 267,500 of which may be issued upon the exercise, if any, of the Acquirer
Options after the Effective Time and up to 942,000 of which may be issued as
Additional Acquirer Stock after the Effective Time), (ii) up to Three Hundred

                                       -9-
<PAGE>

Forty-two Thousand Three Hundred Ninety-nine and 06/100 Dollars ($342,399.06) in
cash that may be paid as Earn-out following the Effective Time under Section
1.5, (iii) up to Seven Hundred Seven Thousand Six Hundred and 94/100 Dollars
($707,600.94) in cash as repayment of the Debt (of which Six Hundred Thousand
Dollars ($600,000) shall be paid at the Effective Time and some or all of the
Remainder Debt may be paid following the Effective Time as set forth in Section
1.6(a)), and (iv) the Remaining Settlement Balance, if any, together with an
amount of up to Sixty-five Thousand Dollars ($65,000) under the Hypnotic Notes
pursuant to Section 1.6(b).

         1.8 Tax-Free Reorganization. It is the intention of the parties hereto
that the Merger shall qualify as a "reorganization" within the meaning of
Section 368(a) of the Code and that this Agreement shall constitute a "plan of
reorganization" for the purposes of Section 368 of the Code. All aspects of the
transactions contemplated by this Agreement shall be implemented in a manner
consistent with this intent.

         1.9 Closing. The closing (the "Closing") of the transactions
contemplated by this Agreement shall take place at the offices of Edwards &
Angell, LLP at 750 Lexington Avenue, New York, New York, or as otherwise
mutually agreed upon by the parties. The Closing shall occur on the date of this
Agreement or such other time as shall be mutually agreed upon by the parties
(the "Closing Date").

         1.10 Other Agreements. At the Closing, (i) the Acquirer will enter into
an employment agreement with each of Heffernan, Matteo, Robert Seeger and Brett
Zucker (collectively, the "Corporation Executive Officers"), each such agreement
to be substantially in the form included as Exhibit B hereto (collectively, the
"Employment Agreements"), (ii) each LDD Holder who is not a Principal
Shareholder will execute and deliver to the Acquirer a Non-Principal
Shareholder's Letter in substantially the form included as Exhibit C hereto
(collectively, the "Non-Principal Shareholder's Letters), and (iii) the Acquirer
will enter into an accord and satisfaction with each of Heffernan and Matteo,
under the terms of which each loan agreement, promissory note and any other
instrument evidencing the Debt will be surrendered by the holders thereof and
cancelled in consideration for the Acquirer's agreement to repay to Heffernan
and Matteo the Remainder Debt in accordance with the terms and conditions of
Section 1.6 above, each such accord and satisfaction to be substantially in the
form included as Exhibit D hereto (collectively, the "Remainder Debt Notes").
The Acquirer shall require each employee of the Corporation listed on Schedule
1.10 attached hereto (each, a "Key Employee") to enter into a nondisclosure and
noncompete agreement in substantially the form included as Exhibit E hereto
(collectively, the "Noncompetition Agreements") within a reasonable period of
time following the Effective Time. The Principal Shareholders shall use their
best efforts to cause each Key Employee to enter into a Noncompetition Agreement
within such reasonable period of time.

         1.11 Additional Employee Stock Options. In addition to the Corporation
Options that shall be assumed by Acquirer at the Effective Time and shall
thereafter be options to purchase shares of Acquirer Stock pursuant to Section
1.4 above, the Acquirer hereby agrees that it shall grant additional options to
purchase shares of Acquirer Stock (the "Acquirer Options") to certain employees
of the Corporation, which employees and which number and nature of options are
set forth in Schedule 1.11 hereto. The Acquirer Options shall be granted under
the Acquirer's 2000

                                      -10-
<PAGE>

Stock Option Plan, and shall be granted in each case for the number of shares
and on such other terms, including without limitation vesting schedules, as
indicated on Schedule 1.11. The Corporation shall take all necessary actions to
complete the granting of the Acquirer Options within thirty (30) calendar days
after the Closing Date. Acquirer shall take all actions reasonably necessary to
assure that at all times there are sufficient authorized shares of Acquirer
Stock to enable the exercise of all options to purchase Acquirer Stock that are
issued and effective (whether or not immediately exercisable) after the
Effective Time and after the date of the granting of the Acquirer Options.

         1.12 Post-closing Performance of LDD Business.

                  (a) As set forth in this Section 1.12, depending upon the
financial performance of the LDD Business for the calendar year ending on
December 31, 2002 (including that portion of the year from and including January
1, 2002 through and including the Closing Date), the Principal Shareholders may
be entitled to receive additional shares of Acquirer Stock, up to a maximum
number in the aggregate of 942,000 additional shares (the "Additional Acquirer
Stock"), or may be required to transfer some or all of the Pledged Shares (as
such term is defined in Section 8.9 below) back to the Acquirer for no
additional consideration to any of the Principal Shareholders.

                  (b) Within ninety (90) calendar days after the end of the
calendar year ending on December 31, 2002, the Acquirer shall prepare an income
statement reflecting solely the LDD Business, independent of the remaining
business and operations of the Acquirer, calculated in accordance with GAAP for
such calendar year, and a related calculation of the EBITDA of the LDD Business
for such calendar year, such calculation of EBITDA to be completed in accordance
with GAAP and to reflect as closely as reasonably possible the EBITDA that would
have been achieved by the Corporation during such calendar year if the Merger
had not occurred (such income statement and EBITDA calculation are collectively
referred to herein as the "2002 Income Statement"). Promptly following the
Acquirer's completion of the 2002 Income Statement, the Acquirer shall deliver
the 2002 Income Statement, together with an accompanying calculation of the
required number of Pledged Shares, if any, to be transferred back to the
Acquirer pursuant to Section 1.12(c) below or the required number of shares of
Additional Acquirer Stock, if any, to be issued and delivered to the Principal
Shareholders pursuant to Section 1.12(d) below, as the case may be (the 2002
Income Statement and such accompanying calculation referred to herein as the
"2002 Performance Notice"), to the LDD Representative.

                  (c) If the 2002 Income Statement shows gross revenue of less
than $2,700,000.00 for the LLD Business for the calendar year ended December 31,
2002, then a number of the Pledged Shares shall be transferred from the
Principal Shareholders back to the Acquirer, such number of shares to equal the
product of (i) the difference between $2,700,000.00 and the actual dollar amount
of the gross revenue of the LDD Business shown on the 2002 Income Statement and
(ii) 1.4752, rounded to the nearest whole share, up to a maximum number of
shares equal to the total number of Pledged Shares then held by the Acquirer
pursuant to Section 8.9 below. In the event that the Principal Shareholders are
required to transfer any of the Pledged Shares back to the Acquirer under this
Section 1.12(c), the number of Pledged Shares to be so transferred by each
Principal Shareholder shall be determined on the basis of the relative

                                      -11-
<PAGE>

percentage ownership of the Shares among the Principal Shareholders as set forth
in Schedule 8.5(d) hereto. In no event shall any Principal Shareholder receive
any additional consideration from the Acquirer or otherwise for any Pledged
Shares that are required to be transferred back to the Acquirer in accordance
with this Section 1.12(c).

                  (d) If the 2002 Income Statement shows both gross revenue of
greater than $2,700,000.00 and EBITDA of $100,000.00 or more for the LDD
Business for the calendar year ended December 31, 2002, then the Acquirer shall
issue and deliver to the Principal Shareholders shares of the Additional
Acquirer Stock, for no additional consideration on the part of any of the
Principal Shareholders, as follows: (i) for gross revenue greater than
$2,700,000.00 and less than or equal to $3,000,000.00, the Acquirer shall issue
and deliver an aggregate number of shares of Additional Acquirer Stock, rounded
to the nearest whole share, equal to the product of (A) the difference between
the actual dollar amount of the gross revenue of the LDD Business shown on the
2002 Income Statement and $2,700,000.00 and (B) 1.4733 (such that a maximum
number of 442,000 shares of Additional Acquirer Stock in the aggregate shall be
issued and delivered to the Principal Shareholders if the gross revenue of the
LDD Business shown on the 2002 Income Statement equals $3,000,000.00); and (ii)
for gross revenue greater than $3,000,000.00, the Acquirer shall issue and
deliver, in addition to the shares required in accordance with the foregoing
clause (i), an aggregate number of shares of Additional Acquirer Stock equal to
the product of (A) the difference between the actual dollar amount of the gross
revenue of the LDD Business shown on the 2002 Income Statement and $3,000,000.00
and (B) 1.00, up to a maximum number of 500,000 additional shares (such that a
maximum number of 942,000 shares of Additional Acquirer Stock in the aggregate
shall be issued and delivered to the Principal Shareholders if the gross revenue
of the LDD Business shown on the 2002 Income Statement is equal to or greater
than $3,500,000.00). In the event that the Principal Shareholders are entitled
to receive shares of Additional Acquirer Stock under this Section 1.12(d), the
number of shares of Additional Acquirer Stock to be issued and delivered by the
Acquirer to each Principal Shareholder shall be determined on the basis of the
relative percentage ownership of the Shares among the Principal Shareholders as
set forth in Schedule 8.5(d) hereto.

                  (e) The LDD Representative shall have ten (10) business days
from the date of his receipt of the 2002 Performance Notice to either (i) accept
the calculations and conclusions made in the 2002 Performance Notice or (ii)
give notice to the Acquirer in writing that the LDD Representative intends to
dispute the amounts included in the 2002 Performance Notice, and such notice
shall set forth in reasonable detail the disputed amount and the basis for such
dispute. Any such dispute by the LDD Representative must be reasonable and made
in good faith.

                  (f) If, within the 10-business day period provided for in
Section 1.12(e), the LDD Representative either affirmatively notifies the
Acquirer that he accepts the calculations and conclusions made in the 2002
Performance Notice or does not otherwise give notice to the Acquirer in writing
that he intends to dispute the amounts included in the 2002 Performance Notice,
then within ten (10) business days following the expiration of such ten-business
day period provided for in Section 1.12(e) or, if earlier, the date of the
Acquirer's receipt of such affirmative notice of the LDD Representative's
acceptance of the calculations and conclusions made in the 2002 Performance
Notice, the required number of Pledged Shares, if any, shall be

                                      -12-
<PAGE>

transferred back to the Acquirer or the required number of shares of Additional
Acquirer Stock, if any, shall be issued and delivered to the Principal
Shareholders, as the case may be.

                  (g) (i) If the LDD Representative notifies the Acquirer that
he intends to dispute the amounts included in the 2002 Performance Notice in
accordance with Section 1.12(e)(ii) above, then the Acquirer and the LDD
Representative shall negotiate in good faith to resolve the dispute. If the
Acquirer and the LDD Representative are unable to reach a resolution within ten
(10) business days after receipt by the Acquirer of the LDD Representative's
written notice of dispute, then the Acquirer and the LDD Representative shall
submit the matter to the Independent Accounting Firm, which shall, within thirty
(30) calendar days after such submission, determine the gross revenue and EBITDA
of the LDD Business for the calendar year ended December 31, 2002 and the
required number of Pledged Shares, if any, to be transferred back to the
Acquirer or the required number of shares of Additional Acquirer Stock, if any,
to be issued and delivered to the Principal Shareholders, as the case may be.
The determinations made by the Independent Accounting Firm with respect to the
2002 Performance Notice shall be final, non-appealable and binding on the
parties hereto.

                  (ii) In the event that the Independent Accounting Firm
determines that the calculations and conclusions made by the Acquirer in the
2002 Performance Notice were accurate and correct in all material respects, then
(A) the Principal Shareholders shall pay all costs and expenses charged by the
Independent Accounting Firm (the "2002 Performance I.A.F. Fee") and (B) within
ten (10) business days of the parties' receipt of such report by the Independent
Accounting Firm, the required number of Pledged Shares, if any, shall be
transferred back to the Acquirer or the required number of shares of Additional
Acquirer Stock, if any, shall be issued and delivered to the Principal
Shareholders, as the case may be (which required number of Pledged Shares or
shares of Additional Acquirer Stock, as the case may be, may be appropriately
adjusted to reflect the amount of the 2002 Performance I.A.F. Fee otherwise due
from the Principal Shareholders to the Independent Accounting Firm, if the
Acquirer chooses in its sole discretion to pay directly to the Independent
Accounting Firm the Performance I.A.F. Fee due from the Principal Shareholders).

                  (iii) In the event that the Independent Accounting Firm
determines that the Acquirer's calculations and conclusions made in the 2002
Performance Notice were inaccurate or misstated such that the purportedly
required number of Pledged Shares, if any, to be transferred back to the
Acquirer or the purportedly required number of shares of Additional Acquirer
Stock, if any, to be issued and delivered to the Principal Shareholders, as the
case may be, reflected in the 2002 Performance Notice as prepared and delivered
by the Acquirer were incorrect, then (A) the Acquirer shall pay the 2002
Performance I.A.F. Fee and (B) within ten (10) business days of the parties'
receipt of such report by the Independent Accounting Firm, the required number
of Pledged Shares, if any, as determined by the Independent Accounting Firm,
shall be transferred back to the Acquirer or the required number of shares of
Additional Acquirer Stock, if any, as determined by the Independent Accounting
Firm, shall be issued and delivered to the Principal Shareholders, as the case
may be.

         1.13 Additional Actions. If, at any time after the Effective Time, the
Surviving Corporation shall consider or be advised that any deeds, bills of
sale, assignments, assurances or

                                      -13-
<PAGE>

any other actions or things are necessary or desirable to vest, perfect or
confirm of record or otherwise in the Surviving Corporation its right, title or
interest in, to or under any of the rights, properties or assets of the
Corporation acquired or to be acquired by the Surviving Corporation as a result
of, or in connection with, the Merger or to otherwise carry out the purpose and
intent of this Agreement, the officers and directors of the Surviving
Corporation shall and will be authorized to execute and deliver, in the name and
on behalf of the Corporation or the Acquirer or otherwise, all such deeds, bills
of sale, assignments and assurances and to take and do, in the name and on
behalf of the Corporation or the Acquirer or otherwise, all such other actions
and things as may be necessary or desirable to vest, perfect or confirm any and
all right, title and interest in, to and under such rights, properties or assets
in the Surviving Corporation or to otherwise carry out the purpose and intent of
this Agreement.


                                   ARTICLE II

REPRESENTATIONS AND WARRANTIES OF THE CORPORATION AND THE PRINCIPAL SHAREHOLDERS
- --------------------------------------------------------------------------------

         In order to induce the Acquirer to enter into this transaction, the
Corporation and each Principal Shareholder makes the following representations
and warranties.

         2.1 Ownership of Shares. Each Principal Shareholder has valid title to
and owns beneficially and of record all of the Shares set forth opposite his
name on Schedule 1.3(a) attached hereto, and has good and marketable title to
such Shares, free and clear of any and all restrictive legends, options, liens,
claims, pledges, voting trusts and agreements, security interests, charges and
other restrictions or encumbrances of any kind. The Corporation and each such
Principal Shareholder has the absolute and unconditional right, power, authority
and capacity to execute and perform this Agreement and any of the Transaction
Documents (as such term is defined below) to which it is a party and to
consummate the transactions contemplated hereby and thereby. Neither the
Corporation nor any such Principal Shareholder has granted any option, other
than, in the case of the Corporation, the Corporation Options, or other
commitment or is otherwise a party to or bound by any agreement obligating the
Corporation or any such Principal Shareholder to sell, pledge or otherwise grant
any interest in the Shares to any person or entity, except the Acquirer.

         2.2 Organization and Corporate Power. LDD is a corporation duly
organized, validly existing and in good standing under the laws of the State of
New York and has the corporate power and authority to carry on its business as
presently conducted. LDD is duly licensed or qualified to do business as a
foreign corporation in each jurisdiction set forth on Schedule 2.2 attached
hereto and there is no other jurisdiction wherein the character of its property,
or the nature of the activities presently conducted by it, makes such
qualification necessary, except where the failure to be so qualified will not
have a material adverse effect on the Corporation. For purposes of this
Agreement, the term "material adverse effect", when used with respect to

                                      -14-
<PAGE>

any entity, means a material adverse effect upon the operations, results of
operations, financial condition, assets, properties or business of such entity,
taken as a whole.

         2.3 Authorization.

                  (a) The Corporation. The Corporation has the right, power and
legal capacity and has taken all necessary corporate action required for the due
authorization, execution, delivery and performance by the Corporation of this
Agreement and any other agreement or instrument executed by the Corporation in
connection herewith (collectively, the "Transaction Documents"), and the
consummation of the transactions contemplated herein or therein. This Agreement
is, and to the extent that the Corporation is a party thereto, each of the
Transaction Documents is, a valid and binding obligation of the Corporation
enforceable in accordance with its respective terms, except to the extent that
such enforcement may be subject to applicable bankruptcy, reorganization,
insolvency, fraudulent conveyance or other laws affecting creditors' rights
generally and to the application of general equitable principles.

                  (b) Principal Shareholders. The Transaction Documents shall
include all documents executed and delivered at the Closing to which the
Principal Shareholders (or any of them) are parties. This Agreement and each of
the Transaction Documents to which the Principal Shareholders are a party have
been duly executed and delivered by each Principal Shareholder and constitute
the valid and binding obligations of each Principal Shareholder enforceable
against each Principal Shareholder in accordance with its respective terms,
except to the extent that such enforcement may be subject to applicable
bankruptcy, reorganization, insolvency, fraudulent conveyance or other laws
affecting creditors' rights generally and to the application of general
equitable principles.

         2.4 No Conflicts. The execution, delivery and performance of this
Agreement and the Transaction Documents and the consummation of the transactions
contemplated hereby and thereby by the Corporation and the Principal
Shareholders do not and will not violate, conflict with, result in a breach of
or constitute a default under (or which with notice or lapse of time, or both,
would constitute a breach of or default under), or result in the creation of any
lien, security interest or other encumbrance under (a) any note, agreement,
contract, license, instrument, lease or other obligation to which the
Corporation or the Principal Shareholders are a party or by which the
Corporation or the Principal Shareholders are bound and for which the
Corporation or the Principal Shareholders have not previously obtained a written
waiver of such breach or default, which waiver has been delivered to the
Acquirer, (b) any judgment, order, decree, ruling or injunction known and
applicable to the Corporation or the Principal Shareholders, (c) any statute,
law, regulation or rule of any governmental agency or authority, or (d) the
Corporation's Certificate of Incorporation or Bylaws. Neither the Corporation
nor any Principal Shareholder has any reason to believe that the execution,
delivery or performance of this Agreement or any of the Transaction Documents or
the consummation of the transactions contemplated hereby or thereby, will cause
the Corporation to lose the benefit of any right or privilege it presently
enjoys. This Agreement and the transactions contemplated hereby, including
without limitation the Merger, have been unanimously approved by the
Corporation's Board of Directors and unanimously approved by all holders of the
Shares and do not require any further corporate

                                      -15-
<PAGE>

action or authorization, and are not and will not be subject to any right of
first refusal, put, call or similar right.

         2.5 Government Approvals. No consent, approval, license or
authorization, governmental or otherwise, or designation, declaration or filing
with, any court or governmental authority is or will be required on the part of
the Principal Shareholders or the Corporation in connection with the execution,
delivery and performance of this Agreement, any of the Transaction Documents and
any other agreements or instruments executed by the Corporation or the Principal
Shareholders in connection herewith or therewith, other than the filing of the
Certificate of Merger with the Secretaries of State of the State of Delaware and
the State of New York.

         2.6 Authorized and Outstanding Stock. Before giving effect to the
transactions to be consummated at the Effective Time, the authorized capital
stock of the Corporation consists of 10,000,000 shares of common stock, par
value $0.001 per share ("Common Stock"), of which 3,139,620 shares are validly
issued and outstanding and held of record and owned beneficially as set forth in
Schedule 1.3(a) attached hereto. The Shares are all of the issued and
outstanding shares of capital stock of the Corporation, and the Shares are duly
and validly authorized, validly issued and fully paid and non-assessable and
free from any restrictions on transfer, except for restrictions imposed by
federal or state securities or "blue-sky" laws. The Common Stock is the only
class of capital stock authorized by the Corporation. Except as set forth in
Schedule 2.6, there are no outstanding warrants, options, commitments,
preemptive rights, rights to acquire or purchase, conversion rights or demands
of any character relating to the capital stock or other securities of the
Corporation, other than the Corporation Options. All of the Corporation Options
and their terms, including the identity of the holders thereof, the number of
shares of Common Stock that may be issued by the Corporation upon the exercise
thereof, and the extent to which such options are presently exercisable, are
disclosed in Schedule 1.4 attached hereto. There are no voting agreements,
voting trusts, registration rights, rights of first refusal, preemptive rights,
buy-sell agreements, co-sale rights, or other restrictions applicable to any
capital stock or other securities of the Corporation. All issued and outstanding
shares of capital stock of the Corporation were issued (i) in transactions
complying with or exempt from the registration provisions of the Securities Act
of 1933, as amended (the "Act"), and (ii) in compliance with or in transactions
exempt from the registration provisions of applicable state securities or
"blue-sky" laws.

         2.7 Subsidiaries. Except as set forth on Schedule 2.7, the Corporation
does not have, and at no time during its existence has it had, any subsidiaries.
Except as set forth in Schedule 2.7, the Corporation does not have any
investment or other interest in, or any outstanding loan or advance to or from,
any person or entity, including, without limitation, any officer, director or
shareholder. "Subsidiary" of an entity means a corporation or other business
entity in which such entity owns, directly or indirectly, at least a 50%
interest or that is otherwise, directly or indirectly, controlled by such
entity.

         2.8 Financial Information/Accounts Payable/Projections. Schedule 2.8
sets forth a full and complete list of the Corporation's accounts payable as of
December 31, 2001. The Corporation has previously delivered to the Acquirer the
audited balance sheets of the Corporation at both December 31, 1998 and December
31, 1999 and the related statements of

                                      -16-
<PAGE>

earnings for the years ending December 31, 1998, and December 31, 1999 (the
"Audited Financial Statements"). In addition, the Corporation has previously
delivered to the Acquirer the unaudited balance sheet of the Corporation at
December 31, 2001, and the related statements of earnings for the twelve (12)
months ended December 31, 2001 (the "Unaudited Financial Statements"). The
Unaudited Financial Statements present fairly, in all material respects, the
financial condition and results of operations of the Corporation in accordance
with GAAP applied on a basis consistent with prior periods. Except as set forth
in Schedule 2.9, the Unaudited Financial Statements do not contain footnotes and
are subject to normal year-end adjustments, which adjustments are neither
individually nor in the aggregate material. The Corporation has no liability,
contingent or otherwise, which is not adequately reflected in or reserved
against in the Unaudited Financial Statements (subject to normal year-end
adjustments) that could materially and adversely affect the financial condition
of the Corporation. Except as set forth in the Unaudited Financial Statements or
Schedule 2.9, since December 31, 2001 (i) there has been no change in the
business, property, assets, liabilities, condition (financial or otherwise),
operations, results of operations, affairs or prospects of the Corporation
except for changes in the ordinary course of business which, in the aggregate,
would not have a material adverse effect, and (ii) none of the business,
property, assets, liabilities, condition (financial or otherwise), operations,
result of operations, affairs or prospects of the Corporation have been
materially adversely affected by any occurrence or development, in the
aggregate, whether or not insured against. Set forth in Schedule 2.8 are
projections of the future performance of the LDD Business for the three (3)
month period ending March 31, 2002, including monthly income, net profits, cash
flows and future "pipeline" sales forecasts for such period (the "Projections").
The Projections have been prepared in good faith and are based on what the
Corporation and its management believe to be a reasonable assessment of the
future performance of the LDD Business. All material assumptions used in the
preparation of the Projections are set forth in the footnotes or narrative
thereto.

         2.9 Events Subsequent to the Date of the Financial Statements. Except
as set forth on Schedule 2.9, or in the Unaudited Financial Statements, since
December 31, 2001, the Corporation has not (i) issued any stock, bond or other
corporate security, (ii) borrowed any amount or incurred or become subject to
any material liability (absolute, accrued or contingent), except liabilities
under contracts entered into in the ordinary course of business, (iii)
discharged or satisfied any lien or encumbrance or incurred or paid any
obligation or liability (absolute, accrued or contingent) other than current
liabilities shown on the Unaudited Financial Statements and incurred in the
ordinary course of business, (iv) declared or made any payment, other than
ordinary payments of compensation in amounts consistent with the historic
levels, or distribution to stockholders or purchased or redeemed any shares of
its capital stock or other securities, (v) mortgaged, pledged or subjected to
lien any of its assets, tangible or intangible, other than liens of current real
property taxes not yet due and payable, (vi) sold, assigned or transferred any
of its tangible assets except in the ordinary course of business, or canceled
any material debt or claim, except in the ordinary course of business, (vii)
sold, assigned, transferred or granted any license with respect to any patent,
trademark, trade name, service mark, copyright, trade secret or other intangible
asset, except pursuant to license or other agreements entered into in the
ordinary course of business, (viii) suffered any material loss of property or
waived any right of substantial value whether or not in the ordinary course of
business, (ix) made any change in officer compensation, (x) made any material
change in the manner of business or operations of the

                                      -17-
<PAGE>

Corporation, (xi) entered into any transaction except in the ordinary course of
business or as otherwise contemplated hereby, or (xii) entered into any
commitment (contingent or otherwise) to do any of the foregoing.

         2.10 Litigation. Except as otherwise set forth on Schedule 2.10, there
is no litigation or governmental proceeding or investigation, pending or
threatened, against the Corporation or affecting any of the Corporation's
properties or assets, or against any officer, key employee, shareholder or
former shareholder of the Corporation in his capacity as such, nor has there
occurred any event or does there exist any condition on the basis of which any
litigation, proceeding or investigation might properly be instituted. Except as
set forth on Schedule 2.10, each incident or proceeding described on Schedule
2.10 is fully covered by insurance. Neither the Corporation nor any officer, key
employee or shareholder of the Corporation in his capacity as such is in default
with respect to any order, writ, injunction, decree, ruling or decision of any
court, commission, board or other government agency.

         2.11 Compliance with Laws and Other Instruments. The Corporation is in
compliance with all of the provisions of this Agreement, its Certificate of
Incorporation and Bylaws, and in all material respects with the provisions of
each mortgage, indenture, lease, license, other agreement or instrument,
judgment, decree, judicial order, statute and regulation by which it is bound or
to which its properties are subject.

         2.12 Taxes. The Corporation has filed all federal, state, local and
foreign tax returns (including statements of estimated taxes owed) required to
be filed within the applicable periods for such filings, such filings are
complete and accurate in all material respects, and the Corporation has paid all
taxes required to be paid, and has established adequate accrual reserves (net of
estimated tax payments already made) for the payment of all taxes payable in
respect to the period subsequent to the last periods covered by such returns.
Except as set forth on Schedule 2.12, no deficiencies for any tax are currently
assessed against the Corporation, and no tax returns of the Corporation have
been audited during the last three (3) years, and, to the best knowledge of the
Corporation and the Principal Shareholders, there is no such audit pending or
contemplated or any reasonable basis for the assessment of additional tax
against the Corporation. There is no tax lien, whether imposed by any federal,
state or local taxing authority, outstanding against the assets, properties or
business of the Corporation. For the purposes of this Agreement, the term "tax"
shall include all federal, state and local taxes, including income, franchise,
property, sales, use, withholding, payroll and employment taxes and all deposits
required to be made by each party hereto with the Internal Revenue Service on
account of such party's election to utilize a fiscal year end.

         2.13 Real Property.

                  (a) Schedule 2.13 sets forth the addresses and uses of all
real property that the Corporation owns, leases or subleases, and any lien or
encumbrance on any such owned real property or the Corporation's leasehold
interest therein, specifying in the case of each such lease or sublease, the
name of the lessor or sublessor, as the case may be, the lease term and the
rental obligations of the lessee thereunder.

                                      -18-
<PAGE>

                  (b) Except as set forth on Schedule 2.13, to the best
knowledge of the Corporation and the Principal Shareholders, there is no
material violation of any law, regulation or ordinance (including without
limitation laws, regulations or ordinances relating to zoning, environmental,
city planning or similar matters) relating to any real property owned by the
Corporation.

                  (c) There are no defaults by the Corporation under any
existing leases, subleases or other contractual obligations pertaining to real
property that the Corporation owns, leases or subleases, and to the best
knowledge of the Corporation and the Principal Shareholders, by any other party,
which might curtail in any material respect the present use of the Corporation's
property listed on Schedule 2.13.

         2.14 Environmental Matters.

                  (a) Except as set forth on Schedule 2.14, to the best
knowledge of the Corporation and the Principal Shareholders, the Corporation:
(1) has not caused any releases of any Hazardous Substance (as such term is
defined in Subsection 2.14(b), below) anywhere which requires remediation or
clean-up pursuant to any applicable Environmental Law (as such term is defined
in Subsection 2.14(c), below), and (2) has not disposed of Hazardous Substances
anywhere except in compliance in all material respects with applicable
Environmental Laws, and (3) has not received any notice from any governmental
authority of any violation of any Environmental Law. The Corporation has not
conducted or engaged in any operation or activity involving the use, storage or
disposal of any Hazardous Substance except as authorized by and fully in
accordance with applicable Environmental Laws. There is no pending or, to the
Corporation's or the Principal Shareholders' best knowledge, threatened,
lawsuit, action, claim or proceeding by any third party alleging or asserting
that the Corporation has violated or is about to violate any applicable
Environmental Law.

                  (b) "Hazardous Substances" means and shall include any
hazardous waste, as defined by 42 U.S.C. ss. 6903(5), any hazardous substance as
defined by 42 U.S.C. ss. 9601(14), any pollutant or contaminant as defined by 42
U.S.C. ss. 9601(33) or any toxic substance, oil or hazardous material or other
chemical or substance regulated by any Environmental Laws.

                  (c) "Environmental Law" means and shall include any judgment,
decree, order, law, license, permit, rule or regulation pertaining to
environmental matters, including, without limitation, those arising under the
Resource Conservation and Recovery Act ("RCRA"), the Comprehensive Environmental
Response, Compensation and Liability Act of 1980, as amended ("CERCLA"), the
Superfund Amendments and Reauthorization Act of 1986 ("SARA"), the Federal Water
Pollution Control Act, the Solid Waste Disposal Act, as amended, the Federal
Clean Water Act, the Federal Clean Air Act, the Toxic Substances Control Act, or
any applicable state or local statute, regulation, ordinance, order or decree
relating to health, safety or the environment.

         2.15 Personal Property/Capital Equipment. Schedule 2.15 sets forth a
full and complete list of all personal property, including capital equipment,
owned or leased by the Corporation. Except as set forth on Schedule 2.15, and
except for property sold or otherwise

                                      -19-
<PAGE>

disposed of in the ordinary course of business, the Corporation has good and
marketable title, free and clear of any lien, charge, restriction or
encumbrance, to all of such personal property. All material items of such
personal property used in the operation of the business of the Corporation are
in good operating condition, normal wear and tear excepted.

         2.16 Patents, Trademarks, etc Set forth on Schedule 2.16 is a list of
all patents, patent rights, patent applications, trademarks, trademark
applications, service marks, service mark applications, trade names, domain
names, technology, customer lists, proprietary processes and registered
copyrights, and all applications for such that are in the process of being
prepared, owned by or registered in the name of the Corporation, or of which the
Corporation is a licensor or licensee or in which the Corporation has any right,
and in each case a brief description of the nature of such right. The
Corporation owns or possesses adequate licenses or other rights to use all the
items set forth on Schedule 2.16, manufacturing processes, formulae, trade
secrets, source and object code, algorithms, inventions, development tools and
all documentation and media constituting, describing or relating to the above
and all know how (collectively, the "Intellectual Property") necessary to the
conduct of its business as conducted and as proposed to be conducted, and no
claim is pending or, to the best knowledge of the Corporation and the Principal
Shareholders, threatened to the effect that the operations of the Corporation,
its products or services, infringe, or have infringed, upon or conflict with the
asserted rights of any other person or entity under any Intellectual Property,
and there is no known basis for any such claim (whether or not pending or
threatened). No claim is pending or, to the best knowledge of the Corporation
and the Principal Shareholders, threatened to the effect that any such
Intellectual Property owned or licensed by the Corporation, or which the
Corporation otherwise has the right to use, is invalid or unenforceable by the
Corporation, and there is no known basis for any such claim (whether or not
pending or threatened). Except in the ordinary course of business, the
Corporation has not granted or assigned to any other person or entity any right
to manufacture, assemble or sell the products or proposed products or to provide
the services or proposed services of the Corporation. No current or former
stockholder, employee, officer or director of the Corporation has (directly or
indirectly) any right, title or interest in any of the rights described on
Schedule 2.16 other than such right which such person or entity may enjoy as a
stockholder of the Corporation.

         2.17 Agreements of Directors, Officers, Employees and Consultants. No
current or former director, officer or employee of or consultant to the
Corporation is in violation of any term of any employment contract,
non-competition agreement, non-disclosure agreement, patent disclosure or
assignment agreement or other contract or agreement containing restrictive
covenants relating to the conduct of any such current or former director,
officer, employee, or consultant or otherwise relating to the use of trade
secrets or proprietary information of others by any such person. Schedule 2.17
hereto sets forth the name and address of each person currently serving as an
officer or a director of the Corporation, and each person listed on Schedule
2.17 was duly elected and is presently serving as such officer or director. Set
forth on Schedule 2.17 is a list of all current or former employees and
consultants of the Corporation who have (i) executed a non-disclosure agreement
with the Corporation or (ii) executed a non-competition agreement with the
Corporation. Except as disclosed in Schedule 2.17, since December 31, 2001, the
Corporation has not paid or become committed to pay any bonus or similar
additional compensation to any officer, director or employee of the Corporation.

                                      -20-
<PAGE>

         2.18 Governmental Licenses. The Corporation has all the material
permits, licenses, orders, franchises and other rights and privileges of all
federal, state, local or foreign governmental or regulatory bodies necessary for
the Corporation to conduct its business as presently conducted. All such
permits, licenses, orders, franchises and other rights and privileges are in
full force and effect and no suspension or cancellation of any of them is
threatened, and none of such permits, licenses, orders, franchises or other
rights and privileges will be affected by the consummation of the transactions
contemplated by this Agreement or any of the Transaction Documents.

         2.19 List of Material Contracts and Commitments. Schedule 2.19 sets
forth a complete and accurate list of all material contracts to which the
Corporation is a party or by or to which any of its assets or properties is
bound or subject. As used in this Section 2.19, the phrase "material contract"
means and includes every material agreement or material understanding of any
kind, written or oral, which is legally enforceable by or against the
Corporation, and specifically includes without limitation (a) contracts and
other agreements with any current or former officer, director, employee,
consultant or shareholder or any partnership, corporation, joint venture or any
other entity in which any such person or entity has an interest; (b) agreements
with any labor union or association representing any employee; (c) contracts and
other agreements for the provision of services other than by employees of the
Corporation which entail a reasonably foreseeable financial consequence to any
contracting party of at least Twenty-five Thousand Dollars ($25,000); (d) bonds
or other security agreements provided by any party in connection with the
business of the Corporation; (e) contracts and other agreements for the sale of
any of the assets or properties of the Corporation other than in the ordinary
course of business or for the grant to any person or entity of any preferential
rights to purchase any of said assets or properties; (f) joint venture
agreements relating to the assets, properties or business of the Corporation or
by or to which any of its assets or properties are bound or subject; (g)
contracts or other agreements under which the Corporation agrees to indemnify
any party, to share tax liability of any party, or to refrain from competing
with any party; (h) any contracts or other agreements with regard to any
indebtedness of the Corporation; or (i) any other contract or other agreement
whether or not made in the ordinary course of business and involving a
reasonably foreseeable financial consequence to any contracting party of at
least Twenty-five Thousand Dollars ($25,000). The Corporation has delivered to
the Acquirer true, correct and complete copies of all such contracts, together
with all modifications and supplements thereto. Except as set forth on Schedule
2.19, each of the contracts listed on Schedule 2.19 is in full force and effect.
The Corporation is not in breach of any of the material provisions of any such
contract, nor, to the best knowledge of the Corporation and the Principal
Shareholders, is any other party to any such contract in default thereunder, nor
does any event or condition exist which with notice or the passage of time or
both would constitute a default of a material provision thereunder, except for
any such breach or default that individually and in the aggregate would not have
a material adverse effect to the business of the Corporation. The Corporation
has performed in all material respects all obligations required to be performed
by it under each such contract as of the Effective Time.

         2.20 Accounts Receivable. Schedule 2.20 sets forth a full and complete
list of the Corporation's accounts receivable and accounts receivable reserve as
of December 31, 2001. Except as set forth in Schedule 2.20, all accounts and
notes receivable reflected on the

                                      -21-
<PAGE>

Corporation's balance sheets provided to the Acquirer, and all accounts and
notes receivable arising subsequent to the date of such balance sheets, have
arisen in the ordinary course of business and represent valid obligations owing
to the Corporation. To the best knowledge of the Corporation and the Principal
Shareholders, none of the Corporation's receivables is subject to any claim of
offset, recoupment, setoff or counterclaim and neither the Corporation nor any
Principal Shareholder has knowledge of any specific facts or circumstances
(whether asserted or unasserted) that could give rise to any such claim. No
material amount of receivables are contingent upon the performance by the
Corporation of any obligation or contract other than normal warranty repair and
replacement. No person has any lien on any such receivables and no agreement for
deduction or discount has been made with respect to any such receivables. Except
as set forth in Schedule 2.20, to the best knowledge of the Corporation and the
Principal Shareholders, all of the Corporation's accounts and notes receivable
reflected on the Corporation's balance sheets provided to the Acquirer and all
accounts and notes receivable arising subsequent to the date of such balance
sheets are collectible in full by the Corporation in the ordinary course of
business.

         2.21 Securities Acts. The Corporation and the Principal Shareholders
have materially complied with all applicable federal or state securities laws in
connection with the transactions contemplated by this Agreement. Neither the
Principal Shareholders nor, to the Corporation's and the Principal Shareholders'
best knowledge, anyone acting on their behalf has offered any of the Shares, or
similar securities, or solicited any offer to purchase any of such securities,
so as to bring this transaction within the scope of the registration provisions
of the Act.

         2.22 Insurance Coverage. Schedule 2.22 hereto contains an accurate
summary of the insurance policies currently maintained by the Corporation.
Except as described on Schedule 2.22, there are currently no claims pending
against the Corporation pursuant to any insurance policy currently in effect and
covering the property, the business or the employees of the Corporation. All
such policies (a) are in full force and effect and (b) are sufficient for
compliance by the Corporation with all requirements of all agreements to which
the Corporation is a party. All premiums due and payable under all such policies
have been timely paid and the Corporation is not in default in any material
respect with respect to its obligations pursuant to any of such insurance
policies and has not received any notification of cancellation of any such
insurance policies.

         2.23 Employee Matters. Except as set forth on Schedule 2.23:

                  (a) The Corporation has in effect no employment agreements or
consulting agreements.

                  (b) The Corporation has no deferred compensation, pension or
retirement agreement or arrangement, bonus, incentive or profit-sharing plan or
arrangement, termination, severance, stock option, stock appreciation right,
restricted stock, post-retirement benefits or other fringe benefits plan or
arrangement, or labor or collective bargaining agreement, written or oral,
providing benefits to any present or former employee or director of the
Corporation or any Subsidiary or any ERISA Affiliate or any beneficiary or
dependent thereof that is or has been maintained, administered or contributed to
by the Corporation or any ERISA Affiliate at any

                                      -22-
<PAGE>

time or for which any of them has any obligation or liability (collectively the
"Seller Benefit Plans" and each a "Seller Plan").

                  (c) Neither the Corporation nor the Principal Shareholders
have any knowledge that any of the officers, other key employees, directors or
any significant number of employees of the Corporation presently intends to
terminate his, her or their employment, whether before or after the Effective
Time.

                  (d) The Corporation is in compliance in all material respects
with all applicable laws and regulations relating to labor, employment, fair
employment practices, terms and conditions of employment, and wages and hours.

                  (e) The Corporation is in compliance in all material respects
with the terms of all plans, programs and agreements listed on Schedule 2.23,
and each such plan, program or agreement is in compliance in all material
respects with all of the requirements and provisions of the Employee Retirement
Income Security Act of 1974, as amended ("ERISA").

                  (f) No Seller Benefit Plan is (i) a multiemployer plan within
the meaning of Section 3(37) or 4001(a)(3) of ERISA, (ii) a plan subject to
Title IV of ERISA, or (iii) subject to the minimum funding rules of Section 302
of ERISA or Section 412 of the Code, and neither the Corporation or any
Subsidiary nor any ERISA Affiliate has ever contributed to, sponsored or
maintained or ever been obligated to sponsor, maintain or contribute to, any
such plan.

                  (g) The Corporation does not maintain or contribute to any
plan that provides health benefits to an employee or beneficiary thereof after
the employee's termination of employment or retirement, except as required under
Section 4980B of the Code or ERISA or applicable state law.

                  (h) There are no investigations by any governmental authority,
termination proceedings or other claims (except for claims for benefits payable
in the normal operation of the Seller Benefit Plan), suits or proceedings
pending, or to the Corporation's or Principal Shareholder's knowledge,
threatened or anticipated, against or involving any Seller Benefit Plan, any
employer who is participating (or has participated) in any Seller Benefit Plan
or any fiduciary (as defined in Section 3(21) of ERISA) or asserting any rights
or claims to benefits under Seller Benefit Plan.

                  (i) No liability currently exists and no event has occurred
and no condition exists, which could subject the Corporation, directly or
indirectly (through an indemnification agreement or otherwise) to any liability,
including, without limitation, breach of fiduciary duty under Title I of ERISA
or any liability under Title IV of ERISA (including, but not limited to, Section
409 or 502(i) of ERISA) or Section 4971, 4975, 4976, 4977, 4979 or 4980B of the
Code.

                  (j) With respect to each plan listed on Schedule 2.23, all
required filings, including all filings required to be made with the United
States Department of Labor and Internal Revenue Service, have been timely filed.

                                      -23-
<PAGE>

                  (k) Neither the execution and delivery of this Agreement nor
the consummation of the Merger will (i) result in any material payment
(including, without limitation, severance, unemployment compensation, golden
parachute or otherwise) becoming due from the Corporation or any subsidiary,
(ii) materially increase any benefits otherwise payable under any Seller Benefit
Plan or (iii) accelerate the time of payment or vesting, or increase the amount
of, any compensation due to any employee.

                  (l) No Seller Benefit Plan will, individually or in the
aggregate, give rise to the payment by the Corporation, solely as a result of
the transactions contemplated by this Agreement, to any current or former
employee or director of the Corporation or any Subsidiary of any amount that
would constitute an "excess parachute payment" within the meaning of Section
280G of the Code.

                  (m) All expenses and liabilities relating to all Seller
Benefit Plans have been, and will be on the Effective Time, fully and properly
accrued on the Corporation's books and records and disclosed in the
Corporation's financial statements in accordance with GAAP, consistent with the
Corporation's past practices.

                  (n) All contributions required to be made to each Seller
Benefit Plan have been made as and when required by the terms of the applicable
Seller Benefit Plan.

                  (o) All insurance premiums have been paid in full, subject
only to normal retrospective adjustments in the ordinary course, with regard to
the Seller Benefit Plans for plan years ending on or before the Effective Time.

         2.24 Suppliers and Customers. Except as set forth in Schedule 2.24:

                  (a) The relationships of the Corporation with its significant
suppliers and customers are good commercial working relationships and no
significant supplier or customer of the Corporation has canceled or otherwise
terminated, or to the Corporation's and the Principal Shareholders' best
knowledge, threatened to cancel or otherwise to terminate its relationship with
the Corporation, or has during the last twelve (12) months decreased materially,
or threatened to decrease or limit materially, its services, supplies or
materials for use by the Corporation or its usage or purchase of the services or
products of the Corporation except for normal cyclical changes related to
customers' businesses and except for changes which have not had a material
adverse effect on the Corporation.

                  (b) No supplier or customer has notified the Corporation that
it intends to cancel or otherwise substantially modify its relationship with the
Corporation or to decrease materially or limit its services, supplies or
materials to the Corporation, or its usage or purchase of the services of the
Corporation, and, to the best knowledge of the Corporation and the Principal
Shareholders, the consummation of the transactions contemplated hereby will not
materially adversely affect the relationship of the Acquirer with any such
supplier or customer.

         2.25 No Brokers or Finders. No person or entity has or will have, as a
result of the actions of the Corporation or any Principal Shareholder, any
right, interest or claim against or

                                      -24-
<PAGE>

upon the Corporation or the Acquirer for any commission, fee or other
compensation as a finder or broker arising from the transactions contemplated by
this Agreement.

         2.26 Transactions with Insiders. Except as set forth on Schedule 2.26,
there are no loans, leases or other contracts between the Corporation and any
officer or director of the Corporation, or any person or entity owning five
percent (5%) or more of the total number of Shares, or any respective family
member or affiliate of any such officer, director or shareholder.

         2.27 Assumptions, Guarantees. Except as set forth on Schedule 2.27, the
Corporation has not assumed, guaranteed, endorsed or otherwise become directly
or contingently liable on or for any indebtedness of any other person or entity,
except guarantees by endorsement of negotiable instruments for deposit or
collection or similar transactions in the ordinary course of business.

         2.28 Bank Accounts, Signing Authority, Powers of Attorney. Except as
set forth on Schedule 2.28, the Corporation has no account or safe deposit box
in any bank and no person or entity has any power, whether singly or jointly, to
sign any checks on behalf of the Corporation, to withdraw any money or other
property from any bank, brokerage or other account of the Corporation, or to act
pursuant to any power of attorney granted by the Corporation at any time for any
purpose.

         2.29 Corporate Books. The books and records of the Corporation made
available to the Acquirer for inspection include copies of its Certificate of
Incorporation and Bylaws as currently in effect and accurately record therein in
all material respects all actions, proceedings, consents and meetings of the
Board of Directors and shareholders of the Corporation and any committees
thereof. The books and records of the Corporation have been, and are being,
maintained in accordance with any applicable legal and regulatory requirements
and reflect only actual transactions.

         2.30 SIMPLE IRA Plan. The Corporation has taken all necessary actions
required to authorize the termination of the Corporation's SIMPLE IRA Plan,
subject to the consummation of the Merger, including without limitation the
adoption of appropriate Board of Directors' resolutions, the preparation of
appropriate notices to plan participants (to be delivered to such participants
promptly following the Effective Time) and the sending of an appropriate notice
to the plan sponsor, and the Corporation has funded, or made adequate reserves
for, the full amounts of the employer contributions that are required under the
terms of said plan to be paid by the Corporation with respect to the year ended
December 31, 2001 and the period from and including January 1, 2002 through and
including the Closing Date.

                                   ARTICLE III

         REPRESENTATIONS, COVENANTS AND RIGHTS OF PRINCIPAL SHAREHOLDERS
         ---------------------------------------------------------------

         3.1 Principal Shareholders' Representations. Each Principal Shareholder
represents that his present intention is to acquire the shares of Acquirer Stock
to be issued thereto in connection with the Merger for his own account and that
such shares of Acquirer Stock are being and will be acquired for the purpose of
investment and not with a view to distribution or resale

                                      -25-
<PAGE>

thereof. Each Principal Shareholder represents that he has had an opportunity to
ask questions of and receive answers from the authorized representatives of the
Acquirer and to review any relevant documents and records concerning the
business of the Acquirer and the terms and conditions of this investment and
that any such questions have been answered to each Principal Shareholder's full
satisfaction. Each Principal Shareholder acknowledges that it has been called to
his attention that this investment involves a high degree of risk and that the
Acquirer is in a start up stage and has limited operating history. Each
Principal Shareholder acknowledges that he can bear the economic risks of his
investment in the Acquirer Stock and that he has such knowledge and experience
in financial or business matters that he is capable of evaluating the merits and
risks of this investment in the Acquirer Stock and protecting his own interests
in connection with this investment. Except as set forth on Schedule 3.1 attached
hereto, each Principal Shareholder hereby represents and warrants to the
Acquirer that he is an "accredited investor" as such term is defined under
Section 501(a) of Regulation D promulgated under the Act. Each Principal
Shareholder understands and acknowledges that no federal or state agency has
passed upon or made any recommendation or endorsement with respect to the shares
of Acquirer Stock being sold to each Principal Shareholder herein. Each
Principal Shareholder understands that the shares of Acquirer Stock to be issued
in connection with the Merger have not been registered under the Act and that
such shares must be held indefinitely unless a subsequent disposition thereof is
permitted under the Act or is exempt from such registration. Each Principal
Shareholder further represents that he understands and agrees that until
transferred as herein provided, or transferred pursuant to the provisions of
Rule 144, all certificates evidencing the shares of Acquirer Stock to be issued
in connection with the Merger, whether upon initial issuance or upon transfer
thereof, shall bear a legend (and the Acquirer will make a notation on its
transfer books to such effect) prominently stamped or printed thereon reading
substantially as follows:

         THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED
         UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE
         SECURITIES LAWS. THESE SECURITIES HAVE BEEN ACQUIRED FOR INVESTMENT AND
         NOT WITH A VIEW TO DISTRIBUTION OR RESALE AND MAY NOT BE SOLD,
         MORTGAGED, PLEDGED, HYPOTHECATED, OR OTHERWISE TRANSFERRED WITHOUT AN
         EFFECTIVE REGISTRATION STATEMENT FOR SUCH SECURITIES UNDER THE
         SECURITIES ACT OF 1933, AS AMENDED, OR UNLESS AN EXEMPTION FROM
         REGISTRATION UNDER SUCH ACT IS AVAILABLE.

         3.2 Agreements Required in a Public Offering. Each Principal
Shareholder agrees that upon request by any underwriter managing a public
offering of shares of Acquirer Stock, such Principal Shareholder will agree to
any lockup or other provisions affecting the transferability of the shares of
Acquirer Stock owned by the Principal Shareholder, which are usual and customary
and generally imposed on other similarly situated holders of shares of the
Acquirer, taking into account the number and class of shares and the
relationship of each Principal Shareholder to the Acquirer, and will provide
such underwriter and its counsel with such information with respect to the
Principal Shareholder as is reasonably required to carry out such public
offering.

                                      -26-
<PAGE>

         3.3 Registration Rights. If, at any time after the Closing Date, the
Acquirer plans or intends to file a registration statement with the Securities
and Exchange Commission with respect to any of the shares of Acquirer Stock held
by Thomas L. Massie ("Massie"), the Acquirer shall include under any such
registration statement, with respect to each LDD Holder who so requests, an
amount of shares of Acquirer Stock that is of the same proportion to the number
of shares of Massie's Acquirer Stock being registered as the total number of
shares of Acquirer Stock held by such LDD Holder is to the total number of
shares of Acquirer Stock held by Massie. This Section 3.3 shall be of no further
force or effect upon the completion of an IPO.

         3.4 Tag-Along Rights. If, at any time after the Closing Date, Massie
shall intend or negotiate to sell any of his shares of Acquirer Stock, other
than in connection with a Permitted Transfer (as defined below), then each LDD
Holder who so requests shall have the right to include in such sale an amount of
shares of Acquirer Stock that is of the same proportion to the number of shares
of Massie's Acquirer Stock being sold as the total number of shares of Acquirer
Stock held by such LDD Holder is to the total number of shares of Acquirer Stock
held by Massie at the same time and under the same terms as such sale by Massie.
This Section 3.4 shall be of no further force or effect upon the completion of
an IPO. A "Permitted Transfer" as described herein with respect to any holder of
shares of Acquirer Stock is any transfer made to an immediate family member of
such holder or to a trust or other estate-planning vehicle established by or for
the benefit of such holder and/or members of such holder's immediate family. The
term "immediate family" as used herein shall have the meaning ascribed thereto
in paragraph (e) of Rule 16a-1 of the Securities and Exchange Commission.

         3.5 Survival. The obligations of the parties under this Article III
shall survive and continue in effect following the Effective Time in accordance
with the terms thereof.


                                   ARTICLE IV

                 REPRESENTATIONS AND WARRANTIES OF THE ACQUIRER
                 ----------------------------------------------

         References to the "Acquirer" in this Article IV shall mean the Acquirer
and the sole subsidiary thereof, as set forth in Schedule 4.8 hereto (the
"Sub"), except where the context reasonably contemplates a reference solely to
the Acquirer, on its own.

         4.1 Organization and Qualification. The Acquirer is a corporation duly
organized, validly existing and in corporate good standing in the State of
Delaware. The Acquirer is duly qualified to do business and is in good standing
in all jurisdictions in which its ownership of property or the character of its
business requires such qualification, except where the failure to be so
qualified will not have a material adverse effect on the Acquirer. The Sub is a
corporation duly organized, validly existing and in corporate good standing in
the Commonwealth of Massachusetts.

         4.2 Authority. This Agreement has been duly authorized, executed and
delivered by the Acquirer and constitutes a legal, valid and binding obligation
of the Acquirer, enforceable

                                      -27-
<PAGE>

against it in accordance with its terms. The Acquirer has the right, power and
authority to enter into this Agreement and to carry out the terms and provisions
of this Agreement, and to enter into and carry out the terms of all agreements
and instruments required to be delivered by the Acquirer by the terms of this
Agreement, without obtaining the consent of any third parties or authorities.
This Agreement and the transactions contemplated hereby have been unanimously
approved by the Board of Directors of the Acquirer and approved by the holders
of not less than a majority of the outstanding shares of capital stock of the
Acquirer entitled to vote thereon and no additional corporate action or
authorization is required by the Acquirer in connection with the consummation of
the transactions contemplated by this Agreement.

         4.3 No Conflicts. The execution and delivery of this Agreement, and the
consummation of the transactions contemplated hereby, and compliance with the
provisions hereof, will not: (a) violate, conflict with or result in a breach of
any provision or constitute a default under (i) the Certificate of Incorporation
or Bylaws of the Acquirer, or (ii) any contract or agreement to which the
Acquirer is a party or to which the assets or business of the Acquirer may be
subject; or (b) violate any judgment, ruling, order, writ, injunction, award,
decree, statute, law, ordinance, code, rule or regulation of any court or
foreign, federal, state, county or local government or any other governmental,
regulatory or administrative agency or authority which is applicable to the
assets, properties or business of the Acquirer.

         4.4 Government Approvals. No consent, approval, license or
authorization, governmental or otherwise, or designation, declaration or filing
with, any court or governmental authority is or will be required on the part of
the Acquirer in connection with the execution, delivery and performance of this
Agreement and any other agreements or instruments executed by the Acquirer in
connection herewith or therewith, other than the filing of the Certificate of
Merger with the Secretaries of State of the State of Delaware and the State of
New York.

         4.5 Litigation. There are no outstanding judgments, rulings, orders,
writs, injunctions, awards or decrees of any court or any foreign, federal,
state, county or local government or any other governmental, regulatory or
administrative agency or authority or arbitral tribunal against or involving the
Acquirer, and the Acquirer is not a party to, or, to its knowledge, threatened
with, any litigation or judicial, governmental, regulatory, administrative or
arbitration proceeding which, (a) if decided adversely, could have a material
adverse effect on the business of the Acquirer or (b) relate to the transactions
contemplated by this Agreement.

         4.6 Authorized and Outstanding Stock. Before giving effect to the
transactions to be consummated at the Effective Time or the sale of Acquirer
Stock contemplated by Section 4.7 below, the authorized capital stock of the
Acquirer consists of 15,000,000 shares of common stock, par value $.001 per
share, of which 4,890,000 shares are validly issued and outstanding. There are
no outstanding warrants, options, commitments, preemptive rights, rights to
acquire or purchase, conversion rights or demands of any character relating to
the capital stock or other securities of the Acquirer, except that the Acquirer
has granted options to purchase up to 725,000 shares of Acquirer Stock to
various employees and directors of the Acquirer and the Acquirer has granted a
warrant to the broker assisting on the current private placement referenced in
Section 4.7 below to purchase a number of shares of Acquirer Stock equal to ten
percent (10%) of the total number of shares of Acquirer Stock sold and issued in
such private placement. There

                                      -28-
<PAGE>

are no voting trusts or voting agreements with respect to any shares of Acquirer
Stock. The authorized capital stock of the Sub consists of 200,000 shares of
common stock, of which 100 shares are validly issued and outstanding. The
Acquirer is the sole owner of all capital stock of the Sub. There are no
outstanding warrants, options, commitments, preemptive rights, rights to acquire
or purchase, conversion rights or demands of any character relating to the
capital stock or other securities of the Sub. There are no voting trusts or
voting agreements with respect to any shares of the Sub.

         4.7 Private Placement. The Acquirer currently is engaging in a private
placement of common stock to raise up to One Million Five Hundred Thousand
Dollars ($1,500,000), for which it will issue shares of its common stock at a
purchase price of $1.00 per share. Only "accredited investors" (as defined under
the Act) are being solicited to invest in the Acquirer pursuant to such private
placement. Acquirer has made available to the Corporation a true and correct
copy of the offering-related documentation provided to offerees under such
private placement, as well as documentation by which investors have made
investments or have made commitments to invest. As of the date of this
Agreement, in connection with such private placement, the Acquirer has received
investments totaling, and/or has received written commitments to make
investments totaling, at least One Million Dollars ($1,000,000). This private
placement is being conducted pursuant to Rule 506 under Regulation D promulgated
under the Act.

         4.8 Subsidiaries. Except as set forth on Schedule 4.8, the Acquirer
does not have, and at no time during its existence has it had, any Subsidiaries.
Except as set forth in Schedule 4.8, the Acquirer does not have any investment
or other interest in, or any outstanding loan or advance to or from, any person
or entity, including, without limitation, any officer, director or shareholder.

         4.9 Financial Information/Accounts Payable. Schedule 4.9 sets forth a
full and complete list of the Corporation's accounts payable as of December 31,
2001. The Acquirer has previously delivered the audited balance sheets of the
Acquirer as of December 31, 2000 and the related statements of earnings for the
year ending December 31, 2000, as well as the unaudited balance sheet of the
Acquirer at December 31, 2001, and the related statements of earnings for the
twelve (12) month period ending December 31, 2001 (collectively, the "Acquirer
Financial Statements"). The Acquirer Financial Statements present fairly, in all
material respects, the financial condition and results of operations of the
Acquirer in accordance with GAAP applied on a basis consistent with prior
periods, if any. The Acquirer Financial Statements at and for the year ended
December 31, 2001 do not contain footnotes and are subject to normal year-end
adjustments, which adjustments are neither individually nor in the aggregate
material. The Acquirer has no liability, contingent or otherwise, which is not
adequately reflected in or reserved against in the Acquirer Financial Statements
(subject to normal year-end adjustments) that could materially and adversely
affect the financial condition of the Acquirer. Except as set forth in the
Acquirer Financial Statements or Schedule 4.10, since December 31, 2001 (i)
there has been no change in the business, property, assets, liabilities,
condition (financial or otherwise), operations, results of operations, affairs
or prospects of the Acquirer except for changes in the ordinary course of
business which, in the aggregate, would not have a material adverse effect, and
(ii) none of the business, property, assets, liabilities, condition (financial
or

                                      -29-
<PAGE>

otherwise), operations, result of operations, affairs or prospects of the
Acquirer have been materially adversely affected by any occurrence or
development, in the aggregate, whether or not insured against.

         4.10 Events Subsequent to the Date of the Financial Statements. Except
as set forth on Schedule 4.10, or in the Acquirer Financial Statements, since
December 31, 2001, the Acquirer has not (i) issued any stock, bond or other
corporate security, (ii) borrowed any amount or incurred or become subject to
any material liability (absolute, accrued or contingent), except liabilities
under contracts entered into in the ordinary course of business, (iii)
discharged or satisfied any lien or encumbrance or incurred or paid any
obligation or liability (absolute, accrued or contingent) other than current
liabilities shown on the Acquirer Financial Statements and incurred in the
ordinary course of business, (iv) declared or made any payment, other than
ordinary payments of compensation in amounts consistent with the historic
levels, or distribution to stockholders or purchased or redeemed any shares of
its capital stock or other securities, (v) mortgaged, pledged or subjected to
lien any of its assets, tangible or intangible, other than liens of current real
property taxes not yet due and payable, (vi) sold, assigned or transferred any
of its tangible assets except in the ordinary course of business, or canceled
any material debt or claim, except in the ordinary course of business, (vii)
sold, assigned, transferred or granted any license with respect to any patent,
trademark, trade name, service mark, copyright, trade secret or other intangible
asset, except pursuant to license or other agreements entered into in the
ordinary course of business, (viii) suffered any material loss of property or
waived any right of substantial value whether or not in the ordinary course of
business, (ix) made any change in officer compensation, (x) made any material
change in the manner of business or operations of the Acquirer, (xi) entered
into any transaction except in the ordinary course of business or as otherwise
contemplated hereby, or (xii) entered into any commitment (contingent or
otherwise) to do any of the foregoing.

         4.11 Compliance with Laws and Other Instruments. The Acquirer is in
compliance with all of the provisions of this Agreement, its Certificate of
Incorporation and Bylaws, and in all material respects with the provisions of
each mortgage, indenture, lease, license, other agreement or instrument,
judgment, decree, judicial order, statute and regulation by which it is bound or
to which its properties are subject.

         4.12 Taxes. The Acquirer has filed all federal, state, local and
foreign tax returns (including statements of estimated taxes owed) required to
be filed within the applicable periods for such filings, such filings are
complete and accurate in all material respects, and the Acquirer has paid all
taxes required to be paid, and has established adequate accrual reserves (net of
estimated tax payments already made) for the payment of all taxes payable in
respect to the period subsequent to the last periods covered by such returns.
Except as set forth on Schedule 4.12, no deficiencies for any tax are currently
assessed against the Acquirer, and no tax returns of the Acquirer have been
audited during the last two (2) years, and, to the best knowledge of the
Acquirer, there is no such audit pending or contemplated or any reasonable basis
for the assessment of additional tax against the Corporation. There is no tax
lien, whether imposed by any federal, state or local taxing authority,
outstanding against the assets, properties or business of the Acquirer.

                                      -30-
<PAGE>

         4.13 Real Property.

                  (a) Schedule 4.13 sets forth the addresses and uses of all
real property that the Acquirer owns, leases or subleases, and any lien or
encumbrance on any such owned real property or the Acquirer's leasehold interest
therein, specifying in the case of each such lease or sublease, the name of the
lessor or sublessor, as the case may be, the lease term and the rental
obligations of the lessee thereunder.

                  (b) Except as set forth on Schedule 4.13, to the best
knowledge of the Acquirer, there is no material violation of any law, regulation
or ordinance (including without limitation laws, regulations or ordinances
relating to zoning, environmental, city planning or similar matters) relating to
any real property owned by the Acquirer.

                  (c) There are no defaults under any existing leases, subleases
or other contractual obligations pertaining to real property that the Acquirer
owns, leases or subleases, and to the best knowledge of the Acquirer, by any
other party, which might curtail in any material respect the present use of the
Acquirer's property listed on Schedule 4.13.

         4.14     Environmental Matters.

                  (a) Except as set forth on Schedule 4.14, to the best
knowledge of the Acquirer, the Acquirer: (1) has not caused any releases of any
Hazardous Substance anywhere which requires remediation or clean-up pursuant to
any applicable Environmental Law, and (2) has not disposed of Hazardous
Substances anywhere except in compliance in all material respects with
applicable Environmental Laws, and (3) has not received any notice from any
governmental authority of any violation of any Environmental Law. The Acquirer
has not conducted or engaged in any operation or activity involving the use,
storage or disposal of any Hazardous Substance except as authorized by and fully
in accordance with applicable Environmental Laws. There is no pending or, to the
Acquirer's best knowledge, threatened, lawsuit, action, claim or proceeding by
any third party alleging or asserting that the has violated or is about to
violate any applicable Environmental Law.

         4.15 Personal Property/Capital Equipment. Schedule 4.15 sets forth a
full and complete list of all personal property, including capital equipment,
owned or leased by the Acquirer. Except as set forth on Schedule 4.15, and
except for property sold or otherwise disposed of in the ordinary course of
business, Acquirer has good and marketable title, free and clear of any lien,
charge, restriction or encumbrance, to all of such personal property. All
material items of such personal property used in the operation of the business
of the Acquirer are in good operating condition, normal wear and tear excepted.

         4.16 Patents, Trademarks, etc. Set forth on Schedule 4.16 is a list of
all patents, patent rights, patent applications, trademarks, trademark
applications, service marks, service mark applications, trade names, domain
names, technology, customer lists, proprietary processes and registered
copyrights, and all applications for such that are in the process of being
prepared, owned by or registered in the name of the Acquirer, or of which the
Acquirer is a licensor or licensee or in which the Acquirer has any right, and
in each case a brief description of the nature

                                      -31-
<PAGE>

of such right. The Acquirer owns or possesses adequate Intellectual Property
necessary to conduct its business as conducted and as proposed to be conducted,
and no claim is pending or, to the best knowledge of the Acquirer, threatened to
the effect that the operations of the Acquirer, its products or services,
infringe, or have infringed, upon or conflict with the asserted rights of any
other person or entity under any Intellectual Property, and there is no known
basis for any such claim (whether or not pending or threatened). No claim is
pending or, to the best knowledge of the Acquirer, threatened to the effect that
any such Intellectual Property owned or licensed by the Acquirer, or which the
Acquirer otherwise has the right to use, is invalid or unenforceable by the
Acquirer, and there is no known basis for any such claim (whether or not pending
or threatened). Except in the ordinary course of business, the Acquirer has not
granted or assigned to any other person or entity any right to manufacture,
assemble or sell the products or proposed products or to provide the services or
proposed services of the Acquirer. No current or former stockholder, employee,
officer or director of the Acquirer has (directly or indirectly) any right,
title or interest in any of the rights described on Schedule 4.16 other than
such right which such person or entity may enjoy as a stockholder of the
Acquirer.

         4.17 Agreements of Directors, Officers, Employees and Consultants. No
current or former director, officer or employee of or consultant to the Acquirer
is in violation of any term of any employment contract, non-competition
agreement, non-disclosure agreement, patent disclosure or assignment agreement
or other contract or agreement containing restrictive covenants relating to the
conduct of any such current or former director, officer, employee, or consultant
or otherwise relating to the use of trade secrets or proprietary information of
others by any such person. Schedule 4.17 hereto sets forth the name and address
of each person currently serving as an officer or a director of the Acquirer,
and each person listed on Schedule 4.17 was duly elected and is presently
serving as such officer or director. Set forth on Schedule 4.17 is a list of all
current or former employees and consultants of the Acquirer who have (i)
executed a non-disclosure agreement with the Acquirer or (ii) executed a
non-competition agreement with the Acquirer. Except as disclosed in Schedule
4.17, since December 31, 2001, the Acquirer has not paid or become committed to
pay any bonus or similar additional compensation to any officer, director or
employee of the Acquirer.

         4.18 Governmental Licenses. The Acquirer has all the material permits,
licenses, orders, franchises and other rights and privileges of all federal,
state, local or foreign governmental or regulatory bodies necessary for the v to
conduct its business as presently conducted. All such permits, licenses, orders,
franchises and other rights and privileges are in full force and effect and no
suspension or cancellation of any of them is threatened, and none of such
permits, licenses, orders, franchises or other rights and privileges will be
affected by the consummation of the transactions contemplated by this Agreement.

         4.19 Securities Acts. The Acquirer has complied with all applicable
federal or state securities laws in connection with the transactions
contemplated by this Agreement. Neither the Acquirer nor anyone acting on its
behalf has offered any of its shares, or similar securities, or solicited any
offer to purchase any of such securities, so as to bring this transaction within
the scope of the registration provisions of the Act.

                                      -32-
<PAGE>

         4.20 Insurance Coverage. Schedule 4.20 hereto contains an accurate
summary of the insurance policies currently maintained by the Acquirer. Except
as described on Schedule 4.20, there are currently no claims pending against the
Acquirer pursuant to any insurance policy currently in effect and covering the
property, the business or the employees of the Acquirer. All such policies (a)
are in full force and effect and (b) are sufficient for compliance by the
Acquirer with all requirements of all agreements to which the Acquirer is a
party. All premiums due and payable under all such policies have been timely
paid and the Acquirer is not in default in any material respect with respect to
its obligations pursuant to any of such insurance policies and has not received
any notification of cancellation of any such insurance policies.

         4.21 Employee Matters. Except as set forth on Schedule 4.21:

                  (a) The Acquirer has in effect no employment or consulting
agreements.

                  (b) The Acquirer has no deferred compensation, pension or
retirement agreement or arrangement, bonus, incentive or profit-sharing plan or
arrangement, termination, severance, stock option, stock appreciation right,
restricted stock, post-retirement benefits or other fringe benefits plan or
arrangement, or labor or collective bargaining agreement, written or oral,
providing benefits to any present or former employee or director of the Acquirer
or any Subsidiary or any ERISA Affiliate or any beneficiary or dependent thereof
that is or has been maintained, administered or contributed to by the Acquirer
or any ERISA Affiliate at any time or for which any of them has any obligation
or liability (collectively the "Buyer Benefit Plans" and each a "Buyer Plan").

                  (c) The Acquirer has no knowledge that any of the officers,
other key employees, directors or any significant number of employees of the
Acquirer presently intends to terminate his, her or their employment, whether
before or after the Effective Time.

                  (d) The Acquirer is in compliance in all material respects
with all applicable laws and regulations relating to labor, employment, fair
employment practices, terms and conditions of employment, and wages and hours.

                  (e) The Acquirer is in compliance in all material respects
with the terms of all plans, programs and agreements listed on Schedule 4.21,
and each such plan, program or agreement is in compliance in all material
respects with all of the requirements and provisions of ERISA.

                  (f) No Buyer Benefit Plan is (i) a multiemployer plan within
the meaning of Section 3(37) or 4001(a)(3) of ERISA, (ii) a plan subject to
Title IV of ERISA, or (iii) subject to the minimum funding rules of Section 302
of ERISA or Section 412 of the Code, and neither the Acquirer or any Subsidiary
nor any ERISA Affiliate has ever contributed to, sponsored or maintained or ever
been obligated to sponsor, maintain or contribute to, any such plan.

                  (g) The Acquirer does not maintain or contribute to any plan
that provides health benefits to an employee or beneficiary thereof after the
employee's termination of employment or retirement, except as required under
Section 4980B of the Code or ERISA or applicable state law.

                                      -33-
<PAGE>

                  (h) There are no investigations by any governmental authority,
termination proceedings or other claims (except for claims for benefits payable
in the normal operation of the Buyer Benefit Plan), suits or proceedings
pending, or to the Acquirer's knowledge, threatened or anticipated, against or
involving any Buyer Benefit Plan, any employer who is participating (or has
participated) in any Buyer Benefit Plan or any fiduciary (as defined in Section
3(21) of ERISA) or asserting any rights or claims to benefits under Buyer
Benefit Plan.

                  (i) No liability currently exists and no event has occurred
and no condition exists, which could subject the Acquirer, directly or
indirectly (through an indemnification agreement or otherwise) to any liability,
including, without limitation, breach of fiduciary duty under Title I of ERISA
or any liability under Title IV of ERISA (including, but not limited to, Section
409 or 502(i) of ERISA) or Section 4971, 4975, 4976, 4977, 4979 or 4980B of the
Code.

                  (j) With respect to each plan listed on Schedule 4.21, all
required filings, including all filings required to be made with the United
States Department of Labor and Internal Revenue Service, have been timely filed.

                  (k) Neither the execution and delivery of this Agreement nor
the consummation of the transactions contemplated hereby will (i) result in any
material payment (including, without limitation, severance, unemployment
compensation, golden parachute or otherwise) becoming due from the Acquirer or
any Subsidiary, (ii) materially increase any benefits otherwise payable under
any Buyer Benefit Plan or (iii) accelerate the time of payment or vesting, or
increase the amount of, any compensation due to any employee.

                  (l) No Buyer Benefit Plan will, individually or in the
aggregate, give rise to the payment by the Acquirer, solely as a result of the
transactions contemplated by this Agreement, to any current or former employee
or director of the Acquirer or any Subsidiary of any amount that would
constitute an "excess parachute payment" within the meaning of Section 280G of
the Code.

                  (m) All expenses and liabilities relating to all Buyer Benefit
Plans have been, and will be on the Effective Time, fully and properly accrued
on the Acquirer`s books and records and disclosed in the Acquirer's financial
statements in accordance with GAAP, consistent with the Acquirer's past
practices.

                  (n) All contributions required to be made to each Buyer
Benefit Plan have been made as and when required by the terms of the applicable
Buyer Benefit Plan.

                  (o) All insurance premiums have been paid in full, subject
only to normal retrospective adjustments in the ordinary course, with regard to
the Buyer Benefit Plans for plan years ending on or before the Effective Time.

         4.22 Suppliers and Customers. Except as set forth in Schedule 4.22:

                                      -34-
<PAGE>

                  (a) The relationships of the Acquirer with its significant
suppliers and customers are good commercial working relationships and no
significant supplier or customer of the Acquirer has canceled or otherwise
terminated, or to the Acquirer's best knowledge, threatened to cancel or
otherwise to terminate its relationship with the Acquirer, or has during the
last twelve (12) months decreased materially, or threatened to decrease or limit
materially, its services, supplies or materials for use by the Acquirer or its
usage or purchase of the services or products of the Acquirer except for normal
cyclical changes related to customers' businesses and except for changes which
have not had a material adverse effect on the Acquirer.

                  (b) No supplier or customer has notified the Acquirer that it
intends to cancel or otherwise substantially modify its relationship with the
Acquirer or to decrease materially or limit its services, supplies or materials
to the Acquirer, or its usage or purchase of the services of the Acquirer, and,
to the best knowledge of the Acquirer, the consummation of the transactions
contemplated hereby will not materially adversely affect the relationship of the
Acquirer with any such supplier or customer.

         4.23 No Brokers or Finders. No person or entity has or will have, as a
result of the actions of the Acquirer, any right, interest or claim against or
upon the Principal Shareholders, the Corporation or the Acquirer for any
commission, fee or other compensation as a finder or broker arising from the
transactions contemplated by this Agreement.

         4.24 Transactions with Insiders. Except as set forth on Schedule 4.24,
there are no loans, leases or other contracts between the Acquirer and any
officer or director of the Acquirer, or any person or entity owning five percent
(5%) or more of the total number of shares of the Acquirer or any respective
family member or affiliate of any such officer, director or shareholder.

         4.25 Assumptions, Guarantees. Except as set forth on Schedule 4.25, the
Acquirer has not assumed, guaranteed, endorsed or otherwise become directly or
contingently liable on or for any indebtedness of any other person or entity,
except guarantees by endorsement of negotiable instruments for deposit or
collection or similar transactions in the ordinary course of business.

         4.26 Bank Accounts, Signing Authority, Powers of Attorney. Except as
set forth on Schedule 2.26, the Acquirer has no account or safe deposit box in
any bank and no person or entity has any power, whether singly or jointly, to
sign any checks on behalf of the Acquirer, to withdraw any money or other
property from any bank, brokerage or other account of the Acquirer, or to act
pursuant to any power of attorney granted by the Acquirer at any time for any
purpose.

         4.27 Corporate Books. The books and records of the Acquirer made
available to the Corporation and the Principal Shareholders for inspection
include copies of its Certificate of Incorporation and Bylaws as currently in
effect and accurately record therein in all material respects all actions,
proceedings, consents and meetings of the Board of Directors and shareholders of
the Acquirer and any committees thereof. The books and records of the Acquirer
have been, and are being, maintained in accordance with any applicable legal and
regulatory requirements and reflect only actual transactions.

                                      -35-
<PAGE>

                                    ARTICLE V

                          CONDITIONS TO THE OBLIGATIONS
                         OF THE ACQUIRER AT THE CLOSING
                         ------------------------------

         The obligation of the Acquirer to consummate the Merger is subject to
the fulfillment, or the waiver by the Acquirer, of each of the following
conditions on or before the Effective Time:

         5.1 Accuracy of Representations and Warranties. The representations and
warranties of the Corporation and the Principal Shareholders contained in
Article II shall be true and correct on and as of the Closing Date in all
material respects.

         5.2 Performance. The Corporation and the Principal Shareholders shall
have performed and complied with all agreements and conditions contained herein
and required to be performed or complied with by the Corporation and/or the
Principal Shareholders prior to or at the Effective Time.

         5.3 Opinion of Counsel. The Acquirer shall have received an opinion, in
form and substance reasonably satisfactory to the Acquirer and its counsel, from
Williams, Mullen, Clark & Dobbins, P.C., counsel for the Corporation and the
Principal Shareholders, dated as of the Closing Date and addressed to the
Acquirer, as to (i) the due organization, valid existence and good standing of
the Corporation, (ii) the due authority of the Corporation and the Principal
Shareholders to execute and deliver this Agreement and any Transaction Documents
to which they are a party and to consummate the transactions contemplated hereby
and thereby and (iii) the capital structure of the Corporation, including
without limitation the number and class of all authorized shares of capital
stock of the Corporation and, to the knowledge of such counsel, the number and
class of all issued and outstanding shares of capital stock of the Corporation
and, to the knowledge of such counsel, the maximum number and class of shares of
capital stock that may be required to be issued by the Corporation under the
terms of any outstanding warrants, options, commitments or other agreements of
the Corporation. With respect to the opinions contemplated by clause (i) above,
counsel may rely on certificates of governmental agencies. With respect to the
opinions contemplated by clauses (ii) and (iii), however, counsel must base its
opinions on its actual review of the appropriate corporate books and records and
any other relevant documents.

         5.4 No Litigation. There shall be no action, suit, investigation or
proceeding pending, or to the best knowledge of the Corporation and the
Principal Shareholders, threatened, which seeks to restrain, enjoin or prevent
the consummation of the transactions contemplated by this Agreement or any
Transaction Document or which challenges the validity of, or seeks to recover
damages or to obtain other relief in connection with the transactions
contemplated by such agreements.

                                      -36-
<PAGE>

         5.5 Certificate as to Officers' Incumbency and Corporate Authorization.
The Corporation shall have delivered to the Acquirer a certificate, dated the
Closing Date, certifying as to the incumbency of the Corporation's principal
officers and the adoption and continuing effect of the Corporation's Board of
Directors' and stockholders' actions required to authorize the Corporation's
execution and delivery of this Agreement and the consummation of the
transactions contemplated hereby.

         5.6 Other Agreements. The following agreements, instruments and/or
documents shall have been executed and delivered by the parties thereto:

                  (i) The Employment Agreements between each Corporation
         Executive Officer and the Acquirer;

                  (ii) The Non-Principal Shareholder's Letters between each LDD
         Holder other than a Principal Shareholder and the Acquirer; and

                  (iii) The Remainder Debt Notes between each of Heffernan and
         Matteo and the Acquirer.

         5.7 Stock Pledge Agreement and Pledged Shares. The Principal
Shareholders shall have executed and delivered the Stock Pledge Agreement and
delivered the Pledged Shares (as such terms are defined in Section 8.9 below) to
the Acquirer.

         5.8 SIMPLE IRA Plan. The Corporation's Board of Directors shall have
taken all necessary actions required to authorize the termination of the
Corporation's SIMPLE IRA Plan, including without limitation the adoption of
appropriate Board of Directors' resolutions, the preparation of appropriate
notices to plan participants (to be delivered to such participants promptly
following the Effective Time) and the sending of an appropriate notice to the
plan sponsor, and the Corporation shall have funded, or made adequate reserves
for, the full amounts of the employer contributions required under the terms of
said plan to be paid by the Corporation with respect to the year ended December
31, 2001 and the period from and including January 1, 2002 through and including
the Closing Date.

         5.9 Third Party Consents. All notices, consents, waivers, approvals or
other actions of third parties required to be obtained or otherwise made by the
Corporation in connection with the consummation of the Merger with respect to
any contracts, agreements, commitments or other obligations to which the
Corporation is a party or by which the Corporation's property or assets are
bound or affected, including without limitation with respect to the
Corporation's office lease obligations, shall have been obtained or otherwise
made by the Corporation and shall be in full force and effect.

         5.10 Other Matters. All corporate and other proceedings in connection
with the transactions contemplated by this Agreement and all documents and
instruments incident to such transactions shall be reasonably satisfactory in
substance and form to the Acquirer and its counsel, and the Acquirer and its
counsel shall have received all such originals or certified or other copies of
such additional documents, records or certificates as they may reasonably
request

                                      -37-
<PAGE>

to establish the fulfillment of all of the conditions to the obligation of the
Acquirer to consummate the Merger on or prior to the Closing Date.


                                   ARTICLE VI

                CONDITIONS TO THE OBLIGATIONS OF THE CORPORATION
                ------------------------------------------------

         The obligations of the Corporation to consummate the Merger are subject
to the fulfillment, or waiver by the Corporation, of each of the following
conditions on or before the Effective Time:

         6.1 Accuracy of Representations and Warranties. The representations and
warranties of the Acquirer contained in Article IV shall be true and correct on
and as of the Closing Date in all material respects.

         6.2 Performance. The Acquirer shall have performed and complied with
all agreements and conditions contained herein to be performed or complied with
by the Acquirer prior to or at the Effective Time.

         6.3 Opinion of Counsel. The Corporation and the Principal Shareholders
shall have received an opinion, in form and substance reasonably satisfactory to
the Corporation and the Principal Shareholder and their counsel, from Edwards &
Angell, LLP, counsel for the Acquirer, dated as of the Closing Date and
addressed to the Corporation and the Principal Shareholders, as to (i) the due
organization, valid existence and good standing of the Acquirer, (ii) the due
authority of the Acquirer to execute and deliver this Agreement and any
Transaction Document to which it is a party and to consummate the transactions
contemplated hereby and thereby and (iii) the capital structure of the Acquirer,
including without limitation the number and class of all authorized shares of
capital stock of the Acquirer and, to the knowledge of such counsel, the number
and class of all issued and outstanding shares of capital stock of the Acquirer
and, to the knowledge of such counsel, the maximum number and class of shares of
capital stock that may be required to be issued by the Acquirer under the terms
of any outstanding warrants, options, commitments or other agreements of the
Corporation. With respect to the opinion contemplated by clause (i) above,
counsel may rely on certificates of governmental agencies. With respect to the
opinions contemplated by clauses (ii) and (iii), however, counsel must base its
opinions on its actual review of the appropriate corporate books and records and
any other relevant documents.

         6.4 No Litigation. There shall be no action, suit, investigation or
proceeding pending, or to the knowledge of the Acquirer threatened, which seeks
to restrain, enjoin or prevent the consummation of the transactions contemplated
by this Agreement or which challenges the validity of, or seeks to recover
damages or to obtain other relief in connection with the transactions
contemplated by such agreements.

         6.5 Other Agreements. The following agreements, instruments and/or
documents shall have been executed and delivered by the parties thereto:

                                      -38-
<PAGE>

                  (i) The Employment Agreements between each Corporation
         Executive Officer and the Acquirer; and

                  (ii) The Remainder Debt Notes between each of Heffernan and
         Matteo and the Acquirer.

         6.6 Certificate as to Officers' Incumbency and Corporate Authorization.
The Acquirer shall have delivered to the Corporation and the Principal
Shareholders a certificate, dated the Closing Date, certifying as to the
incumbency of the Acquirer's principal officers and the adoption and continuing
effect of the Acquirer's Board of Directors' and stockholders' actions required
to authorize the Acquirer's execution and delivery of this Agreement and the
consummation of the transactions contemplated hereby.

         6.7 Stock Certificates. The Acquirer shall have delivered to the LDD
Representative, acting on behalf of all of the Corporation's stockholders, the
certificates representing the shares of Acquirer Stock that shall have been
issued upon the conversion and exchange of the Shares outstanding immediately
prior to the Effective Time pursuant to the terms of the Merger.

         6.8 Repayment of Debt. The Acquirer shall have paid to Heffernan,
Matteo and Hsu Six Hundred Thousand Dollars ($600,000) in the aggregate as set
forth in Schedule 1.6.

         6.9 Board of Directors. Heffernan and Matteo shall have been duly
elected to the Board of Directors of the Acquirer.

         6.10 Private Placement. The Acquirer shall have closed on an aggregate
investment of at least One Million Dollars ($1,000,000) in connection with the
private placement described in Section 4.7 above.

         6.11 Other Matters. All corporate and other proceedings in connection
with the transactions contemplated by this Agreement and all documents and
instruments incident to such transactions shall be reasonably satisfactory in
substance and form to the Corporation, the Principal Shareholder and their
counsel, and the Corporation and the Principal Shareholder and their counsel
shall have received all such originals or certified or other copies of such
additional documents, records or certificates as they may reasonably request to
establish the fulfillment of all of the conditions to the obligation of the
Corporation to consummate the Merger on or prior to the Closing Date.


                                   ARTICLE VII

                                     LICENSE
                                     -------

         The Corporation and the Principal Shareholders hereby represent and
warrant to the Acquirer that Heffernan, personally, owns all rights under, title
to, and interest in the domain names set forth in Schedule 7.0 hereto (the "LDD
Domain Names"), free and clear of any liens, encumbrances, charges, rights or
claims of any other parties. For a period of eighteen (18) months after the
Closing Date, Heffernan hereby grants to the Acquirer an exclusive,

                                      -39-
<PAGE>

nontransferable, nonsublicensable, royalty-free, irrevocable right to use the
LDD Domain Names. After the Closing Date and during the term of this license
grant, Heffernan shall pay all annual maintenance, registration, filing and/or
other fees in connection with the LDD Domain Names. Heffernan shall have the
right, but shall not be obligated, to prosecute at his own expense any
infringements on the use of the LDD Domain Names and, in furtherance of such
right, the Acquirer hereby agrees that Heffernan may join the Acquirer as a
party plaintiff in any infringement suit, without expense to the Acquirer. The
total cost of any infringement action commenced or defended solely by Heffernan
shall be borne by Heffernan and Heffernan shall keep any recovery or damages for
past infringement derived therefrom. The obligations of the Acquirer and
Heffernan under this Article VII shall survive and continue in effect following
the Effective Time. The aforementioned license shall expire on the date eighteen
(18) months after the Closing Date.

                                  ARTICLE VIII

                      GENERAL RELEASE AND INDEMNIFICATIONS
                      ------------------------------------

         8.1 Principal Shareholders' Releases. Except for the obligations of the
Corporation with respect to the Debt and such other specified obligations as
provided in Section 1.6 above, the Principal Shareholders, effective at the
Effective Time, hereby release and discharge the Corporation from and against
any and all claims, demands and liabilities which they may have against the
Corporation immediately prior to the Effective Time, and specifically agree to
indemnify, defend and hold the Corporation harmless, jointly and severally,
against any and all obligations, debts, bills, liabilities, causes of action and
claims of every nature of the Principal Shareholders against the Corporation
which accrue or have arisen prior to the Effective Time.

         8.2 Principal Shareholders' Indemnification. Subject to the limitations
set forth in Section 8.5 below, the Principal Shareholders agree to indemnify
and hold harmless the Acquirer and its respective officers, directors, agents
and employees to the fullest extent lawful, from and against any and all
actions, suits, claims, proceedings, costs, losses, damages, judgments, amounts
paid in settlement and reasonable expenses (including, without limitation,
reasonable attorneys' fees and disbursements) (hereinafter collectively referred
to as a "Loss" or "Losses") suffered or incurred by the Acquirer to the extent
relating to or arising out of (a) any inaccuracy in or breach, violation or
nonobservance of the representations, warranties, covenants or other agreements
made by the Corporation or the Principal Shareholders herein or failure of any
certificate, document or instrument delivered by or on behalf of the Corporation
or the Principal Shareholders pursuant hereto or in connection herewith to be
true and correct as of the Effective Time, (b) any of the matters specifically
set forth in Schedule 2.10, or (c) any of the obligations of Heffernan and
Matteo under Section 1.6(b).

         8.3 Acquirer's Indemnification. Subject to the limitations set forth in
Section 8.5 below, the Acquirer agrees to indemnify and hold harmless the
Principal Shareholders, and each of them, to the fullest extent lawful, from and
against any and all Losses suffered or incurred by any of the Principal
Shareholders to the extent relating to or arising out of any inaccuracy in or
breach, violation or nonobservance of the representations, warranties, covenants
or other agreements made by the Acquirer herein or failure of any certificate,
document or instrument

                                      -40-
<PAGE>

delivered by or on behalf of the Acquirer pursuant hereto or in connection
herewith to be true and correct as of the Effective Time.

         8.4 Third Party Claims. In the event that a party (the "Indemnitee")
desires to make a claim against another party (the "Indemnitor") hereunder in
connection with any action, suit, proceeding or demand at any time instituted
against or made upon the Indemnitee by any third party for which the Indemnitee
may seek indemnification hereunder (a "Third Party Claim"), the Indemnitee shall
promptly notify the Indemnitor of such Third Party Claim and of the Indemnitee's
claim of indemnification with respect thereto. The Indemnitor shall have thirty
(30) days after receipt of such notice to notify the Indemnitee if he or it has
elected to assume the defense of such Third Party Claim. If the Indemnitor
elects to assume the defense of such Third Party Claim, the Indemnitor shall be
entitled at his or its own expense to conduct and control the defense and
settlement of such Third Party Claim through counsel of his or its own choosing;
provided, however, that the Indemnitee may participate in the defense of such
Third Party Claim with his or its own counsel at his or its own expense and the
Indemnitor may not settle any Third Party Claim without the Indemnitee's
consent, which shall not be unreasonably withheld. If the Indemnitor fails to
notify the Indemnitee within thirty (30) days after receipt of the Indemnitee's
notice of a Third Party Claim, the Indemnitee shall be entitled to assume the
defense of such Third Party Claim at the expense of the Indemnitor; provided,
however, that the Indemnitee may not settle any Third Party Claim without the
Indemnitor's consent, which shall not be unreasonably withheld.

         8.5 Limitations of Liability.

                  (a) Notwithstanding anything in this Agreement to the
contrary, other than in connection with claims made against an Indemnitee (as
such term is defined in Section 8.4 above) by any third party, in no event shall
the terms "Loss" or "Losses" include, with respect to any party hereto, any lost
profits, diminution in value or other incidental, punitive, exemplary, special
or consequential damages. In determining any inaccuracy in or breach or
violation of any representation or warranty of any party hereto contained in
this Agreement or in determining the failure of any certificate, document or
instrument delivered by or on behalf of any party hereto pursuant to this
Agreement or in connection herewith to be true and correct as of the Effective
Time, such determination shall be made without regard to any "materiality" or
"knowledge" qualifier, including without limitation any reference to a "material
adverse effect" on such party or to the "best knowledge" of such party, which
may be contained in any such representation, warranty, certificate, document or
instrument.

                  (b) The aggregate Losses payable by the Principal Shareholders
collectively under Section 8.2 above or by the Acquirer under Section 8.3 above,
with respect to all claims for indemnification by the other party hereunder,
shall not exceed One Million Fifty Thousand Dollars ($1,050,000) in the
aggregate; provided, however, that this limitation shall not apply to any Losses
incurred by the Acquirer as a result of or with respect to (i) any breach of the
Corporation's and the Principal Shareholders' representations contained in
Sections 2.1 and 2.12, (ii) any of the matters specifically set forth in
Schedule 2.10, or (iii) any of the obligations of Heffernan or Matteo under
Section 1.6(b) or to any Losses incurred by the Principal Shareholders as a
result of or with respect to any breach of the Acquirer's representations
contained in Section 4.12.

                                      -41-
<PAGE>

                  (c) Neither any Principal Shareholders, on the one hand, nor
the Acquirer, on the other hand, shall have any obligation to make any
indemnification payments hereunder unless and to the extent that the Losses
incurred by the Acquirer or the Principal Shareholders (collectively), as the
case may be, shall exceed in the aggregate Seventy-five Thousand Dollars
($75,000); provided, however, that this limitation shall not apply to any Losses
incurred by the Acquirer as a result of or with respect to (i) any breach of the
representations contained in Sections 2.1 and 2.12, (ii) any of the matters
specifically set forth in Schedule 2.10, or (iii) any of the obligations of
Heffernan or Matteo under Section 1.6(b) or to any Losses incurred by the
Principal Shareholders as a result of or with respect to any breach of the
representations contained in Section 4.12.

                  (d) To the extent claims for indemnification are made against
the Principal Shareholders, the limitations set forth in Section 8.5(b) and
Section 8.5(c) shall apply to the Principal Shareholders in the proportions set
forth in Schedule 8.5(d), it being acknowledged that such liability shall be
collective and not individual or joint and several. In any situation in which an
indemnification payment is due from the Principal Shareholders hereunder, the
Acquirer shall seek to satisfy such obligation, in whole or in part, in any of
the following manners or any combination thereof, solely in the Acquirer's
discretion (except as is set forth in the next sentence): (i) by withholding or
setting off the amount of any repayments of Remainder Debt, any payment of the
Remaining Settlement Balance or any payments under the Hypnotic Notes, in each
case as may then be due or may subsequently become payable to Heffernan or
Matteo; (ii) by withholding or setting off the amount of Earn-out payments that
may then be due or may subsequently become payable to the LDD Holders; (iii) by
exercising its rights under the Stock Pledge Agreement (as such term is defined
in Section 8.9 below); or (iv) by acceptance of a cash payment in the proper
amount. Notwithstanding the immediately preceding sentence, each Principal
Shareholder shall retain the right at all times to satisfy any indemnification
obligation hereunder, in whole or in part, by payment of cash or transfer to the
Acquirer of shares of Acquirer Stock, whether Pledged Shares or otherwise, and
shall have the choice of the method(s) of such satisfaction. In the case of any
transfer by any Principal Shareholder of any pledged or unpledged shares of
Acquirer Stock hereunder to the Acquirer, the value of such shares of Acquirer
Stock shall in all cases be deemed to be the higher of (i) the then-current fair
market value of such shares, as determined by a then-current bona fide offer, if
any, to purchase such shares by a third party unaffiliated with any of the
Acquirer, any of the Acquirer's shareholders or any Principal Shareholder, or
(ii) $1.00 per share (adjusted for any subsequent stock splits).

                  (e) No action or claim for Losses pursuant to this Article
VIII shall be brought or asserted after the relevant date referred to in Article
IX hereof (the "Representation Expiration Date").

                  (f) The Acquirer and the Principal Shareholders acknowledge
and agree that, except as to fraud, their sole remedy against the other for any
matter arising out of a breach, violation or nonobservance of any
representation, warranty, covenant or other agreement contained in this
Agreement is set forth in this Article VIII, and that except to the extent a
party has asserted a claim for indemnification prior to the Representation
Expiration Date, neither party shall have any remedy against the other party for
any breach, violation or nonobservance of

                                      -42-
<PAGE>

a representation, warranty, covenant or other agreement made by such other party
in this Agreement. The parties acknowledge that this Section 8.5 has been
negotiated fully by the parties and that neither party would have entered into
this Agreement but for the inclusion of this Section 8.5.

         8.6 Expenses, Reimbursement. Subject to the limitations set forth in
Section 8.5 above, an Indemnitor hereunder promptly shall reimburse the
Indemnitee for all Losses constituting reasonable expenses (including reasonable
attorneys' fees and disbursements) as they are incurred in connection with
investigating, preparing to defend or defending any such action, suit, claim or
proceeding (including any inquiry or investigation) for which indemnity is
available under either Section 8.2 or Section 8.3 as applicable.

         8.7 Notice. Each party shall provide written notice to the other of any
claim with respect to which it seeks indemnification promptly after the
discovery of any matters giving rise to a claim for indemnification; provided,
however, that the failure of such party to give notice as provided herein shall
not relieve the Indemnitor of its obligations under this Article VIII, except if
and to the extent that the Indemnitor has been materially prejudiced thereby.

         8.8 Survival. Subject to the provisions of Article IX below, the
obligations of the Acquirer and the Principal Shareholders under this Article
VIII shall survive and continue in effect following the Effective Time.

         8.9 Collateral for Principal Shareholders' Indemnification Obligation.
At the Effective Time, the Principal Shareholders shall deliver to the Acquirer
stock certificates representing 586,500 shares of Acquirer Stock received by the
Principal Shareholders in connection with the Merger (the "Pledged Shares"),
together with stock powers duly executed in blank by the Principal Shareholders.
The number of Pledged Shares to be delivered by each Principal Shareholder
hereunder shall be determined on the basis of the relative percentage ownership
of the Shares set forth in Schedule 8.5(d). The Pledged Shares shall be held by
the Acquirer as collateral to secure the Principal Shareholders' indemnification
obligations under this Article VIII in accordance with the terms and conditions
of a stock pledge agreement to be executed and delivered by and among the
Acquirer and the Principal Shareholders on the Closing Date in substantially the
form included as Exhibit F to this Agreement (the "Stock Pledge Agreement"). In
addition to serving as collateral to secure the Principal Shareholders'
indemnification obligations under this Article VIII, the Pledged Shares shall
also be subject to transfer back to the Acquirer from the Principle Shareholders
pursuant to the terms of Section 1.12(c) above.

                                   ARTICLE IX

                   SURVIVAL OF REPRESENTATIONS AND WARRANTIES
                   ------------------------------------------

         Except as provided herein, all representations, warranties, covenants
and other agreements of the parties contained herein shall survive the execution
and delivery of this Agreement and continue in effect following the Effective
Time for a period commencing on the Closing Date and ending on the later of the
date that is three (3) years after the Closing Date or

                                      -43-
<PAGE>

three (3) years after the date on which any such covenant or other agreement was
required to have been satisfied or fulfilled hereunder, except that the
representations set forth in Section 2.1 with respect to the Principal
Shareholders' ownership of the Shares shall survive and continue in effect
indefinitely after the Effective Time and the representations set forth in
Section 2.12 and 4.12 with respect to taxes shall survive until the expiration
of the statute of limitations relating to any applicable tax return referred to
therein.

                                    ARTICLE X

                                  MISCELLANEOUS
                                  -------------

         10.1 Cross Disclosure. Any matter disclosed on any of the Schedules
hereto shall be deemed to be disclosed on each other Schedule hereto relating to
such matters.

         10.2 Parties in Interest. Except as otherwise set forth herein, all
covenants, agreements, representations, warranties and undertakings contained in
this Agreement shall be binding on and shall inure to the benefit of the
respective heirs, successors and assigns of the parties hereto (including
permitted transferees of any of the Shares). Except as may be required to be
disclosed by order of a court or otherwise required by law, the parties agree to
maintain in confidence the terms of this Agreement, except that the parties
hereto may disclose such terms to its accountants, lawyers, bankers and advisors
in the ordinary course. Except as otherwise specifically provided herein or as
set forth in the Non-Principal Shareholder's Letters, this Agreement shall not
confer any rights or remedies upon any person other than the parties hereto and
their respective heirs, successors and assigns.

         10.3 Amendments and Waivers. Amendments or additions to this Agreement
may be made and compliance with any term, covenant, agreement, condition or
provision set forth herein may be omitted or waived (either generally or in a
particular instance and either retroactively or prospectively) upon the written
consent of the parties hereto. This Agreement (including the Schedules and
Exhibits annexed hereto, which are an integral part of this Agreement)
constitutes the full and complete agreement of the parties with respect to the
subject matter hereof.

         10.4 Notices. All notices, requests, consents, reports and demands
shall be in writing and shall be hand delivered, sent by facsimile or other
electronic medium, or sent by Federal Express or other overnight courier service
providing proof of delivery, to the Acquirer or to the LDD Representative, on
behalf of all of the Principal Shareholder, at the addresses set forth below or
to such other address for any such party as may be furnished in writing to the
other parties hereto:

The Acquirer:              Thomas L. Massie, President
                           Bridgeline Software, Inc.
                           130 New Boston Street
                           Woburn, MA 01801
                           Facsimile No.:  781-376-5033

                                      -44-
<PAGE>

With copy to:              Stephen J. Coukos, Esq.
                           Edwards & Angell, LLP
                           101 Federal Street
                           Boston, MA  02110
                           Facsimile No.:  617-439-4170

The LDD Representative:    The address set forth with respect to the LDD
                           Representative in Schedule 1.3(a) to this Agreement.

With copy to:              Thomas McVey, Esq.
                           Jared L. Burden, Esq.
                           Williams, Mullen, Clark & Dobbins
                           1666 K Street, N.W., Suite 1200
                           Washington, DC  20006
                           Facsimile No:  202-293-5939

         10.5 Expenses. Each party hereto will pay its own expenses in
connection with the transactions contemplated hereby; provided, however, that
the total costs and expenses to be incurred by the Corporation in connection
with legal services provided by Williams Mullen Clark & Dobbins, P.C. to the
Corporation in connection with the parties' negotiation, execution and delivery
of this Agreement and the consummation of the transactions contemplated hereby
shall not exceed a maximum of Twenty-five Thousand Dollars ($25,000) in the
aggregate, it being acknowledged and agreed to by the parties that the Principal
Shareholders shall be personally responsible for any expenses of the Corporation
exceeding this limit. Upon delivery of a reasonably detailed and itemized
invoice, Williams Mullen Clark & Dobbins, P.C shall be paid up to a maximum of
Twenty-Five Thousand Dollars ($25,000) by the Acquirer within thirty (30)
calendar days following the Closing Date for its legal fees and expenses with
respect to the transactions contemplated by this Agreement.

         10.6 Severability. All agreements and covenants contained in this
Agreement are severable, and in the event that any of them shall be held to be
invalid or unenforceable by any court of competent jurisdiction, then this
Agreement shall be interpreted as if such invalid agreements or covenants were
not contained herein.

         10.7 Counterparts. This Agreement and any exhibit hereto may be
executed in multiple counterparts, each of which shall constitute an original,
but all of which shall constitute but one and the same instrument. One or more
counterparts of this Agreement or any exhibit hereto may be delivered via
telecopier, with the intention that they shall have the same effect as an
original counterpart hereof.

         10.8 Effect of Headings/Gender References. The article and section
headings herein are for convenience only and shall not affect the construction
or interpretation hereof. The use of any gender in the Agreement shall be deemed
to include the other genders, and the use of the singular in this Agreement
shall be deemed to include the plural (and vice versa), wherever appropriate.

                                      -45-
<PAGE>

         10.9 Governing Law. This Agreement shall be deemed a contract made
under the laws of the Commonwealth of Massachusetts and together with the rights
and obligations of the parties hereunder, shall be construed under and governed
by the laws of such state.

         10.10 Press Releases and Public Announcements. No party hereto shall
issue any press release or make any public announcement relating to the subject
matter of this Agreement without the prior written approval of the other party,
which approval shall not be unreasonably withheld.

         10.11 Post-Closing Tax Matters. The Acquirer agrees that it will
cooperate with the preparation of all tax returns of the Corporation for the
period up to the Effective Date. The Principal Shareholders shall cause such tax
returns to be prepared at their sole expense, and agree that such tax returns
shall be prepared in a manner consistent with the Corporation's historical
practices.

         10.12 Benefit Plan Covenants. The Acquirer will, from and after the
Effective Time:

                  (a) Comply with the Benefit Plans of the Corporation (the
"Corporation Benefit Arrangements") in accordance with their terms, and continue
to provide such Corporation Benefits Arrangements until such time as the
continuing employees of Corporation become participants in the Acquirer's
Benefit Plans (the "Acquirer Benefit Arrangements");

                  (b) Provide continuing employees of the Corporation no less
favorable participation and benefits under the Acquirer Benefit Arrangements
than is provided to similarly-situated employees of Acquirer;

                  (c) Provide continuing employees of the Corporation full
credit for their respective years of service (hours of service, or period of
service) with the Corporation (or any of its subsidiaries or predecessors)
before the Effective Time, for purposes of determining eligibility,
participation, entry and vesting under the Acquirer Benefit Arrangements
(provided that there will be no double counting of any prior service or any
recognition of any such prior service for purposes of benefit accrual under any
qualified or non-qualified defined benefit pension plan of the Acquirer);

                  (d) Cause any and all pre-existing condition limitations (to
the extent such limitations did not apply to a pre-existing condition under the
comparable Corporation Benefit Arrangement) and eligibility waiting periods
under group health plans of the Acquirer, as applicable, to be waived with
respect to continuing employees of the Corporation (and their eligible
dependents); and

                  (e) Cause to be credited any deductibles or out-of-pocket
expenses incurred by employees of the Corporation (and their beneficiaries and
dependents) during the portion of the applicable benefit plan year before their
subsequent participation in the Acquirer Benefit Arrangements, with the
objective that there be no double counting, during the year in which they first
participate in such Acquirer Benefit Arrangements, of such deductibles or
out-of-pocket expenses.

                                      -46-
<PAGE>

         IN WITNESS WHEREOF, the parties hereto have executed this Agreement on
the date written above.

                                    BRIDGELINE SOFTWARE, INC.


                                    By: /S/ THOMAS L. MASSIE
                                        ---------------------------
                                        Thomas L. Massie, President and
                                        Chief Executive Officer

                                    /S/ THOMAS L. MASSIE
                                    ---------------------------
                                    Thomas L. Massie
                                    (for purposes of Section 3.4 hereof only)


                                    LEAD DOG DIGITAL, INC.


                                    By: /S/ MICHAEL MATTEO
                                    ---------------------------
                                    Michael Matteo, Chief Executive Officer


                                    PRINCIPAL SHAREHOLDERS


                                    /S/ RONALD HEFFERNAN
                                    ---------------------------
                                    Ronald Heffernan


                                    /S/ LUCIA HEFFERNAN
                                    ---------------------------
                                    Lucia Heffernan


                                    /S/ MICHAEL MATTEO
                                    ---------------------------
                                    Michael Matteo


                                    /S/ ROBERT SEEGER
                                    ---------------------------
                                    Robert Seeger


                [SIGNATURE PAGE TO AGREEMENT AND PLAN OF MERGER]


</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-2.5
<SEQUENCE>13
<FILENAME>ex2-5_14663.txt
<DESCRIPTION>STREAMLINE COMMUNICATIONS ACQUISITION AGGREMENT
<TEXT>
                                                                     EXHIBIT 2.5
                                                                     -----------













                          AGREEMENT AND PLAN OF MERGER

                                  BY AND AMONG

                           BRIDGELINE SOFTWARE, INC.,

                          BRIDGELINE ACQUISITION CORP.,

                                       AND

                         STREAMLINE COMMUNICATIONS, INC.

                                DECEMBER 13, 2000




<PAGE>
                                      INDEX
                                      -----

                                    ARTICLE I

                                   THE MERGER
                                   ----------

1.1      The Merger...........................................................
1.2      Officers and Directors...............................................
1.3      Conversion of Shares.................................................
1.4      Exchange of Certificates.............................................
1.5      Tax-Free Transaction.................................................
1.6      Closing..............................................................
1.7      Other Agreements.....................................................

                                   ARTICLE II

                         REPRESENTATIONS AND WARRANTIES
                     OF THE SHAREHOLDERS AND THE CORPORATION
                     ---------------------------------------

2.1      Ownership of Shares..................................................
2.2      Organization and Corporate Power.....................................
2.3      Authorization........................................................
2.4      No Contravention.....................................................
2.5      Government Approvals.................................................
2.6      Authorized and Outstanding Stock.....................................
2.7      Subsidiaries.........................................................
2.8      Financial Information/Accounts Payable...............................
2.9      Events Subsequent to the Date of the Financial Statements............
2.10     Litigation...........................................................
2.11     Compliance with Laws and Other Instruments...........................
2.12     Taxes................................................................
2.13     Real Property........................................................
2.14     Environmental Matters................................................
2.15     Personal Property/ Capital Equipment.................................
2.16     Patents, Trademarks, etc.............................................
2.17     Agreements of Directors, Officers, Employees and Consultants.........
2.18     Governmental Approvals...............................................
2.19     List of Material Contacts and Commitments............................
2.20     Accounts Receivable..................................................
2.21     Securities Acts......................................................
2.22     Insurance Coverage...................................................
2.23     Employee Matters.....................................................
2.24     Suppliers and Customers..............................................
2.25     No Brokers or Finders................................................
2.26     Transactions with Insiders...........................................
2.27     Assumptions, Guarantees..............................................
<PAGE>
2.28     Bank Accounts, Signing Authority, Powers of Attorney.................
2.29     Corporate Books......................................................
2.30     Disclosures..........................................................

                                   ARTICLE III

             THE SHAREHOLDERS' INVESTMENT AND OTHER REPRESENTATIONS
                AND AGREEMENTS RELATING TO THE ACQUIRER'S SHARES
                ------------------------------------------------

3.1      Shareholders' Representations........................................
3.2      Right of First Refusal...............................................
3.3      Agreements Required in a Public Offering.............................
3.4      Survival.............................................................

                                   ARTICLE IV

                        REPRESENTATIONS AND WARRANTIES OF
                      THE ACQUIRER AND THE ACQUISITION SUB
                      ------------------------------------

4.1      Organization and Qualification.......................................
4.2      Authority............................................................
4.3      No Conflicts.........................................................
4.4      Governmental Authorities.............................................
4.5      Litigation...........................................................

                                    ARTICLE V

                        CONDITIONS TO THE OBLIGATIONS OF
             OF THE ACQUIRER AND THE ACQUISITION SUB AT THE CLOSING
             ------------------------------------------------------

5.1      Accuracy of Representations and Warranties...........................
5.2      Performance..........................................................
5.3      Opinion of Counsel...................................................
5.4      No Litigation........................................................
5.5      Instruments of Transfer..............................................
5.6      Tax Matters..........................................................
5.7      Compliance Certificate...............................................
5.8      Employment Agreements................................................
5.9      Closing Deliveries...................................................
5.10     Other Matters........................................................

                                   ARTICLE VI

                CONDITIONS TO THE OBLIGATIONS OF THE SHAREHOLDERS
                -------------------------------------------------

6.1      Accuracy of Representations and Warranties...........................


                                       ii
<PAGE>
6.2      Performance..........................................................
6.3      Opinion of Counsel...................................................
6.4      No Litigation........................................................
6.5      Employment Agreements................................................
6.6      Compliance Certificate...............................................
6.7      Closing Deliveries...................................................
6.8      Other Matters........................................................

                                   ARTICLE VII

                          COVENANTS OF THE CORPORATION
                          ----------------------------

7.1      Legal Existence......................................................
7.2      Payment of Taxes.....................................................
7.3      Limitation on Liens..................................................
7.4      Carrying on Business in the Ordinary Course..........................

                                  ARTICLE VIII

                      GENERAL RELEASE AND INDEMNIFICATIONS
                      ------------------------------------

8.1      Shareholders' Releases...............................................
8.2      Shareholders' Indemnification........................................
8.3      Acquirer's Indemnification...........................................
8.4      Third Party Claims...................................................
8.5      Limitations of Liability.............................................
8.6      Expenses, Reimbursement..............................................
8.7      Notice...............................................................
8.8      Survival.............................................................

                                   ARTICLE IX

                   SURVIVAL OF REPRESENTATIONS AND WARRANTIES
                   ------------------------------------------

                                    ARTICLE X

                                   TERMINATION
                                   -----------

10.1     Termination by Mutual Written Consent................................
10.2     Termination for Breach...............................................

                                   ARTICLE XI

                                  MISCELLANEOUS
                                  -------------

11.1     Cross Disclosure.....................................................

                                       iii
<PAGE>
11.2     Parties in Interest..................................................
11.3     Amendments and Waivers...............................................
11.4     Notices..............................................................
11.5     Expenses.............................................................
11.6     Severability.........................................................
11.7     Counterparts.........................................................
11.8     Effect of Headings...................................................
11.9     Governing Law........................................................
11.10    Press Releases and Public Announcements..............................
11.11    Post-Closing Tax Matters.............................................
         11.11.1 Assistance to Shareholders...................................
         11.11.2 Access to Records............................................
11.12    Conflict Waiver......................................................



































                                       iv
<PAGE>
                          AGREEMENT AND PLAN OF MERGER
                          ----------------------------

         This Agreement and Plan of Merger (the "Agreement") is made this 13th
day of December, 2000 by and among Bridgeline Software, Inc., a Delaware
corporation, with a principal place of business at 6 Jonas Stone Circle,
Lexington, Massachusetts 02420 (the "Acquirer"), Bridgeline Acquisition Corp., a
Massachusetts corporation, a wholly-owned subsidiary of the Acquirer, with a
principal place of business at 6 Jones Stone Circle, Lexington, Massachusetts
02420 (the "Acquisition Sub"), and Raymond Elman, an individual, with a mailing
address of 101 Trowbridge Street, Cambridge, Massachusetts 02138, William
Matteson, an individual with a mailing address of 36 Fresh Pond Parkway,
Cambridge, Massachusetts 02138, and Francis Olschafskie, an individual with a
mailing address of 46 Atherton Street, Boston, Massachusetts 02119, (together
the "Shareholders") and individually, a ("Shareholder").


                              PRELIMINARY STATEMENT

         WHEREAS, the Shareholders own all of the issued and outstanding shares
of common stock (the "Shares") of Streamline Communications, Inc., a
Massachusetts corporation, with a principal place of business at 129 South
Street, Boston, Massachusetts 02111 (the "Corporation", "Target", or
"Streamline").

         WHEREAS, the Boards of Directors of the Acquirer, the Acquisition Sub
and the Corporation have, in accordance with the laws of the Commonwealth of
Massachusetts, approved the merger of the Corporation with and into the
Acquisition Sub, pursuant to which all of the Shares will be converted into
common stock of Acquirer and the Corporation will merge with and into the
Acquisition Sub, with the Acquisition Sub being the surviving corporation; and;

         WHEREAS, it is the intention of the parties that the merger shall
qualify as a reorganization within the meaning of Section 368(a) of the Internal
Revenue Code of 1986, as amended (hereinafter the Code) and in particular
qualify as a forward triangular merger under Code Sections 368(a)(1)(A) and 368
(a)(2)(D) and that this Agreement shall constitute a "plan of reorganization"
for the purposes of Section 368 of the Code; and

         WHEREAS, each of the parties to the Agreement desires to make certain
representations, warranties, and agreements in connection with the transaction
between the parties and to prescribe various conditions thereto.

         NOW, THEREFORE, in consideration of the mutual covenants and agreements
herein contained, and for other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties hereto agree as
follows:
                                    ARTICLE I

                                   THE MERGER
                                   ----------
<PAGE>

         1.1 The Merger. Subject to and upon the terms and conditions of this
Agreement, at the effective time of the merger of the Corporation with and into
the Acquisition Sub (the "Merger Date"), and pursuant to the Massachusetts
Business Corporation Law, the Corporation will be merged with and into the
Acquisition Sub (the "Merger") and the separate existence of the Corporation
shall thereupon cease, in accordance with the applicable provisions of the
General Corporate Law of the Commonwealth of Massachusetts. As a result of the
Merger, the Acquisition Sub will be the surviving corporation. The Articles of
Organization and Bylaws of the surviving corporation shall be that of the
Acquisition Sub as it is in existence immediately prior to the Merger. The
separate corporate existence of the Acquisition Sub with all its rights,
privileges, powers, and franchises shall continue unaffected by the Merger. On
or immediately following the Closing Date, the parties shall cause Articles of
Merger meeting the requirements of the corporate laws of the Commonwealth of
Massachusetts to be promptly executed and filed. The Merger shall become
effective at the time and on the date that the filing of the Articles of Merger
with the Secretary of State for the Commonwealth of Massachusetts has been
completed.

         1.2 Officers and Directors. The officers and directors of the
Acquisition Sub immediately prior to the Effective Time shall be the officers
and directors of the Surviving Corporation and will hold office until their
successors are duly elected and qualified in the manner provided in the Articles
of Organization or as otherwise provided by law, or until their earlier death,
resignation, or removal.

         1.3 Conversion of Shares. The manner of converting the shares of the
capital stock of the Corporation shall, by virtue of the Merger and without any
action on the part of the Shareholders, be as follows: the Shares outstanding
immediately prior to the Merger Date (the "Converted Shares"), shall be
converted into shares of the Acquirer Stock based on the formula set forth in
Schedule 1.3 the "Conversion Ratio" and six hundred thousand dollars
($600,000.00) in cash.

         1.4 Exchange of Certificates. From and after the Merger Date, each
holder of a certificate which prior thereto represented Shares shall be entitled
to receive in exchange therefor, upon surrender thereof to the Acquirer, (i) a
certificate or certificates representing the number of shares of Acquirer Stock
into which the Shares shall have been converted, and (ii) Forty Dollars ($40)
per Share. Until so surrendered to the Acquirer, each certificate formerly
representing Shares shall be deemed for all corporate purposes to evidence only
the right to receive the number of shares of Acquirer Stock and cash payment
determined in accordance with this Section 1.4 and Section 1.3 above.

         All of the Shares, by virtue of the Merger and upon surrender at the
Closing, shall no longer be outstanding and shall be canceled and retired and
shall cease to exist, and the holders thereof shall cease to have any rights
with respect to the Shares.

         Each share of the Corporation's common stock, if any held in the
treasury of the Corporation on the Closing Date shall be canceled and retired
and shall cease to exist, and no consideration shall be paid with respect
thereto.

                                        2
<PAGE>
         1.5 Tax-Free Transaction. It is the intention of the Parties that the
Merger shall qualify as a "reorganization" within the meaning of Section 368(a)
of the Internal Revenue Code of 1986, as amended (hereinafter the Code) and in
particular qualify as a so-called "forward triangular merger" under Code
Sections 368(a)(1)(A) and 368(a)(2)(D) and that this Agreement shall constitute
a "plan of reorganization" for the purposes of Section 368 of the Code. All
aspects of the transactions contemplated by this Agreement shall be implemented
in a manner consistent with this intent.

         1.6 Closing. The closing (the "Closing") of this transaction shall take
place at the offices of Cohan, Rasnick, Myerson, & Marcus, LLP, One State
Street, 2nd Floor, Boston, Massachusetts 02109, or as shall be mutually agreed
upon by the parties. The Closing shall occur on December 13, 2000 or such other
time as shall be mutually agreed upon by the parties.

         1.7 Other Agreements. At the Closing, the Acquirer and the Shareholders
will enter into certain employment agreements in the form set forth in Schedule
1.7 (the "Employment Agreements") setting forth the terms and conditions of each
Shareholder's employment with the Acquirer.


                                   ARTICLE II

               REPRESENTATIONS AND WARRANTIES OF THE SHAREHOLDERS
               --------------------------------------------------

         In order to induce the Acquirer to enter into this transaction, each
Shareholder makes the following representations and warranties which are true,
correct and complete in all material respects as of the date hereof and as of
the Closing, and each disclosure on a schedule attached hereto shall be deemed a
disclosure for all purposes hereunder. The representations and warranties set
forth in Sections 2.1, 2.3(b), 2.4 (as to the Shareholders), 2.25 and 3.1 are
made severally, but not jointly, by each Shareholder. The remaining
representations and warranties set forth in Article II are made jointly and
severally by each Shareholder.

         2.1  Ownership of Shares. Such Shareholder has valid title to and owns
beneficially and of record all of the Shares set forth opposite his name on
Schedule 2.1 attached hereto, and has good and marketable title to such Shares,
free and clear of any and all restrictive legends, options, liens, claims,
pledges, voting trusts and agreements, security interests, charges and other
restrictions or encumbrances of any kind. Such Shareholder has the absolute and
unconditional right, power, authority and capacity to execute and perform this
Agreement and to sell and transfer the Shares to the Acquirer. No such
Shareholder has granted any option or other commitment or is otherwise a party
to or bound by any agreement obligating such Seller to sell, pledge or otherwise
grant any interest in the Shares to any person or entity, except the Acquirer.

         2.2  Organization and Corporate Power. Streamline is a corporation duly
organized, validly existing and in good standing under the laws of the
Commonwealth of Massachusetts to carry on its business as presently conducted.
Streamline is duly licensed or qualified to do business as a foreign corporation
in each jurisdiction set forth on Schedule 2.2 attached hereto and there is no
other jurisdiction wherein the character of its property, or the nature of the


                                        3
<PAGE>
activities presently conducted by it, makes such qualification necessary, except
where the failure to be so qualified will not have a material adverse effect on
the business and operations of Streamline. For purposes of this Agreement, the
term "material adverse effect" means a material adverse effect upon the results
of operations, financial condition, assets, properties or business of
Streamline, taken as a whole.

         2.3   Authorization.

               (a) The Corporation. The Corporation has all necessary corporate
power and has taken all necessary corporate action required for the due
authorization, execution, delivery and performance by the Corporation of this
Agreement and any other agreement or instrument executed by the Corporation in
connection herewith (collectively, the "Transaction Documents"), and the
consummation of the transactions contemplated herein or therein. To the extent
that the Corporation is a party thereto, each of the Transaction Documents is a
valid and binding obligation of the Corporation enforceable in accordance with
their respective terms, except to the extent that such enforcement may be
subject to applicable bankruptcy, reorganization, insolvency, fraudulent
conveyance or other laws affecting creditors' rights generally and to the
application of general equitable principles.

               (b) Shareholders. The Transaction Documents shall include all
documents executed and delivered at the Closing to which the Shareholders are a
party, and each of the Transaction Documents has been duly executed and
delivered by each Shareholder and constitutes the valid and binding obligations
of each Shareholder enforceable against each Shareholder in accordance with
their respective terms, except to the extent that such enforcement may be
subject to applicable bankruptcy, reorganization, insolvency, fraudulent
conveyance or other laws affecting creditors' rights generally and to the
application of general equitable principles.

         2.4   No Contravention. The execution, delivery and performance of the
Transaction Documents and consummation of the transactions contemplated hereby
and thereby by the Corporation and the Shareholders do not and will not violate,
conflict with, result in a breach of or constitute a default under (or which
with notice or lapse of time, or both, would constitute a breach of or default
under), or result in the creation of any lien, security interest or other
encumbrance under (a) any material note, agreement, contract, license,
instrument, lease or other obligation to which the Corporation or the
Shareholders are a party or by which the Corporation or the Shareholders are
bound and for which the Corporation or the Shareholders have not previously
obtained a written waiver of such breach or default, which waiver has been
delivered to the Acquirer, (b) any judgment, order, decree, ruling or injunction
known and applicable to the Corporation or the Shareholders, (c) any statute,
law, regulation or rule of any governmental agency or authority, or (d) the
Corporation's Articles of Organization or Bylaws. The Shareholders have no
reason to believe that the execution, delivery or performance of the Transaction
Documents or the consummation of the transactions contemplated hereby or
thereby, will cause the Corporation to lose the benefit of any right or
privilege it presently enjoys. The transaction does not require any further
corporate action and is not and will not be subject to any right of first
refusal, put, call or similar right.

                                        4
<PAGE>
         2.5   Government Approvals. No consent, approval, license or
authorization of, or designation, declaration or filing with, any court or
governmental authority is or will be required on the part of the Shareholders or
the Corporation in connection with the execution, delivery and performance of
this Agreement, any of the Transaction Documents and any other agreements or
instruments executed by the Corporation or the Shareholders in connection
herewith or therewith.

         2.6   Authorized and Outstanding Stock. Before giving effect to the
transactions to be effected at Closing, the authorized capital stock of the
Corporation consists of 200,000 shares of $0.01 par value common stock, of which
15,000 shares are validly issued and outstanding and held of record and owned
beneficially as set forth in Schedule 2.1 attached hereto. The Shares are all of
the issued and outstanding shares of capital stock of the Corporation, and the
Shares are duly and validly authorized, validly issued and fully paid and
non-assessable and free from any restrictions on transfer, except for
restrictions imposed by federal or state securities or "blue-sky" laws. There
are no outstanding warrants, options, commitments, preemptive rights, rights to
acquire or purchase, conversion rights or demands of any character relating to
the capital stock or other securities of the Corporation. All issued and
outstanding shares of capital stock of the Corporation were issued (i) in
transactions complying with or exempt from the registration provisions of the
Securities Act of 1933, as amended (the "Act"), and (ii) in compliance with or
in transactions exempt from the registration provisions of applicable state
securities or "blue-sky" laws.

         2.7   Subsidiaries. The Corporation does not have, and during the past
ten (10) years has not had, any subsidiaries. The Corporation does not have any
investment or other interest in, or any outstanding loan or advance to or from,
any person or entity, including, without limitation, any officer, director or
shareholder.

         2.8   Financial Information/Accounts Payable. Schedule 2.8 sets forth a
full and complete list of the Corporation's accounts payable as of October 31,
2000. The Shareholders have previously delivered to the Acquirer the unaudited
balance sheets of the Corporation at both May 31, 2000 and October 31, 2000 and
the related statements of earnings for the years ending May 31, 1998, May 31,
1999 and May 31, 2000 and for the five (5) month period ending October 31, 2000
(the "Unaudited Financial Statements"). The Unaudited Financial Statements
present fairly, in all material respects, the financial condition and results of
operations of the Corporation in accordance with generally accepted accounting
principles applied on a basis consistent with prior periods. The Unaudited
Financial Statements do not contain footnotes and are subject to normal year-end
adjustments, which adjustments are neither individually nor in the aggregate
material. The Corporation has no liability, contingent or otherwise, which is
not adequately reflected in or reserved against in the Unaudited Financial
Statements (subject to normal year-end adjustments) that could materially and
adversely affect the financial condition of the Corporation. Except as set forth
in the Unaudited Financial Statements or Schedule 2.9, since January 1, 2000,
(i) there has been no change in the business, assets, liabilities, condition
(financial or otherwise) or operations of the Corporation except for changes in
the ordinary course of business which, in the aggregate, have not been
materially adverse, and (ii) none of the business, prospects, condition
(financial or otherwise), operations, property or affairs of the

                                        5
<PAGE>
Corporation have been materially adversely affected by any occurrence or
development, in the aggregate, whether or not insured against.

         2.9 Events Subsequent to the Date of the Financial Statements. Except
as set forth on Schedule 2.9, and on the Unaudited Financial Statements, since
January 1, 2000, the Corporation has not (i) issued any stock, bond or other
corporate security, (ii) borrowed any amount or incurred or become subject to
any material liability (absolute, accrued or contingent), except liabilities
under contracts entered into in the ordinary course of business, (iii)
discharged or satisfied any lien or encumbrance or incurred or paid any
obligation or liability (absolute, accrued or contingent) other than current
liabilities shown on the Unaudited Financial Statements and incurred in the
ordinary course of business, (iv) declared or made any payment, other than
ordinary payments of compensation in amounts consistent with the historic
levels, or distribution to stockholders or purchased or redeemed any shares of
its capital stock or other securities, (v) mortgaged, pledged or subjected to
lien any of its assets, tangible or intangible, other than liens of current real
property taxes not yet due and payable, (vi) sold, assigned or transferred any
of its tangible assets except in the ordinary course of business, or canceled
any material debt or claim, except in the ordinary course of business, (vii)
sold, assigned, transferred or granted any license with respect to any patent,
trademark, trade name, service mark, copyright, trade secret or other intangible
asset, except pursuant to license or other agreements entered into in the
ordinary course of business, (viii) suffered any material loss of property or
waived any right of substantial value whether or not in the ordinary course of
business, (ix) made any change in officer compensation, (x) made any material
change in the manner of business or operations of the Corporation, (xi) entered
into any transaction except in the ordinary course of business or as otherwise
contemplated hereby, or (xii) entered into any commitment (contingent or
otherwise) to do any of the foregoing.

         2.10 Litigation. Except as otherwise set forth on Schedule 2.10, there
is no litigation or governmental proceeding or investigation, pending or
threatened, against the Corporation or affecting any of the Corporation's
properties or assets, or against any officer, key employee, shareholder or
former shareholder of the Corporation in his capacity as such, nor has there
occurred any event or does there exist any condition on the basis of which any
litigation, proceeding or investigation might properly be instituted. Except as
set forth on Schedule 2.10, each incident or proceeding described on Schedule
2.10 is fully covered by insurance. Neither the Corporation nor any officer, key
employee or shareholder of the Corporation in his capacity as such is in default
with respect to any order, writ, injunction, decree, ruling or decision of any
court, commission, board or other government agency.

         2.11 Compliance with Laws and Other Instruments. The Corporation is in
compliance with all of the provisions of this Agreement, its Articles of
Organization and Bylaws, and in all material respects with the provisions of
each mortgage, indenture, lease, license, other agreement or instrument,
judgment, decree, judicial order, statute and regulation by which it is bound or
to which its properties are subject.

         2.12 Taxes. The Corporation has filed all federal, state, local and
foreign tax returns (including statements of estimated taxes owed) required to
be filed within the applicable periods for such filings, such filings are
complete and accurate in all material respects, and the

                                        6
<PAGE>
Corporation has paid all taxes required to be paid, and has established adequate
accrual reserves (net of estimated tax payments already made) for the payment of
all taxes payable in respect to the period subsequent to the last periods
covered by such returns. Except as set forth on Schedule 2.12, no deficiencies
for any tax are currently assessed against the Corporation, and no tax returns
of the Corporation have been audited during the last three (3) years, and, to
the knowledge of the Shareholders, there is no such audit pending or
contemplated or any reasonable basis for the assessment of additional tax
against the Corporation. There is no tax lien, whether imposed by any federal,
state or local taxing authority, outstanding against the assets, properties or
business of the Corporation. For the purposes of this Agreement, the term "tax"
shall include all federal, state and local taxes, including income, franchise,
property, sales, use, withholding, payroll and employment taxes and all deposits
required to be made by the Corporation with the Internal Revenue Service on
account of the Corporation's election to utilize a fiscal year end.

         2.13  Real Property.

               (a) Schedule 2.13 sets forth the addresses and uses of all real
property that the Corporation owns, leases or subleases, and any lien or
encumbrance on any such owned real property or the Corporation's leasehold
interest therein, specifying in the case of each such lease or sublease, the
name of the lessor or sublessor, as the case may be, the lease term and the
rental obligations of the lessee thereunder.

               (b) Except as set forth on Schedule 2.13, to the knowledge of the
Shareholders, there is no material violation of any law, regulation or ordinance
(including without limitation laws, regulations or ordinances relating to
zoning, environmental, city planning or similar matters) relating to any real
property owned by the Corporation.

               (c) There are no defaults by the Corporation, and to the
knowledge of the Shareholders, by any other party, which might curtail in any
material respect the present use of the Corporation's property listed on
Schedule 2.13.

         2.14  Environmental Matters.

               (a) Except as set forth on Schedule 2.14, to the knowledge of the
Shareholders, the Corporation: (1) has not caused any releases of any Hazardous
Substance (as defined in Subsection 2.14(b), below) anywhere which requires
remediation or clean-up pursuant to any applicable Environmental Law (as defined
in Subsection 2.14(c), below), and (2) has not disposed of Hazardous Substances
anywhere except in compliance in all material respects with applicable
Environmental Laws, and (3) has not received any notice from any governmental
authority of any violation of any Environmental Law. The Corporation has not
conducted or engaged in any operation or activity involving the use, storage or
disposal of any Hazardous Substance except as authorized by and fully in
accordance with applicable Environmental Laws. There is no pending or, to
Shareholders' knowledge, threatened, lawsuit, action, claim or proceeding by any
third party alleging or asserting that the Corporation has violated or is about
to violate any applicable Environmental Law.

                                        7
<PAGE>
               (b) "Hazardous Substances" means and shall include any hazardous
waste, as defined by 42 U.S.C. ss. 6903(5), any hazardous substance as defined
by 42 U.S.C. ss. 9601(14), any pollutant or contaminant as defined by 42 U.S.C.
ss. 9601(33) or any toxic substance, oil or hazardous material or other chemical
or substance regulated by any Environmental Laws.

               (c) "Environmental Law" means and shall include any judgment,
decree, order, law, license, permit, rule or regulation pertaining to
environmental matters, including, without limitation, those arising under the
Resource Conservation and Recovery Act ("RCRA"), the Comprehensive Environmental
Response, Compensation and Liability Act of 1980, as amended ("CERCLA"), the
Superfund Amendments and Reauthorization Act of 1986 ("SARA"), the Federal Water
Pollution Control Act, the Solid Waste Disposal Act, as amended, the Federal
Clean Water Act, the Federal Clean Air Act, the Toxic Substances Control Act, or
any applicable state or local statute, regulation, ordinance, order or decree
relating to health, safety or the environment.

         2.15  Personal Property/Capital Equipment. Schedule 2.15 sets forth a
full and complete list of all personal property, including capital equipment,
owned or leased by the Corporation. Except as set forth on Schedule 2.15,and
except for property sold or otherwise disposed of in the ordinary course of
business, the Corporation owns free and clear of any lien or encumbrance, all of
such personal property. All material items of such personal property used in the
operation of the business of the Corporation are in good operating condition,
normal wear and tear excepted.


         2.16  Patents, Trademarks, etc. Set forth on Schedule 2.16 is a list of
all patents, patent rights, patent applications, trademarks, trademark
applications, service marks, service mark applications, trade names and
registered copyrights, and all applications for such that are in the process of
being prepared, owned by or registered in the name of the Corporation, or of
which the Corporation is a licensor or licensee or in which the Corporation has
any right, and in each case a brief description of the nature of such right. The
Corporation owns or possesses adequate licenses or other rights to use all the
items set forth on Schedule 2.16, manufacturing processes, formulae, trade
secrets and know how (collectively, (the "Intellectual Property") necessary to
the conduct of its business as conducted and as proposed to be conducted, and no
claim is pending or, to the knowledge of the Corporation, threatened to the
effect that the operations of the Corporation, its products or services,
infringe, or have infringed, upon or conflict with the asserted rights of any
other person or entity under any Intellectual Property, and there is no known
basis for any such claim (whether or not pending or threatened). No claim is
pending or, to the knowledge of the Corporation, threatened to the effect that
any such Intellectual Property owned or licensed by the Corporation, or which
the Corporation otherwise has the right to use, is invalid or unenforceable by
the Corporation, except as set forth on Schedule 2.16, and there is no known
basis for any such claim (whether, or not pending or threatened). Except in the
ordinary course of business, the Corporation has not granted or assigned to any
other person or entity any right to manufacture, have manufactured, assemble or
sell the products or proposed products or to provide the services or proposed
services of the Corporation. No current or former stockholder, employee, officer
or director of the Corporation has (directly or indirectly) any right, title or
interest in any of the rights described on Schedule 2.16 other than such right
which such person or entity may enjoy as a stockholder of the Corporation.

                                        8
<PAGE>
         2.17 Agreements of Directors, Officers, Employees and Consultants. No
director, officer or employee of or consultant to the Corporation is in
violation of any term of any employment contract, non-competition agreement,
non-disclosure agreement, patent disclosure or assignment agreement or other
contract or agreement containing restrictive covenants relating to the right of
any such director, officer, employee, or consultant to be employed or engaged by
the Corporation because of the nature of the business conducted or proposed to
be conducted by the Corporation, or relating to the use of trade secrets or
proprietary information of others. Schedule 2.17 hereto sets forth the name and
address of each person currently serving as an officer or a director of the
Corporation, and each person listed on Schedule 2.17 was duly elected and is
presently serving as such officer or director. Set forth on Schedule 2.17 is a
list of all employees and consultants of the Corporation who have (i) executed a
non-disclosure agreement with the Corporation or (ii) executed a non-competition
agreement with the Corporation.

         2.18 Governmental Approvals. The Corporation has all the material
permits, licenses, orders, franchises and other rights and privileges of all
federal, state, local or foreign governmental or regulatory bodies necessary for
the Corporation to conduct its business as presently conducted. All such
permits, licenses, orders, franchises and other rights and privileges are in
full force and effect and no suspension or cancellation of any of them is
threatened, and none of such permits, licenses, orders, franchises or other
rights and privileges will be affected by the consummation of the transactions
contemplated in the Transaction Documents.

         2.19 List of Material Contracts and Commitments. Schedule 2.19 sets
forth a complete and accurate list of all material contracts to which the
Corporation is a party or by or to which any of its assets or properties is
bound or subject. As used in this Section 2.19, the phrase "material contract"
means and includes every material agreement or material understanding of any
kind, written or oral, which is legally enforceable by or against the
Corporation, and specifically includes (a) contracts and other agreements with
any current or former officer, director, employee, consultant or shareholder or
any partnership, corporation, joint venture or any other entity in which any
such person or entity has an interest; (b) agreements with any labor union or
association representing any employee; (c) contracts and other agreements for
the provision of services other than by employees of the Corporation with a
value in excess of twenty-five thousand dollars ($25,000.00); (d) bonds or other
security agreements provided by any party in connection with the business of the
Corporation; (e) contracts and other agreements for the sale of any of the
assets or properties of the Corporation other than in the ordinary course of
business or for the grant to any person or entity of any preferential rights to
purchase any of said assets or properties; (f) joint venture agreements relating
to the assets, properties or business of the Corporation or by or to which any
of its assets or properties are bound or subject; (g) contracts or other
agreements under which the Corporation agrees to indemnify any party, to share
tax liability of any party, or to refrain from competing with any party; (h) any
contracts or other agreements with regard to any indebtedness of the
Corporation; or (i) any other contract or other agreement whether or not made in
the ordinary course of business and involving the payment by or to the
Corporation of more than twenty-five thousand dollars ($25,000.00). The
Shareholders have delivered to the Acquirer true, correct and complete copies of
all such contracts, together with all modifications and supplements thereto.
Except as set forth on

                                        9
<PAGE>
Schedule 2.19, each of the contracts listed on Schedule 2.19 is in full force
and effect. The Corporation is not in breach of any of the material provisions
of any such contract, nor, to the knowledge of the Shareholders, is any other
party to any such contract in default thereunder, nor does any event or
condition exist which with notice or the passage of time or both would
constitute a default of a material provision thereunder, except for any such
breach or default that individually and in the aggregate would not have a
material adverse effect to the business of the Corporation. The Corporation has
performed in all material respects all obligations required to be performed by
it to date pursuant to each such contract.

         2.20 Accounts Receivable. Schedule 2.20 sets forth a full and complete
list of the Corporation's accounts receivable as of October 31, 2000. Except as
set forth in Schedule 2.9, all accounts and notes receivable reflected on the
Corporation's balance sheets provided to the Acquirer, and all accounts and
notes receivable arising subsequent to the date of such balance sheets, have
arisen in the ordinary course of business and represent valid obligations owing
to the Corporation

         2.21 Securities Acts. The Corporation and the Shareholders have
complied and will comply with all applicable federal or state securities laws in
connection with this transaction. Neither the Shareholders nor, to the
Shareholders' knowledge, anyone acting on their behalf has offered any of the
Shares, or similar securities, or solicited any offer to purchase any of such
securities, so as to bring this transaction within the scope of the registration
provisions of the Securities Act of 1933, as amended.

         2.22 Insurance Coverage. Schedule 2.22 hereto contains an accurate
summary of the insurance policies currently maintained by the Corporation.
Except as described on Schedule 2.22, there are currently no claims pending
against the Corporation pursuant to any insurance policy currently in effect and
covering the property, the business or the employees of the Corporation. All
such policies (a) are in full force and effect and (b) are sufficient for
compliance by the Corporation with all requirements of all agreements to which
the Corporation is a party. The Corporation is not in default in any material
respect with respect to its obligations pursuant to any of such insurance
policies and has not received any notification of cancellation of any such
insurance policies.

         2.23 Employee Matters. Except as set forth on Schedule 2.23, the
Corporation has in effect no other employment agreement, consulting agreement,
deferred compensation, pension or retirement agreement or arrangement, bonus,
incentive or profit-sharing plan or arrangement, or labor or collective
bargaining agreement, written or oral. The Shareholders have no knowledge that
any of the officers or other key employees of the Corporation presently intends
to terminate his or her employment. The Corporation is in compliance in all
material respects with all applicable laws and regulations relating to labor,
employment, fair employment practices, terms and conditions of employment, and
wages and hours. The Corporation is in material compliance with the terms of all
plans, programs and agreements listed on Schedule 2.23, and each such plan,
program or agreement is in compliance in all material respects with all of the
requirements and provisions of the Employee Retirement Income Security Act of
1974, as amended ("ERISA"). No such plan or program has engaged in any
"prohibited transaction" as defined in Section 4975 of the Internal Revenue Code
of 1986, as amended (the "Code"), or has incurred any "accumulated funding
deficiency" as defined in Section 302 of ERISA, nor has any

                                       10
<PAGE>
reportable event as defined in Section 4043(b) of ERISA occurred with respect to
any such plan or program. With respect to each plan listed on Schedule 2.23, all
required filings, including all filings required to be made with the United
States Department of Labor and Internal Revenue Service, have been timely filed.

         2.24 Suppliers and Customers. To the Shareholder's knowledge, the
relationships of the Corporation with its materially significant suppliers and
customers are good commercial working relationships and no supplier or customer
of material importance to the Corporation has canceled or otherwise terminated,
or to the Shareholders' knowledge, threatened to cancel or otherwise to
terminate its relationship with the Corporation, or has during the last twelve
(12) months decreased materially, or threatened to decrease or limit materially,
its services, supplies or materials for use by the Corporation or its usage or
purchase of the services or products of the Corporation except for normal
cyclical changes related to customers' businesses and except for changes which
have not had a material adverse effect on the Corporation. The Shareholders have
no knowledge that any such supplier or customer intends to cancel or otherwise
substantially modify its relationship with the Corporation or to decrease
materially or limit its services, supplies or materials to the Corporation, or
its usage or purchase of the services of the Corporation, and, to the knowledge
of the Shareholders, the communication of the transactions contemplated hereby
will not materially adversely affect the relationship of the Acquirer with any
such supplier or customer.

         2.25 No Brokers or Finders. No person or entity has or will have, as a
result of the actions of the Shareholders any right, interest or claim against
or upon the Shareholders, the Corporation or the Acquirer for any commission,
fee or other compensation as a finder or broker arising from the transactions
contemplated by this Agreement.

         2.26 Transactions with Insiders. Except as set forth on Schedule 2.26,
there are no loans, leases or other contracts between the Corporation and any
officer or director of the Corporation, or any person or entity owning five
percent (5%) or more of the total Shares of the Corporation, or any respective
family member or affiliate of such officer, director or shareholder.

         2.27 Assumptions, Guarantees. The Corporation has not assumed,
guaranteed, endorsed or otherwise become directly or contingently liable on or
for any indebtedness of any other person or entity, except guarantees by
endorsement of negotiable instruments for deposit or collection or similar
transactions in the ordinary course of business. Schedule 2.27 is a complete
list of all guaranties by the Corporation.

         2.28 Bank Accounts, Signing Authority, Powers of Attorney. Except as
set forth on Schedule 2.28, the Corporation has no account or safe deposit box
in any bank and no person or entity has any power, whether singly or jointly, to
sign any checks on behalf of the Corporation, to withdraw any money or other
property from any bank, brokerage or other account of the Corporation, or to act
pursuant to any power of attorney granted by the Corporation at any time for any
purpose.

                                       11
<PAGE>
         2.29 Corporate Books. The minute books of the Corporation made
available to the Acquirer for inspection accurately record therein in all
material respects all actions taken by the Board of Directors and shareholders
of the Corporation.

         2.30 Disclosures. Nothing in this Agreement, any Schedule or Exhibit to
this Agreement or the Unaudited Financial Statements contains any untrue
statement of material fact or omits to state any material fact necessary to make
the statements contained herein or therein not misleading.


                                   ARTICLE III

             THE SHAREHOLDERS' INVESTMENT AND OTHER REPRESENTATIONS
                AND AGREEMENTS RELATING TO THE ACQUIRER'S SHARES
                ------------------------------------------------

         3.1 Shareholders' Representations. Each Shareholder represents that his
present intention is to acquire the Acquirer's stock for his own account and
that the Acquirer's stock is being and will be acquired for the purpose of
investment and not with a view to distribution or resale thereof. Each
Shareholder represents that he has had an opportunity to ask questions of and
receive answers from the authorized representatives of the Acquirer and to
review any relevant documents and records concerning the business of the
Acquirer and the terms and conditions of this investment and that any such
questions have been answered to each Shareholder's full satisfaction. Each
Shareholder acknowledges that it has been called to his attention that this
investment involves a high degree of risk and that the Acquirer is in a start up
stage and does not have any operating history. Each Shareholder understands and
acknowledges that no federal or state agency has passed upon or made any
recommendation or endorsement with respect to the shares of the Acquirer being
sold to each Shareholder herein. Each Shareholder understands that the
Acquirer's stock has not been registered under the Securities Act of 1933, as
amended (the "Act") and that the Acquirer's stock must be held indefinitely
unless a subsequent disposition thereof is permitted under the Act or is exempt
from such registration. Each Shareholder further represents that he understands
and agrees that until transferred as herein provided, or transferred pursuant to
the provisions of Rule 144, all certificates evidencing the Acquirer's stock,
whether upon initial issuance or upon transfer thereof, shall bear a legend (and
the Acquirer will make a notation on its transfer books to such effect)
prominently stamped or printed thereon reading substantially as follows:

         THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED
         UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE
         SECURITIES LAWS. THESE SECURITIES HAVE BEEN ACQUIRED FOR INVESTMENT AND
         NOT WITH A VIEW TO DISTRIBUTION OR RESALE AND MAY NOT BE SOLD,
         MORTGAGED, PLEDGED, HYPOTHECATED, OR OTHERWISE TRANSFERRED WITHOUT AN
         EFFECTIVE REGISTRATION STATEMENT FOR SUCH SECURITIES UNDER THE
         SECURITIES ACT OF 1933, AS

                                       12
<PAGE>
         AMENDED, OR UNLESS AN EXEMPTION FROM REGISTRATION UNDER SUCH ACT IS
         AVAILABLE.

         3.2 Right of First Refusal. Until there is (i) a public offering of the
Acquirer's shares registered with the Securities and Exchange Commission on Form
S-1, or any comparable subsequent form, (ii) a sale of all or substantially all
of the assets or stock of the Acquirer if after such sale, management of the
Acquirer is not in effective control of the buyer of the assets or stock, or
(iii) if there is a change of control of the Acquirer of more than 50% in a
single transaction and after such change of control the management of the
Acquirer is not in effective control of the Acquirer, if any of the Shareholders
desire to sell any of the Acquirer's shares acquired by such Shareholder, the
Acquirer shall have a right of first refusal as hereinafter provided to purchase
any such shares which the Shareholder wishes to sell or transfer, except that
the Acquirer shall not have such right with respect to permitted transfers as
hereinafter provided. The right of first refusal as provided herein shall
require the Shareholder wishing to sell Acquirer's shares to give notice to the
Acquirer that it has an offer to buy any or all of the Acquirer's shares which
the Shareholder wishes to accept, and at the same time, the Shareholder giving
the notice shall provide to the Acquirer a copy of all reasonably required
documentation to substantiate such offer and the terms thereof (the "Offer
Terms"). The Acquirer shall have 30 days from the date of delivery of such
notice to purchase the shares that the Shareholder wishes to sell on terms no
less favorable than the Offer Terms. If the Acquirer does not purchase said
shares within said 30 days, paying cash in exchange therefor, the Shareholder
shall have the right to sell his shares in accordance with the Offer Terms,
provided, however, that if the Shareholder does not sell such shares pursuant to
the Offer Terms within 120 days following the expiration of the 30 day period
during which the Acquirer has its option to purchase, then the Shareholder shall
no longer have the right to sell the shares described in the offer, without
first complying with the provisions of this Section 3.2 such that if the
Shareholder thereafter wants to sell shares of the Acquirer, it must engage in
the same process. Permitted transfers as described herein are transfers made to
family members of the Shareholders or estate planning trusts or vehicles
established by any Shareholder for the benefit of his family.

         3.3 Agreements Required in a Public Offering. Each Shareholder agrees
that upon request by any underwriter managing a public offering of shares of the
Acquirer, such Shareholder will agree to any lock up or other provisions
affecting the transferability of the Acquirer's shares owned by the Seller which
are usual and customary and generally imposed on other similarly situated
holders of shares of the Acquirer, taking into account the number and class of
shares and the relationship of each Shareholder to the Acquirer, and will
provide such underwriter and its counsel with such information with respect to
the Shareholder as is reasonably required to carry out such public offering.

         3.4 Survival. The obligations of the Shareholders under this Article
III shall survive the Closing of the transactions contemplated hereby.

                                   ARTICLE IV


                                       13
<PAGE>
                 REPRESENTATIONS AND WARRANTIES OF THE ACQUIRER
                             AND THE ACQUISITION SUB
                             -----------------------

         4.1 Organization and Qualification. The Acquirer is a corporation duly
organized, validly existing and in corporate good standing in the State of
Delaware. The Acquisition Sub is a corporation duly organized, validly existing
and in corporate good standing in the Commonwealth of Massachusetts. At the
Closing, the outstanding Shares of the Acquirer's stock shall not exceed
6,000,000 shares out of the 15,000,000 shares of $.001 par value common stock
which is authorized. The Acquirer and the Acquisition Sub are duly qualified to
do business and are in good standing in all jurisdictions in which their
ownership of property or the character of their business requires such
qualification.

         4.2 Authority. This Agreement has been duly authorized, executed and
delivered by each of the Acquirer and the Acquisition Sub and constitutes a
legal, valid and binding obligation of the Acquirer and the Acquisition Sub,
enforceable against them in accordance with its terms. The Acquirer and the
Acquisition Sub have the right, power and authority to enter into this Agreement
and to carry out the terms and provisions of this Agreement, and to enter into
and carry out the terms of all agreements and instruments required to be
delivered by the terms of this Agreement, without obtaining the consent of any
third parties or authorities.

         4.3 No Conflicts. The execution and delivery of this Agreement, and the
consummation of the transactions contemplated hereby, and compliance with the
provisions hereof, will not: (a) violate, conflict with or result in a breach of
any provision or constitute a default under (i) the Certificate of Incorporation
or Bylaws of the Acquirer or the Articles of Organization or Bylaws of the
Acquisition Sub, or (ii) any contract or agreement to which the Acquirer or the
Acquisition Sub is a party or to which the assets or business of the Acquirer or
the Acquisition Sub may be subject; or (b) violate any judgment, ruling, order,
writ, injunction, award, decree, statute, law, ordinance, code, rule or
regulation of any court or foreign, federal, state, county or local government
or any other governmental, regulatory or administrative agency or authority
which is applicable to the assets, properties or business of the Acquirer or the
Acquisition Sub.

         4.4 Governmental Authorities. The execution and delivery of this
Agreement and the consummation of the transactions contemplated hereby and
compliance with the provisions hereof do not require the permission of any
governmental authority.

         4.5 Litigation. There are no outstanding judgments, rulings, orders,
writs, injunctions, awards or decrees of any court or any foreign, federal,
state, county or local government or any other governmental, regulatory or
administrative agency or authority or arbitral tribunal against or involving the
Acquirer or the Acquisition Sub, and neither the Acquirer nor the Acquisition
Sub is a party to, or, to the knowledge of either of them, threatened with, any
litigation or judicial, governmental, regulatory, administrative or arbitration
proceeding which, if decided adversely, (a) could have a material adverse effect
on the business of the Acquirer or the Acquisition Sub, or, (b) relate to the
transactions contemplated by this Agreement.

                                       14
<PAGE>
         4.6 Capital. The Acquirer is engaging in a private placement to raise
up to One Million, Five Hundred Thousand ($1,500,000) Dollars for which it will
issue an amount of its common stock equal to the number of dollars invested
under the private placement. At the Closing, the Acquirer has raised at least
Five Hundred Thousand ($500,000) Dollars and has non-binding commitments for
another Five Hundred Thousand ($500,000) Dollars of investment under the private
placement.


                                    ARTICLE V

                          CONDITIONS TO THE OBLIGATIONS
             OF THE ACQUIRER AND THE ACQUISITION SUB AT THE CLOSING
             ------------------------------------------------------

         The obligation of the Acquirer to purchase the Shares at the Closing is
subject to the fulfillment, or the waiver by the Acquirer, of each of the
following conditions on or before the Closing:

         5.1 Accuracy of Representations and Warranties. Each representation and
warranty contained in Article II shall be true on and as of the Closing in all
material respects with the same effect as though such representation and
warranty had been made on and as of that date.

         5.2 Performance. The Shareholders shall have performed and complied
with all agreements and conditions contained herein and required to be performed
or complied with by the Shareholders prior to or at the Closing.

         5.3 Opinion of Counsel. The Acquirer and the Acquisition Sub shall have
received an opinion from Epstein, Becker & Green, P.C., counsel for the
Shareholders, dated the date of the Closing and addressed to the Acquirer, in
substantially the form attached as Exhibit A hereto.

         5.4 No Litigation. There shall be no action, suit, investigation or
proceeding pending, or to the knowledge of the Shareholders threatened, which
seeks to restrain, enjoin or prevent the consummation of the transactions
contemplated by this Agreement or which challenges the validity of, or seeks to
recover damages or to obtain other relief in connection with the transactions
contemplated by such agreements.

         5.5 Instruments of Transfer. The Shareholders shall have delivered to
the Acquirer the Shares with good and sufficient instruments of transfer as
shall be necessary to vest in the Acquirer good, clear marketable title to the
Shares, free and clear of any liens, charges or encumbrances, together with the
complete books and records of the Corporation.

         5.6 Tax Matters. The Corporation shall have delivered to the Acquirer
satisfactory evidence that all tax returns of the Corporation have been filed
with the Commonwealth of Massachusetts and the Internal Revenue Service and no
tax is due with respect to the Corporation.

                                       15
<PAGE>
         5.7   Compliance Certificate. The Shareholders shall have delivered to
the Acquirer a certificate, dated the Closing Date, certifying to the
fulfillment of the conditions specified above in this Article V.

         5.8   Employment Agreement. The Employment Agreements between each
Shareholder and the Acquirer shall be executed and delivered contemporaneous
with the Closing.

         5.9   Closing Deliveries. The Acquirer shall have received at or prior
to Closing the following documents, instruments and certificates:

               (a) a certificate of the Secretary of State of Massachusetts as
to the legal existence and good standing of Streamline in Massachusetts;

               (b) a certificate of the Clerk or Assistant Clerk of Streamline
attesting to the incumbency of the Corporation's officers;

               (c) the resignation of all of the directors of Streamline.

         5.10  Other Matters. All corporate and other proceedings in connection
with the transactions contemplated by this Agreement and all documents and
instruments incident to such transactions shall be reasonably satisfactory in
substance and form to the Acquirer and its counsel, and the Acquirer and its
counsel shall have received all such originals or certified or other copies of
such documents as they may reasonably request at or prior to the Closing.


                                   ARTICLE VI

                CONDITIONS TO THE OBLIGATIONS OF THE SHAREHOLDERS
                -------------------------------------------------

         The obligations of the Shareholders to transfer, convey and deliver the
Shares at the Closing are subject to fulfillment, on or before the Closing Date,
of each of the following conditions:

         6.1 Accuracy of Representations and Warranties. The representations and
warranties of the Acquirer contained in Article IV shall be true in all material
respects on and as of the date of the Closing with the same effect as though
such representations and warranties had been made on and as of that date.

         6.2 Performance. The Acquirer shall have performed and complied with
all agreements and conditions contained herein to be performed or complied with
by the Acquirer prior to or at the Closing.

         6.3 Opinion of Counsel. The Shareholders shall have received an opinion
from Cohan, Rasnick, Myerson & Marcus, LLP, counsel for the Acquirer, dated the
Closing Date and addressed to the Shareholders, in substantially the form
attached as Exhibit B hereto.

                                       16
<PAGE>
         6.4   No Litigation. There shall be no action, suit, investigation or
proceeding pending, or to the knowledge of the Acquirer or the Acquisition Sub
threatened, which seeks to restrain, enjoin or prevent the consummation of the
transactions contemplated by this Agreement or which challenges the validity of,
or seeks to recover damages or to obtain other relief in connection with the
transactions contemplated by such agreements.

         6.5   Employment Agreement. The Employment Agreements between each
Shareholder and the Acquirer shall be executed and delivered contemporaneous
with the Closing.

         6.6   Compliance Certificate. The Acquirer shall have delivered to the
Shareholders a certificate, dated the Closing Date, certifying to the
fulfillment of the conditions specified above in this Article VI.

         6.7   Closing Deliveries. The Shareholders shall have received at or
prior to Closing the following payments, documents, instruments and
certificates:

               (a) the certificates representing the Bridgeline Shares duly
endorsed;

               (b) payment of the cash portion of the Purchase Price by wire
transfer of immediately available funds;

               (c) a certificate of the Secretary of State of Delaware as to the
legal existence and good standing of the Acquirer in Delaware;

               (d) a certificate of the Secretary of State of Massachusetts as
to the legal existence and good standing of the Acquisition Sub;

               (e) a certificate of the Secretary or Assistant Secretary of the
Acquirer and a certificate of the Clerk or Assistant Clerk of the Acquisition
Sub attesting to the incumbency of the officers of the Acquirer and the
Acquisition Sub and the authenticity of the resolutions authorizing the
transactions contemplated by this Agreement;

               (f) appointment of William Matteson as a member of the Acquirer's
Board of Directors.

         6.8   Other Matters. All corporate and other proceedings in connection
with the transactions contemplated by this Agreement and all documents and
instruments incident to such transactions shall be reasonably satisfactory in
substance and form to the Shareholders and their counsel, and the Shareholders
and their counsel shall have received all such originals or certified or other
copies of such documents as they may reasonably request at or prior to the
Closing.


                                   ARTICLE VII

                          COVENANTS OF THE CORPORATION
                          ----------------------------


                                       17
<PAGE>
         The Corporation hereby covenants with the Acquirer and the Acquisition
Sub that until the Closing, the Corporation will perform all of its obligations
under this Agreement and comply with the representations and warranties set
forth herein, and without limiting the generality of the foregoing, the
following covenants shall remain in effect:

         7.1 Legal Existence. The Corporation will maintain in full force and
effect its legal existence and comply in all material respects with all
applicable laws and regulations.

         7.2 Payment of Taxes. The Corporation will pay and discharge all lawful
taxes, assessments and governmental charges or levies imposed upon its income or
profits, or upon any property belonging to the Corporation before the same shall
become in default, as well as all lawful claims for labor, materials and
supplies which, if not paid when due, might become a lien or charge upon the
assets of the Corporation or any part thereof; provided, however, that the
Corporation shall not be required to pay and discharge any such tax, assessment,
charge, levy or claim so long as the validity thereof shall be contested in good
faith by appropriate proceedings, and the Corporation shall pay such tax,
assessment, charge, levy or claim before the property subject thereto shall be
sold to satisfy any lien which has attached as security therefor.

         7.3 Limitation on Liens. The Corporation will not create, incur, assume
or allow to be created, incurred or assumed, any pledge of, or any mortgage,
lien, charge or encumbrance of any kind on any of the assets of the Corporation.

         7.4 Carrying on Business in the Ordinary Course. Until the Closing, the
Corporation will carry on its business in the ordinary course and will not take
any extraordinary or unusual action without the express written consent of the
Acquirer and the Acquisition Sub.


                                  ARTICLE VIII

                      GENERAL RELEASE AND INDEMNIFICATIONS
                      ------------------------------------

         8.1 Shareholders' Releases. The Shareholders, effective at the Closing,
hereby release and discharge the Corporation from and against any and all
claims, demands and liabilities which they may have against the Corporation as
of the date of the Closing, and specifically agree to indemnify, defend and hold
the Corporation harmless against any and all obligations, debts, bills,
liabilities, causes of action and claims of every nature of the Shareholders
against the Corporation which accrue or have arisen prior to the date of the
Closing.

         8.2 Shareholders' Indemnification. Subject to the overall limitations,
the minimum amounts and the time limitations set forth in Section 8.5, the
Shareholders agree to indemnify and hold harmless the Acquirer and the
Acquisition Sub to the fullest extent lawful, from and against any and all
actions, suits, claims, proceedings, costs, losses, damages, judgments, amounts
paid in settlement and reasonable expenses (including, without limitation,
reasonable attorneys' fees and disbursements) (hereinafter collectively referred
to as a "Loss" or "Losses") suffered or incurred by the Acquirer or the
Acquisition Sub to the extent relating to or arising out

                                       18
<PAGE>
of any inaccuracy in or breach, violation or nonobservance of the
representations or warranties made by the Shareholders herein.

         8.3   Acquirer's Indemnification. Subject to the overall limitations,
the minimum amounts, and the time limitations set forth in Section 8.5, the
Acquirer agrees to indemnify and hold harmless the Shareholders, and each of
them, to the fullest extent lawful, from and against any and all actions, suits,
claims, proceedings, costs, losses, damages, judgments, amounts paid in
settlement and reasonable expenses (including, without limitation, reasonable
attorneys' fees and disbursements) (hereinafter collectively referred to as a
"Loss" or "Losses") suffered or incurred by any of the Shareholders to the
extent relating to or arising out of any inaccuracy in or breach, violation or
nonobservance of the representations or warranties made by the Acquirer or the
Acquisition Sub herein.

         8.4   Third Party Claims. In the event that a party (the "Indemnitee")
desires to make a claim against another party (the "Indemnitor") hereunder in
connection with any action, suit, proceeding or demand at any time instituted
against or made upon the Indemnitee by any third party for which the Indemnitee
may seek indemnification hereunder (a "Third Party Claim"), the Indemnitee shall
promptly notify the Indemnitor of such Third Party Claim and of the Indemnitee's
claim of indemnification with respect thereto. The Indemnitor shall have thirty
(30) days after receipt of such notice to notify the Indemnitee if he has
elected to assume the defense of such Third Party Claim. If the Indemnitor
elects to assume the defense of such Third Party Claim, the Indemnitor shall be
entitled at his own expense to conduct and control the defense and settlement of
such Third Party Claim through counsel of his own choosing; provided that the
Indemnitee may participate in the defense of such Third Party Claim with his own
counsel at his own expense. If the Indemnitor fails to notify the Indemnitee
within thirty (30) days after receipt of the Indemnitee's notice of a Third
Party Claim, the Indemnitee shall be entitled to assume the defense of such
Third Party Claim at the expense of the Indemnitor, provided that the Indemnitee
may not settle any Third Party Claim without the Indemnitor's consent.

         8.5   Limitations of Liability.

               (a) No Indemnitor shall be required to indemnify an Indemnitee
hereunder except to the extent that the aggregate amount of Losses for which the
Indemnitee is otherwise entitled to indemnification exceeds $75,000 (the
"Minimum Amount") it being understood and agreed that the Minimum Amount is
intended as a deductible, and no Indemnitor shall be liable for any Losses less
than the Minimum Amount. Moreover, if any Losses exceed the Minimum Amount, an
Indemnitor shall be liable for such Losses only to the extent they exceed the
Minimum Amount, and not otherwise.

               (b) Other than as set forth in Section 8.5 (c), the aggregate
Losses payable by the Indemnitors collectively with respect to all claims for
indemnification shall not exceed an amount equal to One Hundred and Eighty
Thousand ($180,000) Dollars.

               (c) Notwithstanding Section 8.5(b) above, the aggregate Losses
payable by the Indemnitors collectively relating to or arising out of any
inaccuracy in or breach, violation or non-observance of the representations or
warranties made by the Shareholders in Sections 2.1

                                       19
<PAGE>
and 2.12 hereof shall not exceed an amount equal to Three Hundred Thousand
($300,000) Dollars.

               (d) Notwithstanding the scheduling of items on Schedule 2.16, to
the extent that any claim is made for a matter set forth on Schedule 2.16, such
claim shall be indemnified by the Shareholders as if such claim were a Loss
under Section 8.2 above and subject to the Minimum Amount and time limitations
set forth in Section 8.5.

               (e) To the extent claims for indemnification are made against the
Shareholders, the limitations set forth in subsections 8.5(a), (b), (c) and (d)
shall apply to the Shareholders collectively and not individually.

               (f) No action or claim for Losses pursuant to this Article VIII
shall be brought or asserted after the relevant date referred to in Article IX
hereof (the "Rep Expiration Date").

               (g) Acquirer and Shareholders acknowledge and agree that except
as to fraud their sole remedy against the other for any matter arising out of a
breach, violation or nonobservance of any representation or warranty contained
in this Agreement is set forth in this Article VIII, and that except to the
extent a party has asserted a claim for indemnification prior to the Rep
Expiration Date, neither party shall have any remedy against the other party for
any breach, violation or nonobservance of a representation or warranty made by
such other party in this Agreement. The parties acknowledge that this Section
8.5 has been negotiated fully by the Acquirer and Shareholders and that neither
party would have entered into this Agreement but for the inclusion of this
Section 8.5.

         8.6   Expenses, Reimbursement. The Indemnitor promptly shall reimburse
the Indemnitee for all Losses constituting reasonable expenses (including
reasonable attorneys' fees and disbursements) as they are incurred in connection
with investigating, preparing to defend or defending any such action, suit,
claim or proceeding (including any inquiry or investigation) for which indemnity
is available under Section 8.2 or 8.3.

         8.7   Notice. Each party shall provide written notice to the other of
any claim with respect to which it seeks indemnification promptly after the
discovery of any matters giving rise to a claim for indemnification, provided
that the failure of such party to give notice as provided herein shall not
relieve the Indemnitor of its obligations under this Article VIII, except if and
to the extent the Indemnitor has been materially prejudiced thereby.

         8.8   Survival. Subject to the provisions of Article IX below, the
obligations of the Acquirer and the Shareholders under this Article VIII shall
survive the Closing of the transactions contemplated hereby.

                                   ARTICLE IX

                   SURVIVAL OF REPRESENTATIONS AND WARRANTIES
                   ------------------------------------------


                                       20
<PAGE>
         Except as provided herein, all agreements, representations and
warranties contained herein shall survive the execution and delivery of this
Agreement and the Closing of the transactions contemplated hereby for a period
commencing on the date of the Closing and ending on a date one year after the
date of the Closing, except that the representations set forth in Section 2.12
with respect to taxes shall survive until the expiration of the statute of
limitations relating to any applicable tax return referred to in such Section.
The agreements of each Shareholder under Article III shall survive the Closing
of the transactions.


                                    ARTICLE X

                                   TERMINATION
                                   -----------

         10.1  Termination by Mutual Written Consent. This Agreement may be
terminated and the transactions contemplated hereby abandoned, at any time prior
to the Closing Date by the written agreement of all of the parties hereto.

         10.2 Termination for Breach. This Agreement may be terminated and the
transactions contemplated hereby may be abandoned as of the Closing by a
non-breaching party without liability to the non-breaching party if the
conditions for its benefit set forth in Article V or Article VI, as the case may
be, have not been satisfied on or prior to the Closing, by delivery of written
notice of termination by the non-breaching party to the breaching party.


                                   ARTICLE XI

                                  MISCELLANEOUS
                                  -------------

         11.1  Cross Disclosure. Any matter disclosed on any of the Schedules
hereto shall be deemed to be disclosed on each other Schedule hereto relating to
such matters.

         11.2  Parties in Interest. Except as otherwise set forth herein, all
covenants, agreements, representations, warranties and undertakings contained in
this Agreement shall be binding on and shall inure to the benefit of the
respective heirs, successors and assigns of the parties hereto (including
permitted transferees of any of the Shares). Except as may be required to be
disclosed by order of a court or otherwise required by law, the parties agree to
maintain in confidence the terms of the purchase of the Shares hereunder, except
that the parties hereto may disclose such terms to its accountants, lawyers,
bankers and advisors in the ordinary course. Except as otherwise specifically
provided herein, this Agreement shall not confer any rights or remedies upon any
person other than the parties hereto and their respective heirs, successors and
assigns.

         11.3  Amendments and Waivers. Amendments or additions to this Agreement
may be made and compliance with any term, covenant, agreement, condition or
provision set forth herein may be omitted or waived (either generally or in a
particular instance and either retroactively or prospectively) upon the written
consent of the parties hereto. This Agreement (including the

                                       21
<PAGE>
Schedules and Exhibits annexed hereto, which are an integral part of this
Agreement) constitutes the full and complete agreement of the parties with
respect to the subject matter hereof.

         11.4  Notices. All notices, requests, consents, reports and demands
shall be in writing and shall be hand delivered, sent by facsimile or other
electronic medium, or sent by Federal Express or other overnight courier service
providing proof of delivery, to the Acquirer or to the Shareholders at the
address set forth below or to such other address as may be furnished in writing
to the other parties hereto:

The Acquirer:             Bridgeline Software, Inc.
                          6 Jonas Stone Circle
                          Lexington, MA 02420

With copy to:             Peter Myerson, Esq.
                          Cohan, Rasnick, Myerson & Marcus, LLP ("CRMM")
                          One State Street, 2nd Floor
                          Boston, MA 02109

The Shareholders:         The address set forth with respect to each of the
                          Shareholders in the Preamble of this Agreement.

With copy to:             James A. Manzi, Jr., Esq.
                          Epstein, Becker & Green, P.C. ("EBG")
                          75 State Street
                          Boston, MA 02109

         11.5  Expenses. Each party hereto will pay its own expenses in
connection with the transactions contemplated hereby, provided however that
reasonable legal and accounting expenses of the Shareholders shall be considered
expenses of the Corporation and shall be paid by the Corporation.

         11.6  Severability. All agreements and covenants contained in this
Agreement are severable, and in the event that any of them shall be held to be
invalid or unenforceable by any court of competent jurisdiction, then this
Agreement shall be interpreted as if such invalid agreements or covenants were
not contained herein.

         11.7  Counterparts. This Agreement and any exhibit hereto may be
executed in multiple counterparts, each of which shall constitute an original,
but all of which shall constitute but one and the same instrument. One or more
counterparts of this Agreement or any exhibit hereto may be delivered via
telecopier, with the intention that they shall have the same effect as an
original counterpart hereof.

         11.8  Effect of Headings. The article and section headings herein are
for convenience only and shall not affect the construction or interpretation
hereof.

                                       22
<PAGE>
         11.9  Governing Law. This Agreement shall be deemed a contract made
under the laws of the Commonwealth of Massachusetts and together with the rights
and obligations of the parties hereunder, shall be construed under and governed
by the laws of such state.

         11.10 Press Releases and Public Announcements. No party hereto shall
issue any press release or make any public announcement relating to the subject
matter of this Agreement without the prior written approval of the other party.

         11.11 Post-Closing Tax Matters.

               11.11.1  Assistance to Shareholders. The Acquirer agrees that
it will cooperate with the preparation of all tax returns of the Corporation for
the period up to the Closing Date. The Shareholders shall cause such tax returns
to be prepared, and agree that such tax returns shall be prepared in a manner
consistent with the Corporation's historical practices.

               11.11.2  Access to Records. Until December 31, 2005, the
Acquirer agrees to permit the Shareholders, and their attorneys, accountants,
agents and designees, such access to, and right to copy, such Buyer Records as
the Shareholders, or any of them, may deem reasonably necessary or reasonably
desirable in connection with the defense of any litigation or the preparation of
any tax returns of any Shareholder. Any such examination and copying shall be at
the expense of the Shareholder seeking such examination, shall be performed at
the place where the Buyer Records are regularly maintained by the Acquirer and
shall not unreasonably interfere with the normal business activities of the
Acquirer. The Acquirer shall notify the Shareholders if at any time prior to
December 31, 2005 it intends to destroy any or all of the Buyer Records and the
Shareholders shall have the right to review and remove the Buyer Records at the
Shareholders' expense. As used in this Section 11.11.2, "Buyer Records" shall
mean all books, documents and records which are part of the Corporation and
relate to the period prior to the Closing Date, including accounting records,
correspondence, and other written materials.

         11.12 Conflict Waiver. Following the Closing, EBG may continue to
represent the Shareholders with respect to any matter whatsoever, whether
related or unrelated to the transactions contemplated by this Agreement. In
amplification, and not in limitation, of the foregoing, EBG may continue to
represent the Shareholders in connection with any post-closing claims arising
pursuant to this Agreement or otherwise including, without limitation, any
claims arising pursuant to Article VIII hereof or under any of the Employment
Agreements referenced herein. The Acquirer hereby irrevocably waives any
conflict of interest claim that could arise as a result of the continuing legal
representation described above, notwithstanding the fact that EBG has, in the
past, provided legal services to the Corporation. The foregoing waiver is made
knowingly and voluntarily after the obtaining of advice of counsel with respect
to the same. As used herein, the term "EBG" means Epstein, Becker & Green P.C.
and any individual attorneys who are members, partners or employees thereof (the
"Covered Lawyers"). The provisions of this Section 11.11 are intended for the
benefit of the Shareholders, and the Covered Lawyers, and the Covered Lawyers
are intended third party beneficiaries hereof.


                                       23
<PAGE>
         IN WITNESS WHEREOF, the parties hereto have executed this Agreement on
the date written above.

                                           BRIDGELINE SOFTWARE, INC.


                                           By: /s/ Thomas L. Massie
                                               ------------------------------
                                               Thomas L. Massie, President


                                           BRIDGELINE ACQUISITION CORP.


                                           By: /s/ Thomas L. Massie
                                               ------------------------------
                                               Thomas L. Massie, President


                                           SHAREHOLDERS


                                           /s/ Raymond Elman
                                           ----------------------------------
                                           Raymond Elman


                                           /s/ William Matteson
                                           ----------------------------------
                                           William Matteson


                                           /s/ Francis Olschafskie
                                           ----------------------------------
                                           Francis Olschafskie


                                           STREAMLINE COMMUNICATIONS, INC.


                                           By: /s/ William C. Matteson
                                               ------------------------------
                                               President



                                       24
<PAGE>
                                      INDEX




Exhibit A - Shareholders Counsel Legal Opinion

Exhibit B - Acquirer Counsel Legal Opinion









Shareholders Disclosure Schedules





























                                       25
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-3.1(I)
<SEQUENCE>14
<FILENAME>ex3-1i_14663.txt
<DESCRIPTION>CERTIFICATE OF INCORPORATION AS AMENDED
<TEXT>
                                                                  EXHIBIT 3.1(i)
                                                                  --------------

                          CERTIFICATE OF INCORPORATION
                                       OF

                            BRIDGELINE SOFTWARE, INC.

        FIRST. The name of this corporation shall be: BRIDGELINE SOFTWARE, INC.

        SECOND. Its registered office in the State of Delaware is to be located
at 1013 Centre Road, in the City of Wilmington, County of New Castle and its
registered agent at such address is CORPORATION SERVICE COMPANY.

        THIRD. The purpose or purposes of the corporation shall be:

        To engage in any lawful act or activity for which corporations may be
organized under the General Corporation Law of Delaware.

        FOURTH. The total number of shares of stock which this corporation is
authorized to issue is:

Fifteen Million (15,000,000) Shares of Common Stock at a Par Value of .001 Per
Share.

        FIFTH. The name and address of the incorporator is as follows:

                                    Ken Scarborough
                                    Corporation Service Company
                                    1013 Centre Road
                                    Wilmington, DE 19805

        SIXTH. The Board of Directors shall have the power to adopt, amend or
repeal the by-laws.

<PAGE>

        SEVENTH. No director shall be personally liable to the Corporation or
its stockholders for monetary damages for any breach of fiduciary duty by such
director as a director. Notwithstanding the foregoing sentence, a director shall
be liable to the extent provided by applicable law, (i) for breach of the
director's duty of loyalty to the Corporation or its stockholders, (ii) for acts
or omissions not in good faith or which involve intentional misconduct or a
knowing violation of law, (iii) pursuant to Section 174 of the Delaware General
Corporation Law or (iv) for any transaction from which the director derived an
improper personal benefit. No amendment to or repeal of this Article Seventh
shall apply to or have any effect on the liability or alleged liability of any
director of the Corporation for or with respect to any acts or omissions of such
director occurring prior to such amendment.

        IN WITNESS WHEREOF, the undersigned, being the incorporator hereinbefore
named, has executed, signed and acknowledged this certificate of incorporation
this 28th day of August, A.D., 2000.

                                                      /s/ Ken Scarborough
                                                      -------------------------
                                                      Ken Scarborough
                                                      Incorporator


<PAGE>

                            CERTIFICATE OF AMENDMENT
                                       TO

                          CERTIFICATE OF INCORPORATION
                                       OF

                            BRIDGELINE SOFTWARE, INC.

        Bridgeline Software, Inc., a Delaware corporation (the "Corporation"),
hereby certifies as follows:

        FIRST: The name of the Corporation is Bridgeline Software, Inc. The date
of filing of its original Certificate of Incorporation with the Secretary of
State of Delaware was August 28, 2000.

        SECOND: The Board of Directors of the Corporation has duly adopted a
resolution setting forth this Certificate of Amendment and declaring its
advisability by unanimous written consent in accordance with Sections 141 and
242 of the General Corporation Law of Delaware. This Amendment has been duly
adopted by the stockholders of the Corporation in accordance with the provisions
of Section 242 of the General Corporation Law of the State of Delaware.

        THIRD: Upon the effectiveness of this Certificate of Amendment, Article
FOURTH of the Corporation's Certificate of Incorporation is hereby deleted and
replaced with the following:

                FOURTH: The total number of shares of capital stock which the
        Corporation shall have authority to issue is 15,000,000 shares of Common
        Stock, $.001 par value per share ("Common Stock").

                Effective upon the filing of this Certificate of Amendment to
        the Certificate of Incorporation with the Secretary of State of the
        State of Delaware (the "Effective Date"), each share of the
        Corporation's common stock, $.001 par value per share (the "Old Common
        Stock"), issued and outstanding, immediately prior to the effectiveness
        of this filing or held in the treasury of the Corporation, shall be
        changed and converted into one-third (1/3) of one share of fully paid
        and non-assessable common stock, $.001 par value per share (the "New
        Common Stock"). The New Common Stock issued in this exchange shall have
        the same rights and preferences as the Common Stock.

                Each stock certificate that, immediately prior to the Effective
        Time, represented shares of Old Common Stock shall, from and after the
        Effective Time, automatically and without the necessity of presenting
        the same for exchange, represent that number of whole shares of New
        Common Stock into which the shares of Old Common Stock represented by
        such certificate shall have been reclassified (with fractional shares
        with respect to any certificate representing shares of New Common Stock
        rounded to the nearest whole share), provided, however, that each holder
        of record of a certificate that represented

<PAGE>

        shares of Old Common Stock shall receive, upon surrender of such
        certificate, a new certificate representing the number of whole shares
        of New Common Stock into which the shares of Old Common Stock
        represented by such certificate shall have been reclassified. Any
        certificate for one or more shares of Old Common Stock, not so
        surrendered shall be deemed to represent one-third (1/3) shares of New
        Common Stock.

                                       ***

<PAGE>

IN WITNESS WHEREOF, Bridgeline Software, Inc. has caused this Certificate of
Amendment to be signed by its President and attested by its Secretary, all on
this 7th day of April, 2006.

                                           Bridgeline Software, Inc.

                                           By: /s/ Thomas L. Massie
                                               -----------------------------
                                               Thomas L. Massie, President


ATTEST: /s/ Gary Cebula
        -----------------------
        Secretary
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-3.1(II)
<SEQUENCE>15
<FILENAME>ex3-1ii_14663.txt
<DESCRIPTION>AMENDED & RESTATED CERTIFICATE OF INCORPORATION
<TEXT>
                                                                 EXHIBIT 3.1(ii)
                                                                 ---------------

                              AMENDED AND RESTATED

                          CERTIFICATE OF INCORPORATION

                                       OF

                            BRIDGELINE SOFTWARE, INC.


                     Pursuant to Sections 241 and 245 of the

                             General Corporation Law

                            of the State of Delaware

          Bridgeline Software, Inc., a corporation organized and existing under
the laws of the State of Delaware (the "Corporation"), hereby certifies as
follows:

          1. The name of the Corporation is "Bridgeline Software, Inc."

          2. The original Certificate of Incorporation of the Corporation (the
"CERTIFICATE") was filed in the office of the Secretary of State of the State of
Delaware on August 28, 2000. An amendment to the Certificate was filed in the
office of the Secretary of State of the State of Delaware on April 7, 2006

          3. In the manner prescribed by Sections 242 and 245 of the General
Corporation Law of the State of Delaware (the "DGCL"), this Amended and Restated
Certificate of Incorporation was duly adopted at a meeting of the Board of
Directors of the Corporation held on August 18, 2006 pursuant to Section 141 of
the DGCL, and by written consent of the stockholder of the Corporation on
September 29, 2006 pursuant to Section 228 of the DGCL.

          4. The Certificate is hereby amended and restated in its entirety and
the text of the Amended and Restated Certificate of Incorporation (the "AMENDED
AND RESTATED CERTIFICATE") is to read as follows:

ARTICLE 1. NAME

          The name of this corporation is Bridgeline Software, Inc. (the
"Corporation").

ARTICLE 2. REGISTERED OFFICE AND AGENT

          The address of the registered office of the Corporation in the State
of Delaware is 1209 Orange Street, in the city of Wilmington, in the county of
New Castle. The registered agent of the Corporation at such address is The
Corporation Trust Company.

ARTICLE 3. PURPOSE

          The purpose of the Corporation is to engage in any lawful act or
activity for which corporations may be organized under the DGCL.

<PAGE>

ARTICLE 4. CAPITAL STOCK

     4.1. AUTHORIZED SHARES

          The Corporation is authorized to issue two classes of stock to be
designated, respectively, "COMMON STOCK" and "PREFERRED STOCK." The total number
of shares of all classes of stock that the Corporation shall have the authority
to issue is Twenty-One Million (21,000,000), of which Twenty Million
(20,000,000) shares shall be Common Stock, having a par value of $.001 per
share, and of which One Million (1,000,000) shares shall be Preferred Stock,
having a par value of $.001 per share.

     4.2. COMMON STOCK

          4.2.1. RELATIVE RIGHTS

          The Common Stock shall be subject to all of the rights, privileges,
preferences and priorities of the Preferred Stock as set forth in one or more
the certificates of designations, preferences and relative rights filed with the
State of Delaware to establish the respective series of Preferred Stock. Each
share of Common Stock shall have the same relative rights as, and be identical
in all respects to, all the other shares of Common Stock.

          4.2.2. DIVIDENDS

          Whenever there shall have been paid, or declared and set aside for
payment, to the holders of shares of any class of stock having preference over
the Common Stock as to the payment of dividends, the full amount of dividends
and of sinking fund or retirement payments, if any, to which such holders are
respectively entitled in preference to the Common Stock, then dividends may be
paid on the Common Stock and on any class or series of stock entitled to
participate therewith as to dividends, out of any assets legally available for
the payment of dividends thereon, but only when and as declared by the Board of
Directors of the Corporation.

          4.2.3. DISSOLUTION, LIQUIDATION, WINDING UP

          In the event of any dissolution, liquidation, or winding up of the
Corporation, whether voluntary or involuntary, the holders of the Common Stock,
and holders of any class or series of stock entitled to participate therewith,
in whole or in part, as to the distribution of assets in such event, shall
become entitled to participate in the distribution of any assets of the
Corporation remaining after the Corporation shall have paid, or provided for
payment of, all debts and liabilities of the Corporation and after the
Corporation shall have paid, or set aside for payment, to the holders of any
class of stock having preference over the Common Stock in the event of
dissolution, liquidation or winding up the full preferential amounts (if any) to
which they are entitled.

                                        2
<PAGE>

          4.2.4. VOTING RIGHTS

          Each holder of shares of Common Stock shall be entitled to attend all
special and annual meetings of the stockholders of the Corporation and, share
for share and without regard to class, together with the holders of all other
classes of stock entitled to attend such meetings and to vote (except any class
or series of stock having special voting rights), to cast one vote for each
outstanding share of Common Stock so held upon any matter or thing (including,
without limitation, the election of one or more directors) properly considered
and acted upon by the stockholders.

     4.3. PREFERRED STOCK

          The Board of Directors of the Corporation is authorized, subject to
limitations prescribed by the DGCL and the provisions of this Amended and
Restated Certificate, to provide, by resolution or resolutions from time to time
and by filing a certificate or certificates of designations pursuant to the
DGCL, for the issuance of the shares of Preferred Stock in series, to establish
from time to time the number of shares to be included in each such series, the
voting powers (if any) of the shares to be included in each such series, to fix
the powers, designations, preferences and relative, participating, optional or
other special rights of the shares of each such series and to fix the
qualifications, limitations or restrictions thereof, including without
limitation thereof, dividend rights, special voting rights, conversion rights,
redemption privileges and liquidation preferences, as shall be stated and
expressed in such resolutions, all to the full extent now or hereafter permitted
by the DGCL. Without limiting the generality of the foregoing, the resolutions
providing for issuance of any series of Preferred Stock may provide that such
series shall be superior or rank equally or be junior to the Preferred Stock of
any other series to the extent permitted by law. Except as otherwise
specifically provided in this Amended and Restated Certificate, no vote of the
holders of the Preferred Stock or Common Stock shall be a prerequisite to the
issuance of any shares of any series of the Preferred Stock authorized by and
complying with the conditions of this Amended and Restated Certificate, the
right to have such vote being expressly waived by all present and future holders
of the capital stock of the Corporation..

ARTICLE 5. BOARD OF DIRECTORS

     5.1. NUMBER; TERM; ELECTION

          The number of directors of the Corporation shall be such number as
from time to time shall be fixed by, or in the manner provided in, the bylaws of
the Corporation. Unless and except to the extent that the bylaws of the
Corporation shall otherwise require, the election of directors of the
Corporation need not be by written ballot. Except as otherwise provided in this
Amended and Restated Certificate, each director of the Corporation shall be
entitled to one vote per director on all matters voted or acted upon by the
Board of Directors.

                                        3
<PAGE>

          Subject to the rights of holders of any series of Preferred Stock to
elect additional directors under specified circumstances, the directors shall be
divided into three classes, designated as Class I, Class II and Class III,
respectively, as nearly equal in number as possible. The number of directors in
each class shall be determined in the manner provided in the bylaws of the
Corporation. Directors shall be assigned to each class in accordance with a
resolution or resolutions adopted by the Board of Directors.

          The term of office of the first class (Class I) shall expire at the
first annual meeting of stockholders or any special meeting in lieu thereof
following the closing of the initial public offering of the Corporation's
securities pursuant to an effective registration statement filed with the U.S.
Securities and Exchange Commission under the Securities Act of 1933, as amended
(the "INITIAL PUBLIC OFFERING"); the term of office of the second class (Class
II) shall expire at the second annual meeting of stockholders or any special
meeting in lieu thereof following the Initial Public Offering; and the term of
office of the third class (Class III) shall expire at the third annual meeting
of stockholders or any special meeting in lieu thereof following the Initial
Public Offering. At each annual meeting of stockholders or special meeting in
lieu thereof, directors elected to succeed those directors whose terms expire
shall be elected for a term of office to expire at the third succeeding annual
meeting of the stockholders or special meeting in lieu thereof after their
election and until their successors are duly elected and qualified. Directors
need not be residents of the state of incorporation or stockholders of the
Corporation.

          Notwithstanding the foregoing provisions of this ARTICLE 5, each
director shall serve until his or her successor is duly elected and qualified or
until his or her death, resignation or removal. No decrease in the number of
directors constituting the Board of Directors shall shorten the terms of any
incumbent director.

          With respect to newly created directorships resulting from an increase
in the number of directors, the Board of Directors shall determine and designate
to which class of directorships each director belongs.


     5.2. MANAGEMENT OF BUSINESS AND AFFAIRS OF THE CORPORATION.

          The business and affairs of the Corporation shall be managed by or
under the direction of the Board of Directors.

     5.3. INDEMNIFICATION.

          To the fullest extent permitted by the DGCL as it presently exists or
may hereafter be amended, the Corporation shall indemnify any person (and such
person's heirs, executors or administrators) who was or is made or is threatened
to be made a party to or is otherwise involved in any threatened, pending or
completed action, suit or proceeding (brought in the right of the Corporation or
otherwise), whether civil, criminal, administrative or investigative, and
whether formal or informal, including appeals, by reason of the fact that such
person, or a person for whom such person was the legal

                                        4
<PAGE>

representative, is or was a director or officer of the Corporation or, while a
director or officer of the Corporation, is or was serving at the request of the
Corporation as a director, officer, partner, trustee, employee or agent of
another corporation, partnership, joint venture, trust, limited liability
company, nonprofit entity or other enterprise, for and against all loss and
liability suffered and expenses (including attorneys' fees), judgments, fines
and amounts paid in settlement reasonably incurred by such person or such heirs,
executors or administrators in connection with such action, suit or proceeding,
including appeals, if (i) such person acted in good faith and in a manner such
person reasonably believed to be in, or not opposed to, the best interests of
the Corporation and (ii) with respect to any criminal action or proceeding, such
person had no reasonable cause to believe his or her conduct was unlawful. The
termination of any action, suit or proceeding by judgment, order, settlement,
conviction or upon a plea of nolo contendere or its equivalent, shall not, of
itself, create a presumption that such person did not act in good faith, did not
act in a manner that he or she reasonably believed to be in, or not opposed to,
the best interests of the Corporation or, with respect to any criminal action or
proceeding, did not have reasonable cause to believe that such person's conduct
was unlawful. The foregoing right of indemnification shall in no way be
exclusive of any other rights of indemnification to which any such person may be
entitled, under any by-law, agreement, vote of directors or stockholders or
otherwise. No amendment to or repeal of the provisions of this paragraph shall
deprive a person of the benefit of this paragraph with respect to any act or
failure to act of such person occurring prior to such amendment or repeal.

     5.4. LIMITATION OF LIABILITY

          No director of the Corporation shall be liable to the Corporation or
its stockholders for monetary damages for breach of fiduciary duty as a
director, provided that this provision shall not eliminate or limit the
liability of a director (a) for any breach of the director's duty of loyalty to
the Corporation or its stockholders; (b) for acts or omissions not in good faith
or which involve intentional misconduct or a knowing violation of law; (c) under
Section 174 of the DGCL; or (d) for any transaction from which the director
derived an improper personal benefit. Any repeal or modification of this Section
5.4 shall be prospective only and shall not adversely affect any right or
protection of, or any limitation of the liability of, a director of the
Corporation existing at, or arising out of facts or incidents occurring prior
to, the effective date of such repeal or modification.

ARTICLE 6. AMENDMENT OF CERTIFICATE

          The Corporation reserves the right to amend, alter or repeal any
provision contained in this Amended and Restated Certificate in the manner
prescribed by the laws of the State of Delaware and all rights conferred upon
stockholders are granted subject to this reservation; provided, however, that,
notwithstanding any other provision of this Amended and Restated Certificate or
any provision of law that might otherwise permit a lesser vote or no vote, but
in addition to any vote of the holders of any class or series of the stock of
this Corporation required by law or by this Amended and Restated Certificate,
the affirmative vote of the holders of at least sixty-six and two-thirds percent

                                        5
<PAGE>

(66 2/3%) of the voting power of all of the then-outstanding shares of the
capital stock of the Corporation entitled to vote generally in the election of
directors, voting together as a single class, shall be required to amend or
repeal this Article 6 or Article 5 of this Amended and Restated Certificate.

ARTICLE 7. ADOPTION AND AMENDMENT OF BYLAWS.

          The Board of Directors of the Corporation shall adopt, and may amend
and restate from time to time, the by-laws of the Corporation. Any amendment of
the by-laws shall require the affirmative vote of at least sixty-six and
two-thirds percent (66 2/3%) of the directors comprising the Board of Directors,
at a meeting called for the purpose of amending and/or restating the Bylaws.
Absent affirmative vote of at least sixty-six and two-thirds percent (66 2/3%)
of the directors comprising the Board of Directors, at a meeting called for the
purpose of amending and/or restating the Bylaws, the stockholders of the Company
may amend the by-laws by an affirmative vote of sixty-six and two-thirds percent
(66 2/3%) of each class of issued and outstanding shares of voting securities of
the Corporation.

ARTICLE 8. NO STOCKHOLDER ACTION BY WRITTEN CONSENT

          After the Initial Public Offering, the stockholders of the Corporation
may not take action by written consent without a meeting and must take any
actions at a duly called annual or special meeting. Meetings of stockholders may
be called in the manner and by the persons specified in the Corporation's
by-laws.

ARTICLE 9. SURVIVAL

          If any Article of this Amended and Restated Certificate or any portion
thereof is found to be void or unenforceable by a court of competent
jurisdiction, the remaining Articles or portions of said Article, as the case
may be, shall nevertheless remain in full force and effect as though the
unenforceable part had been severed and deleted.

                                        6
<PAGE>

          IN WITNESS WHEREOF, the undersigned hereby certifies that the facts
hereinabove stated are truly set forth, and accordingly executes this Amended
and Restated Certificate of Incorporation this 18th day of October, 2006.


                                               BRIDGELINE SOFTWARE, INC.


                                               By: /s/Thomas Massie
                                                   ---------------------
                                                   Thomas Massie
                                                   President




















                                        7
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-3.1(III)
<SEQUENCE>16
<FILENAME>ex3-1iii_14663.txt
<DESCRIPTION>AMENDED & RESTATED BY-LAWS
<TEXT>
                                                                EXHIBIT 3.1(iii)
                                                                ----------------









                              AMENDED AND RESTATED

                                   BY-LAWS OF


                            BRIDGELINE SOFTWARE, INC.


                             A DELAWARE CORPORATION








<PAGE>
                            BRIDGELINE SOFTWARE, INC.

                                    * * * * *

                          AMENDED AND RESTATED BY-LAWS

                                    * * * * *


                                    ARTICLE I

                            MEETINGS OF STOCKHOLDERS

         Section 1.  Place of Meetings. Meetings of the stockholders shall be
held at such place within or without the State of Delaware, if any, as may be
fixed from time to time by the board of directors. When meetings of the
stockholders are held at a designated place, the board of directors may, in its
sole discretion, authorize stockholders and proxyholders not physically present
at the meeting to participate in such meeting by means of remote communication.
Additionally, in lieu of holding any meeting of the stockholders at a specific
place, the board of directors may, in its sole discretion, determine that such
meeting shall be held solely by means of remote communication. In either such
case, the board of directors shall adopt such policies and procedures as the
board of directors deems necessary and appropriate, and as shall be required by
law, to permit stockholders to participate in such meeting by means of remote
communication and to be deemed present in person and vote at such meeting.

         Section 2.  Annual Meeting. Annual meetings of stockholders shall be
held at such date and time as shall be designated from time to time by the board
of directors, at which meeting the stockholders shall elect a board of directors
and shall transact such other business as may properly be brought before the
meeting.

         Section 3.  Special Meetings. Special meetings of the stockholders, for
any purpose or purposes, may, unless otherwise prescribed by statute or by the
certificate of incorporation, may be called from time to time by the board of
directors, the Chairman of the Board or the President and be held at such date
and time as shall be designated by the party calling the meeting. The board of
directors, the Chairman or the President may postpone or reschedule any
previously scheduled special meeting. Business transacted at any special meeting
shall be limited to matters relating to the purpose or purposes stated in the
notice of meeting.

         Section 4.  Notice of Meetings. Except as otherwise provided by law,
notice of each meeting of stockholders, whether annual or special, shall be
given in compliance with the provisions of Article IV hereof, not less than ten
or more than sixty days before the date of the meeting, to each stockholder and
proxy holder entitled to vote at such meeting. The notices of all meetings shall
state the place, date and time of the meeting and the means of remote
communication, if any, by which stockholders and proxyholders may be deemed to
be present in
<PAGE>
person and vote at such meeting. The notice of a special meeting shall state, in
addition, the purpose or purposes for which the meeting is called.

         Section 5.  Voting List. The secretary of the corporation shall prepare
and make, or cause to be prepared and made, at least ten days before every
meeting of stockholders, a complete list of the stockholders entitled to vote at
the meeting, arranged in alphabetical order, and showing the address of each
stockholder and the number of shares registered in the name of each stockholder.
Nothing in this Section 5 shall require the corporation to include electronic
mail addresses or other electronic contact information on such list. Such list
shall be open to the examination of any stockholder, for any purpose germane to
the meeting: (i) on a reasonably accessible electronic network, provided that
the information required to gain access to such list is provided with the notice
of the meeting, or (ii) during ordinary business hours, at the principal place
of business of the corporation. In the event that the corporation determines to
make the list available on an electronic network, the corporation may take
reasonable steps to ensure that such information is available only to
stockholders of the corporation. If the meeting is to be held at a place, then
the list shall be produced and kept at the time and place of the meeting during
the whole time thereof, and may be inspected by any stockholder who is present.
If the meeting is to be held solely by means of remote communication, then the
list shall also be open to the examination of any stockholder during the whole
time of the meeting on a reasonably accessible electronic network, and the
information required to access such list shall be provided with the notice of
the meeting. The list shall presumptively determine the identity of the
stockholders entitled to vote at the meeting and the number of shares held by
each of them.

         Section 6.  Quorum. The holders of a majority of the stock issued and
outstanding and entitled to vote thereat, present in person, present by means of
remote communication in a manner, if any, authorized by the board of directors
in its sole discretion, or represented by proxy, shall constitute a quorum at
all meetings of the stockholders for the transaction of business, except as
otherwise provided by statute, the certificate of incorporation or these
By-Laws. Where a separate vote by a class or classes is required, a majority of
the outstanding shares of such class or classes, present in person or
represented by proxy, shall constitute a quorum entitled to take action with
respect to that vote on that matter. The stockholders present at a duly called
meeting at which a quorum is present may continue to transact business at the
meeting or any adjournment thereof, notwithstanding the withdrawal of enough
stockholders to leave less than a quorum at the meeting or any adjournment
thereof.

         Section 7.  Adjournments. Any meeting of stockholders may be adjourned
from time to time to any other time and to any other place at which a meeting of
stockholders may be held under these By-Laws (including the adjournment of a
meeting held at a place to a meeting held solely by means of remote
communication and VICE VERSA) by the holders a majority of the shares present or
represented by proxy at the meeting and entitled to vote, though less than a
quorum, or, if no stockholder is present or represented by proxy, by any officer
entitled to preside at or to act as secretary of such meeting, without notice
other than announcement at the meeting. At such adjourned meeting (at which a
quorum shall be present or represented, if a quorum was not present or
represented at the original meeting), any business may be transacted which might
have been transacted at the original meeting. If the adjournment is for more
than thirty days, or if after

                                        2
<PAGE>
the adjournment a new record date is fixed for the adjourned meeting, a notice
of the adjourned meeting shall be given to each stockholder of record entitled
to vote at the meeting.

         Section 8.  Action at Meetings. When a quorum is present at any
meeting, the vote of the holders of a majority of the stock present in person or
represented by proxy and entitled to vote on the matter (or where a separate
vote by a class or classes is required, the vote of the majority of shares of
such class or classes present in person or represented by proxy at the meeting)
shall decide any matter (other than the election of directors) brought before
such meeting, unless the matter is one upon which by express provision of law,
the certificate of incorporation or these By-Laws, a different vote is required,
in which case such express provision shall govern and control the decision of
such matter. Directors shall be elected by a plurality of the votes of the
shares present in person or represented by proxy at the meeting and entitled to
vote on the election of directors.

         Section 9.  Voting and Proxies. Unless otherwise provided by law or in
the certificate of incorporation, each stockholder shall at every meeting of the
stockholders be entitled to one vote for each share of capital stock having
voting power held of record by such stockholder. Each stockholder of record
entitled to vote at a meeting of stockholders may vote in person (including by
means of remote communications, if any, by which stockholders may be deemed to
be present in person and vote at such meeting) or may authorize another person
or persons to act for such stockholder by a proxy executed or transmitted in a
manner permitted by the General Corporation Law of the State of Delaware by the
stockholder or such stockholder's authorized agent and delivered (including by
electronic transmission) to the secretary of the corporation, but no such proxy
shall be voted or acted upon after three years from its date, unless the proxy
provides for a longer period.

         Section 10. Nomination of Directors.

                     (a) Except for (i) any directors entitled to be elected by
the holders of preferred stock, if any, (ii) any directors elected in accordance
with Article II, Section 3 hereof by the board of directors to fill a vacancy or
newly-created directorships or (iii) as otherwise required by applicable law or
stock market regulation, only persons who are nominated in accordance with the
procedures in this Section 10 shall be eligible for election as directors.
Nomination for election to the board of directors at a meeting of stockholders
may be made (A) by or at the direction of the board of directors or (B) by any
stockholder of the corporation who (x) complies with the notice procedures set
forth in Section 10(b) and (y) is a stockholder of record on the date of the
giving of such notice and on the record date for the determination of
stockholders entitled to vote at such meeting.

                     (b) (i) To be timely, a stockholder's notice must be
received in writing by the secretary at the principal executive offices of the
corporation as follows: (A) in the case of an election of directors at an annual
meeting of stockholders, not less than 90 days nor more than 120 days prior to
the first anniversary of the preceding year's annual meeting; provided, however,
that in the event that the date of the annual meeting in any other year is
advanced by more than 20 days, or delayed by more than 60 days, from the first
anniversary of the preceding year's annual meeting, a stockholder's notice must
be so received not earlier than the 120th day prior to

                                        3
<PAGE>
such annual meeting and not later than the close of business on the later of (x)
the 90th day prior to such annual meeting and (y) the tenth day following the
day on which notice of the date of such annual meeting was mailed or public
disclosure of the date of such annual meeting was made, whichever first occurs;
or (B) in the case of an election of directors at a special meeting of
stockholders, provided that the board of directors has determined that directors
shall be elected at such meeting, not earlier than the 120th day prior to such
special meeting and not later than the close of business on the later of (1) the
90th day prior to such special meeting and (2) the tenth day following the day
on which notice of the date of such special meeting was mailed or public
disclosure of the date of such special meeting was made, whichever first occurs.
In no event shall the adjournment or postponement of an annual meeting (or the
public announcement thereof) commence a new time (or extend any time period) for
the giving of a stockholder's notice.

                     (ii) The stockholder's notice to the secretary shall set
forth: (A) as to each proposed nominee (1) such person's name, age, business
address and, if known, residence address, (2) such person's principal occupation
or employment, (3) the class and number of shares of stock of the corporation
which are beneficially owned by such person, and (4) any other information
concerning such person that must be disclosed as to nominees in proxy
solicitations pursuant to Regulation 14A under the Securities Exchange Act of
1934, as amended (the "Exchange Act"); (B) as to the stockholder giving the
notice (1) such stockholder's name and address, as they appear on the
corporation's books, (2) the class and number of shares of stock of the
corporation which are owned, beneficially and of record, by such stockholder,
(3) a description of all arrangements or understandings between such stockholder
and each proposed nominee and any other person or persons (including their
names) pursuant to which the nomination(s) are to be made by such stockholder,
(4) a representation that such stockholder intends to appear in person or by
proxy at the meeting to nominate the person(s) named in its notice and (5) a
representation whether the stockholder intends or is part of a group which
intends (x) to deliver a proxy statement and/or form of proxy to holders of at
least the percentage of the corporation's outstanding capital stock required to
elect the nominee and/or (y) otherwise to solicit proxies from stockholders in
support of such nomination; and (z) as to the beneficial owner, if any, on whose
behalf the nomination is being made (aa) such beneficial owner's name and
address, (bb) the class and number of shares of stock of the corporation which
are beneficially owned by such beneficial owner, (cc) a description of all
arrangements or understandings between such beneficial owner and each proposed
nominee and any other person or persons (including their names) pursuant to
which the nomination(s) are to be made and (dd) a representation whether the
beneficial owner intends or is part of a group which intends (xx) to deliver a
proxy statement and/or form of proxy to holders of at least the percentage of
the corporation's outstanding capital stock requirement to elect the nominee
and/or (yy) otherwise to solicit proxies from stockholders in support of such
nomination. In addition, to be effective, the stockholder's notice must be
accompanied by the written consent of the proposed nominee to serve as a
director if elected. The corporation may require any proposed nominee to furnish
such other information as may reasonably be required to determine the
eligibility of such proposed nominee to serve as a director of the corporation.
A stockholder shall not have complied with this Section 10(b) if the stockholder
(or beneficial owner, if any, on whose behalf the nomination is made) solicits
or does not solicit, as the case may be, proxies in support of such
stockholder's nominee in contravention of the representations with respect
thereto required by this Section 10.

                                        4
<PAGE>
                     (c) The chairman of any meeting shall, if the facts
warrant, have the power and duty to determine that a nomination was not made in
accordance with the provisions of this Section 10 (including whether the
stockholder or beneficial owner, if any, on whose behalf the nomination is made
solicited (or is part of a group which solicited) or did not so solicit, as the
case may be, proxies in support of such stockholder's nominee in compliance with
the representations with respect thereto required by this Section 10), and if
the chairman should so determine, the chairman shall so declare to the meeting
and such nomination shall be disregarded.

                     (d) Except as otherwise required by law, nothing in this
Section 10 shall obligate the corporation or the board of directors to include
in any proxy statement or other stockholder communication distributed on behalf
of the corporation or the board of directors information with respect to any
nominee for director submitted by a stockholder.

                     (e) Notwithstanding the foregoing provisions of this
Section 10, if the stockholder (or a qualified representative of the
stockholder) does not appear at the annual or special meeting of stockholders of
the corporation to present a nomination, such nomination shall be disregarded,
notwithstanding that proxies in respect of such vote may have been received by
the corporation. For purposes of this Section 10, to be considered a qualified
representative of the stockholder, a person must be authorized by a writing
executed by such stockholder or an electronic transmission delivered by such
stockholder to act for such stockholder as proxy at the meeting of stockholders,
and such person must produce such writing or electronic transmission, or a
reliable reproduction of the writing or electronic transmission, at the meeting
of stockholders.

                     (f) For purposes of this Section 10, "public disclosure"
shall include disclosure in a press release reported by the Dow Jones New
Service, Associated Press or comparable national news service or in a document
publicly filed by the corporation with the Securities and Exchange Commission
pursuant to Section 13, 14 or 15(d) of the Exchange Act.

         Section 11. Notice of Business at Annual Meetings.

                     (a) At any annual meeting of the stockholders, only such
business shall be conducted as shall have been properly brought before the
meeting. To be properly brought before an annual meeting, business must be (i)
specified in the notice of meeting (or any supplement thereto) given by or at
the direction of the board of directors, (ii) otherwise properly brought before
the meeting by or at the direction of the board of directors, or (iii) properly
brought before the meeting by a stockholder. For business to be properly brought
before an annual meeting by a stockholder, (i) if such business relates to the
nomination of a person for election as a director of the corporation, the
procedures in Article II, Section 10 must be complied with and (ii) if such
business relates to any other matter, the business must constitute a proper
matter for stockholder action and the stockholder must (x) have given timely
notice thereof in writing to the secretary in accordance with the procedures set
forth in Section 11(b) of this Article II and (y) be a stockholder of record on
the date of the giving of such notice and on the record date for the
determination of stockholders entitled to vote at such annual meeting.

                                        5
<PAGE>
                     (b) To be timely, a stockholder's notice must be received
in writing by the secretary at the principal executive offices of the
corporation not less than 90 days nor more than 120 days prior to the first
anniversary of the preceding year's annual meeting; provided, however, that in
the event that the date of the annual meeting in any other year is advanced by
more than 20 days, or delayed by more than 60 days, from the first anniversary
of the preceding year's annual meeting, a stockholder's notice must be so
received not earlier than the 120th day prior to such annual meeting and not
later than the close of business on the later of (A) the 90th day prior to such
annual meeting and (B) the tenth day following the day on which notice of the
date of such annual meeting was mailed or public disclosure of the date of such
annual meeting was made, whichever first occurs. In no event shall the
adjournment or postponement of an annual meeting (or the public announcement
thereof) commence a new time (or extend any time period) for the giving of a
stockholder's notice. The stockholder's notice to the secretary shall set forth
as to each matter the stockholder proposes to bring before the annual meeting
(i) a brief description of the business desired to be brought before the annual
meeting, the text of the proposal or business (including the text of any
resolutions proposed for consideration and, in the event that such business
includes a proposal to amend the By-laws, the language of the proposed
amendment), and the reasons for conducting such business at the annual meeting,
(ii) the name and address, as they appear on the corporation's books, of the
stockholder proposing such business, and the name and address of the beneficial
owner, if any, on whose behalf the proposal is made, (iii) the class and number
of shares of stock of the corporation which are owned, of record and
beneficially, by the stockholder and beneficial owner, if any, (iv) a
description of all arrangements or understandings between such stockholder or
such beneficial owner, if any, and any other person or persons (including their
names) in connection with the proposal of such business by such stockholder and
any material interest of the stockholder or such beneficial owner, if any, in
such business, (v) a representation that such stockholder intends to appear in
person or by proxy at the annual meeting to bring such business before the
meeting and (vi) a representation whether the stockholder or the beneficial
owner, if any, intends or is part of a group which intends (a) to deliver a
proxy statement and/or form of proxy to holders of at least the percentage of
the corporation's outstanding capital stock required to approve or adopt the
proposal and/or (b) otherwise to solicit proxies from stockholders in support of
such proposal. Notwithstanding anything in these By-laws to the contrary, no
business shall be conducted at any annual meeting of stockholders except in
accordance with the procedures set forth in this Section 11; provided that any
stockholder proposal which complies with Rule 14a-8 of the proxy rules (or any
successor provision) promulgated under the Securities Exchange Act of 1934, as
amended, and is to be included in the corporation's proxy statement for an
annual meeting of stockholders shall be deemed to comply with the requirements
of this Section 11. A stockholder shall not have complied with this Section
11(b) if the stockholder (or beneficial owner, if any, on whose behalf the
nomination is made) solicits or does not solicit, as the case may be, proxies in
support of such stockholder's proposal in contravention of the representations
with respect thereto required by this Section 11.

                     (c) The chairman of any meeting shall, if the facts
warrant, have the power and duty to determine that business was not properly
brought before the meeting in accordance with the provisions of this Section 11
(including whether the stockholder or beneficial owner, if any, on whose behalf
the proposal is made solicited (or is part of a group which solicited) or did
not so solicit, as the case may be, proxies in support of such stockholder's
proposal in

                                        6
<PAGE>
compliance with the representation with respect thereto required by this Section
11), and if the chairman should so determine, the chairman shall so declare to
the meeting and such business shall not be brought before the meeting.

                     (d) Notwithstanding the foregoing provisions of this
Section 11, if the stockholder (or a qualified representative of the
stockholder) does not appear at the annual meeting of stockholders of the
corporation to present business, such business shall not be transacted,
notwithstanding that proxies in respect of such vote may have been received by
the corporation. For purposes of this Section 11, to be considered a qualified
representative of the stockholder, a person must be authorized by a writing
executed by such stockholder or an electronic transmission delivered by such
stockholder to act for such stockholder as a proxy at the meeting of
stockholders, and such person must produce such writing or electronic
transmission, or a reliable reproduction of the writing or electronic
transmission, at the meeting of stockholders.

                     (e) For purposes of this Section 11, "public disclosure"
shall include disclosure in a press release reported by the Dow Jones New
Service, Associated Press or comparable national news service or in a document
publicly filed by the corporation with the Securities and Exchange Commission
pursuant to Section 13, 14 or 15(d) of the Exchange Act.

         Section 12. Conduct of Meetings.

                     (a) Meetings of stockholders shall be presided over by the
chairman of the board, if any, or in the chairman's absence by the vice chairman
of the board, if any, or in the vice chairman's absence by the president, or in
the president's absence by a vice president, or in the absence of all of the
foregoing persons by a chairman designated by the board of directors, or in the
absence of such designation by a chairman chosen by vote of the stockholders at
the meeting. The secretary shall act as secretary of the meeting, but in the
secretary's absence the chairman of the meeting may appoint any person to act as
secretary of the meeting.

                     (b) The board of directors may adopt by resolution such
rules, regulations and procedures for the conduct of any meeting of stockholders
of the corporation as it shall deem appropriate including, without limitation,
such guidelines and procedures as it may deem appropriate regarding the
participation by means of remote communication of stockholders and proxyholders
not physically present at a meeting. Except to the extent inconsistent with such
rules, regulations and procedures as adopted by the board of directors, the
chairman of any meeting of stockholders shall have the right and authority to
prescribe such rules, regulations and procedures and to do all such acts as, in
the judgment of such chairman, are appropriate for the proper conduct of the
meeting. Such rules, regulations or procedures, whether adopted by the board of
directors or prescribed by the chairman of the meeting, may include, without
limitation, the following: (i) the establishment of an agenda or order of
business for the meeting; (ii) rules and procedures for maintaining order at the
meeting and the safety of those present; (iii) limitations on attendance at or
participation in the meeting to stockholders of record of the corporation, their
duly authorized and constituted proxies or such other persons as shall be
determined; (iv) restrictions on entry to the meeting after the time fixed for
the commencement thereof; and (v) limitations on the time allotted to questions
or comments by participants. Unless and to the extent determined by the board of
directors or the chairman of the meeting, meetings

                                        7
<PAGE>
of stockholders shall not be required to be held in accordance with the rules of
parliamentary procedure.

                     (c) The chairman of the meeting shall announce at the
meeting when the polls for each matter to be voted upon at the meeting will be
opened and closed. If no announcement is made, the polls shall be deemed to have
opened when the meeting is convened and closed upon the final adjournment of the
meeting. After the polls close, no ballots, proxies or votes or any revocations
or changes thereto may be accepted.

                     (d) In advance of any meeting of stockholders, the board of
directors, the chairman of the board or the president shall appoint one or more
inspectors or election to act at the meeting and make a written report thereof.
One or more other persons may be designated as alternate inspectors to replace
any inspector who fails to act. If no inspector or alternate is present, ready
and willing to act at a meeting of stockholders, the chairman of the meeting
shall appoint one or more inspectors to act at the meeting. Unless otherwise
required by law, inspectors may be officers, employees or agents of the
corporation. Each inspector, before entering upon the discharge of such
inspector's duties, shall take and sign an oath faithfully to execute the duties
of inspector with strict impartiality and according to the best of such
inspector's ability. The inspector shall have the duties prescribed by law and
shall take charge of the polls and, when the vote is completed, shall make a
certificate of the result of the vote taken and of such other facts as may be
required by law.

         Section 13. No Action by Consent in Lieu of a Meeting. Following the
closing of the initial public offering of the corporation's securities pursuant
to an effective registration statement filed with the U.S. Securities and
Exchange Commission under the Securities Act of 1933, as amended (the "Initial
Public Offering"), stockholders of the corporation may not take any action by
written consent in lieu of a meeting.

                                   ARTICLE II

                                    DIRECTORS

         Section 1.  Number, Election, Tenure and Qualification. The number of
directors which shall constitute the whole board shall be not less than one (1)
and not more than fifteen (15) directors. Within such limit, the number of
directors shall be determined by resolution of the board of directors or by the
stockholders at the annual meeting or at any special meeting of stockholders.
The board of directors shall be divided into three classes, as nearly equal in
number as possible. Directors shall be assigned to each class in accordance with
a resolution or resolutions adopted by the board of directors. The term of
office of the first class (Class I) shall expire at the first annual meeting of
stockholders or any special meeting in lieu thereof following the Initial Public
Offering, the term of office of the second class (Class II) shall expire at the
second annual meeting of stockholders or any special meeting in lieu thereof
following the Initial Public Offering and the term of office of the third class
(Class III) shall expire at the third annual meeting of stockholders or any
special meeting in lieu thereof following the Initial Public Offering. At each
annual meeting of stockholders or special meeting in lieu thereof, directors

                                        8
<PAGE>
elected to succeed those directors whose terms expire shall be elected for a
term of office to expire at the third succeeding annual meeting of the
stockholders or special meeting in lieu thereof after their election and until
their successors are duly elected and qualified. Directors need not be residents
of the state of incorporation or stockholders of the corporation. Each director
shall serve until such director's successor is duly elected and qualified or
until such director's resignation or removal. No decrease in the number of
directors constituting the board of directors shall shorten the terms of any
incumbent director. With respect to newly created directorships resulting from
an increase in the number of directors, the board of directors shall determine
and designate to which class of directorships each director belongs.

         Section 2.  Enlargement. The number of the board of directors may be
increased at any time by vote of a majority of the directors then in office.

         Section 3.  Vacancies. Vacancies and newly created directorships
resulting from any increase in the authorized number of directors may be filled
by vote of a majority of the directors then in office, though less than a
quorum, or by a sole remaining director. In the event of any increase or
decrease in the authorized number of directors, (a) each director then serving
as such shall nevertheless continue as a director of the class of which he or
she is a member until the expiration of his or her current term or his or her
prior death, retirement, removal or resignation and (b) the newly created or
eliminated directorships resulting from such increase or decrease shall if
reasonably possible be apportioned by the board of directors among the three
classes of directors so as to ensure that no one class has more than one
director more than any other class. Notwithstanding the foregoing, each director
shall serve until his or her successor is duly elected and qualified or until
his or her death, resignation or removal. If there are no directors in office,
then an election of directors may be held in the manner provided by statute. In
the event of a vacancy in the board of directors, the remaining directors,
except as otherwise provided by law or these By-Laws, may exercise the powers of
the full board until the vacancy is filled.

         Section 4.  Resignation and Removal. Any director may resign at any
time by notice given in writing or by electronic transmission to the corporation
at its principal place of business or to the chief executive officer or
secretary. Such resignation shall be effective upon receipt unless the notice
states that it is to be effective at some other time or upon the happening of
some other event. Any director or the entire board of directors may be removed,
with or without cause, by the holders of seventy percent (70%) of the shares
then entitled to vote at an election of directors, unless otherwise specified by
law or the certificate of incorporation.

         Section 5.  Mandatory Retirement. No person may be elected or
re-elected to the board of directors who has reached the age of 70 years at the
time of such election.

         Section 6.  General Powers. The business and affairs of the corporation
shall be managed by, or under the direction of its board of directors, which may
exercise all powers of the corporation except as otherwise provided by law or
the certificate of incorporation.

         Section 7.  Place of Meetings. The board of directors may hold
meetings, both regular and special, either within or without the State of
Delaware.

                                        9
<PAGE>
         Section 8.  Regular Meetings. Regular meetings of the board of
directors may be held without notice at such time and at such place as shall
from time to time be determined by the board; provided that any director who is
absent when such a determination is made shall be given prompt notice of such
determination. A regular meeting of the board of directors may be held without
notice immediately after and at the same place as the annual meeting of
stockholders.

         Section 9.  Special Meetings. Special meetings of the board may be
called by the chief executive officer, secretary, or on the written request of
two or more directors, or by one director in the event that there is only one
director in office. Twenty-four (24) hours' notice to each director, either
personally or by telecopy, electronic transmission, commercial delivery service,
or other similar means sent to the director's last known business or home
address, or three days' notice by written notice deposited in the mail, shall be
given to each director by the secretary or by the officer or one of the
directors calling the meeting. A notice or waiver of notice of a meeting of the
board of directors need not specify the purposes of the meeting.

         Section 10. Quorum, Action at Meeting, Adjournments. At all meetings of
the board a majority of directors then in office, but in no event less than one
third of the entire board, shall constitute a quorum for the transaction of
business and the act of a majority of the directors present at any meeting at
which there is a quorum shall be the act of the board of directors, except as
may be otherwise specifically provided by law or by the certificate of
incorporation. For purposes of this Section 9, the term "entire board" shall
mean the number of directors last fixed by the stockholders or directors, as the
case may be, in accordance with law and these By-Laws; PROVIDED, HOWEVER, that
if less than all the number so fixed of directors were elected, the "entire
board" shall mean the greatest number of directors so elected to hold office at
any one time pursuant to such authorization. If a quorum shall not be present at
any meeting of the board of directors, a majority of the directors present may
adjourn the meeting from time to time, without notice other than announcement at
the meeting, until a quorum shall be present.

         Section 11. Action By Consent. Unless otherwise restricted by the
certificate of incorporation or these By-Laws, any action required or permitted
to be taken at any meeting of the board of directors or of any committee thereof
may be taken without a meeting, if all members of the board or committee, as the
case may be, consent thereto in writing or by electronic transmission, and the
writing or writings or electronic transmission or transmissions are filed with
the minutes of proceedings of the board or committee. Such filing shall be in
paper form if the minutes are maintained in paper form and shall be in
electronic form if the minutes are maintained in electronic form.

         Section 12. Telephonic Meetings. Unless otherwise restricted by the
certificate of incorporation or these By-Laws, members of the board of directors
or of any committee thereof may participate in a meeting of the board of
directors or of any committee, as the case may be, by means of conference
telephone or other communications equipment by means of which all persons
participating in the meeting can hear each other, and such participation in a
meeting shall constitute presence in person at the meeting.

                                       10
<PAGE>
         Section 13. Committees. The board of directors may, by resolution
passed by a majority of the whole board, designate one or more committees, each
committee to consist of one or more of the directors of the corporation. In the
absence or disqualification of a member of a committee, the member or members of
the committee present at any meeting and not disqualified from voting, whether
or not such member or members constitute a quorum, may unanimously appoint
another member of the board of directors to act at the meeting in the place of
any such absent or disqualified member. The board may designate one or more
directors as alternate members of any committee, who may replace any absent or
disqualified member at any meeting of the committee. Except as otherwise limited
by Section 141(c) of the General Corporation Law of the State of Delaware, any
such committee, to the extent provided in the resolution of the board of
directors, shall have and may exercise all the powers and authority of the board
of directors in the management of the business and affairs of the corporation,
and may authorize the seal of the corporation to be affixed to all papers which
may require it. Such committee or committees shall have such name or names as
may be determined from time to time by resolution adopted by the board of
directors. Each committee shall keep regular minutes of its meetings and make
such reports to the board of directors as the board of directors may request.
Except as the board of directors may otherwise determine, any committee may make
rules for the conduct of its business, but unless otherwise provided by the
directors or in such rules, its business shall be conducted as nearly as
possible in the same manner as is provided in these ByLaws for the conduct of
its business by the board of directors.

         Section 14. Compensation. Unless otherwise restricted by the
certificate of incorporation or these By-Laws, the board of directors shall have
the authority to fix from time to time the compensation of directors. The
directors may be paid their expenses, if any, of attendance at each meeting of
the board of directors and any committee of the board of directors and may be
paid a fixed sum for attendance at each meeting of the board of directors and
any committee of the board of directors and/or a stated salary as director. No
such payment shall preclude any director from serving the corporation or its
parent or subsidiary corporations in any other capacity and receiving
compensation therefor. The board of directors may also allow compensation for
members of special or standing committees for service on such committees.


                                   ARTICLE III

                                    OFFICERS

         Section 1.  Enumeration. The officers of the corporation shall be
chosen by the board of directors and shall be a president, a secretary and a
treasurer and such other officers with such titles, terms of office and duties
as the board of directors may from time to time determine, including a chairman
of the board, one or more vice presidents, and one or more assistant secretaries
and assistant treasurers. If authorized by resolution of the board of directors,
the chief executive officer may be empowered to appoint from time to time
assistant secretaries and assistant treasurers. Any number of offices may be
held by the same person, unless the certificate of incorporation or these
By-Laws otherwise provide.

                                       11
<PAGE>
         Section 2.  Election. The board of directors at its first meeting after
each annual meeting of stockholders shall choose a president, a secretary and a
treasurer. Other officers may be appointed by the board of directors at such
meeting, at any other meeting, or by consent pursuant to Section 11 of Article
II.

         Section 3.  Tenure. Each officer of the corporation shall hold office
until such officer's successor is chosen and qualified, unless a different term
is specified in the vote choosing or appointing such officer, or until such
officer's earlier death, resignation or removal. Any officer may be removed,
with or without cause, at any time by the affirmative vote of a majority of the
board of directors or a committee duly authorized to do so, except that any
officer appointed by the chief executive officer may also be removed at any time
by the chief executive officer. Any vacancy occurring in any office of the
corporation may be filled by the board of directors, at its discretion. Any
officer may resign by delivering a written resignation to the corporation at its
principal place of business or to the chief executive officer or the secretary.
Such resignation shall be effective upon receipt unless it is specified to be
effective at some other time or upon the happening of some other event.

         Section 4.  Chairman of the Board. The board of directors may appoint
from its members a chairman of the board, who need not be an employee or officer
of the corporation. If the board of directors appoints a chairman of the board,
such chairman shall perform such duties and possess such powers as are assigned
by the board of directors and, if the chairman of the board is also designated
as the corporation's chief executive officer, shall have the powers and duties
of the chief executive officer prescribed in Section 5 of Article III of these
By-laws. Unless otherwise provided by the board of directors, the chairman of
the board shall preside at all meetings of the board of directors and
stockholders.

         Section 5.  President; Chief Executive Officer. The president shall be
the chief operating officer of the corporation and unless the board of directors
has designated the chairman of the board or another person as the corporation's
chief executive officer, the President shall also be the chief executive
officer. The chief executive officer shall have general charge and supervision
of the business of the corporation subject to the direction of the board of
directors. The president shall perform such other duties and shall have such
other powers as the board of directors may from time to time prescribe.

         Section 6.  Vice Presidents. In the absence of the president or in the
event of the president's inability or refusal to act, the vice president, or if
there be more than one vice president, the vice presidents in the order
designated by the board of directors or the chief executive officer (or in the
absence of any designation, then in the order determined by their tenure in
office) shall perform the duties of the president, and when so acting, shall
have all the powers of and be subject to all the restrictions upon the
president. The vice presidents shall perform such other duties and have such
other powers as the board of directors or the chief executive officer may from
time to time prescribe.

         Section 7.  Secretary. The secretary shall have such powers and perform
such duties as are incident to the office of secretary. The secretary shall
maintain a stock ledger and prepare lists of

                                       12
<PAGE>
stockholders and their addresses as required and shall be the custodian of
corporate records. The secretary shall attend all meetings of the board of
directors and all meetings of the stockholders and record all the proceedings of
the meetings of the corporation and of the board of directors in a book to be
kept for that purpose and shall perform like duties for the standing committees
when required. The secretary shall give, or cause to be given, notice of all
meetings of the stockholders and special meetings of the board of directors, and
shall perform such other duties as may be from time to time prescribed by the
board of directors or chief executive officer, under whose supervision the
secretary shall be. The secretary shall have custody of the corporate seal of
the corporation and the secretary, or an assistant secretary, shall have
authority to affix the same to any instrument requiring it and when so affixed,
it may be attested by the secretary's signature or by the signature of such
assistant secretary. The board of directors may give general authority to any
other officer to affix the seal of the corporation and to attest the affixing by
such officer's signature.

         Section 8.  Assistant Secretaries. The assistant secretary, or if there
be more than one, the assistant secretaries in the order determined by the board
of directors, the chief executive officer or the secretary (or if there be no
such determination, then in the order determined by their tenure in office),
shall, in the absence of the secretary or in the event of the secretary's
inability or refusal to act, perform the duties and exercise the powers of the
secretary and shall perform such other duties and have such other powers as the
board of directors, the chief executive officer or the secretary may from time
to time prescribe. In the absence of the secretary or any assistant secretary at
any meeting of stockholders or directors, the person presiding at the meeting
shall designate a temporary or acting secretary to keep a record of the meeting.

         Section 9.  Treasurer. The treasurer shall perform such duties and
shall have such powers as may be assigned to the treasurer by the board of
directors or the chief executive officer. In addition, the treasurer shall
perform such duties and have such powers as are incident to the office of
treasurer. The treasurer shall have the custody of the corporate funds and
securities and shall keep full and accurate accounts of receipts and
disbursements in books belonging to the corporation and shall deposit all moneys
and other valuable effects in the name and to the credit of the corporation in
such depositories as may be designated by the board of directors. The treasurer
shall disburse the funds of the corporation as may be ordered by the board of
directors, taking proper vouchers for such disbursements, and shall render to
the chief executive officer and the board of directors, when the chief executive
officer or board of directors so requires, an account of all such transactions
as treasurer and of the financial condition of the corporation.

         Section 10. Assistant Treasurers. The assistant treasurer, or if there
shall be more than one, the assistant treasurers in the order determined by the
board of directors, the chief executive officer or the treasurer (or if there be
no such determination, then in the order determined by their tenure in office),
shall, in the absence of the treasurer or in the event of treasurer's inability
or refusal to act, perform the duties and exercise the powers of the treasurer
and shall perform such other duties and have such other powers as the board of
directors, the chief executive officer or the treasurer may from time to time
prescribe.

                                       13
<PAGE>
         Section 11. Bond. If required by the board of directors, any officer
shall give the corporation a bond in such sum and with such surety or sureties
and upon such terms and conditions as shall be satisfactory to the board of
directors, including without limitation a bond for the faithful performance of
the duties of office and for the restoration to the corporation of all books,
papers, vouchers, money and other property of whatever kind in such officer's
possession or under such officer's control and belonging to the corporation.


                                   ARTICLE IV

                                     NOTICES

         Section 1.  Delivery. Whenever, under the provisions of law, or of the
certificate of incorporation or these By-Laws, written notice is required to be
given to any director or stockholder, such notice may be given by mail,
addressed to such director or stockholder, at such party's address as it appears
on the records of the corporation, with postage thereon prepaid, and such notice
shall be deemed to be given at the time when the same shall be deposited in the
United States mail. Unless written notice by mail is required by law, written
notice may also be given by telecopy, electronic transmission (subject to the
provisions of Section 2 of this Article IV), commercial delivery service, or
other similar means, addressed to such director or stockholder at such party's
address as it appears on the records of the corporation, in which case such
notice shall be deemed to be given when delivered into the control of the
persons charged with effecting such transmission, the transmission charge to be
paid by the corporation or the person sending such notice and not by the
addressee. Oral notice or other in-hand delivery (in person or by telephone)
shall be deemed given at the time it is actually given.

         Section 2.  Special Rules Applicable to Stockholders. Notwithstanding
the provisions of Section 1 of this Article IV, notices to a stockholder by
electronic transmission shall not be effective unless such stockholder has
consented to receive notices electronically. Any such consent is revocable by
the stockholder by written notice to the corporation and any such consent shall
be deemed revoked if (a) the corporation is unable to deliver by electronic
transmission two consecutive notices given by the corporation in accordance with
such consent and (b) such inability becomes known to the secretary or an
assistant secretary of the corporation or to the transfer agent, or other person
responsible for the giving of notice; PROVIDED, HOWEVER, the inadvertent failure
to treat such inability as a revocation shall not invalidate any meeting or
other action.

         Section 3.  Effectiveness of Notice. Notice given pursuant to Section 1
of this Article IV shall be deemed given: (a) if by facsimile telecommunication,
when directed to a number at which the stockholder has consented to receive
notice; (b) if by electronic mail, when directed to an electronic mail address
at which the stockholder has consented to receive notice; (c) if by a posting on
an electronic network together with separate notice to the stockholder of such
specific posting, upon the later of (i) such posting and (ii) the giving of such
separate notice; and (c) if by any other form of electronic transmission, when
directed to the stockholder. An affidavit of the secretary or an assistant
secretary or of the transfer agent or other agent of the corporation that the

                                       14
<PAGE>
notice has been given by a form of electronic transmission shall, in the absence
of fraud, be prima facie evidence of the facts stated therein.

         Section 4.  Definition of "Electronic Transmission." As used in these
By-Laws, "electronic transmission" means any form of communication, not directly
involving the physical transmission of paper, that creates a record that may be
retained, retrieved, and reviewed by a recipient thereof, and that may be
directly reproduced in paper form by such a recipient through an automated
process.

         Section 5.  Waiver of Notice. Whenever any notice is required to be
given under the provisions of law or of the certificate of incorporation or of
these By-Laws, a written waiver thereof, signed by the person or persons
entitled to said notice, or a waiver by electronic transmission by the person
entitled to notice, whether before or after the time stated therein, shall be
deemed equivalent thereto.


                                    ARTICLE V

                                 INDEMNIFICATION

         Section 1.  Indemnification. To the fullest extent permitted by the
General Corporation Law of the state of Delaware as it presently exists or may
hereafter be amended, the corporation shall indemnify any person (and such
person's heirs, executors or administrators) who was or is made or is threatened
to be made a party to or is otherwise involved in any threatened, pending or
completed action, suit or proceeding (brought in the right of the corporation or
otherwise), whether civil, criminal, administrative or investigative, and
whether formal or informal, including appeals, by reason of the fact that such
person, or a person for whom such person was the legal representative, is or was
a director or officer of the corporation or, while a director or officer of the
corporation, is or was serving at the request of the corporation as a director,
officer, partner, trustee, employee or agent of another corporation,
partnership, joint venture, trust, limited liability company, nonprofit entity
or other enterprise, for and against all loss and liability suffered and
expenses (including attorneys' fees), judgments, fines and amounts paid in
settlement reasonably incurred by such person or such heirs, executors or
administrators in connection with such action, suit or proceeding, including
appeals, if (i) such person acted in good faith and in a manner such person
reasonably believed to be in, or not opposed to, the best interests of the
Corporation and (ii) with respect to any criminal action or proceeding, such
person had no reasonable cause to believe his or her conduct was unlawful. The
termination of any action, suit or proceeding by judgment, order, settlement,
conviction or upon a plea of nolo contendere or its equivalent, shall not, of
itself, create a presumption that such person did not act in good faith, did not
act in a manner that he or she reasonably believed to be in, or not opposed to,
the best interests of the Corporation or, with respect to any criminal action or
proceeding, did not have reasonable cause to believe that such person's conduct
was unlawful. Notwithstanding the preceding sentence, except as otherwise
provided in Section 3 hereof, the corporation shall be required to indemnify a
person described in such sentence in connection with any action, suit or

                                       15
<PAGE>
proceeding (or part thereof) commenced by such person only if the commencement
of such action, suit or proceeding (or part thereof) by such person was
authorized by the Board.

         Section 2.  Advance of Expenses. To the fullest extent permitted by the
General Corporation Law of the state of Delaware, the corporation shall promptly
pay expenses (including attorneys' fees) incurred by any person described in
Section 1 hereof in appearing at, participating in or defending any action, suit
or proceeding in advance of the final disposition of such action, suit or
proceeding, including appeals, upon presentation of an undertaking on behalf of
such person to repay such amount if it shall ultimately be determined that such
person is not entitled to be indemnified under this Article V or otherwise.
Notwithstanding the preceding sentence, except as otherwise provided in Section
3 hereof, the corporation shall be required to pay expenses of a person
described in such sentence in connection with any action, suit or proceeding (or
part thereof) commenced by such person only if the commencement of such action,
suit or proceeding (or part thereof) by such person was authorized by the Board.

         Section 3.  Unpaid Claims. If a claim for indemnification (following
the final disposition of such action, suit or proceeding) or advancement of
expenses under this Article V is not paid in full within thirty (30) days after
a written claim therefor by any person described in Section 1 has been received
by the corporation, such person may file suit to recover the unpaid amount of
such claim and, if successful in whole or in part, shall be entitled to be paid
the expense of prosecuting such claim. In any such action the corporation shall
have the burden of proving that such person is not entitled to the requested
indemnification or advancement of expenses under applicable law.

         Section 4.  Insurance. To the fullest extent permitted by the General
Corporation Law of the state of Delaware, the corporation may purchase and
maintain insurance on behalf of any person described in Section 1 against any
liability asserted against such person, whether or not the corporation would
have the power to indemnify such person against such liability under the
provisions of this Article V or otherwise.

         Section 5.  Non-Exclusivity of Rights. The provisions of this Article V
shall be applicable to all actions, claims, suits or proceedings made or
commenced after the adoption hereof, whether arising from acts or omissions to
act occurring before or after its adoption. The provisions of this Article V
shall be deemed to be a contract between the corporation and each director or
officer (or legal representative thereof) who serves in such capacity at any
time while this Article V and the relevant provisions of the General Corporation
Law of the state of Delaware and other applicable law, if any, are in effect,
and any alteration, amendment or repeal hereof shall not affect any rights or
obligations then existing with respect to any state of facts or any action, suit
or proceeding then or theretofore existing, or any action, suit or proceeding
thereafter brought or threatened based in whole or in part on any such state of
facts. If any provision of this Article V shall be found to be invalid or
limited in application by reason of any law or regulation, it shall not affect
the validity of the remaining provisions hereof. The rights of indemnification
provided in this Article V shall neither be exclusive of, nor be deemed in
limitation of, any rights to which any person may otherwise be or become
entitled or permitted by contract, the certificate of incorporation, these
by-laws of the corporation, vote of stockholders or directors or otherwise, or
as a matter of law, both as to actions in such person's

                                       16
<PAGE>
official capacity and actions in any other capacity, it being the policy of the
corporation that indemnification of any person whom the corporation is obligated
to indemnify pursuant to Section 1 hereof shall be made to the fullest extent
permitted by law.

         For purposes of this Article V, references to "other enterprises" shall
include employee benefit plans; references to "fines" shall include any excise
taxes assessed on a person with respect to an employee benefit plan; and
references to "serving at the request of the corporation" shall include any
service as a director, officer, employee or agent of the corporation which
imposes duties on, or involves services by, such director, officer, employee, or
agent with respect to an employee benefit plan, its participants, or
beneficiaries.

         This Article V shall not limit the right of the corporation, to the
extent and in the manner permitted by law, to indemnify and to advance expenses
to, and purchase and maintain insurance on behalf of, persons other than persons
described in Section 1 hereof.


                                   ARTICLE VI

                                  CAPITAL STOCK

         Section 1.  Certificates of Stock. Every holder of stock in the
corporation shall be entitled to have a certificate, signed by, or in the name
of the corporation by, the chairman or vice-chairman of the board of directors,
or the president or a vice president and the treasurer or an assistant
treasurer, or the secretary or an assistant secretary of the corporation,
certifying the number of shares owned by such stockholder in the corporation.
Any or all of the signatures on the certificate may be a facsimile. In case any
officer, transfer agent or registrar who has signed or whose facsimile signature
has been placed upon a certificate shall have ceased to be such officer,
transfer agent or registrar before such certificate is issued, it may be issued
by the corporation with the same effect as if the signing party were such
officer, transfer agent or registrar at the date of issue. Certificates may be
issued for partly paid shares and in such case upon the face or back of the
certificates issued to represent any such partly paid shares, the total amount
of the consideration to be paid therefor, and the amount paid thereon shall be
specified.

         Section 2.  Lost Certificates. The board of directors may direct a new
certificate or certificates to be issued in place of any certificate or
certificates theretofore issued by the corporation alleged to have been lost,
stolen or destroyed. When authorizing such issue of a new certificate or
certificates, the board of directors may, in its discretion and as a condition
precedent to the issuance thereof, require the owner of such lost, stolen or
destroyed certificate or certificates, or such stockholder's legal
representative, to give reasonable evidence of such loss, theft or destruction,
to advertise the same in such manner as it shall require and/or to give the
corporation a bond in such sum as it may direct as indemnity against any claim
that may be made against the corporation with respect to the certificate alleged
to have been lost, stolen or destroyed or the issuance of such new certificate.

                                       17
<PAGE>
         Section 3.  Transfer of Stock. Upon surrender to the corporation or the
transfer agent of the corporation of a certificate for shares, duly endorsed or
accompanied by proper evidence of succession, assignment or authority to
transfer, and proper evidence of compliance with other conditions to rightful
transfer, it shall be the duty of the corporation to issue a new certificate to
the person entitled thereto, cancel the old certificate and record the
transaction upon its books.

         Section 4.  Record Date. In order that the corporation may determine
the stockholders entitled to notice of or to vote at any meeting of stockholders
or any adjournment thereof, the board of directors may fix a record date, which
shall not-precede the date upon which the resolution fixing the record date is
adopted by the board of directors, and which shall not be more than sixty days
nor less then ten days before the date of such meeting. A determination of
stockholders of record entitled to notice of or to vote at a meeting of
stockholders shall apply to any adjournment of the meeting; PROVIDED, HOWEVER,
that the board of directors may fix a new record date for the adjourned meeting.
If no record date is fixed, the record date for determining stockholders
entitled to notice of or to vote at a meeting of stockholders shall be at the
close of business on the day before the day on which notice is given, or, if
notice is waived, at the close of business on the day before the day on which
the meeting is held. In order that the corporation may determine the
stockholders entitled to consent to corporate action in writing without a
meeting, the board of directors may fix a record date, which shall not precede
the date upon which the resolution fixing the record date is adopted by the
board of directors, and which shall not be more than ten days after the date
upon which the resolution fixing the record date is adopted by the board of
directors. In order that the corporation may determine the stockholders entitled
to receive payment of any dividend or other distribution or allotment of any
rights or the stockholders entitled to exercise any rights in respect of any
change, conversion or exchange of stock, or for the purpose of any other lawful
action, the board of directors may fix a record date, which shall not precede
the date upon which the resolution fixing the record date is adopted, and which
shall be not more than sixty days prior to such action. If no record date is
fixed, the record date for determining stockholders for any such purpose shall
be at the close of business on the day on which the board of directors adopts
the resolution relating to such purpose.

         Section 5.  Registered Stockholders. The corporation shall be entitled
to recognize the exclusive right of a person registered on its books as the
owner of shares to receive dividends, and to vote as such owner, and to hold
liable for calls and assessments a person registered on its books as the owner
of shares, and shall not be bound to recognize any equitable or other claim to
or interest in such share or shares on the part of any other person, whether or
not it shall have express or other notice thereof, except as otherwise provided
by the laws of Delaware.

                                   ARTICLE VII

                              CERTAIN TRANSACTIONS

         Section 1. Transactions with Interested Parties. No contract or
transaction between the corporation and one or more of its directors or
officers, or between the corporation and any other corporation, partnership,
association, or other organization in which one or more of its directors

                                       18
<PAGE>
or officers are directors or officers, or have a financial interest, shall be
void or voidable solely for this reason, or solely because the director or
officer is present at or participates in the meeting of the board or committee
thereof which authorizes the contract or transaction or solely because such
party's or their votes are counted for such purpose, if:

         (a) The material facts as to such party's relationship or interest and
as to the contract or transaction are disclosed or are known to the board of
directors or the committee, and the board or committee in good faith authorizes
the contract or transaction by the affirmative vote of a majority of the
disinterested directors, even though the disinterested directors be less than a
quorum; or

         (b) The material facts as to such party's relationship or interest and
as to the contract or transaction are disclosed or are known to the stockholders
entitled to vote thereon, and the contract or transaction is specifically
approved in good faith by vote of the stockholders; or

         (c) The contract or transaction is fair as to the corporation as of the
time it is authorized, approved or ratified, by the board of directors, a
committee thereof, or the stockholders.

         Section 2.  Quorum. Common or interested directors may be counted in
determining the presence of a quorum at a meeting of the board of directors or
of a committee which authorizes the contract or transaction.


                                  ARTICLE VIII

                               GENERAL PROVISIONS

         Section 1.  Dividends. Dividends upon the capital stock of the
corporation, if any, may be declared by the board of directors at any regular or
special meeting or by written consent, pursuant to law. Dividends may be paid in
cash, in property, or in shares of the capital stock, subject to the provisions
of the certificate of incorporation.

         Section 2.  Reserves. The directors may set apart out of any funds of
the corporation available for dividends a reserve or reserves for any proper
purpose and may abolish any such reserve.

         Section 3.  Checks. All checks or demands for money and notes of the
corporation shall be signed by such officer or officers or such other person or
persons as the board of directors may from time to time designate.

         Section 4.  Fiscal Year. The fiscal year of the corporation shall be
the twelve months ending on September 31 of each year unless the board of
directors shall by resolution fix another fiscal year of the corporation.

                                       19
<PAGE>
         Section 5.  Seal. The board of directors may, by resolution, adopt a
corporate seal. The corporate seal shall have inscribed thereon the name of the
corporation, the year of its organization and the word "Delaware". The seal may
be used by causing it or a facsimile thereof to be impressed or affixed or
reproduced or otherwise. The seal may be altered from time to time by the board
of directors.

         Section 6.  Voting of Securities. Except as the board of directors may
otherwise designate, the chief executive officer, the president or the treasurer
may waive notice of, and act as, or appoint any person or persons to act as,
proxy or attorney-in-fact for this corporation (with or without power of
substitution) at any meeting of stockholders or securityholders of any other
entity or organization the securities of which may be held by this corporation,
or to execute and deliver on behalf of this corporation any written consent of
stockholders in lieu of any such meeting.



                                   ARTICLE IX

                                   AMENDMENTS

         These By-Laws may be altered, amended or repealed, in whole or in part,
or new By-Laws may be adopted by (i) the affirmative vote of at least sixty-six
and two-third percent (66 2/3%) of the board of directors or (ii) by the
affirmative vote of at least sixty-six and two-thirds percent (66 2/3%) of each
class of issued and outstanding shares of voting securities of the corporation,
at a meeting called for the purchase of altering, amended or repealing the
By-laws.






         Register of Amendments to the By-Laws


Date                         Section Affected                             Change
- --------------------------------------------------------------------------------









                                       20
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10.1
<SEQUENCE>17
<FILENAME>ex10-1_14663.txt
<DESCRIPTION>LEASE AGREEMENT DATED 05-05-2005
<TEXT>
                                                                    EXHIBIT 10.1
                                                                    ------------

                                 LEASE AGREEMENT

         THIS LEASE AGREEMENT (this "Lease") is made and entered into this 5th
day of May, 2005, by and between Sixth Road Woburn LLC, a duly organized
Massachusetts limited liability company (hereinafter referred to as "Landlord")
and Bridgeline Software, Inc., a duly organized Delaware corporation
(hereinafter referred to as "Tenant").

                                   WITNESSETH:

                               ARTICLE I: PREMISES

         Landlord hereby leases to Tenant and Tenant hereby takes from Landlord
approximately 5,360 square feet of rentable area (the "Premises"), outlined in
Exhibit A attached hereto and made a part hereof, within a portion of that
certain building (the "Building") at 10 Sixth Road in Woburn, Massachusetts (the
"Property") on the second floor together with all the improvements located
thereon.

         The Premises are leased subject to any and all existing encumbrances,
conditions, rights, covenants, easements, restrictions and rights of way of
record, and other matters of record, if any, applicable zoning and building
laws, regulations and codes, and such matters as may be disclosed by inspection
or survey.

                                ARTICLE II: TERM

2.1      Commencement Date.

         The term of this Lease shall be for six (6) years and three (3) months
(the "Term") and shall commence (the "Commencement Date") on the later of (i)
eight (8) weeks from full execution of this Lease or (ii) the date Landlord
shall have substantially completed the tenant improvements as provided in
Exhibit B attached hereto (that is, has completed the tenant improvements,
except for normal "punch list" items) in a good and workmanlike manner, in
compliance with all laws, and has delivered the Premises to Tenant in broom,
clean condition, free of all tenants, occupants and their property, and shall
have obtained reasonably satisfactory evidence confirming the substantial
completion of construction in accordance with the plans which include the tenant
improvements as provided in Exhibit B ("Landlord's Work"). In the event the
Premises are not completed on or before June 30, 2005, Tenant shall have the
right to terminate its obligations under this Lease; provided, however, that (i)
such date shall be extended for a period equal to the duration of any delays in
construction caused by strikes, shortages or materials, acts of God or other
matters not reasonably within the control of Landlord, and any delays in
completing the Premises as a result of change orders or other delays caused by
Tenant. Landlord shall be deemed to have satisfactorily completed the
construction of by Tenant. Landlord shall be deemed to have satisfactorily
completed the construction of the tenant improvements, and Tenant shall be
deemed to have waived all rights and remedies with respect to deficiencies in
such construction, except for deficiencies of which Tenant has informed
Landlord, in writing, not

<PAGE>

later than ninety (90) days  following the  Commencement  Date.  Landlord  shall
perform  Landlord's  Work at its sole cost and  expense  and shall use  diligent
efforts to complete such work on or before the date that is eight weeks from the
full execution of the Lease.

2.2      Early Possession.

         In the event that Landlord shall permit Tenant to enter the Premises
prior to the contemplated Commencement Date, such entry shall be deemed to be
pursuant to a license from Landlord to Tenant and shall be at the risk of
Tenant, and any early occupancy of the Premises shall be subject to all of the
provisions of this Lease, except for the obligation to pay Base Rent. If Tenant
occupies the Premises without the express written permission of Landlord, for
purposes of establishing the Commencement Date, Landlord shall be deemed to have
substantially completed the tenant improvements as provided in Exhibit B.

                                ARTICLE III: RENT

3.1      Base Rent.

         A. Tenant agrees to pay Landlord, at the address provided for notices
herein, or such other place or to such other person as Landlord may designate,
rent for the Premises ("Base Rent") in accordance with the following schedule:

         Commencing on the Commencement Date and continuing for three (3) months
thereafter ("Free Rent Period"), base rent shall be free, and thereafter until
the scheduled lease expiration, Tenant shall pay Base Rent, adjusted as herein
provided, in the amount of Eighty-Eight Thousand Four Hundred Forty and 00/100
Dollars ($88,440.00) per annum, payable in equal monthly installments of
$7,370.00 each.

         All payments of Base Rent made hereunder shall be made in advance on
the first day of each month during the Term of this Lease without deduction,
set-off, prior notice or demand in lawful money of the placecountry-regionUnited
States of America. The Base Rent payment for any fractional month at the
commencement, termination or expiration of the Term will be prorated. Tenant's
first payment of Base Rent and Additional Rent (as hereinafter defined) shall be
due and owing upon the date of execution of this Lease.

3.2      Additional Rent.

         All amounts which Tenant is required to pay pursuant to this Lease
except Base Rent, including Tenant's payments under Sections 3.3, 3.4 and 3.5
hereof and every fine, penalty, interest and cost which may be added for
nonpayment or late payment, will constitute "Additional Rent" hereunder, and if
Tenant fails to pay such Additional Rent when due, Landlord will have the right
to pay the same and will have all the right, powers and remedies with respect
thereto as are provided herein or by law in the case of nonpayment of Base Rent.

                                        2
<PAGE>

3.3      Common Area Maintenance and Operating Expense Charge (Included in the
         Base Rent).

         Intentionally omitted.

3.4      Taxes.

         A. Payment of Taxes. Commencing on July 1, 2007 and continuing
throughout the Term hereof, Tenant will pay to Landlord, as Additional Rent
hereunder, Tenant's Pro Rata Share (as hereinafter defined) of taxes of any kind
and nature whatsoever, levied or assessed on the Building and the property on
which the Building is located, including taxes levied against the rents,
occupancy or use of the Premises (hereinafter collectively referred to as
"Taxes"), over the actual real estate taxes levied or assessed on the Building
and the property on which the Building is located for fiscal year 2006 (the "Tax
Payment"). Tenant shall pay the Tax Payment to Landlord monthly based on
Landlord's reasonable estimates of the Taxes, subject to adjustment from time to
time upon determination of the actual amount of the Taxes. For the purposes of
this Lease, "Tenant's Pro Rata Share" shall be 10.92%.

         B. Change in Method of Taxation. If at any time during the Term of this
Lease, the present method of taxation is changed so that in lieu of the whole or
any part of any taxes, assessments or charges levied, assessed or imposed upon
real estate and the improvements thereon, there is levied, assessed or imposed
on Landlord a capital levy or other tax directly on the rents received therefrom
and/or a franchise tax assessment, levy or charge measured by or based, in whole
or in part, upon such rents for the present or any future building or buildings
on the property on which the Building is located or any other tax or assessment,
levied or assessed in lieu of any present taxes, then all such taxes,
assessments, levies, or charges will be deemed to be included within the term
"Taxes" for the purposes hereof. In the event any such tax cannot legally be
reimbursable by the Tenant, Landlord will have the option to terminate this
Lease.

         C. Personal Property Taxes. Tenant shall pay prior to delinquency all
taxes assessed against and levied upon leasehold improvements, trade fixtures,
furnishings, equipment and all other personal property of Tenant contained in
the Premises or elsewhere. Tenant shall cause said leasehold improvements, trade
fixtures, furnishings, equipment and all other personal property to be assessed
and billed separately from the real property of Landlord. If any of Tenant's
said personal property shall be assessed with Landlord's real property, Tenant
shall pay Landlord the taxes so attributable to Tenant within ten (10) days
after receipt of a written statement setting forth the taxes applicable to
Tenant's property.

3.5      Tenant's Payment of Landlord's Insurance (included in the Base Rent).

         Intentionally omitted.

3.6      Late Charges and Interest.

                                        3
<PAGE>

         A. Tenant hereby acknowledges that late payment by Tenant to Landlord
of Base Rent, Additional Rent or any other sums due hereunder shall cause
Landlord to incur costs not contemplated by this Lease, the exact amount of
which will be extremely difficult to ascertain. Such costs include, but are not
limited to, processing and accounting charges, and late charges which may be
imposed on Landlord by the terms of any mortgage or trust deed covering the
Premises. Accordingly, if any installment of Base Rent, Additional Rent or any
other sum due from Tenant, shall not be received by Landlord or Landlord's
designee within ten (10) days after the date any such payment becomes due, then
Tenant shall pay to Landlord a late charge equal to five percent (5%) of such
overdue amount. The parties hereby agree that such late charge represents a fair
and reasonable estimate of the cost Landlord will incur by reason of late
payment by Tenant. Acceptance of such late charge by Landlord shall in no event
constitute a waiver of Tenant's default with respect to such overdue amount, nor
prevent Landlord from exercising any of the other rights and remedies granted
hereunder.

         B. Tenant shall be obligated to pay to Landlord interest at the rate of
twelve percent (12%) per annum or the maximum legal rate which Tenant may
contract for in Massachusetts, whichever is less, on all sums above specified
and on all sums and charges Tenant is obligated to pay under the terms of this
Lease from the date said sums and charges become due and remain unpaid until the
date said sums and charges are paid in full.

3.7      Consumer Price Index Increase to Base Rent.

         The Base Rent is based upon the current Revised Consumer Index for
Urban Wage Earners and Clerical Workers: all items index (1982-4-100)("Consumer
Price Index") published by the Bureau of Labor Statistics, United States
Department of Labor (the "Bureau") for the Lowell, Massachusetts/Manchester, New
Hampshire statistical region. The basic index ("Basic Index") is the Consumer
Price Index published for the last month before the commencement of each Lease
Year. The "Current Index" shall mean the published Consumer Price Index for the
same month in the then most recently ended Lease Year (defined below). If the
Current Index for any Lease Year is greater than the Basic Index, than the
annual Base Rent for the for the succeeding Lease Year shall be adjusted on the
first day of the succeeding Lease Year so that it equals the sum of (1) product
of (A) the annual Base Rent scheduled for such Lease Year, multiplied by (B) a
fraction, the numerator of which is the Current Index and the denominator of
which is Basic Index and Landlord shall provide notice thereof to Tenant on or
before the date of such increased obligation; however the Base Rent for any
Lease Year shall never be less than the greater of the Base Rent for the
previous Lease Year or the scheduled Base Rent for such Lease Year. In addition,
the Base Rent for any Lease Year shall never exceed a cap of 2.5% of the Base
Rent for the previous Lease Year or the scheduled Base Rent for the previous
Lease Year. The term "Lease Year" shall mean any period of 12 months commencing
on the first day of the first full month of the Term or any anniversary of such
date, or if fewer than 12 months remain in the Term after such anniversary, the
period commencing on such anniversary date through the last day of the Term. If
the Consumer Price Index is converted to a different standard reference base or
otherwise revised, the determination of the Consumer Index shall be made with
the use of such conversion factor, formula, or table for converting the Consumer
Price Index as may be published by the Bureau, or, if the Bureau does not
publish same, then with the use of such

                                        4
<PAGE>

conversion  factor,  formula,  or  table  as  is  published  by  any  nationally
recognized publisher of similar statistical  information.  If the Consumer Price
Index ceases to be  published,  then  Landlord may  substitute  for the Consumer
Price Index any independently published index of similar type.

                              ARTICLE IV: UTILITIES

Tenant will pay all charges incurred or billed for all water, sewer, gas,
heating fuel, electricity, telephone and all other utility services used on or
from the Premises and any maintenance charges for utilities, and will furnish
all electrical light bulbs and tubes. If any such utility services are not
separately metered to Tenant, the cost thereof shall be separately billed to
Tenant by Landlord, such bills payable by Tenant on each rental payment date. In
addition, Tenant will pay, as Additional Rent, Tenant's Pro Rata Share of all
such utility bills and services used on or from all common areas constituting
portions of the Property. Landlord will in no event be liable for any injury,
loss or damage caused by interruption or failure of utility services to the
Premises nor shall such interruption or failure terminate, cancel, affect or
modify this Lease. Notwithstanding anything in the foregoing to the contrary,
Tenant's obligation to pay for utility bills and services used on or from the
common areas shall not exceed the sum of $5,360.00 for the first Lease Year,
compounded at five per cent (5%) for each succeeding Lease Year.

                           ARTICLE V: SECURITY DEPOSIT

         Tenant will deposit with Landlord upon execution of this Lease the sum
of $7,370.00 as security for Tenant's faithful performance of Tenant's
obligations hereunder (the "Security Deposit"). If Tenant fails to pay Base
Rent, Additional Rent or any other charges due hereunder, or otherwise defaults
with respect to any provisions of this Lease, after notice and the expiration of
applicable cure periods, Landlord may use, apply or retain all or any portion of
the Security Deposit for the payment of any Base Rent, Additional Rent or other
charge in default or for the payment of any other sum to which Landlord may
become obligated to pay by reason of Tenant's default, or to compensate Landlord
for any loss or damage which Landlord may suffer thereby. If Landlord so uses or
applies all or any portion of the Security Deposit, Tenant will, within thirty
(30) days after written demand therefor, deposit cash with Landlord in an amount
sufficient to restore the Security Deposit to the full amount hereinabove stated
and Tenant's failure to do so will be a material breach of this Lease and shall
entitle Landlord to exercise any and all remedies set forth herein. Landlord
will not be required to retain the Security Deposit in a separate escrow account
nor will Tenant be entitled to interest on the Security Deposit. If Tenant
performs all of Tenant's obligations hereunder, the Security Deposit, or so much
as has not been applied by Landlord, will be returned to Tenant within fifteen
(15) days after the expiration or earlier termination of the Lease. In the event
of a sale of the Premises, the Landlord may transfer the balance of the Security
Deposit, if any, to the purchaser and shall thereupon be released from all
liability for the return of the Security Deposit and the Tenant will look solely
to said purchaser for the return thereof. Landlord agrees to notify the Tenant
in writing of any transfer of the Security Deposit identifying the person or
entity subsequently responsible for the Security Deposit.

                                        5
<PAGE>

Tenant hereby agrees not to look to the  mortgagee,  as mortgagee,  mortgagee in
possession,  or successor in title to the property,  for  accountability for the
Security  Deposit unless the Security Deposit has actually been received by said
mortgagee as security for Tenant's performance under this Lease.

                                 ARTICLE VI: USE

6.1      Use.

         The Premises shall be used and occupied only for general office
purposes and for no other use or purpose.

6.2      Compliance with Law.

         Tenant shall, at Tenant's expense, comply promptly with all applicable
statutes, ordinances, rules, regulations, orders and requirements in effect
during the Term or any part of the Term hereof regulating the use by Tenant of
the Premises and will, at Tenant's expense, obtain any and all licenses and
permits necessary for any such use. Tenant shall not use or permit the use of
the Premises in any manner that will tend to create waste or a nuisance, or that
will be unlawful, improper, noisy or offensive or which shall tend to
unreasonably disturb other tenants of the Building.

6.3      Hazardous Use.

         Tenant shall not receive, store or otherwise handle any product,
material or merchandise which is explosive or highly flammable or permit the
Premises to be used for any purpose which would render the insurance thereon
void or cause an increase in the premiums for such insurance or make the
insurance risk more hazardous. Tenant shall on demand reimburse Landlord, and
all other tenants, any and all extra insurance premiums caused in any way by
Tenant's use of the Premises.

6.4      Landlord's Rules and Regulations.

         Tenant shall faithfully observe and comply with, and cause its
employees, agents and invitees to observe and comply with, the rules and
regulations that Landlord shall from time to time promulgate. A copy of
Landlord's rules and regulations in effect as of the date hereof is attached
here to as Exhibit "C". Landlord reserves the right from time to time to make
all reasonable modifications to said rules and regulations. The additions and
modifications to Landlord's rules and regulations shall be binding upon Tenant
upon delivery of a copy of them to Tenant. Landlord shall not be responsible to
Tenant for the nonperformance of any of said rules and regulations by any other
tenants or occupants of the Building. In the event of a conflict between the
rules and regulations and the Lease, the terms of the Lease shall control.

6.5      Common Areas.

                                        6
<PAGE>

         Landlord grants to Tenant, during the Term of this Lease, a license to
use all areas and facilities outside the Premises that are provided and
designated for the general use and convenience of Tenant and the other tenants
of the Building including sidewalks, landscaped areas, roadways and parking
areas (the "Common Areas"); provided, however, that Tenant may only use up to 20
parking spaces, which shall be designated for use by tenants only, all on a
non-exclusive basis.

                             ARTICLE VII: INSURANCE

7.1      Tenant's Insurance.

         Tenant, at its own expense, shall provide and keep in force with
companies reasonably acceptable to Landlord public liability insurance for the
benefit of Landlord and Tenant jointly against liability for bodily injury and
property damage in the amount at the beginning of the Term of not less than
$2,000,000.00 combined single limit (which may be by virtue of an umbrella
policy). Landlord hereby consents to the Hartford Company as Tenant's insurer,
and shall not withhold consent to any insurer with a rating at least as good as
The placeCityHartford as of the date of this Lease. Tenant shall keep all of
Tenant's fixtures, furniture, furnishings, and equipment insured against loss or
damage by fire or other hazards included within the usual "all risk" insurance
in an amount not less than 100% of the full insurable replacement value thereof.
Tenant shall furnish Landlord with certificates of such policies within thirty
(30) days after the Commencement Date of this Lease and whenever required shall
satisfy Landlord that such policies are in full force and effect. All such
policies shall be obtained from responsible companies qualified to do business
in the placePlaceTypeCommonwealth of PlaceNameMassachusetts and in good standing
therein and shall be in a form reasonably approved by Landlord. Such policies
shall name Landlord and Landlord's first mortgagee as additional insureds and
shall be primary and non-contributing with any insurance carried by Landlord.
All such policies shall further provide that such policies shall not be
cancelled or altered without at least thirty (30) days prior written notice to
Landlord.

7.2      Waiver of Subrogation.

         Insofar as, and to the extent that, the following provision may be
effective without invalidating or making it impossible to secure insurance
coverage obtainable from responsible insurance companies doing business in the
locality in which the Property is located (even though an extra premium may
result therefrom), Landlord and Tenant mutually agree that, with respect to any
hazard or casualty, the loss from which is covered by insurance then being
carried by them, respectively, the party carrying such insurance and suffering
such loss releases the other of and from any and all claims with respect to such
loss to the extent of the insurance proceeds paid with respect thereto; and they
further mutually agree that their respective insurance companies shall have no
right of subrogation against the other on account thereof.

7.3      Landlord's Insurance

                                        7
<PAGE>

         Landlord agrees to maintain in full force, from the date upon which
Tenant first enters the Premises for any reason, throughout the Term of this
Lease, and thereafter so long as Tenant is in occupancy of any part of the
Premises; (a) commercial general liability and property damage insurance
applicable to the Property and its common areas with broad form endorsement
(including contractual liability, independent contractor's hazard and completed
operations coverage) in the amount of $1,000,000 per occurrence/$2,000,000
aggregate (combined single limit); and (c) a policy of insurance covering the
Building, including the improvements thereto, for direct risk of physical loss,
with full extended coverage, in an amount and value not less than the full
replacement value of the Property. Upon request, Landlord shall promptly deliver
to Tenant certificates evidencing such policies.

                      ARTICLE VIII: MAINTENANCE AND REPAIRS

8.1      Landlord's Obligations.

         Within a reasonable time following the earlier of receipt of written
notice from Tenant of the necessity therefore or actual notice, Landlord shall
make necessary repairs and replacements to maintain the common areas, parking
lots, roof, foundations, exterior walls, beams, girders, load-bearing walls, and
other structural components of the Premises and the Building ("Building
Structure"), and except to the extent it is the obligation of the Tenant as
hereafter set forth, the plumbing, electrical, elevator, emergency, heating,
ventilating, air conditioning and other mechanical systems and equipment of the
Building, ("Building Systems"), in good condition and repair. "Structure" for
purposes of this Lease shall mean and include only the following: roof framing
and roof (specifically excluding without limitation the ceiling) and bearing
columns and bearing walls (specifically excluding without limitation the
interior surfaces thereof).

         Provided, Landlord uses diligent efforts not to interfere with Tenant's
use and enjoyment of the Premises, Landlord shall not be liable to Tenant for
any compensation, nor shall Tenant be entitled to any reduction of Base Rent or
Additional Rent, by reason of inconvenience or annoyance or for loss of business
arising from the necessity of Landlord's entering the Premises for any of the
purposes in this Lease authorized, or for repairing the Premises or any portion
of the Building, however the necessity may occur, except to the extent due to
the negligence or willful misconduct of Landlord. In case Landlord is prevented
or delayed from making any repairs, alterations or improvements, or furnishing
any services or performing any other covenant or duty to be performed on
Landlord's part, by reason of any cause reasonably beyond Landlord's control,
Landlord shall not be liable to Tenant therefore, nor shall Tenant be entitled
to any abatement or reduction of Base Rent or Additional Rent by reason thereof,
nor shall the same give rise to a claim in Tenant's favor that such failure
constitutes actual or constructive, total or partial, eviction from the
Premises. In no event shall either party be liable for indirect or consequential
damages.

         Landlord reserves the right to stop any service or utility system, when
necessary by reason of accident or emergency, or until necessary repairs have
been completed, provided, however, that in each instance of stoppage, Landlord
shall exercise reasonable diligence to

                                        8
<PAGE>

eliminate the cause thereof. Except in case of emergency repairs,  Landlord will
give Tenant reasonable advance notice of any contemplated  stoppage and will use
reasonable  efforts  to avoid  unnecessary  inconvenience  to  Tenant  by reason
thereof.

8.2      Tenant's Obligations.

         A. Tenant shall, at its sole cost and expense and without any cost to
Landlord, keep in good order, condition and repair the Premises, and all utility
equipment used exclusively for the Premises (including all portions of
electrical and mechanical systems located within the Premises or servicing the
Premises exclusively) and all utility lines to the point of connection for
Tenant, at all times during the Term of this Lease, unless specifically made
Landlord's responsibility under Section 8.1 above Tenant's responsibility
hereunder shall include, without limitation and at its sole cost, maintenance,
repair and replacement of the Building Systems exclusively serving the Premises
(except for the heating, ventilating and air conditioning equipment), fixtures,
glass (with glass of the same size and quality), floor covering and ceiling
materials, doors and door hardware and the decoration of the interior of the
Premises. If Tenant refuses or neglects to make or perform such replacements,
repairs, or maintenance, in a manner reasonably satisfactory to Landlord,
Landlord shall have the right, upon giving Tenant reasonable written notice of
its election to do so except in situations deemed to be emergency situations by
Landlord, to make such replacement or repairs or perform such maintenance on
behalf of and for the account of Tenant, and Tenant shall pay Landlord's
reasonable cost of such work, as Additional Rent, promptly upon receipt of a
bill therefore.

         B. Tenant shall be responsible for the maintenance, at its sole cost
and expense, of the so-called VAV boxes that serve the Premises.

8.3      Snow Removal and Grounds Care.

         At Landlord's sole cost and expense, the removal of snow and ice from
the parking areas and access drives bordering upon the Premises shall be the
Landlord's responsibility. The removal of snow and ice from the sidewalks,
loading docks and/or walkways bordering upon the Premises shall be the
Landlord's responsibility. The care and maintenance of the grounds, including
all parking areas, sidewalks, lawns, trees, shrubs and painted areas bordering
upon the Premises shall be the Landlord's responsibility.

8.4      Cleaning Services and Trash Removal.

         The Tenant shall be responsible, at its sole cost, for providing
cleaning services to the Premises and trash removal from the Property. Landlord
at its sole cost and expense shall be responsible for cleaning the common areas.

                        ARTICLE IX: ALTERATIONS AND SIGNS

                                        9
<PAGE>

         Tenant will not make any alterations, additions or improvements to the
Premises or install any signs upon the exterior of the Premises without on each
occasion the prior written consent of the Landlord, which shall not be
unreasonably withheld or delayed. All permitted alterations and signs shall be
at Tenant's sole cost and expense. All alterations or additions made by Tenant
shall be performed in a good and workmanlike manner using materials of equal or
better quality than original construction, and shall be in compliance with all
the applicable laws, ordinances, orders, rules, regulations and requirements
applicable thereto and shall be performed only by contractors or mechanics
approved by Landlord, which shall not be unreasonably withheld or delayed. All
such contractors and mechanics shall carry adequate liability insurance,
builder's risk insurance and workmen's compensation insurance in amounts and
companies approved by Landlord. Landlord shall be presented with certificates of
same prior to the commencement of any work. Furthermore, as a condition to such
consent, in the event that the cost of such alterations shall exceed
$100,000.00, Landlord may require Tenant to provide to Landlord, at Tenant's
expense, a completion bond in form and substance satisfactory to Landlord.

                              ARTICLE X: INSPECTION

         Landlord and Landlord's agents and representatives will have the right
to enter and inspect the Premises at any reasonable time during business hours
(and all other times in case of emergency) for the purpose of ascertaining the
condition of the Premises, curing any default on the part of the Tenant or
making repairs to the Premises. During the one year period prior to the end of
the Term hereof, Landlord and Landlord's agents and representatives will have
the right to enter the Premises at any reasonable time during business hours for
the purpose of showing the Premises and will have the right to erect on the
Premises a suitable sign indicating that the Premises are available. Any right
of entry hereunder shall be exercised using diligent efforts not to interfere
with Tenant's use and occupancy of the Premises. Due to confidentiality concerns
of Tenant, any such entry shall be with an escort provided by Tenant.

                      ARTICLE XI: ASSIGNMENT AND SUBLETTING

         Tenant shall not assign, transfer, mortgage or pledge this Lease or
sublet the whole or any part of the Premises without the prior written consent
of Landlord, which shall not be unreasonably withheld or delayed for more than
ten (10) days. Without limiting the generality of the foregoing, Landlord may
specifically withhold consent if. (i) Tenant is then in default beyond notice
and cure periods hereunder; (ii) any notice of termination of this Lease or
termination of Tenant's possession shall have been given under Section XX
hereof; (iii) the portion of the Premises which Tenant proposes to sublease,
including the means of ingress and egress thereto and the proposed use thereof,
and the remaining portion of the Premises will violate any city, state or
federal law, ordinance or regulation, including, without limitation, any
applicable building code or zoning ordinances; (iv) the proposed use of the
Premises by the subtenant or assignee does not conform with the permitted use
set forth in Section 6.1 hereof; (v) in the reasonable judgment of Landlord the
proposed subtenant or assignee is engaged in a business which would be
deleterious to the reputation of the Building, or the subtenant or assignee is
not sufficiently financially responsible to

                                       10
<PAGE>

perform its  obligations  under the proposed  sublease or  assignment;  (vi) the
proposed assignee or subtenant is a governmental or  quasi-governmental  agency;
(vii)  the  stature,  reputation  or  financial  capability  of the  prospective
assignee or subtenant is not at least  equivalent to the stature,  reputation or
financial  capacity  of Tenant as of the date  hereof;  or (viii)  the  proposed
assignee or subtenant's projected use of the Premises involves the use, storage,
generation  or disposal of Hazardous  Material as defined in Article XII of this
Lease.  Notwithstanding any permitted  assignment or subletting,  Tenant will at
all times remain liable for the payment of all Base Rent,  Additional  Rent, and
any other  charges due  hereunder  and for the  compliance  with all of Tenant's
other  obligations  under the terms,  provisions and covenants of this Lease. In
the  event of a  default  under the terms of this  Lease  after  notice  and the
expiration of applicable  cure periods,  if the Premises or any part thereof are
then  assigned or sublet,  Landlord,  in addition to any other  remedies  herein
provided,  or provided by law, may at its option collect  directly from assignee
or subtenant all rents becoming due to Tenant under such  assignment or sublease
and apply such rent  against  any sums due it by Tenant  hereunder,  and no such
collection  shall be construed  to  constitute a novation or a release of Tenant
from the further  performance of its obligations  hereunder.  Landlord will have
the right to assign any of its rights and  obligations  under this Lease. If the
rent and other sums and all considerations  received by Tenant on account of any
such  sublease or  assignment  shall exceed the Base Rent,  Additional  Rent and
other charges allocable to the Premises or to the space subject to the sublease,
as the case may be, Tenant shall pay to Landlord,  as Additional Rent hereunder,
fifty percent (50%) of such excess, monthly as received by Tenant, less Tenant's
reasonable  expenses  incurred  in  respect  of  such  sublease  or  assignment,
including  brokerage  commissions  to a licensed third party real estate broker,
advertising  and  reasonable  attorney's  fees,  and all of repairs or fit-up or
alterations to the Premises for such subtenant or assignee.  Notwithstanding the
foregoing,  Tenant may assign  this  Lease.  or sublet all or any portion of the
Premises, without the consent of Landlord, but only following fifteen days prior
written  notice  to  Landlord,   and  provided  the  assignee  or  subtenant  is
sufficiently financially responsible to perform its obligations under this Lease
or the proposed  sublease,  (i) to any  corporation or other entity into or with
which Tenant may be merged or  consolidated,  (ii) to any  corporation  or other
entity  to which all or  substantially  all of  Tenant's  assets or stock may be
transferred,  and (iii) to any  corporation  or other entity that  controls,  is
controlled by, or is under common control with Tenant.

                        ARTICLE XII: HAZARDOUS MATERIALS.

12.1 Tenant shall not cause or permit any Hazardous Material to be brought upon,
kept, used, stored, generated or disposed of on, in or about the Premises by
Tenant, its agents, employees, contractors, or invitees, without first obtaining
Landlord's written consent.

12.2 Any Hazardous Material permitted on the Premises as provided in Section
12.1, and all containers therefore, shall be used, kept, stored, and disposed of
in a manner that complies with all federal, state, and local laws or regulations
applicable to this Hazardous Material.

12.3 Tenant shall not discharge, leak, or emit, or permit to' be discharged,
leaked, or emitted, any material into the atmosphere, ground, sewer system, or
any body of water, if that material (as is reasonably determined by the
Landlord, or any governmental authority) does

                                       11
<PAGE>

or may pollute or contaminate the same, or may adversely  affect (a) the health,
welfare, or safety of persons,  whether located on the Premises or elsewhere, or
(b) the  condition,  use,  or  enjoyment  of the  Building  or any other real or
personal property.

12.4 At the commencement of each year of the Term, Tenant shall disclose to
Landlord the names and approximate amounts of all Hazardous Material that Tenant
intends to store, use, or dispose of on the Premises in the coming year. In
addition, at the commencement of each year of the Lease Term, beginning with the
second year of the Lease Term, Tenant shall disclose to Landlord the names and
amounts of all Hazardous Materials that were actually used, stored, or disposed
of on the Premises if those materials were not previously identified to Landlord
at the commencement of the previous year.

12.5 As used herein, the term "Hazardous Material" means (a) any "hazardous
waste" as defined by the Resource Conservation and Recovery Act of 1976, as
amended from time to time, and regulations promulgated thereunder; (b) any
"hazardous substance" as defined by the Comprehensive Environmental Response,
Compensation and Liability Act of 1980, as amended from time to time, and
regulations promulgated thereunder; (c) any oil, petroleum products, and their
by-products; (d) any substance that is toxic, ignitable, reactive or corrosive;
and (e) any substance that is or becomes regulated by any federal, state, or
local governmental authority.

12.6 Tenant hereby agrees that it shall be fully liable for all costs and
expenses related to the use, storage and disposal of Hazardous Material kept on
the Premises by the Tenant, and the Tenant shall give immediate notice to the
Landlord of any violation or potential violation of the provisions of this
Article XII. Tenant shall defend, indemnify, and hold harmless Landlord and its
agents, from and against any and all claims, demands, penalties, fines,
liabilities, settlements, damages, costs, or expenses (including, without
limitation, attorneys' and consultants' fees, court costs, and litigation
expenses) of whatever kind or nature, known or unknown, contingent or otherwise,
allegedly or actually arising out of or in any way related to (a) the presence,
disposal, release, or threatened release of any such Hazardous Material in the
Premises (to the extent not preexisting the Commencement Date) that is on, from,
or affecting the soil, water, vegetation, buildings, personal property, persons,
animals, or otherwise; (b) any personal injury (including wrongful death) or
property damage (real or personal) arising out of or related to that Hazardous
Material referenced above; (c) any lawsuit brought or threatened, settlement
reached, or government order relating to that Hazardous Material referenced
above; or (d) any violation of any laws applicable thereto. This indemnification
includes, without limitation, any and all costs incurred because of any
investigation of the site or any cleanup, removal, or restoration mandated by a
federal, state, or local agency or political subdivision related to the
condition described above. Without limitation of the foregoing, if Tenant causes
or permits the presence of any Hazardous Material on the Premises and that
results in contamination, Tenant shall promptly, at its sole expense, take any
and all necessary actions to return the Premises to the condition existing prior
to the presence of any such Hazardous Material on the Premises. Tenant shall
first obtain Landlord's approval for any such remedial action. The provisions of
this Section 12.6 shall be in addition to any other obligations and liabilities
Tenant may have to Landlord at

                                       12
<PAGE>

law or equity and shall survive the transactions  contemplated  herein and shall
survive the expiration or earlier termination of this Lease.

                             ARTICLE XIII: INDEMNITY

13.1 Except to the extent caused by Landlord's negligence or willful misconduct
and subject to Article 7.2, Tenant will defend, indemnify and save harmless
Landlord from and against any and all liabilities, obligations, claims, damages,
penalties, causes of action, costs and expenses (including, without limitation,
reasonable attorneys' fees and expenses) imposed upon, incurred by or asserted
against Landlord arising from Tenant's use or occupancy of the Premises or any
breach or default by Tenant of its obligations hereunder or arising from the
negligence or willful omission of Tenant, its agents, contractors, employees or
invitees. Tenant shall save Landlord harmless from (i) all loss and damage to
personal property, fixtures, equipment and inventory located within the Premises
occasioned by the escape of water or by the bursting of pipes, and (ii) any
nuisance made or suffered on the Premises.

13.2 Subject to Article 7.2, Tenant shall also save Landlord harmless and
indemnified, to the extent permitted by law, from and against any and all
claims, actions, loss, damage, liability and expense in connection with loss of
life, personal injury and/or damage to property arising out of or resulting from
any occurrence in, upon or at the Premises or the occupancy or use of the
Premises or any part thereof, or anywhere if caused wholly or in part by any
act, neglect or failure to perform the obligations imposed by this Lease or any
breach thereof, or omission of Tenant, its officers, agents, employees,
subtenants, licensees, concessionaires, or others occupying space in the
Premises. If Landlord shall be threatened with or made a party to any litigation
commenced by or against Tenant, or with respect to any matter described above,
then Tenant shall protect and hold Landlord harmless and indemnified and shall
defend Landlord with counsel reasonably acceptable to Landlord, or, at
Landlord's option, shall advance all costs, expenses and reasonable attorney's
fees incurred or paid by Landlord in connection with such litigation.

13.3 Except to the extent that such liability is caused by the negligence or
tortuous act or omission of Tenant, its agents, contractors or employees, and
subject to Articles 7.2 and XIV, Landlord shall defend, indemnify and hold
Tenant harmless from all costs, expenses, or claims arising from the following:
(i) any willful, negligent or tortuous act or omission on the part of Landlord,
its agents, contractors, or employees; or (ii) any failure on the part of
Landlord to perform in accordance with its obligations under this Lease.

                ARTICLE XIV: EXEMPTION OF LANDLORD FROM LIABILITY

         The term "Landlord" as used in this Lease, so far as the covenants or
obligations on the part of Landlord are concerned, shall be limited to mean and
include only the owner or owners at the time in question of the Premises, and in
the event of any transfer or transfers of

                                       13
<PAGE>

title thereto,  Landlord named herein (and in case of any subsequent transfer or
conveyance, the then grantor) shall be automatically relieved from and after the
date of such transfer or conveyance of all liability as respects the performance
of any covenants or obligations on the part of Landlord  contained in this Lease
except for the return of the Security Deposit) thereafter to be performed. It is
expressly  understood  and  agreed  that in the  case of  default  hereunder  by
Landlord,  Tenant  shall look solely to the interest of Landlord in the Premises
and all  available  insurance  proceeds for  satisfaction  of any  obligation of
Landlord to Tenant, and that except for such interest and proceeds,  neither the
Landlord nor anyone claiming under the Landlord shall ever be personally  liable
for  satisfaction  of any such  obligation.  Tenant  hereby agrees that Landlord
shall  not be  liable  for  injury to  Tenant's  business  or any loss of income
therefrom, or for damage to the personal property of Tenant, Tenant's employees,
invitees,  customers,  or any other person in or about the Premises, nor, unless
through  its  negligence  or willful  misconduct,  shall  Landlord be liable for
injury to the person of Tenant,  Tenant's  employees,  agents or contractors and
invitees,  whether  such  damage or injury is caused by or  results  from  fire,
steam,  electricity,  gas,  water  or  rain,  or  from  the  breakage,  leakage,
obstruction or other defects of pipes, sprinklers, wires, appliances,  plumbing,
air  conditioning  or  lighting  fixtures,  or from any cause,  whether the said
damage or injury results from conditions arising upon the Premises or upon other
portions of the  Building,  or from other sources or places,  and  regardless of
whether the cause of such damage or injury or the means of repairing the same is
inaccessible to Landlord or Tenant. Landlord shall not be liable for any damages
arising from any act or neglect of any other tenant, if any, of the Building.

                       ARTICLE XV: LIENS AND ENCUMBRANCES

15.1 Tenant will not do any act which will in any way encumber the title of
Landlord in and to the Premises nor will the interest or estate of Landlord in
the Premises be in any way subject to any claim by way of lien or encumbrance,
whether by operation of law or by virtue of any express or implied contract by
Tenant. Any claim to, or lien upon, the Premises arising from any act or
omission of Tenant will accrue only against the leasehold estate of Tenant and
will be subject and subordinate to the paramount title and rights of Landlord in
and to the Premises.

15.2 Tenant will not suffer or permit any liens to stand against the Premises,
the Building or any part thereof, by reason of any work, labor, services, or
materials done for, or supplied, or claimed to have been done for, or supplied
to Tenant, or anyone holding the Premises, or any part thereof through or under
Tenant. If any such lien is at any time filed against the Premises, or the
Building, Tenant will cause the same to be discharged of record within thirty
(30) days after the date of fling the same, by either payment, deposit or bond.
If Tenant fails to discharge any such lien within such period, then, in addition
to any other right or remedy of Landlord, Landlord may, but will not be
obligated to, procure the discharge of the same by paying the amount outstanding
under said lien, and Tenant shall immediately reimburse Landlord for the amount
paid by Landlord for any of the aforesaid purposes, together with all legal and
other expenses incurred Landlord, including reasonable attorneys' fees, in
defending any such action or in procuring the discharge of such lien, which
reimbursement

                                       14
<PAGE>

from Tenant will become due and payable,  as  Additional  Rent  hereunder on the
date of payment of any such sums by Landlord.

15.3 Nothing in this Lease will be deemed to be, or construed in any way as
constituting the consent or request of Landlord, express or implied, by
inference or otherwise, to any person, firm or corporation for the performance
of any labor or the furnishing of any materials for any construction,
rebuilding, alteration or repair of or to the Premises or any part thereof, nor
as giving Tenant any right, power or authority to contract for or permit the
rendering of any services or the furnishing of any materials which might in-any
way give rise to the right to file any lien against Landlord's interest in the
Premises.

               ARTICLE XVI: DAMAGE OR DESTRUCTION AND CONDEMNATION

16.1     Damage or Destruction of Premises.

         A. If all or a substantial part of the leased Premises is destroyed or
damaged by fire or other unavoidable casualty (a substantial part of the
Premises for the purposes of this Article shall be deemed to be fifty percent
(50%) or more of its insurable value), then Landlord shall within thirty (30)
days after such casualty elect in writing to Tenant to either terminate this
Lease or restore damaged areas. For purposes of this Article, the term Premises
shall be deemed to include all appurtenant parking rights and access to the
Premises.

         B. If Landlord elects to terminate this Lease as aforesaid, the
termination shall be effective as of the time of such casualty; if Landlord
elects to restore damaged areas, it shall commence the restoration of the
Premises within ninety (90) days after such casualty and use its best efforts to
coordinate the activities of contractors and material suppliers to accomplish
the restoration within a period of time commensurate with the degree of damage
sustained. In no event, however, shall Landlord be obligated to use any of its
funds for such restoration other than from applicable fire insurance proceeds.
Notwithstanding the foregoing, Landlord shall not be obliged to repair or
replace Tenant's furniture, furnishings, personal property or equipment and
shall not be obligated to bear the costs of repairing any damage caused by any
act, omission or negligence of Tenant or of Tenant's employees, contractees,
invitees, or licensees, and Landlord may make such repairs at the expense of
Tenant, and the cost thereof shall be collectable as additional rent due
hereunder,

         C. If any such restoration is delayed for causes beyond the control of
Landlord, such as acts of God, war, civil insurrection or public disorder,
strikes, unavailability of construction materials, shortages within the labor
market, or acts of governmental authorities, then in such event, the completion
of such restoration shall be postponed for the period of time equal to the
period of delay caused by such events.

         D. If this Lease is not terminated, a just portion of the rent,
according to the nature and extent of the damage, shall be abated until the
Premises shall have been restored.

         E. Notwithstanding the foregoing, Landlord may, in Landlord's sole
discretion, repair and/or rebuild the Building in the event of either total or
partial destruction. Landlord

                                       15
<PAGE>

will not be obligated to rebuild until the insurance proceeds have been received
and in the event such insurance  proceeds are insufficient to completely rebuild
or restore the Premises,  Landlord,  at Landlord's option, may provide the funds
required to completely rebuild or restore.  If Landlord's  mortgagee applies the
insurance  proceeds to the mortgage  debt,  Landlord shall have no obligation to
rebuild.

         F. In the event that (a) Landlord fails to give written notice within
thirty (30) days of its intention to restore the Premises, or (b) Landlord fails
to restore (or in Landlord's estimate, the time for restoration is expected to
exceed one hundred twenty (120) days the Premises to a condition substantially
suitable for their intended use within One Hundred Twenty (120) days of said
damage or destruction (or within such other period of time as Landlord and
Tenant may agree in writing), unless such damage was due to the willful or
intentional acts of Tenant or Tenant's employees, contractors, invitees, or
licensees, Tenant may elect to terminate this Lease by written notice to
Landlord to be given not later than thirty (30) days after the date last
mentioned.

16.2     Condemnation.

         A. If the Premises shall be completely taken by exercise of eminent
domain, then this Lease shall terminate. If any substantial part of the Premises
shall be taken by exercise of eminent domain or by action of any public or other
authority, then this Lease shall terminate at the election of Landlord, notice
of which election shall be given to Tenant within sixty (60) days of such
taking. If Landlord shall not so elect, then in case of such taking, and in case
of any taking of less than a substantial part of the Premises, a just proportion
of said rent according to the nature and extent of the taking shall be abated,
unless the Landlord shall supply to Tenant equivalent substitute space in the
Building at no additional rent. Landlord reserves and accepts all rights to any
awards of damages in connection with the Premises and the Building and the
leasehold hereby created, accrued or subsequently accruing by reason of anything
lawfully done in pursuance of any public or other authority. Tenant hereby
releases and assigns to Landlord all of Tenant's rights to such awards, and
covenants to deliver such further assignments and assurances thereof as Landlord
may from time to time request. it is agreed and understood, however, that
Landlord does not reserve to itself and Tenant does not assign to Landlord, any
damages payable for (i) moveable equipment installed by Tenant or anybody
claiming under Tenant at its own expense, or (ii) relocation expenses, but in
each case only if and to the extent that such damages are recoverable by Tenant
from such authority in a separate action and without reducing Landlord's award
of damages, or (iii) business interruption or similar damages awarded to Tenant.

         B. Notwithstanding the above, Landlord may, in Landlord's sole
discretion, repair and/or rebuild the Building in the event of either total or
partial taking. Landlord will not be obligated to rebuild until the eminent
domain proceeds have been received and in the event such eminent domain proceeds
are insufficient to completely rebuild or restore the Premises, Landlord, at
Landlord's option, may provide the funds required to completely rebuild or
restore. If Landlord's mortgagee applies the eminent domain proceeds to the
mortgage debt, Landlord shall have no obligation to rebuild.

                                       16
<PAGE>

         C. In the event that a taking of any portion of the Premises by the
exercise of eminent domain (a) materially adversely affects the ability of
Tenant to continue to conduct its business in the portion of the Premises not
taken; or (b) Landlord fails to give written notice within sixty (60) days of
its intention to restore the Premises; or (c) Landlord fails to restore the
Premises to a condition substantially suitable for their intended uses within
One Hundred Twenty (120) days of such taking or fails to supply to Tenant
equivalent substitute space in the Building, Tenant may elect to terminate this
Lease by written notice to Landlord to be given no later than thirty (30) days
after the date last mentioned.

                             ARTICLE XVII: SURRENDER

         Upon the expiration or earlier termination of this Lease for any
reason, Tenant will at once surrender and deliver the Premises, together with
all improvements thereon, to Landlord in good condition and repair, reasonable
wear and tear excepted. Reasonable wear and tear excludes: tears and cuts in
floor coverings; excessive wear of floor coverings because of Tenant's
negligence or failure to use desk and chair pads or otherwise; holes in walls
and doors; and damaged ceiling tiles because of installation of phone lines,
computer lines, or otherwise. All alterations, additions, improvements and
partitions (except Tenant's moveable trade fixtures and signs belonging to
Tenant) erected or installed by Tenant shall remain upon the Premises and will
become the property of Landlord as of the date of such expiration or earlier
termination, unless Landlord gives Tenant notice at the time Landlord consents
thereto that such improvements must be removed, in which case Tenant, at its
expense, shall forthwith remove such improvements and restore the Premises to
their original condition by the date of expiration or earlier termination of
this Lease. Tenant shall remove its moveable fixtures and signs and shall repair
all damage to the Premises caused by such removal. Tenant's failure to remove
all or part of Tenant's trade fixtures and signs upon expiration or earlier
termination shall be deemed an abandonment to Landlord of such trade fixtures
and signs and, if Landlord elects to remove all or any part of said fixtures and
signs, the cost of such removal, including repairing any damage to the Premises
caused by such removal, shall be paid by Tenant. Whether installed by Landlord
or Tenant, all fire alarm systems, burglar alarm systems and any other security
systems affixed to, imbedded in, permanently resting upon, or permanently
attached to any part of the Premises, by means of cement, glue, plaster, nails,
bolts, screws, or any other fastening devices shall, upon the termination of
this Lease, become the property of the Landlord, and shall neither be removed,
altered, damaged nor destroyed by Tenant, but shall remain upon the Premises;
all keys, manuals, and other accessories necessary for the proper operation of
such systems shall likewise become and remain the property of the Landlord and
shall be delivered to the Landlord immediately upon the termination of this
Lease.

                           ARTICLE XVIII: HOLDING OVER

18.1 Any holding over by Tenant of the Premises after the expiration or earlier
termination of this Lease will operate and be construed to be a tenancy from
month to month only at a monthly rental of One Hundred Fifty Percent (150%) of
the last monthly base rental plus all

                                       17
<PAGE>

other Additional Rent payable hereunder, and upon the terms hereof applicable to
month-to-month tenancy.

18.2 Nothing contained in this section is to be construed to give Tenant the
right to hold over at any time and Landlord may exercise any and all remedies at
law or in equity to recover possession of the Premises and damages resulting
from any such holding over.

                              ARTICLE XIX: DEFAULT

         The occurrence of any one or more of the following events ("Events of
Default") will constitute a default hereunder:

A. Tenant abandons the Premises.

B. Tenant defaults in any payment due hereunder and such default continues for
ten (10) days after notice from Landlord that such amount is past due.

         C. Tenant fails to observe or perform any of the covenants, conditions
or provisions of this Lease to be observed or performed by Tenant other than
non-payment of sums due hereunder, and Tenant fails to cure such default within
thirty (30) days after notice from Landlord as to existence of such default, but
if such failure is of such character that Tenant cannot reasonably effect a
remedy within such 30-day period, Tenant shall fail to commence such remedy
promptly and prosecute such remedy to completion with diligence and continuity.

         D. Tenant petitions to be, or is declared bankrupt, or insolvent
according to law, or if a receiver be appointed for Tenant, or for all or a
substantial portion of its property, or if an assignment for the benefit of
creditors is made by Tenant.

                              ARTICLE XX: REMEDIES

20.1     Right to Terminate.

         If an Event of Default shall have occurred, Landlord shall have the
right at its election, then or at any time thereafter, to give Tenant written
notice of Landlord's election to terminate this Lease on a date specified in
such notice. Upon the giving of such notice, this Lease and the estate hereby
granted shall expire and terminate on such date as fully and completely and with
the same effect as if such date were the date hereinbefore fixed for the
expiration of the Term, and all rights of Tenant hereunder shall expire and
terminate, but Tenant shall remain liable as hereinafter provided.

20.2     Right of Re-Entry.

         If any Event of Default shall have occurred, Landlord shall have the
immediate right, whether or not this Lease shall have been terminated pursuant
to Section 20.1, to re-enter and repossess the Premises or any part thereof in
the name of the whole and repossess the same

                                       18
<PAGE>

as of its former  estate by  summary  proceedings,  ejectment  or  otherwise  in
compliance with laws and the right to remove all persons and property therefrom.
Landlord  shall  be under  no  liability  for or by  reason  of any such  entry,
repossession  or  removal.  No such  re-entry  or  taking of  possession  of the
Premises by Landlord shall be deemed to waive or prejudice any remedies provided
to Landlord  hereunder,  nor be construed as an election on  Landlord's  part to
terminate this Lease unless a written notice of such election be given to Tenant
pursuant to Section 20.1 or unless the termination of this Lease be decreed by a
court of competent jurisdiction.

20.3     Right to Relet.

         At any time or from time to time after the repossession of the Premises
or any part thereof pursuant to Section 20.2, whether or not this Lease shall
have been terminated pursuant to Section 20.2, Landlord may (but shall be under
no obligation to) relet the Premises or any part thereof for the account of
Tenant, in the name of Tenant or Landlord or otherwise, without notice to
Tenant, for such term or terms (which may be greater or less than. the period
which would otherwise have constituted the balance of the Term) and on such
conditions (which may include concessions or free rent) and for such uses as
Landlord, in its absolute discretion, may determine, and Landlord may collect
and receive any rents payable by reason of such reletting. Landlord shall not be
responsible or liable for any failure to relet or to collect any rent due upon
such reletting.

20.4     Tenant to Remain Liable.

         No expiration or termination of this Lease pursuant to Section 20.1, by
operation of law or otherwise, and no repossession of the Premises or any part
thereof pursuant to Section 20.2 or otherwise, and no reletting of the Premises
or any part thereof pursuant to Section 20.3, shall relieve Tenant of its
liabilities and obligations hereunder, all of which shall survive such
expiration, termination, repossession or reletting.

20.5     Current Damages.

         In the event of any expiration or termination of this Lease or
repossession of the Premises or any part thereof by reason of the occurrence of
an Event of Default, Tenant will pay to Landlord the Base Rent, Additional Rent
and other sums required to be paid by Tenant for the period to and including the
date of such expiration, termination or repossession; and thereafter, until the
end of what would have been the Term in the absence of such expiration,
termination or repossession, and whether or not the Premises or any part thereof
shall have been relet, Tenant shall be liable to Landlord for, and shall pay to
Landlord, as liquidated and agreed current damages, the Base Rent, Additional
Rent and other sums which would be payable under this Lease by Tenant in the
absence of such expiration, termination or repossession, less the net proceeds,
if any, of any reletting effected for the account of Tenant pursuant to Section
20.3, after deducting from such proceeds all of Landlord's expenses reasonably
incurred in connection with such reletting (including, without limitation, all
repossession costs, brokerage and management commissions, legal expenses,
attorney's fees, employee expenses, and the costs of any decorating, repairs,
changes, alterations or additions

                                       19
<PAGE>

in or to the Premises that may be necessary or convenient). Tenant will pay such
current  damages on the days on which Base Rent  would have been  payable  under
this Lease in the absence of such expiration,  termination or repossession,  and
Landlord shall be entitled to recover the same from Tenant on each such day.

20.6     Final Damages.

         At any time after any such expiration or termination of this Lease or
repossession of the Premises or any part thereof by reason of the occurrence of
an event of default, whether or not Landlord shall have collected any current
damages pursuant to Section 20.5, Landlord shall be entitled to recover from
Tenant, and Tenant will pay to Landlord on demand, as and for liquidated and
agreed final damages for Tenant's default after notice and the expiration of
applicable cure periods, and in lieu of all current damages beyond the date of
such demand (it being agreed that it would be impracticable or extremely
difficult to fix the actual damages), an amount equal to the excess, if any, of
(a) the Base Rent, Additional Rent and other sums which would be payable under
this Lease from the date of such demand (or, if it be earlier, the date to which
Tenant shall have satisfied in full its obligations under Section 20.5 to pay
current damages) for what would be the then unexpired Term in the absence of
such expiration, termination or repossession (assuming for purposes hereof that
Tenant's Proportionate Share of Taxes and Insurance are increasing at a
consistent rate, and the CPI shall increase by 2.5 percent (2.5%) each calendar
year remaining in the Term), over (b) the then net rental value of the Premises
for the same period. Rental value shall be established by reference to the terms
and conditions upon which Landlord relets the Premises if such reletting is
accomplished within a reasonable period of time after such expiration,
termination or repossession, and otherwise established on the basis of
Landlord's estimates and assumptions of fact regarding market and other relevant
circumstances, which shall govern unless shown to be clearly erroneous. If any
statute or rule of law shall validly limit the amount of such liquidated final
damages to less than the amount above agreed upon, Landlord shall be entitled to
the maximum amount allowable under such statute or rule of law.

20.7     Damages and Proceedings.

         Nothing herein contained shall limit or prejudice the right of Landlord
to prove for and obtain in proceedings under any federal or state law relating
to bankruptcy, insolvency, reorganization, or arrangement, in an amount equal to
the maximum allowed by any statute or rule of law in effect at the time when,
and governing the proceedings in which, the damages are to be proved, whether or
not the amount be greater than the amount of loss or damage referred to above.

20.8     Landlord's Right to Cure.

         Landlord may, but shall not be obligated to, cure any default (after
notice and cure periods) by Tenant at any time, and whenever Landlord so elects,
all costs and expenses paid or incurred by Landlord in curing such default,
including without limitation reasonable attorney's fees, shall be deemed
Additional Rent due on demand with interest as provided in

                                       20
<PAGE>

Section  3.6.  Any such  cure  shall  not be deemed  to waive  such  default  or
otherwise affect any of the Landlord's rights due to such default.

                          ARTICLE XXI: ATTORNEYS' FEES

         If, on account of any breach or default (beyond notice and cure
periods) by Landlord or Tenant in their obligations under the terms and
conditions of this Lease, it becomes necessary or appropriate for the
non-defaulting party to employ or consult with an attorney or attorneys
concerning, or to enforce or defend, any of its rights or remedies hereunder,
the defaulting party agrees to pay all reasonable attorneys' fees so incurred.

                             ARTICLE XXII: NO WAIVER

         The waiver by Landlord or Tenant of any breach of any term, covenant or
condition herein contained will not be deemed to be a waiver of such term,
covenant or condition for any subsequent breach of the same or any other term,
covenant or condition herein contained. The acceptance by Landlord of any
payment of rent or other charges hereunder after the termination of this Lease
by Landlord shall not be deemed to restore this Lease or Tenant's right to
possession hereunder, but will be construed as a payment on account of damages
due from Tenant to Landlord. No remedy hereunder shall be deemed exclusive, but
shall be cumulative with all other remedies at law or equity.

                              ARTICLE XXIII: BROKER

         Landlord and Tenant warrant to one another that each has had no
dealings with any broker or agent in connection with this Lease other than Grubb
& Ellis, whose commission Landlord covenants and agrees to pay. Landlord and
Tenant covenant to pay, hold harmless and indemnify the other arising out of the
breach of their warranty made herein.

                          ARTICLE XXIV: LANDLORD'S LIEN

Intentionally omitted.

                             ARTICLE XXV: MORTGAGES

25.1     Subordination.

         Tenant accepts this Lease subject and subordinate to any mortgage(s)
and/or deed(s) of trust now or at any time hereafter constituting a lien or
charge upon the Premises provided however that if the mortgagee, trustee or
holder of any such mortgage or deed of trust elects to have Tenant's interest in
this Lease be superior to any such instrument, then by notice to Tenant from
such mortgagee, trustee or holder, this Lease will be deemed superior to such

                                       21
<PAGE>

lien, whether this Lease is executed before or after such mortgage or deed of
trust. Tenant will at any time hereafter on demand execute any commercially
reasonable instruments, which may be required by any mortgagee for the purposes
of subjecting and subordinating this Lease to the lien of any such mortgage. In
the event any proceedings are brought for foreclosure or in the event of the
exercise of the power of sale under any mortgage or deed of trust made by
Landlord covering the Premises, or in the event any mortgagee obtains possession
of the Premises by deed in lieu of foreclosure, or in any other similar matter,
the Tenant, at the request of any such mortgagee or purchaser upon any such
foreclosure or sale, will attorn to the mortgagee or the purchaser of the
Premises, and recognize said mortgagee or purchaser as the Landlord under this
Lease. Tenant will, at the request of the Landlord, execute a document, in form
proper for recording such agreement to attorn, which document shall provide that
the mortgagee will not interfere with or disturb Tenant's possession of the
premises demised under the Lease, so long as Tenant pays the rent stipulated in
the Lease and performs all other terms and conditions thereof.  (See Exhibit D -
"Example of Typical Subordination and Attornment Agreement")

25.2     Notice to Mortgagee.

         In the event of any default on the part of Landlord, Tenant will give
notice by registered or certified mail to any beneficiary of a deed of trust or
mortgagee of a mortgage covering the Premises whose address shall have been
furnished it, and shall offer such beneficiary or mortgagee a reasonable
opportunity to cure the default, including a reasonable time to obtain
possession of the Premises by power of sale or a judicial foreclosure, if such
should prove necessary to effect a cure.

25.3     Request by Mortgagee.

         In the event that the holder of any mortgage or prospective mortgage on
the Premises shall request any modification of any of the provisions of this
Lease not having a material adverse effect on Tenant's rights, Tenant agrees
that Tenant will enter into a written agreement in recordable form with such
holder or prospective holder, which shall effect such modification and shall
provide that such modification shall become effective and binding upon Tenant
and shall have the same force as an amendment to this Lease in the event of a
foreclosure or other similar action taken by such holder or prospective holder.
A provision directly relating to the rents payable hereunder, the duration of
time hereof, the size, use, or location of the Premises shall be deemed a
provision having a material adverse effect on Tenant's rights.

25.4     Assignment of Rights.

         With respect to any assignment by Landlord of Landlord's interest in
this Lease, or the rents payable hereunder, conditional in nature or otherwise,
which assignment is made to the holder of any mortgage on the Premises, the
Building or the Property, Tenant agrees that the execution thereof by Landlord,
and the acceptance thereof by the holder of such mortgage, shall never be deemed
an assumption by such holder of any of the obligations of Landlord hereunder,
unless such holder shall, by written notice sent to Tenant, specifically

                                       22
<PAGE>

elect,  or unless such holder shall  foreclose the mortgage,  take possession of
the Premises, and agree in writing to so assume Landlord's obligations.

                              ARTICLE XXVI: NOTICES

         Any and all notices, demands, consents or approvals required hereunder
shall be given in writing in accordance with this Section. Any notice from
Landlord to Tenant shall be deemed duly served, if mailed to Tenant (after the
Commencement Date) at the address listed herein by reputable overnight courier,
or by registered or certified mail, return receipt requested, postage prepaid.
Any notice from Tenant to Landlord shall be deemed duly served, if mailed to
Landlord by reputable overnight courier, or by registered or certified mail,
return receipt requested, postage prepaid, addressed to Landlord at the address
listed herein or at such address as Landlord may from time to time designate.
All notices shall be deemed sufficiently served or given for all purposes
hereunder the earlier of (i) receipt of such notice or (ii) two (2) business
days after such notice shall be deposited in any post office or branch post
office regularly maintained by the United States Government.

         LANDLORD:            Sixth Road Woburn LLC
                              c/o Robert W. Murray
                              27 Cambridge Street
                              Burlington, MA 01803-4616

         TENANT:              Bridgeline Software, Inc.
                              10 Sixth Road
                              Woburn, MA 01801

         With a simultaneous copy to:

                              Torpy & Gamer, LLC
                              One Washington Mall, 15th Floor
                              Boston,  MA 02108
                              Attn: Elizabeth Garner

                          ARTICLE XXVII: MISCELLANEOUS

27.1 The terms, provisions, covenants and conditions contained in this Lease
contain all agreements of the parties with respect to any matter mentioned
herein and will apply to, inure to the benefit of and be binding upon, the
parties hereto and upon their respective heirs, legal representatives,
successors and permitted assigns except as otherwise herein expressly provided.
This Lease may be modified in writing only, signed by Landlord and Tenant.

27.2 Landlord and Tenant agree, from time to time, within ten (10) days after
request by the other, to deliver an estoppel certificate stating that this Lease
is unmodified and in full force and effect (or if there have been modifications,
that the Lease is in full force and effect as modified and stating the
modifications) the date to which rent and other charges have been

                                       23
<PAGE>

paid, the unexpired  term of this Lease,  whether there are any defaults or rent
abatements  or offsets  claimed  by  Landlord  or Tenant and such other  factual
matters  pertaining  to this  Lease  as may be  reasonably  requested,  it being
intended that any such statement  delivered pursuant to this subparagraph may be
relied upon by any prospective  purchaser of the fee or mortgagee or assignee of
any  mortgage  upon  the fee of the  Premises  or any  other  party,  and  their
respective successors and assigns.

27.3 Time is of the essence  with respect to the due  performance  of the terms,
provisions and obligations set forth in this Lease.

27.4 If Landlord or Tenant is a corporation or limited liability company,
Landlord and Tenant represent and warrant that each individual executing this
Lease on behalf of said corporation or limited liability company is duly
authorized to execute and deliver this Lease on behalf of said corporation or
said limited liability company in accordance with a duly adopted resolution of
the Board of Directors of said corporation or limited liability company or in
accordance with the Bylaws of said corporation or operating agreement of said
limited liability company, and that this Lease is binding upon said corporation
or limited liability company in accordance with its terms.

27.5 This Lease will be construed and enforceable in accordance with the laws of
the state where the Premises are located.

27.6 Nothing in this Lease is to be deemed to limit or affect the right of
Landlord to sell, assign, encumber, transfer, lease or otherwise dispose of any
or all of Landlord's interest in any or all of the Premises or in any or all of
the Building.

27.7 Except as set forth in this Lease or any addendum or exhibit, all tenant
improvements to the Premises shall be the sole responsibility of Tenant and made
at Tenant's sole cost.

27.8 The initialed  Riders,  Addenda and Exhibits,  if any,  annexed  hereto are
incorporated herein by reference.

                                       24
<PAGE>

IN WITNESS WHEREOF, Landlord and Tenant have executed this Lease as of the day
and year first above written at the place and on the dates specified adjacent to
their respective signatures, as a sealed instrument.

                                               LANDLORD:

                                               Sixth Road Woburn LLC

Executed at BURLINGTON, MA

On MAY 6, 2005                                 By: /S/ ROBERT W. MURRAY
   ---------------------------------               --------------------
                                                   Robert W. Murray, Manager
                                                   and not individually

                                               TENANT:

                                               Bridgeline Software, Inc.

Executed at WOBURN, MA

on MAY 4, 2005                                 By: /S/ GARY M. CEBULA
   ---------------------------------               ------------------
                                                   Its: CFO
                                                   duly authorized

                                       25
<PAGE>

                                    EXHIBIT A

                [Omitted: Picture drawn to scale of leased space]































<PAGE>

                                    EXHIBIT B

                        BRIDGELINE OUTLINE SPECIFICATIONS

1.       Doors: 3' x 7' mahogany doors with a clear poly finish and painted
         metal trim.

2.       Office side lights: 2' x 7' side lights with painted metal trim on all
         offices and as shown on Exhibit A.

3.       Ceilings: 2' x 2' acoustical drop ceilings in all areas.

4.       Lighting: lighting to be consistent with the hallway lighting on the
         second floor BRIDGELINE's existing Premises at addressStreet130 New
         Boston Street. Lighting is Lightolier Fluorescent Coffaire 2x2
         Direct/Indirect Recessed. Catalogue # CFH2GPW2FT120SB.

5.       Flooring: Key Carpet Assurance, Level Loop 26 ounce pile throughout.
         12" x 12" Vinyl Composition Tile (VCT) by Mannington Commercial may be
         substitution in areas where appropriate, e.g., the Kitchen. Vinyl base
         throughout. Tenant may substitute alternative flooring, and Landlord
         will provide a credit toward the alternative flooring of $1.50 psf,
         installed.

6.       Walls: Taped drywall with white Benjamin Moore paint throughout.

7.       Kitchen: There will be a stainless steel sink recessed in a laminate
         counter with 6'-0" of building standard cabinets above and below
         counter. Additional cabinets/shelving may be provided in Kitchen as
         mutually agreed upon by Landlord and Tenant. Landlord will furnish and
         install a dishwasher. Refrigerator by Tenant.

8.       Door Systems: An all glass system will be provided for the front doors
         and for the large conference room door and wall as shown on Exhibit A.

9.       Window Treatments: Motor operated vertical blinds for the exterior
         windows are not included in this proposal. Vertical blinds for the
         interior windows also are not included.

10.      Accent Lighting: An allowance of $2,000 to install accent/specialty
         lighting is included. Lighting to be furnished by the Tenant. Tenant to
         furnish "spot" lights for its logo at the reception area. Landlord to
         provide recessed "spot" lights in the large conference room above the
         custom cabinetry. Installation of these lights by Landlord.

11.      Built-Ins/Cabinetry/Furniture: Except for the Kitchen and the binding
         room, built-ins, cabinets, and furniture are not included.

12.      Landlord will provide a 12' x 12' storage area in the basement with
         plywood shelving on two sides.

<PAGE>

13.      Tenant is responsible for all data and phone distribution from the
         Electrical Room. Landlord will provide data and phone connections to
         the main Electrical Room.


































<PAGE>

                                    EXHIBIT C

                        RULES AND REGULATIONS ATTACHED TO

                          AND MADE A PART OF THIS LEASE

1. No sign, placard, picture, advertisement, name or notice shall be inscribed,
displayed or printed or affixed on or to any part of the outside of the Building
without the written consent of Landlord first had and obtained and Landlord
shall have the right to remove any such sign, placard, advertisement, name or
notice without notice to and at the expense of Tenant.

         All approved signs or lettering on doors shall be printed, painted,
affixed or inscribed at the expense of Tenant by a person approved by Landlord.

         Tenant shall not place anything or allow anything to be placed near the
glass of any window, door, partition or wall which may appear unsightly from
outside the Premises.

2. No Tenant shall have any property stored outside, except with the prior
consent of Landlord.

3. All sidewalks, halls, passages, exits, entrances, elevators and stairways of
the Building, if any, shall not be obstructed by Tenant or used for any purpose
other than for ingress to and egress from its respective Premises. No Tenant and
no employees or invitees of Tenant shall go up on the roof of the Building.

4. Tenant shall not alter any lock nor install any new or additional locks or
any bolts on any door of the Premises.

5. Tenant shall not overload the floor of the Premises or mark, drive nails,
screw or drill into the partitions, woodwork or plaster or in any way deface the
Premises or any part thereof.

6. Tenant shall not use, keep or permit to be used or kept any foul or noxious
gas or substance in the Premises, or permit or suffer the Premises to be
occupied or used in a manner offensive or objectionable to Landlord or other
occupants of the Building by reason of noise, odors and/or vibrations, or
interfere in any way with other tenants or those having business therein, nor
shall any animals or birds be brought in or kept in or about the Premises or the
Building.

7. No cooking shall be done or permitted by Tenant on the Premises, nor shall
the Premises be used for washing clothes, for lodging, or for any improper,
objectional or immoral purposes.

8. Tenant shall not use or keep in the Premises or the Building any kerosene,
gasoline or inflammable or combustible fluid or material, or use any method of
heating or air conditioning other than that supplied by Landlord.

<PAGE>

9. Landlord will direct electricians as to where and how telephone and telegraph
wires are to be introduced. No boring or cutting for wires will be allowed
without the consent of Landlord. The location of telephones, call boxes and
other office equipment affixed to the Premises shall be subject to the approval
of Landlord.

10. Tenant, upon the termination of its tenancy, shall deliver to the Landlord
the keys of offices, rooms and toilet rooms which shall have been furnished the
Tenant or which the Tenant shall have had made, and in the event of loss of any
keys so furnished, shall pay the Landlord therefore.

11. Landlord reserves the right to exclude or expel from the Building any person
who, in the judgment of Landlord, is intoxicated or under the influence of
liquor or drugs, or who shall in any manner do any act in violation of any of
the rules and regulations of the Building.

12. No vending machine or machines of any description shall be installed,
maintained or operated upon the Premises without the written consent of the
Landlord.

13. Tenant shall not disturb, solicit or canvass any occupant of the Building
and shall cooperate to prevent same.

14. Any permitted corrosive, flammable or other special wastes shall be handled
for disposal as directed by Landlord.

15. Tenant's use of the Common Areas shall be limited to access and parking
purposes and under no circumstances shall Tenant be permitted to store any goods
or equipment; conduct any operations or construct or place any improvements,
barriers or obstructions in the Common Areas, or otherwise adversely affect the
appearance of same.

16. In order to prevent damage or unreasonable wear and tear to carpeting and
other floor covering that is or may become the property of the Landlord under
the terms of the Lease, Tenant shall, at Tenant's expense, provide chair mats
for all desk chairs used in the Premises and furniture cushions or other
suitable protection under all desks, tables and other furniture and equipment
kept in the Premises. Damage caused to carpeting or floor covering because of
Tenant's failure to comply with this rule shall not be considered "reasonable"
or "ordinary" wear and tear .under the Lease in determining Tenant's liability
for damage to the Premises or Tenant's duty to repair, restore or maintain the
Premises.

17. The moving of equipment, furniture, and freight into or out of the Premises
shall occur only on previous notice to Landlord and at such times as Landlord
shall designate. The persons employed to move such equipment, furniture, or
freight in and out of the Building must be acceptable to Landlord. No equipment,
furniture, or freight of any description shall be received into the Building
except during the hours designated by Landlord.

         Landlord shall in all cases have and retain the power to prescribe the
weight, proper position, and manner of support under all heavy furniture,
equipment and freight, and all

<PAGE>

damage done to the Building by moving in or moving out any equipment,  furniture
or freight, or during the time it is in or on the Premises, shall be repaired at
the expense of Tenant, but by contractors or mechanics named by Landlord.

18. Tenant shall refrain from "excessive operation" (as hereinafter defied) of
the heating, ventilating and air conditioning ("HVAC") equipment servicing the
Premises. Operation of the HVAC equipment servicing the Premises is defined as
"excessive operation" in any of the following cases:

         a.) Operation during more than twelve (12) hours each day; or

         b.) Operation during more than six (6) days each week; or

         c.) Operation during any period other than the normal cooling and
heating seasons of the year.

         Tenant shall give prior written notice to the Landlord of any
anticipated requirement for excessive operation of the HVAC equipment servicing
the Premises in order to give the Landlord the opportunity to make any
modifications or changes to such equipment then existing as Landlord in its sole
discretion may deem necessary or desirable in order to assure that the equipment
will be able to satisfy the demand imposed by such excessive operation; however,
Landlord shall not be obliged to make any such modification or changes to the
equipment.

         Notwithstanding anything to the contrary contained in any other term or
provision of the Lease or the Exhibits, Addenda, or Riders thereto, if Tenant
requires the excessive operation of the HVAC equipment servicing the Premises,
Tenant shall, at its sole cost and expense and without any cost to Landlord,
keep in good order and repair and replace as necessary, all such HVAC equipment.
If Tenant refuses or neglects to make or perform such maintenance, repairs, or
replacement, in a manner satisfactory to Landlord, Landlord shall have the
right, upon giving Tenant reasonable written notice (except in situations deemed
to be emergency situations by Landlord), to perform such maintenance, or to make
such repairs or replacements on behalf of and for the account of Tenant and
Tenant shall pay Landlord's reasonable costs of such work, as additional rent,
promptly upon receipt of a bill therefore.

19. Overnight parking of vehicles is prohibited.

20. Landlord reserves the right to make such other and further nondiscriminatory
Rules and Regulations as in its judgment may be necessary or desirable for the
safety, care and cleanliness of the Premises and the Building and for the
preservation of good order therein. Tenant agrees to abide by all such Rules and
Regulations which are adopted.

                                              LANDLORD:

                                              Sixth Road Woburn LLC

<PAGE>

Executed at BURLINGTON, MA

on MAY 6, 2005                                By: /S/ ROBERT W. MURRAY
   ----------------------------                   ------------------------------
                                                  Robert W. Murray, Manager
                                                  and not individually


                                              TENANT:

                                              Bridgeline Software, Inc.

Executed at WOBURN, MA

on MAY 4, 2005                                By: /S/ GARY M. CEBULA
   ----------------------------                   ------------------------------
                                                  Its: CFO
                                                  duly authorized










<PAGE>


                                    EXHIBIT D

                     SUBORDINATION AND ATTORNMENT AGREEMENT

         THIS SUBORDINATION AND ATTORNMENT AGREEMENT (this "Agreement") made as
of this _____ day of _____, 20__, by and between (hereinafter referred to as
"Landlord"),______________________, (hereinafter referred to as "Tenant")
and_________________________(hereinafter referred to as "Mortgagee").

                                   WITNESSETH:

         WHEREAS, Mortgagee is committed to lend certain sums to Landlord which
sums shall be secured by a Security Agreement and Mortgage Deed (hereinafter
referred to as the "Mortgage") on certain property (hereinafter referred to as
the "Property") in [LOCATION OF PROPERTY], more particularly described therein
and which shall be recorded in the [NAME OF REGISTRY] concurrently with the
recording of this Agreement; and

         WHEREAS, Tenant has entered into a Lease (hereinafter referred to as
"said Lease" which term shall mean and include all amendments and modifications
thereto which have been approved by Mortgagee) with Landlord, executed the
[DATE] day of [MONTH], 20_, as amended, covering the premises and improvements
subject to said Mortgage as therein more particularly described; and

         WHEREAS, in order to induce the Mortgagee to make the loan as evidenced
by the Mortgage, Landlord and Tenant have offered to enter into this Agreement
in order to, inter alia, establish the prior right, claim and lien of the
Mortgage with respect to all matters concerning condemnation and casualty as set
forth in said Lease.

         NOW, THEREFORE, for and in consideration of One Dollar ($1.00) and
other good and valuable consideration, the receipt whereof the parties hereto
hereby acknowledge, and to induce the Mortgagee to make the loan evidenced by
said Mortgage, the parties hereto covenant and agree as follows:

         1. The said Mortgage and the lien thereof, shall be, and the same is
hereby made, SUBJECT AND SUBORDINATE to the said Lease with the same force and
effect as if said Lease had been executed, delivered and recorded prior to the
execution, delivery and recording of the said Mortgage, EXCEPT, HOWEVER, that
the Lease and the rights of Landlord and Tenant thereunder shall be, and is
hereby made, expressly subject and subordinate in all respects to:

         (a)      The right, claim and lien of said Mortgage in, to and upon any
                  award or other compensation heretofore or hereafter to be made
                  for any taking by eminent domain of any part of the said
                  Property, and to the right of disposition thereof in
                  accordance with the provisions of said Mortgage;

<PAGE>

         (b)      The right, claim and lien of said Mortgage in,. to and upon
                  any proceeds payable under all policies of fire, casualty and
                  rent insurance upon the said Property and as to the right of
                  disposition thereof in accordance with, the terms of said
                  Mortgage;

         (c)      Any right, power or interest, if any, which may have arisen or
                  intervened between the date of execution of said Lease, the
                  date of recording of the Mortgage, or any lien or judgment
                  which may arise at any time, under the terms of such Lease;

it being expressly further understood and agreed that with respect to the
matters referred to in subsections 1(a) through 1(c), the Mortgage and the lien
thereof shall be, and the same is hereby made, prior in right to the said Lease
and the rights of Landlord and Tenant thereunder with the same force and effect
as if said Mortgage had been executed, delivered and recorded prior to the
execution, delivery and recording of the Lease.

         2. Tenant agrees that it shall not alter, modify, amend, change,
surrender or cancel the Lease nor pay the rent due thereunder in advance for
more than thirty (30) days except as may be required by said Lease, without the
prior written consent of the Mortgagee, and will not seek to be made an adverse
or defendant party in any action or proceeding brought to enforce or foreclose
the Mortgage. Tenant further agrees that it shall not subordinate its interest
in the Lease to the lien of any mortgage, security agreement or lease affecting
the premises demised under the Lease.

         3. In the event of a default by Landlord under the terms of the Lease
which is of such a nature as to give Tenant the right to terminate the Lease or
reduce the rent payable thereunder by credit, offset or otherwise, then, and in
any such event, Tenant agrees that concurrently with giving notice of default to
Landlord, Tenant shall deliver a copy thereof to Mortgagee. Tenant further
agrees that if Landlord does not cure the default specified in such notice of
default within thirty (30) calendar days after notice thereof, then Tenant shall
give further notice of that fact to Mortgagee and Mortgagee shall thereupon, if
it shall so elect, have the right, but not the obligation, to cure the default
of Landlord within twenty (20) calendar days after the giving of such further
notice by Tenant, and in case of a default which cannot, with due diligence, be
cured with said twenty (20) days, then the twenty (20) days shall be extended
for such period as may be necessary to complete the curing of the same with all
due diligence and continuity.

         4. In the event of entry to foreclose the Mortgage and/or foreclosure
thereof, or a conveyance in lieu of, or subsequent to, foreclosure and if the
Lease shall not have been terminated under the provisions hereof or of the
Lease:

         (a)      The Mortgagee will not interfere with or disturb Tenant's
                  possession of the premises demised under the Lease, so long as
                  Tenant pays the rent stipulated in. the Lease and performs all
                  other terms and conditions thereof;

<PAGE>

         (b)      The Lease will remain in full force and effect, as modified
                  hereby, and the Tenant will attorn to and be bound under the
                  Lease to the Mortgagee and its successors and assigns
                  including any purchaser of the Property in foreclosure or any
                  grantee under a conveyance in lieu of or subsequent to
                  foreclosure, and Tenant will perform and observe all of its
                  obligations thereunder to the same effect as though the Lease
                  had been executed prior to the execution and delivery of the
                  Mortgage, and Tenant agrees to execute and deliver, upon the
                  request of the Mortgagee or other owner of the demised
                  premises, any instrument which may be necessary or appropriate
                  to evidence such attornment.

PROVIDED, HOWEVER, that the Mortgagee shall not be:

                  (i)      liable for any act or omission of the Landlord; or

                  (ii)     subject to any of-sets or defenses which the Tenant
                           might have against Landlord; or

                  (iii)    bound by any rent or additional rent which Tenant
                           might have paid for more than the current rental
                           period of the Lease; or

                  (iv)     bound by any amendment or modification of the Lease
                           made without its written consent.

         5. All notices, demands or other communications which any party hereto
is required or may desire to give to another party hereto may be delivered in
person or shall be sent by reputable overnight courier or by certified or
registered mail, postage prepaid, return receipt requested, addressed to the
other party at the address first set forth hereinabove or at such other
addresses as any party hereto may hereafter specify by notice in writing to the
others. Any such notice or demand shall be deemed given and received upon the
earlier to occur of receipt thereof or seventy-two (72) hours after deposit in
the placecountry-regionUnited States mail as aforesaid.

         6. Landlord hereby authorizes Tenant to rely on any written notice or
demand received from Mortgagee to make rent and other payments, to which
Landlord may be entitled, to Mortgagee instead of Landlord whenever so demanded
by Mortgagee, whether or not the Mortgage shall have been foreclosed.

         7. Tenant agrees that in the event Mortgagee shall succeed to the
rights of Landlord as landlord under the Lease, then Tenant shall look solely to
Mortgagee's interest in the Property in the enforcement of any claims against
Mortgagee. The provisions hereof shall expressly inure to the benefit of any
successors and assigns of Mortgagee.

         8. The provisions of this Agreement shall be deemed to be covenants
running with the land, shall be binding upon and shall inure to the benefit of
the parties hereto, their respective successors and assigns and shall
specifically be binding upon any purchaser of

<PAGE>

said Property at a sale foreclosing the said Mortgage. Mortgagee may assign and
transfer its interest in the Mortgage to [NAME OF ASSIGNEE], (hereinafter
referred to as "Assignee"). It is understood and agreed by all parties hereto
that upon making such assignment, Mortgagee shall be automatically released of
all obligations under this Agreement and that by acceptance of such assignment,
Assignee shall thereby assume all obligations of Mortgagee hereunder.

         9. This Agreement may be executed in three (3) or more counterparts by
one or more of the parties hereto and each such counterpart shall be deemed to
be an original and shall have the same force and effect as an original, and all
such counterparts in the aggregate shall constitute but one and the same
instrument.

IN WITNESS WHEREOF, each of the parties hereto have hereunto set their hands and
seals, as of the day and year first above written.

                                             LANDLORD

                                             TENANT

                                             MORTGAGEE

                                (ACKNOWLEDGMENTS)
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10.2
<SEQUENCE>18
<FILENAME>ex10-2_14663.txt
<DESCRIPTION>LEASE AGREEMENT DATED 11-02-2003
<TEXT>
                                                                    EXHIBIT 10.2
                                                                    ------------








================================================================================



                               AGREEMENT OF LEASE

                                     Between

                       104 WEST 40TH STREET PARTNERS, LLC,

                                    Landlord,

                                       and

                           BRIDGELINE SOFTWARE, INC.,

                                     Tenant.


                                    Premises:

                                   Suite 1010
                              104 West 40th Street
                               New York, New York



================================================================================
<PAGE>
                            LEASE INFORMATION SUMMARY


I.    LEASE DATE:                      November 26, 2003



II.   PARTIES AND ADDRESSES:

      A.  LANDLORD:                    104 West 40th Street Partners, LLC

      B.  LANDLORD'S ADDRESS
          FOR NOTICES:                 c/o RFR Realty, LLC
                                       400 Park Avenue - 15th floor
                                       New York, New York 10022

                                       with a copy to:

                                       Esanu Katsky Korins & Siger, LLP
                                       605 Third Avenue
                                       New York, New York 10158
                                       Attn: Randolph Amengual, Esq.

      C.  TENANT:                      Bridgeline Software, Inc.

      D.  TENANT'S ADDRESS
          FOR NOTICES:                 Prior to the Commencement Date:
                                       130 New Boston Street
                                       Woburn, Massachusetts 01801

                                       After the Commencement Date:

                                       104 West 40th Street
                                       New York, New York 10018



III.  PROPERTY INFORMATION:

      A.  PREMISES:                    A portion of the tenth (10th) floor
                                       of the Building, known as Suite 1010,
                                       as shown cross-hatched on Exhibit I
                                       annexed hereto and made a part hereof.

      B.  BUILDING:                    104 West 40th Street, New York, New York

      C.  REAL PROPERTY:               The real property on which the Building
                                       is located:



IV.   TERM:

      A.  TERM OF LEASE:               Seven (7) years and five (5) months

      B.  COMMENCEMENT DATE:           The date of substantial completion of
                                       Landlord's Work.


<PAGE>
      C.  EXPIRATION DATE:             The date immediately preceding seven (7)
                                       years and five (5) months after the
                                       Commencement Date, provided that if such
                                       date is not the last day of the calendar
                                       month, then the Expiration Date shall be
                                       extended to the last day of the calendar
                                       month in which the Term expires.



V.    RENT:

      A.  MINIMUM RENT
          (INCLUDING ELECTRICITY
          FACTOR):                     (i) One Hundred Thirty Two thousand and
                                       00/100 ($132,000.00) Dollars per annum
                                       ($11,000.00 per month) for the period
                                       commencing on the Commencement Date and
                                       ending on the day immediately preceding
                                       the third (3rd) anniversary of the
                                       Commencement Date; and

                                       (ii) One Hundred Forty Thousand Eight
                                       Hundred and 00/100 ($140,800.00) Dollars
                                       per annum ($11,733.33 per month) for the
                                       period commencing on the third (3rd)
                                       anniversary of the Commencement Date and
                                       ending on the Expiration Date.
      B.  MINIMUM RENT
          ABATEMENT PERIOD:            The second (2nd), third (3rd), fourth
                                       (4th), thirteenth (13th) and fourteenth
                                       (14th) full calendar months of the Term.

      C.  LANDLORD'S ADDRESS FOR
          PAYMENT OF RENT:             c/o RFR Realty, LLC
                                       400 Park Avenue - 15th floor
                                       New York, New York 10022


      D.  ELECTRICITY FACTOR:          $13,200.00 per annum

      E.  TENANT'S PROPORTIONATE
          SHARE:                       2.93%

      F.  BASE TAX AMOUNT:             The Taxes (as defined in Article 28) for
                                       the New York City fiscal tax year
                                       commencing on July 1, 2003 through June
                                       30, 2004.

      G.  BASE SECURITY YEAR:          The calendar year 2004.

      H.  BASE INSURANCE YEAR:         The calendar year 2004.

      I.  OPERATING ESCALATION:        Fixed 2.5% per annum increase in Minimum
                                       Rent.

      J.  SECURITY DEPOSIT:            $33,000.00



                                       ii
<PAGE>
      K.  LANDLORD'S WORK:             As described on Schedule B annexed hereto
                                       and made a part hereof.

      L.  TENANT UPGRADES:             $7,194.00 payable by Tenant upon
                                       execution of this Lease.



VI.   PERMITTED USES:
                                       General and executive offices.



VII.  BROKERS:

      A.  LANDLORD'S BROKER:           RFR Realty, LLC

      B.  TENANT'S BROKER:             Paul Rhodes-Williamson Picket Gross, Inc.




The summary of lease information set forth above and any addendum and/or
exhibits) and/or schedule(s) ("Riders") attached to this Lease are incorporated
into and made a part of the following Lease. Notwithstanding anything to the
contrary contained in this Lease, Articles 1 through 39 shall control the rights
and obligations of the parties hereto except that the provisions of any Riders
shall supersede any inconsistent provisions in Articles 1 through 39, as the
case may be.

























                                       iii
<PAGE>
                                TABLE OF CONTENTS

1.    BASIC LEASE TERMS......................................................  1
      A.  Premises; Rent ....................................................  1
      B.  Commencement Notice................................................  1
      C.  Rent Credit .......................................................  2
2.    USE AND OCCUPANCY......................................................  2
      A.  Permitted Uses ....................................................  2
      B.  Use Prohibitions ..................................................  2
3.    ALTERATIONS............................................................  2
      A.  Defined Terms .....................................................  2
      B.  Alterations Within Premises .......................................  3
      C.  Landlord's Supervisory Fee ........................................  4
      D.  Required Submissions; Permits......................................  4
      E.  Completion of Alterations..........................................  6
      F.  Liens..............................................................  6
      G.  Miscellaneous Conditions...........................................  7
      H.  Removal of Alterations.............................................  8
4.    REPAIRS - FLOOR LOAD ..................................................  9
5.    WINDOW CLEANING .......................................................  9
6.    REQUIREMENTS OF LAW ................................................... 10
7.    SUBORDINATION ......................................................... 10
      A.  Subordination ..................................................... 10
      B.  Attornment ........................................................ 11
8.    RULES AND REGULATIONS ................................................. 11
9.    INSURANCE.............................................................. 11
      A.  Tenant's Insurance ................................................ 11
      B.  Tenant's Other Insurance .......................................... 12
      C.  Waiver of Subrogation ............................................. 12
10.   DESTRUCTION OF THE PREMISES; PROPERTY LOSS OR DAMAGE................... 13
      A.  Repair of Damage .................................................. 13
      B.  Landlord's Termination Option ..................................... 13
      C.  Repair Delays ..................................................... 13
      D.  Provision Controlling ............................................. 13
      E.  Property Loss or Damage ........................................... 13
11.   CONDEMNATION........................................................... 14
      A.  Condemnation ...................................................... 14
      B.  Award ............................................................. 15
12.   ASSIGNMENT AND SUBLETTING.............................................. 15
      A.  Prohibition Without Consent ....................................... 15
      B.  Notice of Proposed Transfer ....................................... 15
      C.  Landlord's Takeback Options ....................................... 15
      D.  Effect of Termination by Landlord ................................. 16
      E.  Takeback by Landlord .............................................. 16
      F.  Effect of Takeback or Termination ................................. 17
      G.  Conditions for Landlord's Approval ................................ 17
      H.  Future Requests ................................................... 19
      I.  Sublease Provisions ............................................... 19
      J.  Profits From Assignment or Subletting ............................. 19



                                       iv
<PAGE>
      K.  Other Transfers ................................................... 20
      L.  Related Corporation ............................................... 20
      M.  Assumption by Assignee ............................................ 20
      N.  Liability of Tenant ............................................... 21
      O.  Listings .......................................................... 21
      P.  Exclusive Broker .................................................. 21
      Q.  Re-entry by Landlord .............................................. 21
13.   CONDITION OF PREMISES ................................................. 22
14.   ACCESS TO PREMISES .................................................... 22
15.   CERTIFICATE OF OCCUPANCY .............................................. 23
16.   LANDLORD'S LIABILITY .................................................. 23
17.   DEFAULT ............................................................... 24
      A.  Events of Default ................................................. 24
      B.  Effect of Bankruptcy............................................... 25
      C.  Conditional Limitation ............................................ 25
      D.  Repeated Defaults ................................................. 25
      E.  Landlord's Rights ................................................. 25
18.   REMEDIES AND DAMAGES .................................................. 25
      A.  Landlord's Remedies ............................................... 25
      B.  Damages............................................................ 26
      C.  Legal Fees......................................................... 27
19.   FEES AND EXPENSES...................................................... 28
      A.  Curing Tenant's Defaults .......................................... 28
      B.  Late Charges ...................................................... 28
20.   NO REPRESENTATIONS BY LANDLORD ........................................ 29
21.   END OF TERM............................................................ 29
      A.  Surrender of Premises ............................................. 29
      B.  Holdover By Tenant ................................................ 29
22.   QUIET ENJOYMENT ....................................................... 30
23.   FAILURE TO GIVE POSSESSION............................................. 30
24.   NO WAIVER ............................................................. 30
25.   WAIVER OF TRIAL BY JURY ............................................... 31
26.   INABILITY TO PERFORM .................................................. 31
27.   BILLS AND NOTICES ..................................................... 31
28.   ESCALATIONS ........................................................... 32
      A.  Defined Terms ..................................................... 32
      B.  Escalation......................................................... 33
      C.  Payment of Escalations............................................. 33
      D.  Adjustments ....................................................... 35
      E.  Operating Cost Increase ........................................... 36
      F.  Capital Improvements .............................................. 36
29.   SERVICES............................................................... 36
      A.  Elevator .......................................................... 36
      B.  HVAC .............................................................. 36
      C.  After Hours and Additional Services ............................... 37
      D.  Cleaning .......................................................... 38
      E.  Trash Removal...................................................... 38
      F.  Sprinkler System .................................................. 39
      G.  Water ............................................................. 39
      H.  Electricity Service................................................ 39


                                        v
<PAGE>

      I.  Energy Conservation................................................ 42
      J.  Interruption of Services .......................................... 43
30.   PARTNERSHIP TENANT..................................................... 43
      A.  Partnership Tenants ............................................... 43
      B.  Limited Liability Entities ........................................ 43
31.   VAULT SPACE ........................................................... 44
32.   SECURITY DEPOSIT....................................................... 44
      A.  Deposit of Security ............................................... 44
      B.  Letter of Credit .................................................. 44
      C.  Application of Security Deposit ................................... 45
33.   CAPTIONS............................................................... 45
34.   ADDITIONAL DEFINITIONS................................................. 45
35.   PARTIES BOUND ......................................................... 46
36.   BROKER ................................................................ 46
37.   INDEMNITY ............................................................. 47
38.   ADJACENT EXCAVATION; SHORING .......................................... 47
39.   MISCELLANEOUS ......................................................... 47
      A.  No Offer .......................................................... 47
      B.  Signatories ....................................................... 47
      C.  Certificates ...................................................... 48
      D.  Directory Listings ................................................ 48
      E.  Authority ......................................................... 48
      F.  Signage............................................................ 48
      G.  Consents and Approvals ............................................ 49
      H.  Rent Control ...................................................... 49
      I.  Right to Relocate.................................................. 49
      J.  Access to Premises................................................. 50
      K.  Confidentiality ................................................... 50










                                       vi
<PAGE>
      AGREEMENT OF LEASE, made between 104 WEST 40th STREET PARTNERS, LLC, as
landlord, and BRIDGELINE SOFTWARE, INC., a Delaware corporation, as tenant.

                                   WITNESSETH:

      The parties hereto, for themselves, their heirs, distributees, executors,
administrators, legal representatives, successors and assigns, hereby covenant
as follows:

1.    BASIC LEASE TERMS.

      A.  Premises: Rent. Landlord hereby leases to Tenant and Tenant hereby
hires from Landlord the Premises in the Building for the Term, to commence on
the Commencement Date and to end on the Expiration Date, both dates inclusive,
unless the Term shall sooner end pursuant to any of the terms, covenants or
conditions of this Lease or pursuant to law at the Minimum Rent, which Tenant
agrees to pay in lawful money of the United States which shall be legal tender
in payment of all debts and dues, public and private, at the time of payment, in
equal monthly installments, in advance, commencing on the Commencement Date and
on the first (1st) day of each calendar month thereafter during the Term (except
as hereinafter otherwise provided), at Landlord's Address for Payment of Rent or
such other place as Landlord may designate, without any set-off, offset,
abatement or deduction whatsoever, except that Tenant shall pay the first
monthly installment on the execution hereof. If the Commencement Date shall
occur on a date other than the first (1st) day of any calendar month, Tenant
shall pay to Landlord, on the first (1st) day of the month next succeeding the
month during which the Commencement Date shall occur, an amount equal to such
proportion of an equal monthly installment of Minimum Rent as the number of days
from and including the Commencement Date bears to the total number of days in.
said calendar month. Such payment, together with the sum paid by Tenant upon the
execution of this Lease, shall constitute payment of the Minimum Rent for. the
period from the Commencement Date to and including the last day of the next
succeeding calendar month. In the event that, on the Commencement Date, or
thereafter, Tenant shall be in default in the payment of Rent to Landlord
pursuant to the terms of another lease of space in the Building with Landlord or
with Landlord's predecessor-in-interest, Landlord may, at Landlord's option and
without notice to Tenant, add the amount of such arrearages to any monthly
installment of the Rent and the same shall be payable to Landlord as additional
rent hereunder.

      B.  Commencement Notice.

          (i) Landlord shall fix the Commencement Date in a notice to Tenant
given not sooner than five (5) days next following the date of the giving of
such notice, which notice shall state that Landlord has, or on or prior to the
commencement date fixed in said notice shall have, substantially completed
Landlord's Work. After the determination of the Commencement Date, and at
Landlord's request, prior to delivery of possession of the Premises to Tenant,
Tenant agrees, upon demand of Landlord, to execute, acknowledge and deliver to
Landlord an instrument, in form satisfactory to Landlord, setting forth the
Commencement Date and the Expiration Date.

          (ii) Notwithstanding anything contained herein to the contrary, and
provided that this Lease shall have been executed by Tenant and delivered to
Landlord together the first month's rent and the Security Deposit on or before
December 1, 2003, in the event that the Commencement Date has not occurred by
April 1, 2004, Tenant shall have the option to terminate this Lease upon thirty
(30) days' written notice to Landlord; provided, however, that in the event
Landlord delivers possession of the Premises to Tenant and the Commencement Date
occurs within such thirty (30) day period, Tenant's termination of this Lease
shall be null and void.


                                        1
<PAGE>
      C.  Rent Credit. Notwithstanding anything to the contrary hereinabove set
forth, provided Tenant is not in default under this Lease, Tenant shall be
entitled to a credit against the Minimum Rent exclusive of the Electrici Factor
(the "MINIMUM RENT ABATEMENT") for the second (2nd), third (3rd), fourth (4th),
thirteenth (13th) and fourteenth (14th) full calendar months of the Term. It is
understood and agreed that the Minimum Rent Abatement is given by Landlord in
consideration of Tenant's paying when due all rents under this Lease, and
otherwise complying with the terms hereof, and that in the event of any default
by Tenant under this Lease which results in the early termination hereof, (i)
the entire Minimum Rent Abatement given pursuant to this Subsection C, (ii) any
fee, commission or other compensation paid by Landlord to any broker or finder
in connection with this Lease, and (iii) the costs incurred by Landlord in
performing Landlord's Work shall, in addition to any other claims which Landlord
may have hereunder by reason of such default, become immediately due and payable
to Landlord as additional rent under this Lease.

2.    USE AND OCCUPANCY.

      A.  Permitted Uses. Tenant shall use and occupy the Premises for the
Permitted Uses, and for no other purpose.

      B.  Use Prohibitions. Tenant hereby represents, warrants and agrees that
Tenant's business is not and shall not be photographic, multilith or multigraph
reproductions or offset printing. Anything contained herein to the contrary
notwithstanding, Tenant shall not use the Premises or. any part thereof, or
permit the Premises or any part thereof to be used, (i) for the business of
photographic, multilith or multigraph reproductions or offset printing, (ii) for
a banking, trust company, depository, guarantee or safe deposit business, (iii)
as a savings bank, a savings and loan association or a loan company, (iv) for
the sale of travelers checks, money orders, drafts, foreign exchange or letters
of credit or for the receipt of money for transmission, (v) as a "retail" stock
broker's or dealer's office which shall be open to the general public (except
pursuant to prior appointment), (vi) as a restaurant or bar or for the sale of
confectionery, soda, beverages, sandwiches, ice cream or baked goods or for the
preparation, dispensing or consumption of food or beverages in any manner
whatsoever, (vii) as a news or cigar stand, (viii) as an employment agency,
labor union office, physician's or dentist's office or for the rendition of any
other diagnostic or therapeutic services, dance or music studio, school (except
for, the training of employees of Tenant), (ix) as a barber shop, beauty salon
or manicure shop, (x) for the retail sale of any goods or products, (xi) for a
public stenographer or typist, (xii) for a telephone or telegraph agency,
telephone or secretarial service for the public at large, (xiii) for a messenger
service for the public at large, (xiv) gambling or gaming activities, obscene or
pornographic purposes or any sort of commercial sex establishment, (xv) for the
possession, storage, manufacture or sale of alcohol, drugs or narcotics, (xvi)
for the conduct of a public auction, (xvii) for the offices or business of any
federal, state or municipal agency or any agency of any foreign government, or
(xviii) for any use that would cause the Premises to be deemed a place of public
accommodation under the Americans with Disabilities Act of 1990. Nothing in this
Subsection B shall preclude Tenant from using any part of the Premises for
photographic, multilith or multigraph reproductions in connection with, either
directly or indirectly, its own business and/or activities.

3.    ALTERATIONS.

      A.  Defined Terms. The following terms shall have the meanings
hereinafter set forth used throughout this Lease, Exhibits, Schedules and Riders
(if any).

                                        2
<PAGE>
          (i) "ALTERATIONS" shall mean and include all installations, changes,
alterations, restorations, renovations, decorations, replacements, additions,
improvements and betterments made in or to the Premises or the Building.

          (ii) "BUILDING SYSTEMS" shall mean the mechanical, gas, electrical,
sanitary, heating, air-conditioning, ventilating, elevator, plumbing,
life-safety and other service systems of the Building.

          (iii) "DECORATIVE ALTERATIONS" shall mean Alterations which do not
require the issuance of a building permit or any other governmental
authorization and which are purely decorative in nature (i.e., painting, the
installation or removal of carpeting or wall coverings and the installation or
relocation of modular office partitions).

          (iv) "LEGAL REQUIREMENTS" shall mean and include all laws orders,
ordinances, directions, notices, rules and regulations of the federal government
and of any state, county, city, borough and municipality, and of any division,
agency, subdivision, bureau, office, commission, board, authority and department
thereof, and of any public officer or official and of any quasi-governmental
officials and authorities, and of any insurance boards, having jurisdiction over
the Real Property, the Building and/or the Premises.

          (v) "NON-STRUCTURAL ALTERATIONS" shall mean non-structural,
non-mechanical and non-electrical Alterations.

          (vi) "Permits" shall mean all governmental permits, approvals,
licenses, authorizations, waivers, consents and certificates which may be
required in connection with the performance of any Alterations.

      B.  Alterations Within Premises.

          (i) Except as expressly provided to the contrary herein, Tenant shall
make no Alterations in or to the Premises, including removal of partitions,
doors, electrical installations, plumbing installations, water coolers, heating,
ventilating and air conditioning or cooling systems, units or parts thereof or
other apparatus of like or other nature, whether structural or non-structural,
without landlord's prior written consent, which consent Landlord agrees not to
unreasonably withhold or unduly delay with respect to Non-Structural Alterations
that are made entirely within the Premises and which do not (i) affect the
structure of the Building or any Building Systems outside (or serving parts of
the Building outside) the Premises, or (ii) violate, create a condition which
violates, or require Landlord to perform any work or incur any expense to ensure
compliance with, any Legal Requirements (it being agreed that, in all other
instances, Landlord may withhold its consent in Landlord's sole and absolute
discretion), and then only by contractors or mechanics approved in writing by
Landlord (which approval Landlord agrees not to unreasonably withhold or unduly
delay with respect to contractors or mechanics performing Non Structural
Alterations). Notwithstanding anything to the contrary contained in this
Subsection B, Tenant shall have the right, on not less than ten (10) days' prior
written notice to Landlord, but without being required to obtain Landlord's
consent, to perform Decorative Alterations in or to the Premises, provided that:
(y) Tenant shall comply with all applicable Legal Requirements and all of the
other applicable requirements governing Alterations set forth in this Lease, and
(z) such Decorative Alterations shall be performed only by contractors or
mechanics approved in writing by Landlord (which approval Landlord agrees not to
unreasonably withhold or unduly delay with respect to contractors or mechanics
performing such Decorative' Alterations). Landlord expressly reserves the right
to exclude from the Building any person, firm or corporation attempting to
perform any Alterations or act as construction contractor or manager without
Landlord's prior written consent, which consent shall not be unreasonably
withheld or

                                        3
<PAGE>
delayed, except with respect to contractors performing structural, mechanical or
electrical work with respect to which Landlord may withhold its consent in its
sole discretion.

          (ii) It shall be Tenant's responsibility and obligation to ensure that
all Alterations: (1) shall be made at Tenant's own cost and expense and at such
times and in such manner as Landlord may from time to time designate (including
reasonable rules governing Alterations as Landlord may from time to time make),
(2) shall comply with all Legal Requirements (including New York City Local Laws
No. 5 of 1973, No. 16 of 1984 and No. 58 of 1988, each as amended from time to
time, and all Legal Requirements then in effect relating to asbestos and to
access for the handicapped or disabled), (3) shall be made promptly and in a
good and workmanlike manner using materials substantially similar in quality to
the standard generally used in the Building or higher quality materials, and (4)
shall not affect the appearance of the Building outside of the Premises or be
visible from the exterior of the Building, it being landlord's intention to keep
the exterior appearance of the Building reasonably uniform (and, in pursuance
thereof, Landlord shall have the right to approve the appearance of all such
Alterations, including ceiling heights, blinds, lighting, signs and other
decorations which are visible from the exterior of the Building or the Premises,
which approval shall not be unreasonably withheld, provided that the exterior
appearance of such Alterations shall comply with all Legal Requirements and be
consistent with Landlord's intention to maintain a uniform exterior appearance
of the Building).

      C.  Landlord's Supervisory Fee. Tenant agrees to pay to Landlord as a
supervisory fee an amount equal to seven (7%) percent of the cost of any
Alterations to be performed by Tenant (other than Decorative Alterations) in
each instance. Such supervisory fee shall be paid by Tenant to Landlord prior to
the commencement of any such Alterations, based on the estimated cost of such
Alterations, and upon the completion of such Alterations, Tenant shall pay to
Landlord the difference, if any, between (i) seven (7%) percent of the actual
cost of such Alterations, and (ii) the amount previously paid as the estimated
supervisory fee prior to the commencement of such Alterations. In addition,
within ten (10) days after being billed therefor, Tenant shall reimburse
Landlord, as additional rent, for any reasonable out-of-pocket expenses to third
parties reasonably incurred by Landlord in connection with any Alterations
performed by Tenant.

      D.  Required Submissions; Permits.

          (i) Prior to commencing the performance of any Alterations (other than
Decorative Alterations), Tenant shall furnish to Landlord:

              (1) Plans and specifications prepared by a licensed architect or
engineer engaged by Tenant, at the sole cost and expense of Tenant, in
sufficient detail to be accepted for filing by the New York City Building
Department (or any successor or other governmental agency serving a similar
function) of such proposed Alterations (the "PLANS AND SPECIFICATIONS"), and in
accordance with the requirements set forth on Schedule C-1 annexed hereto and
made a part hereof. Tenant shall not commence the performance thereof unless and
until Landlord has given written consent to the Plans and Specifications (which
consent, subject to the provisions of Subparagraph B(i) above, shall not be
unreasonably withheld with respect to Plans and Specifications for
Non-Structural Alterations). Landlord's approval of the Plans and Specifications
shall be evidenced by written endorsement by an authorized representative of
Landlord to that effect on two (2) sets of the Plans and Specifications, one (1)
set to be retained by Landlord and the other to be returned to Tenant. If
Landlord shall disapprove the Plans and Specifications, then Tenant shall in
good faith promptly proceed to amend the Plans and Specifications to satisfy
Landlord's objections and shall resubmit such amended Plans and Specifications
to Landlord for approval.

                                        4
<PAGE>
              (2) A certificate evidencing that Tenant (or Tenant's contractors)
has (have) procured and paid for worker's compensation insurance covering all
persons employed in connection with the work, who might assert claims for death
or bodily injury against Landlord, Tenant, the Real Property and/or the Building
as set forth in Schedule D, and such additional personal injury and property
damage insurance (over and above the insurance required to be carried by Tenant
pursuant to the provisions of Article 9), builder's risk, fire and other
casualty insurance as Landlord may reasonably require in connection with the
Alterations.

              (3) If the work to be undertaken is of such, a nature that it
requires the approval of any Mortgagee (as defined in Article 7) or Lessor (as
defined in Article 7), such approval shall be obtained at Tenant's cost and
expense and Landlord hereby agrees, at Tenant's request but at no cost or
expense to Landlord, to use reasonable efforts to cooperate with Tenant with
respect to Tenant's obtaining such approval; if the work requires expenditures
by Tenant in excess of $50,000.00 (exclusive of the cost of Decorative
Alterations), a surety company performance bond in form and substance
satisfactory to Landlord (procured at Tenant's cost and expense), issued by a
surety company reasonably acceptable to Landlord, or other security reasonably
satisfactory to Landlord, in an amount equal to at least 125% of the estimated
cost of such Alterations, guaranteeing to Landlord and any Mortgagee and/or
Lessor the completion thereof and payment therefor within a reasonable time,
free and clear of all liens, encumbrances, chattel mortgages, security
interests, conditional bills of sale and other charges, and in accordance with
the plans and specifications approved by Landlord, and such other security as
may be satisfactory to Landlord in its sole judgment.

              (4) Such permits, authorizations or consents as may be required by
any applicable Legal Requirements, all of which shall be obtained at Tenant's
cost and expense, provided, however, that no plans, specifications or
applications shall be filed by Tenant with any governmental authority without
Tenant first obtaining Landlord's written consent thereto.

              (5) A written letter of authorization, in form reasonably
satisfactory to Landlord, signed by all architects, engineers, surveyors and
designers to become involved in such Alterations, which shall confirm that, if
Tenant shall abandon performance of any such Alterations, any of their
respective drawings or plans are to be removed from any filing with governmental
authorities on the request of Landlord.

          (ii) Landlord's engineer, at Tenant's expense, will design, in
accordance with the Plans and Specifications, all engineering work required for
air-conditioning, duct, distribution, electric, sprinklers and ventilation. In
the event Tenant shall require engineering services for any structural work
(which work has been previously approved by Landlord) or as a result of changes
in the Plans and Specifications, layout or Tenant's requirements for occupancy,
or for any other purposes which require additional engineering services, such
engineering services shall be performed by Landlord's engineer only, and Tenant
shall reimburse Landlord within ten (10) days of receipt of a statement for the
reasonable cost of such engineering services.

          (iii) Upon Landlord's approval of the Plans and Specifications, Tenant
shall cause the Plans and Specifications (including mechanical plans and
specifications) to be filed with the governmental agencies having jurisdiction
thereof, in order to obtain, and shall obtain all Permits which may be required
in connection with the, performance of such Alterations. All of the Plans and
Specifications shall be filed by, and all Permits which are required shall be
obtained by, Landlord's expediter, at Tenant's sole cost and expense. Landlord
shall with reasonable promptness sign the applications for such Permits prepared
by Tenant which require Landlord's signature and Tenant shall

                                        5
<PAGE>
indemnify and hold Landlord harmless against any claim, cost, liability or
expense resulting from any error, omission or other impropriety or deficiency in
any such application.

          (iv) Tenant hereby agrees that it shall afford Landlord and/or any
affiliate of Landlord the opportunity to submit a bid as general contractor or
subcontractor, as the case may be, for any Alterations.

      E.  Completion of Alterations.

          (i) Tenant, at Tenant's sole cost and expense, shall complete all
Alterations in accordance with the provisions of this Article 3 and this Lease.
Alterations shall be deemed completed at such time as (a) all certifications,
approvals, licenses and permits with respect to such Alterations that may be
required to evidence compliance with all Legal Requirements have been obtained
and delivered to Landlord, and (b) Tenant shall (1) furnish evidence
satisfactory to Landlord that all Alterations have been completed and paid for
in full and that any and all liens therefor that have been, or might be filed
have been discharged of record or waived and that no security interests relating
thereto are outstanding, (2) pay Landlord for the cost of any work performed by
Landlord on Tenant's behalf in connection with such Alterations, (3) except as
to Decorative Alterations, furnish Landlord with one (1) set of sepia mylar
transparent reproducible "as built" drawings of the Premises together with four
(4) sets of prints of the same, and the same in CADD format, (4) except as to
Decorative Alterations, furnish an affidavit in the form recommended by the
American Institute of Architects from Tenant's registered architect certifying
that the Alterations have been performed in accordance with the Plans and
Specifications as approved by Landlord. Tenant shall indemnify and save harmless
Landlord and its agents from and against any and all claims, actions,
liabilities and obligations arising from any work in connection with, or other
matters related to, the Alterations.

          (ii) Tenant shall keep accurate and complete cost records of all
Alterations performed by Tenant, and shall furnish to Landlord true copies
thereof and/or of all contracts entered into and work orders issued by Tenant in
connection therewith within thirty (30) days following completion of the
Alterations. Landlord's review of, and/or any failure by Landlord to object to,
any such contract or work order shall not: (a) be construed as an approval by
landlord of such contract or work order or the contents thereof, (b) impose any
liability on Landlord in connection therewith, or (c) relieve Tenant of any
obligation of Tenant with respect to such Alterations or the Premises as
otherwise set forth in this Lease.

      F.  Liens.

          (i) In no event shall any material or equipment be incorporated in or
affixed to the Premises in connection with any Alterations which is subject to
any lien, encumbrances, chattel mortgage, security interest, charge of any kind
whatsoever, or is subject to any conditional sale or other similar or dissimilar
title retention agreement.

          (ii) Tenant shall not create or permit to be created any lien,
encumbrance or charge (levied on account of any taxes or any mechanic's,
laborer's or materialman's lien, conditional sale, title retention agreement or
otherwise) which might be or become a lien, encumbrance or charge upon the Real
Property or Building or any part thereof or the income therefrom, and Tenant
shall not suffer any other matter or thing whereby the estate, rights and
interest of Landlord in the Real Property or Building or any part thereof might
be impaired. Tenant shall take all steps necessary under local laws to prevent
the imposition of such a lien, encumbrance or charge on the Real Property or
Building.

                                        6
<PAGE>
          (iii) If any lien, encumbrance or charge referred to in this
Subsection F shall at any time be filed against the Real Property or Building or
any part thereof, then Tenant, within twenty (20) days after Tenant shall have
received notice of the filing thereof and at Tenant's cost and expense, shall
cause the same to be discharged of record by bonding or otherwise, and Tenant
shall indemnify Landlord against and defend and hold Landlord harmless from all
costs, expenses, liabilities, losses, fines and penalties, including reasonable
attorneys' fees and disbursements, resulting therefrom. If Tenant shall fail to
cause such lien to be discharged within the aforesaid period, then, in addition
to any other right or remedy, Landlord may discharge the same either by paying
the amount claimed to be due or by procuring the discharge of such lien by
deposit or by bonding proceedings, and in any such event Landlord shall be
entitled, if Landlord so elects, to compel the prosecution of an action for the
foreclosure of such lien by the lienor and to pay the amount of the judgment in
favor of the lienor with interest, costs and allowances. Any amount so paid by
Landlord and all costs and expenses incurred by Landlord in connection
therewith, together with interest thereon at, the Interest Rate (as defined in
Article 19), shall constitute additional rent payable by Tenant under this
Lease, which additional rent shall be paid by Tenant to Landlord within ten (10)
days following delivery of a bill therefor to Tenant.

      G.  Miscellaneous Conditions.

          (i) Tenant shall not at any time, either directly or indirectly, use
any contractors or labor or materials in the Premises if the use of such
contractors or labor or materials would create any work stoppage, picketing,
labor disruption or any other difficulty with other contractors or labor engaged
by Tenant or Landlord or others in the construction, maintenance or operation of
the Building or any part thereof. Tenant shall immediately stop any work or
other activity if Landlord shall notify Tenant that continuing such work or
activity would violate the provisions of the immediately preceding sentence.

          (ii) Landlord shall not be liable for any failure or diminution of any
Building Systems or services, or for any damage to Tenant's property or the
property of any other person, caused by Alterations made by Tenant,
notwithstanding Landlord's consent thereto or to the plans and specifications
therefor. Tenant shall promptly correct any faulty or improper Alteration made
by Tenant and shall repair any and all damage caused thereby. Upon Tenant's
failure to promptly make such corrections and repairs, Landlord may make such
corrections and repairs and charge Tenant for the cost thereof and any such
charge shall be deemed additional rent, and shall be paid by Tenant to Landlord
within ten (10) days following delivery of a bill therefor to Tenant. The review
and/or approval by Landlord, its agents, consultants and/or contractors, of any
Alterations or of Plans and Specifications therefor and the coordination of the
performance of such Alterations with the Building, are solely for the benefit of
Landlord, and neither Landlord nor any of its agents, consultants or contractors
shall have any duty toward Tenant; nor shall Landlord or any of its agents,
consultants and/or contractors be deemed to have made any representation or
warranty to Tenant, or have any liability, with respect to the safety, adequacy,
correctness, efficiency or compliance with Legal Requirements of my plans and
specifications, Alterations or any other matter relating thereto.

          (iii) All Alterations to be performed by Tenant shall be done in a
manner which will not interfere with or disturb other tenants and occupants, of
the Building nor delay or impose any additional expense on Landlord in the
maintenance, cleaning, repair, safety, management and security of the Building
or the Building Systems or in the performance of any improvements in the
Building. Landlord shall have the right to inspect the performance of the
Alterations at any time to verify compliance by Tenant with the provisions of
this Lease.

          (iv) Landlord shall permit Tenant's contractors and suppliers to move
construction materials, supplies and equipment for the Alterations to the
Premises and to remove construction waste

                                        7
<PAGE>
and debris therefrom, by an elevator to be designated by Landlord at times
appointed by Landlord after normal business hours or on other than business
days, giving effect to other previously made appointments. Tenant's contractors
and suppliers shall pay Landlord's then established charges for the use of such
elevator as additional rent. Such elevator use shall be subject to reasonable
scheduling and supervision by Landlord. Tenant shall, and shall cause its
contractors and suppliers to, comply with Landlord's rules and regulations, and
Landlord's directions for the coordination and control of construction
activities in the Building and the protection and security of the Building and
its systems and occupants.

          (v) If Tenant shall fail to comply with any provision of this Article
3 (beyond notice and the expiration of any applicable cure period), Landlord, in
addition to any other remedy herein provided, may require Tenant to immediately
cease all work being performed in the Building by or on behalf of Tenant, and
Landlord may deny access to the Premises to any person performing work or
supplying materials in the Premises.

          (vi) Tenant shall make any and all modifications and additions and
replacements to the existing sprinkler and alarm systems within or serving the
Premises as may be necessitated by any Alterations.

          (vii) All Alterations shall be subject to the provisions of Schedule
C-2 annexed hereto and made a part hereof, as well as such other reasonable
rules and regulations as Landlord may promulgate.

          H.  Removal of Alterations.

          (i) All movable property, furniture, furnishings and trade fixtures
furnished by or at the expense of Tenant, other than those affixed to the
Premises so that they cannot be removed without damage and other than those
replacing an item theretofore furnished and paid for by Landlord or for which
Tenant has received a credit or allowance, shall remain the property of Tenant,
and may be removed by Tenant from time to time prior to the expiration of the
Term. All Alterations made by Tenant, including all paneling, decorations,
partitions, railings, mezzanine floors, galleries and the like, which are
affixed to the Premises, shall become the property of Landlord and shall be
surrendered with the Premises at the end of the Term, provided, however, that
Landlord may elect to require Tenant to remove, prior to the expiration or
earlier termination of the Term, at Tenant's expense, any Alterations.
Notwithstanding the foregoing, Tenant shall not be required to remove any
Alterations which are approved by Landlord in accordance with this Article 3,
except that Tenant acknowledges that Tenant shall be obligated to remove, prior
to the expiration or earlier termination of the Term, at Tenant's expense, any
Alterations made by Tenant consisting of raised floors, vaults, internal
staircases, pneumatic tubes, vertical and horizontal transportation systems, and
any other installations which would cost more to remove than ordinary office
installations.

          (ii) In any case where Tenant removes any property or Alterations in
accordance with Subsection H(i) or otherwise, Tenant shall immediately repair
all damage caused by said removal and shall restore the Premises to good order
and condition at Tenant's expense, and if Tenant fails to do so, Landlord may do
so at Tenant's cost and Tenant shall reimburse Landlord therefor within ten (10)
days of rendition of a bill therefor. Upon failure of Tenant to remove any such
property or Alterations, Landlord may, at Tenant's expense: (a) remove all such
property and Alterations which Landlord may require Tenant to remove pursuant to
Subsection H(i), (b) cause the same to be placed in storage, and (c) repair any
damage caused by said removal and restore the Premises to good order and
condition. Tenant

                                        8
<PAGE>
shall reimburse Landlord for all of the aforesaid expenses within ten (10) days
of rendition of a bill therefor.

          (iii) Notwithstanding anything to the contrary contained in, this
Subsection H, any items of property or Alterations not removed by Tenant may, at
the election of Landlord, be deemed to have been abandoned by Tenant, and
Landlord may retain and dispose of said items without any liability to Tenant
and without accounting to Tenant for the proceeds thereof.

          (iv) The provisions of this Subsection H shall survive the expiration
or sooner termination of the Term, whereupon any and all monetary obligations of
Tenant pursuant thereto shall be deemed damages recoverable by Landlord.

4.    REPAIRS - FLOOR LOAD. Landlord shall maintain and repair the public
portions of the Building, both exterior and interior. Tenant shall, throughout
the Term, take good care of the Premises and the fixtures and appurtenances
therein and at Tenant's sole cost and expense, make all nonstructural repairs
thereto as and when needed to preserve them in good working order and condition,
reasonable wear and tear and damage for which Tenant is not responsible under
the terms of this Lease excepted. Tenant shall pay Landlord for all replacements
to the lamps, tubes, ballasts and starters in the lighting fixtures installed in
the Premises within ten (10) days after rendition of a bill therefor.
Notwithstanding the foregoing, all damage or injury to the Premises or to any
other part of the Building, or to its fixtures, equipment and appurtenances,
whether requiring structural or nonstructural repairs, caused by or resulting
from carelessness, omission, neglect or improper conduct of or Alterations made
by Tenant or any of Tenant's servants, employees, invitees or licensees, shall
be repaired promptly by Tenant, at its sole cost and expense, to the
satisfaction of Landlord. Tenant also shall repair all damage to the Building
and the Premises caused by the moving of Tenant's fixtures, furniture or
equipment. All the aforesaid repairs shall be of quality and class equal to the
original work or construction and shall be made in accordance with the
provisions of Article 3 hereof. If Tenant fails after ten (10) days' notice to
proceed with due diligence to make repairs required to be made by Tenant
hereunder, the same may be made by Landlord, at the expense of Tenant, and the
expenses thereof incurred by Landlord shall be collectible by Landlord as
additional rent within ten (10) days after rendition of a bill or statement
therefor. Tenant shall give Landlord prompt notice of any defective condition in
any plumbing, electrical, air-cooling or heating system located in, servicing or
passing through the Premises. Tenant shall not place a load upon any floor of
the Premises exceeding the floor load per square foot area which such floor was
designed to carry and which is allowed by law. Landlord reserves the right to
prescribe the weight and position of all safes, business machines and heavy
equipment and installations. Business machines and mechanical equipment shall
be, placed and maintained by Tenant at Tenant's expense in settings sufficient
in Landlord's judgment to absorb and prevent vibration, noise and annoyance.
Except as expressly provided in Article 10 hereof, there shall be no allowance
to Tenant for a diminution of rental value and no liability on the part of
Landlord by reason of inconvenience, annoyance or injury to business arising
from Landlord, Tenant or others making, or failing to make, any repairs,
alterations, additions or improvements in or to any portion of the Building, or
the Premises, or in or to fixtures, appurtenances, or equipment thereof. If the
Premises be or become infested with vermin, Tenant, at Tenant's expense, shall
cause the same to be exterminated from time to time to the satisfaction of
Landlord and shall employ such exterminators and such exterminating company or
companies as shall be approved by Landlord. The water and wash closets and other
plumbing fixtures shall not be used for any purposes other than those for which
they were designed or constructed, and no sweepings, rubbish, rags, acids or
other substances shall be deposited therein.

5.    WINDOW CLEANING. Tenant shall not clean, nor require, permit, suffer or
allow any window in the Premises to be cleaned, from the outside in violation of
Section 202 of the Labor Law, or

                                        9
<PAGE>
any other applicable law, or of the rules of the Board of Standards and Appeals,
or of any other board or body having or asserting jurisdiction.

6.    REQUIREMENTS OF LAW. Tenant, at its sole expense, shall comply with all
Legal Requirements which shall now or hereafter impose any violation, order or
duty upon Landlord or Tenant with respect to the Premises as a result of the
use, occupation or alteration thereof by Tenant. Tenant shall not do or permit
to be done any act or thing upon the Premises which will invalidate or be in
conflict with any insurance policies covering the Building and fixtures and
property therein; and shall not do, or permit anything to be done in or upon the
Premises, or bring or keep anything therein, except as now or hereafter
permitted by the New York City Fire Department, New York Board of Fire
Underwriters, New York Fire Insurance Rating Organization or other authority
having jurisdiction and then only in such quantity and manner of storage as not
to increase the rate for fire insurance applicable to the Building, or use the
Premises in a manner which shall increase the We of fire insurance on the
Building or on property located therein, over that in similar type buildings or
in effect prior to this Lease. Any work or installations made or performed by or
on behalf of Tenant or any person claiming through or under Tenant pursuant to
this Article shall be made in, conformity with, and subject to the provisions
of, Article 3 hereof. If by reason of Tenant's failure to comply with the
provisions of this Article, the fire insurance rate shall at the beginning of
this Lease or at any time thereafter be higher than it otherwise would be, then
Tenant shall reimburse Landlord, as additional rent hereunder, for that part of
all fire insurance premiums thereafter paid by Landlord which shall have been
charged because of such failure of use by Tenant, and shall make such
reimbursement upon the first day of the month following such outlay by Landlord.
In any action or proceeding wherein Landlord and Tenant are parties, a schedule
or "make up" of rates for the Building or the Premises issued by the New York
Fire Insurance Rating Organization, or other body fixing such fire insurance
rates, shall be conclusive evidence of the facts therein stated and of the
several items and charges in the fire insurance rates then applicable to the
Premises.

7.    SUBORDINATION.

      A.  Subordination. This Lease is subject and subordinate to each and every
ground or underlying lease of the Real Property or the Building heretofore or
hereafter made by Landlord (collectively the "SUPERIOR LEASES") and to each and
every trust indenture and mortgage (collectively the "MORTGAGES") which may now
or hereafter affect the Real Property, the Building or any such Superior Lease
and the leasehold interest created thereby, and to all renewals, extensions,
supplements, amendments, modifications, consolidations, and replacements thereof
or thereto, substitutions therefor and advances made thereunder. This clause
shall be self-operative and no further instrument of subordination shall be
required to make the interest of any lessor under a Superior Lease (a "Lessor"),
or trustee or mortgagee of a Mortgage (a "MORTGAGEE") superior to the interest
of Tenant hereunder. In confirmation of such subordination, however, Tenant
shall execute promptly any certificate that Landlord may request and Tenant
hereby irrevocably constitutes and appoints Landlord as Tenant's
attorney-in-fact to execute any such certificate or certificates for and on
behalf of Tenant. If the date of expiration of any Superior Lease shall be the
same day as the Expiration Date, the Term shall end and expire twelve (12) hours
prior to the expiration of the Superior Lease. Tenant covenants and agrees that,
except as expressly provided herein, Tenant shall not do anything that would
constitute a default under any Superior Lease or Mortgage, or omit to do
anything that Tenant is obligated to do under the terms of this Lease so as to
cause Landlord to be in default under any of the foregoing. If, in connection
with the financing of the Real Property, the Building or the interest of the
lessee under any Superior Lease, any lending institution shall request
reasonable modifications of this Lease that do not materially increase the
obligations or materially and adversely affect the rights of Tenant under this
Lease, Tenant covenants to make such modifications.

                                       10
<PAGE>
          B.  Attornment. If at any time prior to the expiration of the Term,
any Mortgage shall be foreclosed or any Superior Lease shall terminate or be
terminated for any reason, Tenant agrees, at the election and upon demand of any
owner of the Real Property or the Building, or the lessor under any such
Superior Lease, or of any mortgagee in possession of the Real Property or the
Building, to attorn, from time to time, to any such owner, lessor or mortgagee,
upon the then executory terms and conditions of this Lease, for the remainder of
the term originally demised in this Lease, provided that such owner, lessor or
mortgagee, as the case may be, or receiver caused to be appointed by any of the
foregoing, shall not then be entitled to possession of the Premises. The
provisions of this Subsection B shall inure to the benefit of any such owner,
lessor or mortgagee, shall apply notwithstanding that, as a matter of law, this
Lease may terminate upon the termination of any such Superior Lease, and shall
be self-operative upon any such demand, and no further instrument shall be
required to give effect to said provisions. Tenant, however, upon demand of any
such owner, lessor or mortgagee, agrees to execute, from time to time,
instruments in confirmation of the foregoing provisions of this Subsection B,
satisfactory to any such owner, lessor or mortgagee, acknowledging such
attornment and setting forth the terns and conditions of its tenancy. Nothing
contained in this Subsection B shall be construed to impair any right otherwise
exercisable by any such owner, lessor or mortgagee.

8.    RULES AND REGULATIONS.  Tenant and Tenant's servants, employees, agents,
visitors, and licensees shall observe faithfully, and comply strictly with, the
Rules and Regulations annexed hereto and made a part hereof as Schedule A and
such other and further reasonable Rules and Regulations as Landlord or
Landlord's agents may from time to time adopt (collectively, the "RULES AND
REGULATIONS") on such notice to be given as Landlord may elect. In case Tenant
disputes the reasonableness of any additional Rule or Regulation hereafter made
or adopted by Landlord or Landlord's agents, the parties hereto agree to submit
the question of the reasonableness of such Rule or Regulation for decision to
the Chairman of the Board of Directors of the Management Division of The Real
Estate Board of New York, Inc., or to such impartial person or persons as he may
designate, whose determination shall be final and conclusive upon the parties
hereto. The right to dispute the reasonableness of any additional Rule or
Regulation upon Tenant's part shall be deemed waived unless the same shall be
asserted by service of a notice in writing upon Landlord within ten (10) days
after receipt by Tenant of written notice of the adoption of any such additional
Rule or Regulation. Nothing in this Lease contained shall be construed to impose
upon Landlord any duty or obligation to enforce the Rules and Regulations or
terms, covenants or conditions in any other lease, against any other tenant and
Landlord shall not be liable to Tenant for violation of the same by any other
tenant, its servants, employees, agents, visitors or licensees; provided,
however, that Landlord agrees that it shall not enforce the Rules and
Regulations against Tenant in a discriminatory manner.

9.    INSURANCE.

      A.  Tenant's Insurance. Tenant shall obtain at its own expense and keep in
fu11 force and effect from the date of full execution and delivery of this Lease
tough the Expiration Date, a policy of commercial general liability and property
damage insurance including broad form contractual liability coverage under which
Tenant is named as the insured, and Landlord (and each member thereof in the
event Landlord is a partnership or joint venture), RFR Realty LLC (and any other
mortgagee or interested parties from time to time designated by RFR Realty LLC),
are named as additional insureds, as their interests may appear. Such policy
shall contain (i) a provision that no act or omission of Tenant shall affect or
limit the obligation of the insurance company to pay the amount of any loss
sustained, (ii) a waiver of subrogation against Landlord or a consent to a
waiver of right of recovery against Landlord, and (iii) an agreement by the
insurer that it will not make any claim against or seek to recover from Landlord
for any loss, damage or claim whether or not covered under such policy. Such
policy shall also contain a provision that the insurance company will not cancel
or refuse to renew the policy, or change in any

                                       11
<PAGE>
material way the nature or extent of the coverage provided by such policy,
without first giving Landlord at least thirty (30) days' written notice by
certified mail, return receipt requested, which notice shall contain the policy
number and the names of the insureds and policy holder. The minimum limits of
liability shall be a combined single limit with respect to each occurrence in an
amount of not less than $2,000,000 for injury (or death) and damage to property
or such greater amount as Landlord may, from time to time, reasonably require.
Tenant shall provide to Landlord upon execution of this Lease and at least
thirty (30) days prior to the termination of any existing policy, a certificate
evidencing the effectiveness of the insurance policies required to be maintained
hereunder, and Tenant shall provide Landlord with a complete copy of any such
policy upon written request of Landlord. Tenant shall have no right to obtain
any of the insurance required hereunder pursuant to a blanket policy covering
other properties unless the blanket policy contains an endorsement that names
Landlord, Landlord's managing agent and/or designees specified by Landlord from
time to time, as additional insureds, references the Premises, and guarantees a
minimum limit available for the Premises equal to the amount of insurance
required to be maintained hereunder. Each policy required hereunder shall
contain a clause that the policy and the coverage evidenced thereby shall be
primary with respect to any policies carried by Landlord, and that any coverage
carried by Landlord shall be excess insurance. The limits of the insurance
required under this Article 9 shall not limit the liability of Tenant under this
Lease. All insurance required to be carried by Tenant pursuant to the terms of
this Lease shall be effected under valid and enforceable policies issued by
reputable and independent insurers permitted to do business in the State of New
York, and rated in Best's Insurance Guide, or any successor thereto (or if there
be, none, an organization having a national reputation) as having a general
policyholder rating of "A" and a financial rating of at least "13". In the event
that Tenant fails to continuously maintain insurance as required by this Article
9, Landlord may, at its option and without relieving Tenant of any obligation
hereunder, order such insurance and pay for the same at the expense of Tenant.
In such event, Tenant shall repay the amount expended by Landlord, with interest
thereon, immediately upon Landlord's written demand therefor.

      B.  Tenant's Other Insurance.  Tenant shall also maintain at its own
expense during the Term a policy against fire and other casualty on Tenant's
construction within the Premises and Tenant property and improvements, including
without limitation, all furniture, fixtures, personal property and inventory
located in the Premises on an "all-risk" form sufficient to provide 100%
replacement value of such personal property, which policy shall otherwise comply
with the provisions of Subsections A and C of this Article 9. Tenant shall also
maintain at its own expense during the Term a policy of workers' compensation
insurance providing statutory benefits for Tenant's employees and employer's
liability.

      C.  Waiver of Subrogation. The parties hereto shall procure an appropriate
clause in, or endorsement on, any fire or extended coverage property insurance
covering the Premises and the Building, as well as personal property, fixtures
and equipment located thereon or therein, pursuant to which the insurance
companies waive subrogation or consent to a waiver of right of recovery, and
having obtained such clauses or endorsements of waiver of subrogation or consent
to a waiver of right of recovery, will not make any claim against or seek to
recover from the other for any loss or damage to its property or the property of
others resulting from fire or other hazards covered by such fire and extended
coverage insurance, provided, however that the release, discharge, exoneration
and covenant not to sue herein contained shall be limited by and be coextensive
with the terms and provisions of the waiver of subrogation clause or
endorsements or clauses or endorsements consenting to a waiver of right of
recovery. If the payment of an additional premium is required for the inclusion
of such waiver of subrogation provision, each party shall advise the other of
the amount of any such additional premiums and the other party at its own
election may, but shall not be obligated to, pay the same. If such other party
shall not elect to pay such additional premium, the first party shall not be
required to obtain such waiver of subrogation provision. Tenant acknowledges
that Landlord will not carry insurance on and shall not be

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<PAGE>
responsible for damage to, Tenant's fixtures, furnishings, equipment or other
property or effects, and that Landlord shall not carry insurance against, or be
responsible for any loss suffered by Tenant due to, interruption of Tenant's
business.

10.   DESTRUCTION OF THE PREMISES; PROPERTY LOSS OR DAMAGE.

      A.  Repair of Damage. If the Premises shall be damaged by fire or other
casualty, the damages shall be repaired by and at the expense of Landlord
promptly following notice thereof by Tenant and the Rent until such repairs
shall be made shall be reduced in the proportion which the area of the part of
the Premises which is not usable by Tenant bears to the total area of the
Premises; provided, however, should Tenant reoccupy a portion of the Premises
for the conduct of its business prior to the date such repairs are made, the
Rent shall be reinstated with respect to such reoccupied portion of the Premises
and shall be payable by Tenant from the date of such occupancy. Landlord shall
have no obligation to repair any damage to, or to replace, any fixtures,
furniture, furnishings, equipment or other property or effects of Tenant.

      B.  Landlord's Termination Option. Anything in Subsection A of this
Article 10 to the contrary notwithstanding, if the Premises are totally damaged
or are rendered wholly untenantable, and if Landlord shall decide not to restore
the Premises, or if the Building shall be so damaged by fire, or other casualty
that, in Landlord's opinion, either substantial alteration, demolition or
reconstruction of the Building shall be required (whether or not the Premises
shall have been damaged or rendered untenantable) or the Building, after its
repair, alteration or restoration shall not be economically viable as an office
building, then in any of such events, Landlord, at Landlord's option, may, not
later than ninety (90) days following the damage, give Tenant a notice in
writing terminating this Lease. If Landlord elects to terminate this Lease, the
Term shall expire upon the tenth (10th) day after such notice is given, and
Tenant shall vacate the Premises and surrender the same to Landlord. If Tenant
shall not be in default under this Lease, then upon the termination of this
Lease under the conditions provided for in the next preceding sentence, Tenant's
liability for Rent shall cease as of the day following such damage.

      C.  Repair Delays. Landlord shall not be liable for reasonable delays
which may arise by reason of adjustment of fire insurance on the part of
Landlord and/or Tenant, and for reasonable delays on account of labor troubles
or any other cause beyond Landlord's control.

      D.  Provision Controlling. The parties agree that this Article 10
constitutes an express agreement governing any case of damage or destruction of
the Premises or the Building by fire or other casualty, and that Section 227 of
the Real Property Law of the State of New York, which, provides for such
contingency in, the absence of an express agreement, and any other law of like
import now or hereafter in force shall have no application in any such case.

      E.  Property Loss or Damage. Any Building employee to whom any property
shall be entrusted by or on behalf of Tenant shall be deemed to be acting as
Tenant's agent with respect to such property and neither Landlord nor its agents
shall be liable for any damage to property of Tenant or of others entrusted to
employees of the Building, nor for the loss of or damage to any property of
Tenant by theft or otherwise. Neither Landlord nor its agents shall be liable
for any injury or damage to persons or property or interruption of Tenant's
business resulting from fire, explosion, falling plaster, steam, gas,
electricity, water, rain or snow or leaks from any part of the Building or from
the pipes, appliances or plumbing works or from the roof, street or subsurface
or from any other place or by dampness or by any other cause of whatsoever
nature; nor shall Landlord or its agents be liable for any such damage caused by
other tenants or persons in the Building or caused by construction of any
private, public or quasi-public work; nor shall Landlord be liable for any
latent defect in the Premises or in the Building.

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<PAGE>
Anything in this Article 10 to the contrary notwithstanding, nothing in this
Lease shall be construed to relieve Landlord from responsibility directly to
Tenant for any loss or damage caused directly to Tenant wholly or in part by the
gross negligence or willful misconduct of Landlord. Nothing in the foregoing
sentence shall affect any right of Landlord to the indemnity from Tenant to
which Landlord may be entitled under Article 37 hereof in order to recoup for
payments made to compensate for losses of third parties. If at any time any
windows of the Premises arc temporarily closed, darkened or bricked-up for any
reason whatsoever including, but not limited to, Landlord's own acts, or any of
such windows are permanently closed, darkened or bricked-up if required by law
or related to any construction upon property adjacent to the Real Property by
Landlord or others, Landlord shall not be liable for any damage Tenant may
sustain thereby and Tenant shall not be entitled to any compensation therefor
nor abatement of Rent nor shall the same release Tenant from its obligations
hereunder nor constitute an eviction. Tenant shall give immediate notice to
Landlord in case of fire or accident in the Premises or in the Building. Tenant
shall not move any safe, heavy machinery, heavy equipment, freight, bulky matter
or fixtures into or out of the Building without Landlord's prior consent and
payment to Landlord of Landlord's costs in connection therewith. If such safe,
machinery, equipment, freight, bulky matter or fixtures requires special
handling, Tenant agrees to employ only persons holding a Master Rigger's License
to do said work, and that all work in connection therewith shall comply with the
Administrative Code of the City of New York and all other laws and regulations
applicable thereto, and shall be done during such hours as Landlord may
designate and, notwithstanding said consent of Landlord, Tenant shall indemnify
Landlord for, and hold Landlord harmless and free from, damages sustained by
persons or property and for any damages or monies paid out by Landlord in
settlement of any claims or judgments, as well as for all expenses and
attorneys' fees incurred in connection therewith and all costs incurred in
repairing any damage to the Building or appurtenances.

11.   CONDEMNATION.

      A. Condemnation. If the whole of the Real Property, the Building or the
Premises shall be acquired or condemned for any public or quasi-public use or
purpose, this Lease and the Term shall end as of the date of the vesting of
title with the same effect as if said date were the Expiration Date. If only a
part of the Real Property shall be so acquired or condemned then, (i) except as
hereinafter provided in this Subsection A, this Lease and the Term shall
continue in force and effect but, if a part of the Premises is included in the
part of the Real Property so acquired or condemned, from and after the date of
the vesting of title, the Rent shall be reduced in the proportion which the area
of the part of the Premises so acquired or condemned bears to the total area of
the Premises immediately prior to such acquisition or condemnation; (ii) whether
or not the Premises shall be affected thereby, Landlord, at Landlord's option,
may give to Tenant, within sixty (60) days next following the date upon which
Landlord shall have received notice of vesting of title, a five (5) days' notice
of termination of this Lease; and (iii) if the part of the Real Property so
acquired or condemned shall contain more than thirty (30%) percent of the total
area of the Premises immediately prior to such acquisition or condemnation, or
if, by reason of such acquisition or condemnation, Tenant no longer has
reasonable means of access to the Premises, Tenant, at Tenant's option, may give
to Landlord, within sixty (60) days next following the date upon which Tenant
shall have received notice of vesting of title, a five (5) days' notice of
termination of this Lease. If any such five (5) days' notice of termination is
given by Landlord or Tenant this Lease and the Term shall come to an end and
expire upon the expiration of said five (5) days with the same effect as if the
date of expiration of said five (5) days were the Expiration Date. If a part of
the Premises shall be so acquired or condemned and this Lease and the Term shall
not be terminated pursuant to the foregoing provisions of this Subsection,
Landlord, at Landlord's expense, shall restore that part of the Premises not so
acquired or condemned to a self-contained rental unit. In the event of any
termination of this Lease and the Term pursuant to the provisions of this
Subsection A, the Rent shall be apportioned as of the date of sooner

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<PAGE>
termination and any prepaid portion of Rent for any period after such date shall
be refunded by Landlord to Tenant.

      B.  Award. In the event of any such acquisition or condemnation of all or
any part of the Real Property, Landlord shall be entitled to receive the entire
award for any such acquisition or condemnation, Tenant shall have no claim
against Landlord or the condemning authority for the value of any unexpired
portion of the Term and Tenant hereby expressly assigns to Landlord all of its
right in and to any such award. Nothing contained in this Subsection B shall be
deemed to prevent Tenant from making a claim in any condemnation proceedings for
the then value of any furniture, furnishings and fixtures installed by and at
the sole expense of Tenant and included in such taking, provided that such
award shall not reduce the amount of the award otherwise payable to Landlord.


12.   ASSIGNMENT AND SUBLETTING.

      A.  Prohibition Without Consent. Tenant, for itself, its heirs,
distributees, executors, administrators, legal representatives, successors and
assigns, expressly covenants that it shall not assign, mortgage, pledge,
encumber or otherwise transfer this Lease, nor underlet, nor suffer, nor permit
the Premises or any part thereof to be used or occupied by others (whether for
desk space, mailing privileges or otherwise), without the prior written consent
of Landlord in each instance. If this Lease be assigned, or if the Premises or
any part thereof be underlet or occupied by anybody other than Tenant, Landlord
may, after default by Tenant, collect rent from the assignee, undertenant or
occupant, and apply the net amount collected to the Rent herein reserved, but no
assignment, underletting, occupancy or collection shall be deemed a waiver of
the provisions hereof, the acceptance of the assignee, undertenant or occupant
as tenant; or a release of Tenant from the further performance by Tenant of
covenants on the part of Tenant herein contained. The consent by Landlord to an
assignment or underletting shall not in any way be construed to relieve Tenant
from obtaining the express consent in writing of Landlord to any further
assignment or underletting. In no event shall any permitted sublessee assign or
encumber its sublease or further sublet all or any portion of its sublet space,
or otherwise suffer or permit the sublet space or any part thereof to be used or
occupied by others, without Landlord's prior written consent in each instance.
Any assignment, sublease, mortgage, pledge, encumbrance or transfer in
contravention of the provisions of this Article 12 shall be void.

      B.  Notice of Proposed Transfer. If Tenant shall at any time or times
during the Term desire to assign this Lease or sublet all or part of the
Premises, Tenant shall give notice thereof to Landlord, which notice shall be
accompanied by (i) a conformed or photostatic, copy of the proposed assignment
or sublease, the effective or commencement date of which shall be not less than
sixty, (60) nor more than one hundred and eighty (180) days after the giving of
such notice, (ii) a statement setting forth in reasonable detail the identity of
the proposed assignee or subtenant, the nature of its business and its proposed
use of the Premises, (iii) current financial information with respect to the
proposed assignee or subtenant, including, without limitation, its most recent
financial report, (iv) an agreement by Tenant to indemnify Landlord against
liability resulting from any claims that may be made against Landlord by the
proposed assignee or sublessee or by any brokers or other persons claiming a
commission or similar compensation in connection with the proposed assignment or
sublease, and (v) in the case of a sublease, such additional information related
to the proposed subtenant as Landlord shall reasonably request, if any.

      C.  Landlord's Takeback Options. The notice containing all of the
information set forth in Subsection B of this Article 12 shall be deemed an
offer from Tenant to Landlord whereby Landlord (or Landlord's designee) may, at
its option, (a) sublease such space (hereinafter called the "Leaseback Space")
from Tenant upon the terms and conditions hereinafter set forth (if the
proposed transaction is a sublease of all or part of the Premises), or (b)
terminate this Lease (if the proposed transaction is an

                                       15
<PAGE>
assignment or a sublease of all or substantially all of the Premises). Said
options may be exercised by Landlord by notice to Tenant at any time within
sixty (60) days after the aforesaid notice has been given by Tenant to Landlord;
and during such sixty (60) day period Tenant shall not assign this Lease nor
sublet such space to any person or entity.

      D.  Effect of Termination by Landlord. If Landlord exercises its option to
terminate this Lease in the case where Tenant desires either to assign this
Lease or sublet all or substantially all of the Premises, then this Lease shall
end and expire on the date that such assignment or sublet was to be effective or
commence, as the case may be, and the Minimum Rent and additional rent due
hereunder shall be paid and apportioned to such date. Furthermore, if Landlord
exercises its option to terminate this Lease pursuant to Subsection C of this
Article 12, Landlord shall be free to and shall have no liability to Tenant if
Landlord should lease the Premises (or any part thereof) to Tenant's prospective
assignee or subtenant.

      E.  Takeback by Landlord. If Landlord exercises its option to sublet the
Leaseback Space, such sublease to Landlord or its designee (as subtenant) shall
be at the lower of (a) the rental rate per rentable square foot of Rent and
additional rent then payable pursuant to this Lease, or (b) the rentals set
forth in the proposed sublease, and shall be for the same term as that of the
proposed subletting, and such sublease:

          (i) shall be expressly subject to all of the covenants, agreements,
terms, provisions and conditions of this Lease except such as are irrelevant or
inapplicable, and except as otherwise expressly set forth to the contrary in
this Article 12;

          (ii) shall be upon the same terms and conditions as those contained in
the proposed sublease, except such as are irrelevant or inapplicable and except
as otherwise expressly set forth to the contrary in this Article 12;

          (iii) shall give the sublessee the unqualified unrestricted right,
without Tenant's permission, to assign such sublease or any interest therein
and/or to sublet the space covered by such sublease or any part or parts of such
space and to make any and all changes, alterations and improvements in the space
covered by such sublease, and if the proposed sublease will result in all or
substantially all of the Premises being sublet, grant Landlord or its designee
the option to extend the term of such sublease for the balance of the term of
this Lease less one (1) day;

          (iv) shall provide that any assignee or further subtenant of Landlord
or its designee, may, at the election of Landlord, be permitted to make
alterations, decorations and installations in such space or any part thereof and
shall also provide in substance that any such alterations, decorations and
installations in such space therein made by any assignee or subtenant of
Landlord or its designee may be removed, in whole or in part, by such assignee
or subtenant, at its option, prior to or upon the expiration or other
termination of such sublease provided that such assignee or subtenant, at its
expense, shall repair any damage and injury to such space so sublet caused by
such removal; and

          (v) shall also provide that (a) the parties to such sublease expressly
negate any intention that any estate created under such sublease be merged with
any other estate held by either of said parties, (b) any assignment or
subletting by Landlord or its designee (as the subtenant) may be for any purpose
or purposes that Landlord, in Landlord's uncontrolled discretion, shall deem
suitable or appropriate, (c) Tenant, at Tenant's expense, shall and will at all
times provide and permit reasonably appropriate means of ingress to and egress
from such space so sublet by Tenant to Landlord or its designee, (d) Landlord,
at Tenant's expense, may make such alterations as may be required or deemed

                                       16
<PAGE>
necessary by Landlord to physically separate the subleased space from the
balance of the Premises and to comply with any legal or insurance requirements
relating to such separation, and (e) that at the expiration of the term of such
sublease, Tenant will accept the space covered by such sublease in its then
existing condition, subject to the obligations of the sublessee to make such
repairs thereto as may be necessary to preserve the premises demised by such
sublease in good order and condition.

      F.  Effect of Takeback or Termination. If Landlord exercises its option to
sublet the Leaseback Space, (i) Landlord shall indemnify and save Tenant
harmless from all obligations under this Lease as to the Leaseback Space during
the period of time it is so sublet to Landlord; (ii) performance by Landlord, or
its designee, under a sublease of the Leaseback Space shall be deemed
performance by Tenant of any similar obligation. under this Lease and any
default under any such sublease shall not give rise to a default under a similar
obligation contained in this Lease nor shall Tenant be liable for any default
under this Lease or deemed to. be in default hereunder if such default is
occasioned by or arises from any act or omission of the tenant under such
sublease or is occasioned by or arises from any act or omission of any occupant
holding under or pursuant to any such sublease; and (iii) Tenant shall have no
obligation, at the expiration or earlier termination of the Term, to remove any
alteration, installation or improvement made in the Leaseback Space by Landlord
(or its designee).

      G.  Conditions for Landlord's Approval. In the event Landlord does not
exercise either option provided to it pursuant to Subsection C of this Article
12 and provided that Tenant is not in default of any of Tenant's obligations
under this Lease (after notice and the expiration of any applicable grace
period) as of the time of Landlord's consent, and as of the effective date of
the proposed assignment or commencement date of the proposed sublease,
Landlord's consent (which must be in writing and form reasonably satisfactory to
Landlord) to the proposed assignment or sublease shall not be unreasonably
withheld or delayed, provided and upon condition that:

          (i) Tenant shall have complied with the provisions of Subsection B of
this Article 12 and Landlord shall not have exercised any of its options under
Subsection C of this Article 12 within the time permitted therefor;

          (ii) In Landlord's reasonable judgment the proposed assignee or
subtenant is engaged in a business or activity, and the Premises, or the
relevant part thereof, will be used in a manner, which (a) is in keeping with
the then standards of the Building, (b) is limited to the use of the Premises as
general and executive offices, and (c) will not violate any negative covenant as
to use contained in any other lease of office space in the Building;

          (iii) The proposed assignee or subtenant is a reputable person of good
character and with sufficient financial worth considering the responsibility
involved, and Landlord has been furnished with reasonable proof thereof;

          (iv) Neither (a) the proposed assignee or sublessee nor (b) any person
which, directly or indirectly, controls, is controlled by or is under common
control with, the proposed assignee or sublessee, is then an occupant of any
part of the Building;

          (v) The proposed assignee or sublessee is not a person with whom
Landlord is or has been, within the preceding six (6) month period, negotiating
to lease space in the Building;

          (vi) The form of the proposed sublease or instrument of assignment (a)
shall be in form reasonably satisfactory to Landlord, and, without limitation,
(I) shall not provide for a rental or other payment for the use, occupancy or
utilization of the space demised thereby based in whole or in part on

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<PAGE>
the income or profits derived by any person from the property so leased, used,
occupied or utilized other than an amount based on a fixed percentage or
percentages of gross receipts or sales, and (II) shall provide that no person
having an interest in the possession, use, occupancy or utilization of the space
demised thereby shall enter into any lease, sublease, license, concession or
other agreement for use, occupancy or utilization of such space which provides
for a rental or other payment for such use, occupancy or utilization based in
whole or in part on the income or profits derived by any person from the
property so leased, used, occupied or utilized other than an amount based on a
fixed percentage or percentages of gross receipts or sales, and that any such.
purported lease, sublease, concession or other agreement shall be absolutely
void and ineffective AB INITIO, and (b) shall comply with the applicable
provisions of this Article 12;

          (vii) There shall not be more than two (2) subtenants (including
Landlord or its designee) of the Premises;

          (viii) The amount of the aggregate rent to be paid by the proposed
subtenant is not less than the then current market rent per rentable square foot
for the Premises as though the Premises were vacant, and the rental and other
terms and conditions of the sublease are the same as those contained in the
proposed sublease furnished to landlord pursuant to Subsection B of this Article
12;

          (ix) Within five (5) days after receipt of a bill therefor, Tenant
shall reimburse Landlord for the reasonable costs that may be incurred by
Landlord in connection with said assignment or sublease, including without
limitation, the costs of making investigations as to the acceptability of the
proposed assignee or subtenant, and reasonable legal costs incurred by Landlord
in connection with the granting of any requested consent;

          (x) Tenant shall not have (a) advertised or publicized in any way the
availability of the Premises without prior notice to and approval by Landlord,
nor shall any advertisement state the name (as distinguished from the address)
of the Building or the proposed rental, (b) listed the Premises for subletting
or assignment, with a broker, agent or representative other than the then
managing agent of the Building or other agent designated by Landlord;

          (xi) The proposed occupancy shall not, in Landlord's opinion, increase
the office cleaning requirements or the Building's operating or other expenses
or impose an extra burden upon services to be supplied by Landlord to Tenant;

          (xii) The proposed assignee or subtenant or its business shall not be
subject to compliance with Legal Requirements beyond those which are applicable
to the named Tenant herein; and

          (xiii) The proposed subtenant or assignee shall not be entitled,
directly or indirectly, to diplomatic or sovereign immunity and shall be subject
to the service of process in, and the jurisdiction of the courts of New York
State.

      Except for any subletting by Tenant to Landlord or its designee pursuant
to the provisions of this Article 12, each subletting pursuant to this
Subsection shall be subject to all of the covenants, agreements, terms,
provisions and conditions contained in this Lease. Notwithstanding any such
subletting to Landlord or any such subletting to any other subtenant and/or
acceptance of Rent or additional rent by Landlord from any subtenant, Tenant
shall and will remain fully liable for the payment of the Rent and additional
rent due and to become due hereunder and for the performance of all the
covenants, agreements, terms, provisions and conditions contained in this Lease
on the part of Tenant to be performed and all acts and omissions of my licensee
or subtenant or anyone claiming under or through

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<PAGE>
any subtenant which shall be in violation of any of the obligations of this
Lease shall be deemed to be a violation by Tenant. Tenant further agrees that
notwithstanding any such subletting, no or and further subletting of the
Premises by Tenant or any person claiming through or under Tenant shall or will
be made except upon compliance with and subject to the provisions of this
Article 12. If Landlord shall decline to give its consent to any proposed
assignment or sublease, or if Landlord shall exercise either of its options
under Subsection C of this Article 12, Tenant shall indemnify, defend and hold
harmless Landlord against and from any and all loss, liability, damages, costs,
and expenses (including reasonable counsel fees) resulting from any claims that
may be made against Landlord by the proposed assignee or sublessee or by any
brokers or other persons claiming a commission or similar compensation in
connection with the proposed assignment or sublease.

      H.  Future Requests. In the event that (i) Landlord fails to exercise
either of its options under Subsection C of this Article 12 and consents to a
proposed assignment or sublease, and (ii) Tenant fails to execute and deliver
the assignment or sublease to which Landlord consented within ninety (90) days
after the giving of such consent, then, Tenant shall again comply with all of
the provisions and conditions of Subsection B of this Article 12 before
assigning this Lease or subletting all or part of the Premises.

      I.  Sublease Provisions. With respect to each and every sublease or
subletting authorized by Landlord under the provisions of this Lease, it is
further agreed that:

          (i) No subletting shall be for a term ending later than one (1) day
prior to the Expiration Date of this Lease;

          (ii) No sublease shall be delivered, and no subtenant shall take
possession of the Premises or any part thereof, until an executed counterpart of
such sublease has been delivered to Landlord;

          (iii) Each sublease shall provide that it is subject and subordinate
to this Lease and to the matters to which this Lease is or shall be subordinate,
and that in the event of termination, re-entry or dispossession by Landlord
under this Lease Landlord may, at its option, take over all of the right, title
and interest of Tenant, as sublessor, under such sublease, and such subtenant
shall, at Landlord's option, attorn to Landlord pursuant to the then executory
provisions of such sublease, except that Landlord shall not (a) be liable for
any previous act or omission of Tenant under such sublease, (b) be subject to
any counterclaim, offset or defense, not expressly provided in such sublease,
which theretofore accrued to such subtenant against Tenant, or (c) be bound by
any previous modification of such sublease or by any previous prepayment of more
than one (1) month's Rent. The provisions of this Article 12 shall be
self-operative and no further instrument shall be required to give effect to
this provision.

      J.  Profits From Assignment or Subletting. If Landlord shall give its
consent to any assignment of this Lease or to any sublease or if Tenant shall
enter into any other assignment or sublease permitted hereunder, Tenant shall in
consideration therefor, pay to Landlord, as additional rent:

          (i) in the case of an assignment, an amount equal to all sums and
other considerations paid to Tenant by the assignee for or by reason of such
assignment (including, but not limited to, sums paid for the sale of Tenant's
fixtures, leasehold improvements, equipment, furniture, furnishings or other
personal property, less, in the case of a sale thereof, the then net unamortized
or undepreciated cost thereof determined on the basis of Tenant's federal income
tax returns) less all expenses reasonably and actually incurred by Tenant on
account of brokerage commissions and advertising costs in connection with such
assignment; and

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<PAGE>
          (ii) in the case of a sublease, any rents, additional charges or other
consideration payable under the sublease to Tenant by the subtenant which is in
excess of the Rent and additional rent accruing during the term of the sublease
in respect of the subleased space (at the rate per square foot payable by Tenant
hereunder) pursuant to the terms hereof (including, but not limited to, sums
paid for the sale or rental of Tenant's fixtures, leasehold improvements,
equipment, furniture or other personal property, less, in the case of the sale
thereof, the then net unamortized or undepreciated cost thereof determined on
the basis of Tenant's federal income tax returns), less all expenses reasonably
and actually incurred by Tenant on account of brokerage commissions, advertising
costs and the cost of demising the premises so sublet in connection with such
sublease. The sums payable under this Subsection shall be paid to Landlord as
and when payable by the subtenant to Tenant.

      K.  Other Transfers.

          (i) If Tenant is a corporation other than a corporation whose stock is
listed and traded on a nationally recognized stock exchange (hereinafter
refereed to as a "public corporation") unless such stock shall be sold,
transferred or otherwise conveyed by persons deemed "insiders" within the
meaning of the Securities Exchange Act of 1934, as amended, the provisions of
Subsection A of this Article 12 shall apply to a transfer (by one or more
transfers) of a majority of the stock of Tenant as if such transfer of a
majority of the stock of Tenant were an assignment of this Lease. The provisions
of this paragraph shall apply equally to any corporation which directly or
indirectly controls Tenant; but said provisions shall not apply to transactions
with a corporation into or with which Tenant is merged or consolidated or to
which substantially all of Tenant's assets or stock are sold, transferred or
otherwise conveyed provided that in any of such events (a) the successor to
Tenant has a net worth computed in accordance with generally accepted accounting
principles at least equal to the greater of (1) the net worth of Tenant
immediately prior to such sale, merger, consolidation or transfer, or (2) the
net worth of Tenant herein named on the date of this Lease, and (b) proof
satisfactory to Landlord of such net worth shall have been delivered to Landlord
at least ten (10) days prior to the effective date of any such transaction.

          (ii) If Tenant is a limited liability company, partnership, limited
liability partnership or other business entity, the provisions of Subsection A
of this Article 12 shall apply to a transfer (by one or more transfers) of a
majority interest in the limited liability company, partnership, limited
liability partnership or other business entity or in any entity which directly
or indirectly controls such limited liability company, partnership, limited
liability partnership or other business entity, as if such transfer were an
assignment of this Lease.

      L.  Related Corporation. Tenant may, with Landlord's consent which shall
not be unreasonably withheld, permit any corporations or other business entities
which control, are controlled by, or are under common control with Tenant
(herein referred to as "related corporation") to sublet all or part of the
Premises for the Permitted Use, subject however to compliance with Tenant's
obligations under this Lease. Such subletting shall not be deemed to vest in any
such related corporation any right or interest in this Lease or the Premises nor
shall it relieve, release, impair or discharge any of Tenant's obligations
hereunder. For the purposes hereof, "control" shall be deemed to mean ownership
of not less than fifty (50%) percent of all of the voting stock of such
corporation or not less than fifty (50%) percent of all of the legal and
equitable interests in any other business entities.

      M.  Assumption By Assignee. Any assignment or transfer, whether made with
Landlord's consent pursuant to Subsection A of this Article 12 or without
Landlord's consent pursuant to Subsection K of this Article 12, shall be made
only if, and shall not be effective until, the assignee shall execute,
acknowledge and deliver to Landlord an agreement in form and substance
satisfactory to Landlord whereby the assignee shall assume the obligations of
this Lease on the part of Tenant to be performed or

                                       20
<PAGE>
observed and whereby the assignee shall agree that the provisions in Subsection
A of this Article 12 shall, notwithstanding such assignment or transfer,
continue to be binding upon it in respect of all future assignments and
transfers. The original named Tenant covenants that, notwithstanding any
assignment or transfer, whether or not in violation of the provisions of this
Lease, and notwithstanding the acceptance of Rent and/or additional rent by
Landlord from an assignee, transferee or any other party, the original named
Tenant shall remain fully liable for the payment of the Rent and additional rent
and for the other obligations of this Lease on the part of Tenant to be
performed or observed.

      N.  Liability of Tenant. The joint and several liability of Tenant and any
immediate or remote successor in interest of Tenant and the due performance of
the obligations of this Lease on Tenant's part to be performed or observed shall
not be discharged, released or impaired in any respect by any agreement or
stipulation made by Landlord extending the time, or modifying any of the
obligations, of this Lease, or by any waiver or failure of Landlord to enforce
any of the obligations of this Lease.

      O.  Listings. The listing of any name other than that of Tenant, whether
on the doors of the Premises or the Building directory, or otherwise, shall not
operate to vest any right or interest in this Lease or in the Premises, nor
shall it be deemed to be the consent of Landlord to any assignment or transfer
of this Lease or to any sublease of the Premises or to the use or occupancy
thereof by others. Any such listing shall constitute a privilege extended by
Landlord, revocable at Landlord's will by notice to Tenant.

      P.  Exclusive Broker. In the event Tenant desires to sublet all or any
portion of the Premises or assign this Lease, it shall designate Landlord or the
then managing agent of the Building, at Landlord's option, as Tenant's exclusive
agent to effect such sublease or assignment and shall pay Landlord or such
managing agent, as the case may be, a reasonable brokerage commission computed
in accordance with the usual rates charged by Landlord or such managing agent.

      Q.  Re-entry by Landlord. If Landlord shall recover or come into
possession of the Premises before the date herein fixed for the termination of
this Lease, Landlord shall have the right, at its option, to take over any and
all subleases or sublettings of the Premises or any part thereof made by Tenant
and to succeed to all the rights of said subleases and sublettings or such of
them as it may elect to take over. Tenant hereby expressly assigns and transfers
to Landlord such of the subleases and sublettings as Landlord may elect to take
over at the time of such recovery of possession, such assignment and transfer
not to be effective until the termination of this Lease or re-entry by Landlord
hereunder or if Landlord shall otherwise succeed to Tenant's estate in the
Premises, at which time Tenant shall upon request of Landlord, execute,
acknowledge and deliver to Landlord such further instruments of assignment and
transfer as may be necessary to vest in Landlord the then existing subleases and
sublettings. Every subletting hereunder is subject to the condition and by its
acceptance of and entry into a sublease, each subtenant thereunder shall be
deemed conclusively to have thereby agreed from and after the termination of
this Lease or re-entry by Landlord hereunder of or if Landlord shall otherwise
succeed to Tenant's estate in the Premises, that such subtenant shall waive any
right to surrender possession or to terminate the sublease and, at Landlord's
election, such subtenant shall be bound to Landlord for the balance of the term
of such sublease and shall attorn to and recognize Landlord, as its landlord,
under all of the then executory terms of such sublease, except that Landlord
shall not (i) be liable for any previous act, omission or negligence of Tenant
under such sublease, (ii) be subject to any counterclaim, defense or offset not
expressly provided for in such sublease, which theretofore accrued to such
subtenant against Tenant, (iii) be bound by any previous modification or
amendment of such sublease or by any previous prepayment of more than one (1)
month's rent and additional rent which shall be payable as provided in the
sublease, (iv) be obligated to repair the subleased space or the Building or any
part thereof, in the event of total or substantial total damage beyond such
repair as can reasonably be accomplished from the

                                       21
<PAGE>

net proceeds of insurance actually made available to Landlord, (v) be obligated
to repair the subleased space or the Building or any part thereof, in the event
of partial condemnation beyond such repair as can reasonably be accomplished
from the net proceeds of any award actually made available to Landlord as
consequential damages allocable to the part of the subleased space or the
Building not taken, or (vi) be obligated to perform any work in the subleased
space of the Building or to prepare them for occupancy beyond Landlord's
obligations under this Lease, and the subtenant shall execute and deliver to
Landlord any instruments Landlord may reasonably request to evidence and confirm
such attornment. Each subtenant or licensee of Tenant shall be deemed
automatically upon and as a condition of occupying or using the Premises or any
part thereof, to have given a waiver of the type described in and to the extent
and upon the conditions set forth in this Article 12.

13.   CONDITION OF PREMISES. Tenant agrees to accept possession of the Premises
in the condition which shall exist on the Commencement Date "as is", except for
Landlord's Work and further agrees that Landlord shall have no other obligation,
to perform any work or make any installations in order to prepare the Premises
for Tenant's occupancy. The taking of possession of the Premises by Tenant shall
be conclusive evidence as against Tenant that, at the time such possession was
so taken, the Premises and the Building were in good and satisfactory condition
and that Landlord's Work was substantially completed. Tenant acknowledges
receipt of advice from Landlord to the effect that the Premises and other
portions of the Building may contain asbestos. Tenant expressly agrees that (i)
Landlord shall have no liability whatsoever to Tenant, or to any person or
entity claiming by, through or under Tenant, on account of or in connection with
the presence of asbestos in the Premises or the Building, and (ii) Tenant's
obligation to keep, observe and perform all of the terms, provisions, covenants
and conditions on the part of Tenant to be kept, observed and performed pursuant
to this Lease shall not be affected on account of the presence of any such
asbestos.

14.   ACCESS TO PREMISES. Tenant shall permit Landlord, Landlord's agents and
public utilities servicing the Building to erect, use and maintain, concealed
ducts, pipes and conduits in and through the Premises. Landlord or Landlord's
agents shall have the right to enter the Premises at all reasonable times to
examine the same, to show them to prospective purchasers, mortgagees or lessees
of the Building or space therein, and to make such decorations, repairs,
alterations, improvements or additions as Landlord may deem necessary or
desirable to the Premises or to any other portion of the Building or which
Landlord may elect to perform following Tenant's failure to make repairs or
perform any work which Tenant is obligated to perform under this Lease, or for
the purpose of complying with laws, regulations or other requirements of
government authorities and Landlord shall be allowed to take all material into
and upon the Premises that may be required therefor without the same
constituting an eviction or constructive eviction of Tenant in whole or in part
and the Rent shall in nowise abate while said decorations, repairs, alterations,
improvements or additions are being made, by reason of loss or interruption of
business of Tenant, or otherwise. During the one (1) year prior to the
Expiration Date or the expiration of any renewal or extended term, Landlord may
exhibit the Premises to prospective tenants thereof, upon reasonable prior
notice (which notice may be oral), during regular business hours. If, during the
last twelve (12) months of the Term, Tenant shall have removed all or
substantially all of Tenant's property therefrom, Landlord may immediately enter
and alter, renovate and redecorate the Premises, without elimination or
abatement of Rent, or incurring liability to Tenant for any compensation, and
such acts shall not be deemed an actual or constructive eviction and shall have
no effect upon this Lease. If Tenant shall not be personally present to open and
permit an entry into the Premises, at any time, when for any reason an entry
therein shall be necessary or permissible, Landlord or Landlord's agents may
enter the same by a master key, or may forcibly enter the same, without
rendering Landlord or such agents liable therefor (if during such entry Landlord
or Landlord's agents shall accord reasonable care to Tenant's property), and
without in any manner affecting the obligations and covenants of this Lease.
Nothing herein contained, however, shall be deemed or construed to impose upon
Landlord any obligation,

                                       22
<PAGE>
responsibility or liability whatsoever, for the care, supervision or repair of
the Building or any part thereof, other than as herein provided. Landlord also
shall have the right at any time, without the same constituting an actual or
constructive eviction and without incurring any liability to Tenant therefor, to
change the arrangement and/or location of entrances or passageways, doors and
doorways, and corridors, elevators, stairs, toilets or other public parts of the
Building and to change the name, number or designation by which the Building is
commonly known. In addition, Tenant understands and agrees that Landlord may
perform substantial renovation work in and to the public parts of the Building
and the mechanical and other systems serving the Building (which work may
include the replacement of the building exterior facade and window glass,
requiring access to the same from within the Premises), and that Landlord shall
incur no liability to Tenant, nor shall Tenant be entitled to any abatement of
Rent on account of any noise, vibration or other disturbance to Tenant's
business at the Premises (provided that Tenant is not denied access to said
Premises) which shall arise out of the performance by Landlord of the aforesaid
renovations of the Building. Tenant understands and agrees that all parts
(except surfaces facing the interior. of the Premises) of all walls, windows and
doors bounding the Premises (including exterior Building walls, core corridor
walls, doors and entrances), all balconies, terraces and roofs adjacent to the
Premises, all space in or adjacent to the Premises used for shafts, stacks,
stairways, chutes, pipes, conduits, ducts, fan rooms, heating, air cooling,
plumbing and other mechanical facilities, service closets and other Building
facilities are not part of the Premises, and Landlord shall have the use
thereof, as well as access thereto through the Premises for the purposes of
operation, maintenance, alteration and repair.

15.   CERTIFICATE OF OCCUPANCY. Tenant shall not at any time use or occupy the
Premises in violation of the certificate of occupancy issued for the Premises or
for the Building and in the event that any department of the City or State of
New York shall hereafter at any time contend and/or declare by notice,
violation, order or in any other manner whatsoever that the Premises are used
for a purpose which is a violation of such certificate of occupancy whether or
not such use shall be a Permitted Use, Tenant shall, upon five (5) days' written
notice from Landlord, immediately discontinue such use of the Premises. Failure
by Tenant to discontinue such use after such notice shall be considered a
default in the fulfillment of a covenant of this Lease and Landlord shall have
the right to terminate this Lease immediately, and in addition thereto shall
have the right to exercise any and all rights and privilages and remedies given
to. Landlord by and pursuant to the provisions of Articles 17 and 18 hereof.

16.   LANDLORD'S LIABILITY. The obligations of Landlord under this Lease shall
not be binding upon Landlord named herein after the sale, conveyance, assignment
or transfer by such Landlord (or upon any subsequent landlord after the sale,
conveyance, assignment or transfer by such subsequent landlord) of its interest
in the Building or the Real Property, as the case may be, and in the event of
any such sale, conveyance, assignment or transfer, Landlord shall be and hereby
is entirely freed and relieved of all covenants and obligations of Landlord
hereunder, and it shall be deemed and construed without further agreement
between the parties or their successors in interest, or between the parties and
the purchaser, grantee, assignee or other transferee that such purchaser,
grantee, assignee or other transferee has assumed and agreed to carry out any
and all covenants and obligations of Landlord hereunder. Neither the
shareholders, directors or officers of Landlord, if Landlord is a corporation,
nor the partners comprising Landlord (nor any of the shareholders, directors or
officers of such partners), if Landlord is a partnership, nor any member of
Landlord, if Landlord is a limited liability company (collectively, the
"Parties"), shall be liable for the performance of Landlord's obligations under
this Lease. Tenant shall look solely to Landlord to enforce Landlord's
obligations hereunder and shall not seek any damages against any of the Parties.
The liability of Landlord for Landlord's obligations under this Lease shall not
exceed and shall be limited to Landlord's interest in the Building and the Real
Property and Tenant shall not look to any other property or assets of Landlord
or the property or assets of any of the Parties in

                                       23
<PAGE>

seeking either to enforce Landlord's obligations under this Lease or to satisfy
a judgment for Landlord's failure to perform such obligations.

17.   DEFAULT.

      A.  Events of Default. This Lease and the term and estate hereby granted
are subject to the limitations that upon the occurrence, at any time prior to or
during the Term, of any one or more of the following events (referred to as
"EVENTS OF DEFAULT"):

      (1) if Tenant shall default in the payment when due of any installment of
Rent or in the payment when due of any additional rent, and such default shall
continue for a period of five (5) days; or

      (2) if Tenant shall default in the observance or performance of any term,
covenant or condition of this Lease on Tenant's part to be observed, or
performed (other than the covenants for the payment of Rent and additional rent)
and Tenant shall fail to remedy such default within ten (10) days after notice
by Landlord to Tenant of such default, or if such default is of such a nature
that it cannot be completely remedied within said period of ten (10) days and
Tenant shall not commence within said period of ten (10) days, or shall not
thereafter diligently prosecute to completion all steps necessary to remedy such
default; or

      (3) if Tenant shall default in the observance or performance of any term,
covenantor condition on Tenant's part to be-observed or performed-under any
other lease with Landlord or Landlord's predecessor in interest of space in the
Building and such default shall continue beyond any grace period set forth in
such other lease for the remedying of such default; or

      (4) if the Premises shall become vacant, deserted or abandoned; or

      (5) if Tenant's interest in this Lease shall devolve upon or pass to any
person, whether by operation of law or otherwise, except as may be expressly
permitted under Article 12 hereof; or

      (6) if Tenant shall file a voluntary petition in bankruptcy or insolvency,
or shall be adjudicated a bankrupt or insolvent, or shall file any petition . or
answer seeking any reorganization, arrangement, composition, readjustment,
liquidation, dissolution or similar relief under the present or any future
federal bankruptcy act or any other present or future applicable federal; state
or other statute or law, or shall make an assignment for the benefit of
creditors or shall seek or consent to or acquiesce in the appointment of any
trustee, receiver or liquidator of Tenant or of all or any: part of Tenant's
property; or

      (7) if, within thirty (30) days after the commencement of any proceeding
against Tenant, whether by the filing of a petition or otherwise, seeking any
reorganization, arrangement, composition, readjustment, liquidation, dissolution
or similar relief under the presenter any future federal bankruptcy act or any
other present or future applicable federal, state or other statute or law, such
proceeding shall not have been dismissed, or if, within thirty (30) days after
the appointment of any trustee, receiver or liquidator of Tenant, or of all or
any part of Tenant's property, without the consent or acquiescence of Tenant,
such appointment shall not have been vacated or otherwise discharged, or if any
execution or attachment shall be issued against Tenant or any of Tenant's
property pursuant to which the Premises shall be taken or occupied or attempted
to be taken or occupied;

                                       24
<PAGE>

then, in any of said cases, at any time prior to or during the Term, of any one
or more of such Events of Default, Landlord, at any time thereafter, at
Landlord's option, may give to Tenant a five (5) days' notice of termination of
this Lease and, in the event such notice is given, this Lease and the Term shall
come to an end and expire (whether or not the Term shall have commenced) upon
the expiration of said five (5) days with the same effect as if the date of
expiration of said five (5) days were the Expiration Date, but Tenant shall
remain liable for damages as provided in Article 18 hereof.

      B.  Effect of Bankruptcy. If, at any time, (i) Tenant shall be comprised
of two (2) or more persons, or (ii) Tenant's obligations under this Lease shall
have been guaranteed by any person other than Tenant, or (iii) Tenant's interest
in this Lease shall have been assigned, the word "Tenant", as used in clauses
(6) and (7) of Subsection A of this Article 17, shall be deemed to mean any
one or more of the persons primarily or secondarily liable for Tenant's
obligations under this Lease. Any monies received by Landlord from or on
behalf of Tenant during the pendency of any proceeding of the types referred to
in said clauses (6) and (7) shall be deemed paid as compensation for the use and
occupation of the Premises and the acceptance of any such compensation by
Landlord shall not be deemed an acceptance of rent or a waiver on the part of
Landlord of any rights under said Subsection A.

      C.  Conditional Limitation. Nothing contained in this Article 17 shall be
deemed to require Landlord to give the notices herein provided for prior to the
commencement of a summary proceeding for non-payment of rent or a plenary action
for recovery of rent on account of any default in the payment of the same, it
being intended that such notices are for the sole purpose of creating a
conditional limitation hereunder pursuant to which this Lease shall. terminate
and if Tenant thereafter remains in possession after such termination Tenant
shall do so as a holdover tenant.

      D.  Repeated Defaults. Tenant expressly recognizes that Tenant's due and
punctual performance of all its obligations under this Lease throughout the term
hereof is of paramount importance to Landlord, and, without limiting any of the
provisions of this Lease, Tenant agrees that, if Tenant (i) shall fail to pay
for five (5) days after it becomes due an installment of Minimum Rent or any
additional rent for two (2) consecutive months or for a total of three (3)
months any period of twenty four (24) months, or (ii) shall default in the
timely performance of any other obligation of Tenant under this Lease with
respect to which Landlord shall have given Tenant notice of default; and such
default shall occur more than three (3) times in my period of twelve (12)
months, then notwithstanding that such failure or other default shall have been
cured within the applicable grace period provided in this Lease, any further
similar default shall be deemed to be deliberate and Landlord thereafter may,
without further notice of default, serve a five (5) day notice of cancellation
of this Lease as and with the effects provided in Subsection A of this Article
17.

      E.  Landlord's Rights. Tenant acknowledges and agrees that Landlord, as a
matter of Building policy, will actively pursue its legal rights under this
Article 17 and all other provisions of this Lease, irrespective of my ongoing
discussions or negotiations with Tenant as to Tenant's defaults.

18. REMEDIES AND DAMAGES.

      A.  Landlord's Remedies.

          (1) If an Event of Default shall occur and be continuing, or if this
Lease and the Term shall expire and come to an end as provided in Article 17:

              (a) Landlord and its agents and servants may immediately, or at
any time after such default or after the date upon which this Lease and the Term
shall expire and come to an end,

                                       25
<PAGE>

re-enter the Premises or any part thereof, either by summary proceedings, or by
any other applicable action or proceeding, (without being liable to indictment,
prosecution or damages therefor), and may repossess the Premises and dispossess
Tenant and any other persons from the Premises and remove any and all of their
property and effects from the Premises; and

              (b) Landlord, at Landlord's option, may relet the whole or
any part or parts of the Premises from time to time, either in the name of
Landlord or otherwise, to such tenant or tenants, for such term or terms ending
before, on or after the Expiration Date, at such rental or rentals and upon such
other conditions, which may include concessions and free rent periods, as
landlord, in its sole discretion, may determine. Landlord shall have no
obligation to relet the Premises or any part thereof and shall in no event be
liable for refusal or failure to relet the Premises or any part thereof, or, in
the event of any such reletting, for refusal or failure to collect any rent due
upon any such reletting, and no such refusal or failure shall operate to relieve
Tenant of any liability under this Lease or otherwise to affect any such
liability; Landlord, at Landlord's option, may make such repairs, replacements,
alterations, additions, improvements, decorations and other physical changes in
and to the Premises as Landlord, in its sole discretion, considers advisable or
necessary in connection with any such reletting or proposed reletting, without
relieving Tenant of any liability under this Lease or otherwise affecting any
such liability.

          (2) Tenant hereby waives the service of any notice of intention to
re-enter or to institute legal proceedings to that end which may otherwise be
required to be given under any present or future law. Tenant, on its own behalf
and on behalf of all persons claiming through or under Tenant, including
all creditors, does further hereby waive any and all rights which Tenant and
all such persons might otherwise have under. any present or future law to redeem
the Premises, or to re-enter or repossess the Premises, or to restore the
operation of this Lease, after (i) Tenant shall have been dispossessed by a
judgment or by warrant of any court or judge, or (ii) any re-entry by Landlord,
or (iii) any expiration or termination of this Lease and the Term, whether such
dispossess, re-entry, expiration or termination shall be by operation of law or
pursuant to the provisions of this Lease. In the event of a breach or threatened
breach by Tenant, or any persons claiming through or under Tenant, of any term,
covenant or condition of this Lease on Tenant's part to be observed or
performed, Landlord shall have the right to enjoin such breach and the right to
invoke any other remedy allowed by law -or in equity as. if re-entry, summary
proceedings and other special remedies were not provided in this Lease for such
breach. The right to invoke the remedies hereinbefore set forth are cumulative
and shall not preclude Landlord from invoking any other remedy allowed at law or
in equity.

      B.  Damages.

          (1) If this Lease and the Term shall expire and come to an end as
provided in Article 17, or by or under any summary proceeding or any other
action or proceeding, or if Landlord shall re-enter the Premises as provided in
Subsection A of this Article 18, or by or under any summary proceeding or any
other action or proceeding, then, in any of said events:

              (a) Tenant shall pay to Landlord all Rent, additional rent and
other charges payable under this Lease by Tenant to Landlord to the date upon
which this Lease and the Term shall have expired and come to an end or to the
date of re-entry upon the Premises by Landlord, as the case may be;

              (b) Tenant also shall be liable for and shall pay to Landlord, as
damages, any deficiency (referred to as "Deficiency") between the Rent reserved
in this Lease for the period which otherwise would have constituted the
unexpired portion of the Term and the net amount, if any, of rents

                                       26
<PAGE>

collected under any reletting effected pursuant to the provisions of Subsection
A(1) of this Article 18 for any part of such period (first deducting from the
rents collected under any such reletting all of Landlord's expenses in
connection with the termination of this Lease, or Landlord's reentry upon the
Premises and with such reletting including, but not limited to, all repossession
costs, brokerage commissions, legal expenses, attorneys fees and disbursements,
alteration costs and other expenses of preparing the Premises for such
reletting); any such Deficiency shall be paid in monthly installments by Tenant
on the days specified in this Lease for payment of installments of Rent,
Landlord shall be entitled to recover from Tenant each. monthly Deficiency as
the same shall arise, and no suit to collect the amount of the Deficiency for
any month shall prejudice Landlord's right to collect the Deficiency for any
subsequent month by a similar proceeding; and

              (c) whether or not Landlord shall have collected any monthly
Deficiencies as aforesaid, Landlord shall be entitled. to recover from Tenant,
and Tenant shall pay to landlord, on demand, in lieu of any further Deficiencies
as and for liquidated and agreed final damages, a sum equal to the amount by
which the Rent reserved in this Lease for the period which otherwise would have
constituted the unexpired portion of the Term exceeds the then "fair and
reasonable rental value of the Premises for the same period, less the aggregate
amount of Deficiencies theretofore collected by Landlord pursuant to the
provisions of Subsection B(1)(b) of this Article 18 for the same period; if,
before presentation of proof of such liquidated damages to any court, commission
or tribunal, the Premises, or any part thereof, shall have been relet by
Landlord for the period which otherwise would have constituted the unexpired
portion of the Term, or any part. thereof, the amount of rent reserved upon such
reletting shall be deemed, prima facie; to be the fair and reasonable rental
value for the part or the whole of the Premises so relet during the term of the
reletting.

      (2) If the Premises, or any part thereof, shall be relet together with
other space in the Building, the rents collected or reserved under any such
reletting and the expenses of any such reletting shall be equitably apportioned
for the. purposes of this Subsection B. Tenant shall in no event be entitled to
any rents collected or payable under any reletting, whether, or not. such rents
shall exceed the Rent reserved in this Lease Solely for the purposes of this
Article, the term "Rent" as used in Subsection B(1) of this Article 18 shall
mean the Rent in effect immediately prior to the date upon which this Lease and
the Term shall have expired and come to an end, or the date of re-entry upon the
Premises by Landlord, as the case may be, adjusted to reflect any increase or
decrease pursuant to the provisions of Article 28 hereof for the Comparison Year
(as defined in said Article 28) immediately preceding such event. Nothing
contained in Article 17 or this Article 18 shall be deemed to limit or preclude
the recovery by Landlord from Tenant of the maximum amount allowed to be
obtained as damages by any statute or rule of law, or of any sums or damages to
which Landlord may be entitled in addition to the damages set forth in
Subsection B(1) of this Article 18.

      C.  Legal Fees.

          (i) Tenant hereby agrees to pay, as additional rent, all reasonable
attorneys' fees and disbursements (and all other court costs or expenses of
legal proceedings) which Landlord may incur or pay out by reason of, or in
connection with:

              (a) any action or proceeding by Landlord to terminate this Lease;

              (b) any other action or proceeding by Landlord against Tenant
(including, but not limited to, any arbitration proceeding);

                                       27
<PAGE>

              (c) any default by Tenant in the observance or performance of any,
obligation under this lease (including, but not limited to, matters involving
payment of rent and additional rent, computation of escalations, alterations or
other Tenant's work and subletting or assignment), whether or not landlord
commences any action or proceeding against Tenant;

              (d) any action or proceeding brought by Tenant against landlord
(or any officer, partner or employee of landlord) in which Tenant fails to
secure a final unappealable judgment against Landlord; and

              (e) any other appearance by Landlord (or any officer, partner or
employee of landlord) as a witness or otherwise in any action or proceeding
whatsoever involving or affecting Landlord, Tenant or this Lease.

      (ii) Tenant's obligations under this Subsection C shall survive the
expiration of the Term hereof or any earlier termination of this Lease. This
provision is intended to supplement (and not to limit) other provisions of this
Lease pertaining to indemnities and/or attorneys' fees.

19.   FEES AND EXPENSES.

      A.  Curing Tenant's Defaults. If Tenant shall default in the observance or
performance of any term or covenant on Tenant's part to be observed or performed
under or by virtue of any of the terms or provisions in any Article of this
Lease, Landlord may immediately or at any time thereafter on five (5) days'
notice perform the same for the account of Tenant, and if Landlord makes any
expenditures or incurs any obligations for the payment of money in connection
therewith including, but not limited to reasonable attorneys' fees and
disbursements in instituting, prosecuting or defending any action or proceeding,
such sums paid or obligations incurred with interest and costs shall be deemed
to be additional rent hereunder and shall be paid by Tenant to Landlord within
five (5) days of rendition of any bill or statement to Tenant therefor.

      B.  Late Charges.

      (i) If any installment of Minimum Rent or any additional rent shall not be
paid within five (5) days after such installment of Minimum Rent or additional
rent shall have first become due, Tenant shall also pay to Landlord (a) an
administrative late charge in the amount of $400.00, and (b) interest thereon
from the due date until such installment of Minimum Rent or additional rent is
fully paid at the rate of one and one-half (1 1/2%) percent per month, or the
applicable maximum legal rate of interest, whichever is lower (the "Interest
Rate"). Such administrative late charge and interest charge shall be due and
payable as additional rent with the next monthly installment of Minimum Rent.

      (ii) All Rent payments, if paid more than ten (10) days after the same
shall have first become due, shall be paid by certified or bank check only.
Furthermore, in addition to all other rights and remedies available to Landlord,
in the event that Tenant makes any Rent payments more than ten (10) days after
the same shall have first become due twice during any consecutive twelve (12)
month period, Tenant shall make all further Rent payments, whether timely or
late, by certified or bank check, until such time as Landlord determines that a
regular check will be acceptable.

      (iii) If any check delivered to Landlord in full or partial payment of any
amounts due to Landlord pursuant to the terms of this Lease shall not be honored
by reason of insufficient or uncollected funds or for any other reason, then (x)
Tenant shall pay to Landlord a service charge on account thereof in the amount
of $400.00, which service charge shall be due and payable as additional

                                       28
<PAGE>

rent with the next monthly installment of Minimum Rent, and (y) all subsequent
payments of any amounts due to Landlord pursuant to the terms of this Lease for
the next twelve (12) months shall, if Landlord so requests, be made by certified
or bank check.

20.   NO REPRESENTATIONS BY LANDLORD. Landlord or Landlord's agents have made no
representations or promises with respect to the Building, the Real Property,
the Premises or Taxes (as defined in Article 28 hereof) except as herein
expressly set forth and no rights, easements or licenses are acquired by Tenant
by implication or otherwise except as expressly set forth herein. All references
in this Lease to the consent or approval of Landlord shall be deemed to mean
the written consent of Landlord or the written approval of Landlord and no
consent or approval of Landlord shall be effective for any purpose unless such
consent or approval is set forth in a written instrument executed by Landlord.

21.   END OF TERM.

      A. Surrender of Premises. Upon the, expiration or other termination of the
Term, Tenant shall quit and surrender to Landlord the Premises, broom clean, in
good order and condition, ordinary wear and tear and damage for which Tenant is
not responsible under the terms of this Lease excepted, and Tenant may remove
all of its property pursuant to Article 3 hereof. Tenant's obligation to observe
or perform this covenant shall survive the expiration or sooner termination of
the Term. If the last day of the Term or any renewal thereof falls on Saturday
or Sunday this Lease shall expire' on the business day immediately preceding.
Tenant expressly waives, for itself and for any person claiming through or under
Tenant, any rights which Tenant or any such person may have under the provisions
of Section 2201 of the New York Civil Practice Law and of any successor law of
like import then in force in connection with any holdover summary proceedings
which Landlord may institute to enforce the provisions of this Article 21. In
addition, the parties recognize and agree that the damage to Landlord resulting
from any failure by Tenant to timely surrender possession of the Premises as
aforesaid will be substantial, will exceed the amount of the monthly
installments of the Rent theretofore payable hereunder, and will be impossible
to accurately measure. Tenant therefore agrees that if possession of the
Premises is not surrendered to Landlord within twenty-four (24) hours after the
Expiration Date or sooner termination of the Term, in addition to any other
rights or remedy Landlord may have hereunder or at law, Tenant shall pay to
Landlord for each month and for each portion of any month during which Tenant
holds over in the Premises after the Expiration Date or sooner termination of
this Lease, a sum equal to the greater of (i) the then fair market rental value
for the Premises as determined by Landlord, and (ii) two (2) times the aggregate
of that portion of the Rent and the additional rent which was payable under this
Lease during the last month of the Term. Nothing herein contained shall be
deemed to permit Tenant to retain possession of the Premises after the
Expiration Date or sooner termination of this Lease and no acceptance by
Landlord of payments from Tenant after the Expiration Date or sooner termination
of the Term shall be deemed to be other than on account of the amount to be paid
by Tenant in accordance with the provisions of this Article 21, which provisions
shall survive the Expiration Date or sooner termination of this Lease.

      B. Holdover by Tenant. If Tenant shall hold-over or remain in possession
of any portion of the Premises beyond the Expiration Date of this Lease,
notwithstanding the acceptance of any Rent and additional rent paid by Tenant
pursuant to Subsection A of this Article 21, Tenant shall be subject not only to
summary proceeding and all damages related thereto, but also to any damages
arising out of lost opportunities (and/or new leases) by Landlord to re-let the
Premises (or any part thereof). All damages to Landlord by reason of such
holding over by Tenant may be the subject of a separate action and need not be
asserted by Landlord in any summary proceedings against Tenant.

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<PAGE>

22.  QUIET ENJOYMENT. Landlord covenants and agrees with Tenant that upon Tenant
paying the Rent and additional rent and observing and performing all the terms,
covenants and conditions, on Tenant's part to be observed and performed, tenant
may peaceably and quietly enjoy the Premises subject, nevertheless, to the terms
and conditions of this Lease including, but not limited to, Article 16 hereof
and to all Superior Leases and Mortgages.

23.  FAILURE TO GIVE POSSESSION. Except as otherwise expressly set forth herein,
Tenant waives any right to rescind this Lease under Section 223-a of the New
York Real Property Law or any successor statute of similar import then in force
and further waives the right to recover any damages which may result from
Landlord's failure to deliver possession of the Premises on the date set forth
herein for the commencement of the Term. If Landlord shall be unable to give
possession of the Premises on such date, and provided Tenant is not responsible
for such inability to give possession, the Rent reserved and covenanted to be
paid herein shall not commence until the possession of the Premises is given or
the Premises are available for occupancy by Tenant, and no such failure to give
possession on such date shall in anyway affect the validity of this Lease or
the obligations of Tenant hereunder or give rise to any claim for damages by
Tenant or claim for rescission of this Lease, nor shall same be construed in
anyway to extend the Term. If permission is given to Tenant to enter into the
possession of the Premises or to occupy premises other than the Premises prior
to the Commencement Date, Tenant covenants and agrees that such occupancy shall
be deemed to be under all the terms, covenants, conditions and provisions of
this Lease, including the covenant to pay Rent.

24.   NO WAIVER. If there be any agreement between Landlord and Tenant providing
for the cancellation of this Lease upon certain provisions or contingencies
and/or an agreement for the renewal hereof at the expiration of the Term, the
right to such renewal or the execution of a renewal agreement between Landlord
and Tenant prior to the expiration of the Term shall. not be considered an
extension thereof or a vested right in Tenant to such further term, so as to
prevent Landlord from canceling this Lease and any such extension thereof during
the remainder of the original Term; such privilege, if and when so exercised by
landlord, shall cancel and terminate this Lease and any such renewal or
extension previously entered into between Landlord and Tenant or the right of
Tenant to any such renewal or extension; any right herein contained on the part
of Landlord to cancel this Lease shall continue during any extension or renewal
hereof; any option on the part of Tenant herein contained for an extension or
renewal hereof shall not be deemed to give Tenant any option for a further
extension beyond the first renewal or extended term. No act or thing done by
Landlord or Landlord's agents during the Term shall be deemed an acceptance of a
surrender of the Premises, and no agreement to accept such surrender shall be
valid unless in writing signed by Landlord. No employee of Landlord or of
Landlord's agents shall have any power to accept the keys of the Premises prior
to the termination of this Lease. The delivery of keys to any employee of
landlord or of landlord's agents shall not operate as a termination of this
Lease or a surrender of the Premises. In the event Tenant at any time desires to
have Landlord sublet the Premises for Tenant's account, Landlord or Landlord's
agents are authorized to receive said keys for such purpose without releasing
Tenant from any of the obligations under this Lease, and Tenant hereby relieves
Landlord of any liability for loss of or damage to any of Tenant's effects in
connection with such subletting. The failure of Landlord to seek redress for
violation of, or to insist upon the strict performance of, any covenant or
condition of this Lease, or any of the Rules and Regulations set forth or
hereafter adopted by Landlord, shall not prevent a subsequent act, which would
have originally constituted a violation, from having all force and effect of an
original violation. The receipt by Landlord of Rent with knowledge of the breach
of any covenant of this Lease shall not be deemed a waiver of such breach. The
failure of Landlord to enforce any of the Rules and Regulations set forth, or
hereafter adopted, against Tenant and/or any other: tenant in the Building shall
not be deemed a waiver of any such Rules and Regulations. No provision of this
Lease shall be deemed to have been waived by Landlord unless such waiver be in
writing signed by Landlord. No payment by Tenant or receipt by Landlord, of a
lesser

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<PAGE>

amount than the monthly Rent herein stipulated shall be deemed to be other than
on account of the earliest stipulated Rent, or as Landlord may elect to apply
same, nor shall any endorsement or statement on any check or any letter
accompanying any check or payment as Rent be deemed an accord and satisfaction,
and Landlord may accept such check or payment without prejudice to Landlord's
right to recover the balance of such Rent or pursue any other remedy in this
Lease provided. This Lease contains the entire agreement between the parties and
all prior negotiations and agreements are merged in this Lease. Any executory
agreement hereafter made shall be ineffective to change, modify, discharge or
effect an abandonment of it in whole or in part unless such executory agreement
is in writing and signed by the party against whom enforcement of the change,
modification, discharge or abandonment is sought.

25.   WAIVER OF TRIAL BY JURY. It is mutually agreed by and between Landlord and
Tenant that the respective parties hereto shall and they hereby do waive trial
by jury in any action, proceeding or counterclaim brought by either of the
parties hereto against the other on any matters whatsoever arising out of or in
any way connected with this Lease, the relationship of Landlord and Tenant,
Tenant's use or occupancy of the Premises, and/or any claim of injury or damage,
or for the enforcement of any remedy under any statute, emergency or otherwise.
It is further mutually agreed that in the event Landlord commences any
summary proceeding (whether for nonpayment of rent or because Tenant continues
in possession of the Premises after the expiration or termnination of the Term),
Tenant will not interpose any counterclaim (except for mandatory or compulsory
counterclaims) of whatever nature or description in any such proceeding.

26.   INABILITY TO PERFORM. This lease and the obligation of Tenant to pay Rent
and additional rent hereunder and perform all of the other covenants and
agreements hereunder on the part of Tenant to be performed shall in nowise be
affected, impaired or excused because Landlord is unable to fulfill any of its
obligations under this Lease expressly or impliedly to be performed by Landlord
or because Landlord is unable to make, or is delayed in making, any repairs,
additions, alterations, improvements or decorations or is unable to supply or is
delayed in supplying any equipment or fixtures if Landlord is prevented or
delayed from so doing by reason of strikes or labor troubles or by accident or
by any cause whatsoever reasonably beyond Landlord's control, including but not
limited to, laws, governmental preemption in connection with a national
emergency or by reason of any rule, order or regulation of any federal, state,
county or municipal authority or any department or subdivision thereof or any
government agency or by reason of the conditions of supply and demand which have
been or are affected by war or other emergency.

27.   BILLS AND NOTICES. Except as otherwise expressly provided in this Lease,
any bills, statements, notices, demands, requests or other communications given
or required to be given under this Lease shall be deemed sufficiently given
or rendered if in writing, sent postage prepaid, by registered or certified mail
(return receipt requested), or via overnight courier addressed (a) to Tenant
(i) at Tenant's address set forth in this Lease if mailed prior to Tenant's
taking possession of the Premises, or (ii) at the Building if mailed subsequent
to Tenant's taking possession of the Premises, or (iii) at any place where
Tenant or any agent or employee of Tenant may be found if mailed subsequent to
Tenant's vacating, deserting, abandoning or surrendering the Premises, or (b)
to Landlord at Landlord's address set forth in this Lease, or (c) to such other
address as either Landlord or Tenant may designate as its new address for such
purpose by notice given to the others in accordance with the provisions of this
Article 27. Tenant hereby acknowledges and agrees that any such bill, statement,
demand, notice, request or other communication may be given by Landlord's agent
on behalf of Landlord. Any Landlord's Statement, bill, notice or other
communication by Landlord with respect to Rent may be given by regular mail and
need not be sent to any party other than Tenant. Any such bill, statement,
demand, notice, request or other communication shall be deemed to have been
rendered or given on the date when it shall have been mailed as provided in this
Article 27.

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<PAGE>

28.   ESCALATIONS.

      A.  Defined Terms. In a determination of any increase in the Rent under
the provisions of this Article 28, Landlord and Tenant agree as follows:

          (i) "TAXES" shall mean the aggregate amount of real estate taxes and
any special or other assessments (exclusive of penalties and interest thereon)
imposed upon the Real Property and real estate taxes or assessments imposed in
connection with the receipt of income or rents from the Building to the extent
that same shall be in lieu of all or a portion of the aforesaid taxes or
assessments, or additions or increases thereof, including, without limitation,
(a) assessments made upon or with respect to any air rights, and (b) any
assessments levied after the date of this Lease for public benefits to the Real
Property or the building (excluding an amount equal to the assessments payable
in whole or in part during or for the Base Tax Year) which assessments, if
payable in installments, shall be deemed payable in the maximum number of
permissible installments and there shall be included in real estate taxes for
each Comparison Year (hereinafter defined) in which such installments may be
paid, the installments of such assessment so becoming payable during such
Comparison Year (in the manner in which such taxes and assessments are imposed
as of the date hereof); provided, that if because of any change in the taxation
of real estate, any other tax or assessment (including, without limitation, any
occupancy, gross receipts, rental, income, franchise, transit or other tax) is
imposed upon Landlord or the owner of the Real Property or the Building, or the
occupancy, rents or income therefrom, in substitution for or in addition to, any
of the foregoing Taxes, such other tax or assessment shall be deemed part of the
Taxes. With respect to any Comparison Year all expenses, including attorneys'
fees and disbursements, experts' and other witnesses' fees, incurred in
contesting the validity or amount of any Taxes or in obtaining a refund of Taxes
shall be considered as part of the Taxes for such year.

          (ii) "ASSESSED VALUATION" shall mean the amount for which the Real
Property is assessed pursuant to applicable provisions of the New York City
Charter and of the Administrative Code of the City of New York for the purpose
of imposition of Taxes.

          (iii) "TAX YEAR" shall mean the period July 1 through June 30 (or such
other period as hereinafter may be duly adopted by the City of New York as its
fiscal year for real estate tax purposes).

          (iv) "BID CHARGES" shall mean business improvement district taxes and
similar charges imposed on the Building and/or the Real Property and any
expenses incurred by Landlord in contesting the same.

          (v) "BID PAYMENT" shall mean Tenant's Proportionate Share of BID
Charges.

          (vi) "INSURANCE EXPENSE" shall mean all premiums and deductibles paid
or incurred by Landlord or on Landlord's behalf in respect of insurance for the
Building and the fixtures, machinery and equipment in the Building, including
(i) commercial general liability insurance, (ii) boiler and machinery insurance,
(iii) "all-risk" casualty insurance, (iv) insurance for protection against acts
of terrorism, including bioterrorism, and (v) workers' compensation, disability
and such other insurance covering all persons employed at the Building.

          (vii) "BASE INSURANCE EXPENSE" shall mean the Insurance Expense for
the Base Insurance Year.

                                       32
<PAGE>

          (viii) "SECURITY EXPENSE" shall mean all costs and expenses paid or
incurred by Landlord or on Landlord's behalf in respect of security for the Real
Property, the Building, the building Systems, sidewalks, curbs, plazas and other
areas adjacent to the Building.

          (ix) "BASE SECURITY EXPENSE" shall mean the Security Expense for the
Base Security Year.

          (x) "COMPARISON YEAR" shall mean (a) with respect to Taxes, any
calendar year during the Term (or such other fiscal or accounting period as
Landlord may reasonably elect), (b) with respect to BID Charges, any calendar
year during the Term, (c) with respect to Insurance Expense, any calendar year
during the Term subsequent to the Base Insurance Year, and (d) with respect to
Security Expense, any calendar year during the Term subsequent to the Base
Security Year, for any part or all of which there is an increase in the Rent
pursuant to Subsection B of this Article 28.

          (xi) "LANDLORD'S STATEMENT" shall mean an instrument or instruments
containing a comparison of any increase or decrease in the Rent for the
preceding Comparison Year pursuant to the provisions of this Article 28.

      B.  Escalation.

          (1) If the Taxes payable for any Comparison Year (any part or all of
which falls within the Term) shall represent an increase above the Base Tax
Amount, then the Rent for such Comparison Year and continuing thereafter until a
new Landlord's Statement is rendered. to Tenant, shall be increased by Tenant's
Proportionate Share of such increase (a "Tax payment"). The Taxes shall be
initially computed on the basis of the Assessed Valuation in effect at the time
Landlord's Statement is rendered (as the Taxes may have been settled or finally
adjudicated prior to such time) regardless of any then pending application,
proceeding or appeal respecting the reduction of any such Assessed valuation,
but shall be subject to subsequent adjustment as provided in Subsection
D(1)(a) of this Article 28. Tenant shall also pay for each Comparison Year the
BID Payment.

          (2) If there are BID Charges payable during any Comparison Year (any
part or all of which falls within the Term), then the Rent for such Comparison
Year and continuing thereafter until a new Landlord's Statement is rendered to
Tenant, shall be increased by the amount of the BID Payment.

          (3) If the Insurance Expense payable for any Comparison Year (any
part or all of which falls within the Term) shall represent an increase above
the Base Insurance. Expense; then the Rent for such Comparison Year and
continuing thereafter until a new Landlord's Statement is rendered to Tenant,
shall be increased by Tenant's Proportionate Share of such increase (an
"INSURANCE PAYMENT").

          (4) If the Security Expense payable for any Comparison Year (any part
or all of which falls within the Term) shall represent an increase above the
Base Security Expense, then the Rent for such Comparison Year and continuing
thereafter until a new Landlord's Statement is rendered to Tenant, shall be
increased by Tenant's Proportionate Share of such increase (a "Security
Payment").

      C.  Payment of Escalations.

          (1) At any time prior to, during or after any Comparison Year Landlord
shall render to Tenant a Landlord's Statement or Statements showing separately
or together (i) a comparison of the Taxes payable for the Comparison Year with
the Base Tax Amount, (ii) the BID Charges, (iii) a comparison of the Insurance
Expense payable for the Comparison Year with the Base Insurance Expense,

                                       33
<PAGE>


          (iv) a comparison of the Security Expense Payable for the Comparison
Year with the Base Security Expense, and (v) the amount of the increase in the
Rent resulting therefrom. Landlord's failure to render a Landlord's Statement
and/or receive payments with respect thereto during or with respect to any
Comparison Year shall not prejudice Landlord's right to render a Landlord's
Statement and/or receive payments with respect thereto during or with respect to
any subsequent Comparison Year, and shall not eliminate or reduce Tenant's
obligation to pay increases in the Rent pursuant to this Article 28 for such
Comparison Year. Landlord may also at any time and from time to time, furnish
to Tenant a revised Landlord's Statement or Statements showing separately or
together (a) a comparison of the Taxes payable for the Comparison Year with the
Base. Tax Amount, (b) the BID Charges, (c) a comparison of the Insurance Expense
for the Comparison Year with the Base Insurance Expense, and (d) a comparison of
the Security Expense with the Base Security Expense.

          (2) (i) With respect to an increase in the Rent resulting from (a) an
increase in the Taxes for any Comparison Year above the Base Tax Amount, and/or
(b) the imposition of BID Charges, Tenant shall pay to Landlord a sum equal to
one-half (%) of such amount on the first day of June and a sum equal to one-half
(%) of such amount on the first day of December of each calendar year. If
Landlord's Statement shall be furnished to Tenant after the commencement of the
Comparison Year to which it relates, then (1) until Landlord's Statement is
rendered for such' Comparison Year, Tenant shall pay (1) Tenant's Proportionate
Share of Taxes for such Comparison Year, and (2) the BID Payment, in semi-annual
installments, as described above, based upon the last prior Landlord's Statement
rendered to Tenant with respect to Taxes and/or BID Charges, and (II) Tenant
shall, within ten (10) days after Landlord's Statement is furnished to Tenant,
pay to Landlord an amount equal to any underpayment of the Tax Payment and/or
the BID Payment theretofore paid by Tenant. for such Comparison Year and, in the
event of an overpayment by Tenant, Landlord shall permit Tenant to credit
against subsequent payments under this Subsection the amount of such
overpayment. At Landlord's option, Landlord may deliver to Tenant a statement
setting forth Landlord's estimate of the Tax Payment and/or BID Charges for the
next succeeding Tax Year (the "ESTIMATED AMOUNT"). In such event, Tenant shall
pay the Estimated Amount in advance in equal monthly installments together with
that month's installment of Minimum Rent. In the event of an overpayment or
underpayment by Tenant, the difference shall be adjusted in accordance with the
terms of this Article 28. The benefit of any discount for any early payment or
prepayment of Taxes and Bid Charges shall accrue solely to the benefit of
Landlord, and such discount shall not be subtracted from the Tax Payment or the
BID Payment, respectively. Tenant shall be obliged to pay the Tax Payment and/or
the BID Payment regardless of whether Tenant is exempt, in whole or in part,
from the payment of any Taxes by reason of Tenant's diplomatic status or
otherwise.

          (ii) Tenant's obligations with respect to increases in the Insurance
Expense and/or in the Security Expense shall be payable by Tenant on the first
day of the month following the furnishing to Tenant of a Landlord's Statement
with respect to the Insurance Expense and/or the Security Expense in an amount
equal to one-twelfth (1/12th) of such increase in the Rent multiplied by the
number of months (and any fraction thereof) of the Term then elapsed since the
commencement of the Comparison Year for which the increase is applicable,
together with a sum equal to one-twelfth (1/12th) of such increase with respect
to the month following the furnishing to Tenant of a Landlord's Statement; and
thereafter, commencing with the next succeeding monthly installment of Rent and
continuing monthly thereafter until rendition of the next succeeding Landlord's
Statement, the monthly installments of Rent shall be increased by an amount
equal to one-twelfth (1/12th) of such increase. Any increase in the Rent shall
be collectible by Landlord in the same manner as Rent. At Landlord's option,
Landlord may deliver to Tenant a statement setting forth Landlord's estimate of
the Insurance Expense and/or the Security Expense for the next succeeding
Comparison Year (the "ESTIMATED AMOUNT"). In such event, Tenant shall pay the
Estimated Amount in advance in equal monthly installments together with that
month's

                                       34
<PAGE>

installment of Minimum Rent. In the event of an overpayment or underpayment by
Tenant, the difference shall be adjusted in accordance with the terms of this
Article 28.

          (3) Following each Landlord's Statement, a reconciliation shall be
made as follows: Tenant shall be debited with any increase in the Rent shown on
such Landlord's Statement and credited with the aggregate, if any, paid by
Tenant on account in accordance with the provisions of Subsection C for the
Comparison Year in question; Tenant shall pay any net debit balance to Landlord
within fifteen (15) days next following rendition by Landlord of an invoice for
such net debit balance; any net credit balance shall, be applied against the
next accruing monthly installment of Rent.

      D.  Adjustments.

          (i) (a) In the event that, after a Landlord's Statement has been sent
to Tenant, an Assessed Valuation which had been utilized in computing the Taxes
or the BID Charges for a Comparison Year is reduced (as a result of settlement,
final determination of legal proceedings or otherwise), and as a result thereof
a refund of Taxes or BID Charges is actually received by or on behalf of
Landlord, then, promptly after receipt of such refund, Landlord shall send
Tenant a statement adjusting the Tax Payment or the BID Payment for such
Comparison Year (taking into account the. expenses mentioned in the last
sentence of Subsection A(i) of this Article 28) and setting forth Tenant's
Proportionate Share of such red and Tenant shall be entitled to receive such
share by way of a credit against the Rent next becoming due after the sending of
such Landlord's Statement; provided, however, that (A) Tenant's Share of such
refund shall be limited to the amount, if any, which Tenant had theretofore paid
to Landlord as increased Rent for such Comparison Year on the basis of the
Assessed Valuation before it had been reduced, and (B) if Tenant is in default
hereunder at such time, Tenant shall not receive such credit until such time as
such default has been cured by Tenant.

          (b) In the event that, after a Landlord's Statement has been sent to
Tenant, the Assessed Valuation which had been utilized in computing the Base Tax
Amount is reduced (as a result of settlement, final determination of legal
proceedings or otherwise) then, and in such event: (A) the Base Tax Amount shall
be retroactively adjusted to reflect such reduction, (B) the monthly installment
of Rent shall be increased accordingly, and (C) all retroactive additional rent
resulting from such retroactive adjustment shall be forthwith payable when
billed by Landlord. Landlord promptly shall send to Tenant a statement setting
forth the basis for such retroactive adjustment and additional rent payments.

          (ii) Any Landlord's Statement sent to Tenant shall be conclusively
binding upon Tenant unless, within thirty (30) days after such statement is
sent, Tenant shall (a) pay to Landlord the amount set forth in such statement,
without prejudice to Tenant's right to dispute the same, and (b) send a written
notice to Landlord objecting to such statement and specifying the particular
respects in which such statement is claimed to be incorrect. The parties
recognize the unavailability of Landlord's books and records because of the
confidential nature thereof.

          (iii) Anything in this Article 28 to the contrary notwithstanding,
under no circumstances shall the rent payable under this Lease be less than the
Minimum Rent set forth herein.

          (iv) The expiration or termination of this Lease during any Comparison
Year for any part or all of which there is an increase in the Rent under this
Article shall not affect the rights or obligations of the parties hereto
respecting such increase and any Landlord's Statement relating to such increase
may, on a pro rata basis, be sent to Tenant subsequent to, and all such rights
and obligations shall survive, any such expiration or termination. Any payments
due under such Landlord's Statement shall be payable within ten (10) days after
such statement is sent to Tenant.

                                       35
<PAGE>

          E. Operating Cost Increase. In order to reflect Tenant's agreed upon
portion of the cost to Landlord (and increases thereto) for the operation,
cleaning, repair, safety, replacement, management, security and maintenance of
the Real Property, the Building and the Building Systems, sidewalks, curbs,
plazas and other areas adjacent to the Building with respect to the services
provided to tenants of the Building, commencing on the first (1st) anniversary
of the Commencement Date, and to occur on each subsequent anniversary of the
Commencement Date throughout the Term, the Minimum Rent payable by Tenant shall
be increased by two and one half (2 1/2%) percent on a compounded basis, which
shall be calculated by multiplying the Minimum Rent then payable by Tenant (as
previously escalated pursuant to this Subsection E, and including any fixed
increases) by two and one half (2 1/2%) percent, the product of which shall be
added to the Minimum Rent then payable by Tenant (as previously escalated
pursuant to this Subsection E, and including any fixed increases), and the
resulting sum of which shall be the Minimum Rent payable by Tenant under this
Lease until the next anniversary of the Commencement Date. As used in this
Subsection E, the term "Minimum Rent" shall exclude the Electricity Factor.

          F. Capital Improvements. If any alteration or capital improvement is
made to the Real Property or the Building during any calendar year during the
Term in compliance with Legal Requirement which becomes effective after the date
hereof, then Tenant shall, within ten (10) days following receipt of Landlord's
statement therefor, pay to landlord as additional rent commencing with the year
in which such costs are incurred, Tenant's Proportionate Share of such costs,
amortized on a straight-line basis over the life of such alteration or
improvement but not in excess of fifteen (15) years), as computed in accordance
with generally accepted accounting principles, consistently applied, with
interest thereon. For the purposes of this Subsection F, the cost of any such
alteration or improvement shall be deemed, to include the cost of preparing any
necessary plans and the fees for filing such plans.

29.   SERVICES.

          A. Elevator. Landlord shall provide non-exclusive passenger elevator
facilities on business days from 8:30 a.m. to 6:00 p.m. and shall have one
passenger elevator in the bank of elevators servicing the Premises available at
all other times. Landlord shall provide non-exclusive freight elevator services
on an "as available" basis for incidental use by Tenant during such times as
shall be designated by Landlord, in its discretion, from time to time. Tenant
shall pay Landlord for usage of the freight elevator at Landlord's standard
rates, which rates may change from time to time without notice. Use of the
freight elevator shall in all events be arranged by Tenant on not less than
twenty-four (24) hours prior notice and shall be provided by Landlord to the
extent that no conflict exists with other tenants or other parties requesting
such usage (all such conflicts to be resolved by Landlord, in Landlord's sole
discretion).

          B. HVAC.

          (i) Landlord shall cause air conditioning to be furnished to Tenant
from the central building HVAC system (the "HVAC System") from May 15th through
September 30th, on business days from 8:30 a.m. to 6:00 p.m., in accordance
with the HVAC specifications set forth subparagraph (ii) below.

          (ii) Based on an average electric load of five (5) watts demand load
per usable square foot and one person per 100 square feet of net usable area of
the Premises, Landlord represents that the HVAC System is capable of supplying
heating and air-conditioning to the Premises in accordance with the following
specifications:

                                Summer Conditions

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<PAGE>

      Inside Temperature                              Outside Temperature
      ------------------                              -------------------
      78(degree) F dry bulb                           when outside temperature
      50% relative humidity                           is 95(degree) F


                                Winter Conditions

      Inside Temperature                              Outside Temperature
      ------------------                              -------------------
      68(degree) F dry bulb                           when outside temperature
                                                      is 0(degree) F

Notwithstanding the foregoing, Landlord makes no representation and Landlord
shall have no obligation or liability with respect to the performance of the
HVAC System by reason of (a) the use of the Premises, or any part thereof, in a
manner exceeding the design conditions specified in this subparagraph, (b) the
arrangement or rearrangement of partitioning or of the ceiling distribution
system which interferes with normal operation of the heating and
air-conditioning in the Premises, (c) the use of computer or data processing
machines or other machines or equipment, except for normal desk-top machines and
business equipment, (d) the failure of Tenant to comply with the provisions of
this Lease, which failure shall affect the performance of the HVAC System, (e)
the performance of or any defects in any work or alterations done or caused to
be done by Tenant, (f) any other matter relating to the distribution of HEATING
and air-conditioning within the Premises or (g) the requirements of any law,
order or regulation of any governmental subdivision or agency (or any officer
thereof) or the requirements of any insurance bodies. Tenant shall not be
released or excused from the performance of any of its obligations under this
Lease for any failure or for interruption or curtailment of any air
conditioning, for any reason whatsoever, and no such failure, interruption or
curtailment shall constitute a constructive or partial eviction.

          (iii) Tenant agrees to keep all windows closed when the HVAC System is
in operation and to comply with all reasonable requirements which Landlord
prescribes for the proper functioning and protection of the HVAC System.

          (iv) Only Landlord shall have access to the HVAC System equipment.
Landlord may suspend air conditioning because of accidents, repairs,
alterations, or improvements which Landlord determines are desirable or
necessary, or to comply with governmental restrictions, or other causes beyond
the reasonable control of the Landlord, or because of shortage of or difficulty
in obtaining energy. No diminution or abatement of rent or other charges shall
be claimed by Tenant, nor shall this Lease or any of the obligations of the
Tenant be affected by reason of such suspension of air conditioning.

          (v) Repairs and maintenance of supplemental air conditioning units,
whether currently existing in the Premises or added in the future will be the
sole responsibility of Tenant.

          (vi) Landlord shall furnish heat (when and as required by law) to the
Premises, on business days from 8:30 a.m. to 6:00 p.m. Landlord shall be
responsible for the maintenance, repair and replacement of the radiators and
connecting pipes contained within the Premises, except where the need for repair
or replacement is caused by Tenant, or by any of Tenant's agents, employees,
contractors, invitees, sublessees, servants, licensees or assignees.

      C.  After Hours and Additional Services. The Rent does not include any
charge to Tenant for the furnishing of any additional passenger elevator
facilities, any freight elevator facilities or for the service of heat or air
conditioning to the Premises during periods other than the hours and days, set
forth in

                                       37
<PAGE>

Subsections A and B of this Article 29 for the furnishing and distributing of
such facilities or services (referred to as "OVERTIME PERIODS"). Accordingly, if
Landlord shall furnish any (i) passenger elevator facilities to Tenant during
Overtime Periods or freight elevator facilities, or (ii) heat or air
conditioning to the Premises during Overtime Periods, then Tenant shall pay
Landlord additional rent for such facilities or services at the standard rates
then fixed by the Landlord for the Building or, if no such rates are then fixed,
at reasonable rates. Neither the facilities nor the services referred to in this
Subsection shall be furnished to Tenant or the Premises if Landlord has not
received advance notice from tenant specifying the particular facilities or
services requested by Tenant at least twenty four (24) hours prior to the date
on which the facilities or services are to be furnished; or if Tenant is in
default under or in breach of any of the terms, covenants or conditions of this
Lease; or if Landlord shall determine, in its sole and exclusive discretion,
that such facilities or services are requested in connection with, or the use
thereof shall create or aid in a default under or a breach of any term, covenant
or condition of this Lease. All of the facilities and services referred to in
this Subsection are conveniences and are not and shall not be deemed to be
appurtenances to the Premises, and the failure of Landlord to furnish any or all
of such facilities or services shall not constitute or give rise to any claim of
an actual or constructive eviction, in whole or in part, or entitle Tenant to
any abatement or diminution of Rent, or relieve Tenant from any of its
obligations under this Lease, or impose any liability upon Landlord or its
agents by reason of inconvenience or annoyance to Tenant, or injury to or
interruption of Tenant's business or otherwise. Landlord may limit the
furnishing during Overtime Periods of any of the facilities or services referred
to in this Article 29 to a total of twenty (20) hours in any one week. If more
than one tenant utilizing the same system as Tenant requests the same Overtime
Periods for the same services as Tenant, the charge to Tenant shall be adjusted
pro rata.

      D.  Cleaning. Landlord, at its expense, shall cause the Premises and
Building common areas to be cleaned in accordance with the cleaning
specifications set forth on Exhibit 2 annexed hereto and made a part hereof.
Tenant shall pay to Landlord, on demand and as additional rent, any costs
incurred by Landlord for (i) extra cleaning work in the Premises required
because of misuse use or neglect on the part of Tenant or its employees or
visitors, (ii) use of portions of the Premises for the preparation, serving or
consumption of food or beverages, data processing or reproducing operations,
other than normal internal office use, private lavatories or toilets, or other
special purposes requiring greater or more difficult cleaning work than office
areas, (iii) any unusual quantity of interior glass surfaces, and (iv) any
non-building standard materials or finishes installed by Tenant or at its
request. Landlord, its cleaning contractor and their employees shall have access
to the Premises either during regular business hours or after hours, and the
free use of light, power and water therein, as is reasonably required for the
purpose of cleaning the. Premises in accordance with Landlord's obligations
hereunder.

      E.  Trash Removal.

          (i) Tenant covenants and agrees, at its sole cost and expense, to
comply with all present and future Legal Requirements regarding the collection,
sorting, separation and recycling of waste products, garbage, refuse and trash
(collectively "RUBBISH"). Tenant shall sort and separate the Rubbish into such
categories as provided by law. Each separately sorted category of Rubbish shall
be placed in separate receptacles reasonably approved by Landlord. Such separate
receptacles may, at Landlord's option, be removed from the Premises in
accordance with a collection schedule prescribed by law.

          (ii) Tenant shall pay all costs, expenses, fines penalties or damages
that may be imposed on Landlord or Tenant by reason of tenant's failure to
comply with the provisions of trash or recycling laws and, at Tenant's sole cost
and expense, shall indemnify, defend and hold Landlord harmless (including legal
fees and expenses) from and against any actions, claims and suits arising from
such noncompliance, utilizing counsel reasonably satisfactory to Landlord.

                                         38
<PAGE>

          (iii) Tenant shall pay Landlord for the cost of removal from the
Premises and the Building of so much of Tenant's Rubbish (a) as shall exceed
that ordinarily accumulated daily in the routine of business office occupancy,
or (b) resulting from any use of the Premises during hours other than usual
business hours (collectively, "EXTRA RUBBISH REMOVAL"). The reimbursement for
Extra Rubbish Removal shall be made by Tenant to Landlord, as additional rent,
within ten (10) days after bills are rendered therefor.

      F.  Sprinkler System. Anything elsewhere in this Lease to the contrary
notwithstanding, if the New York Board of Fire Underwriters or the New York
Insurance Rating Organization or any bureau, department or official of the state
or city government requires or recommends that any changes, modifications,
alterations or additional sprinkler heads or other equipment be made or supplied
to the sprinkler system by reason of Tenant's business, or the location of the
partitions, trade fixtures, or other contents of the Premises, then Tenant
shall, at Tenant's expense, or, at Landlord's election, Landlord shall, at
Tenant's expense, promptly make and supply such changes, modifications,
alterations, additional sprinkler heads or other equipment (pursuant to
submission of necessary engineering plans and specifications for Landlord's
reasonable approval), whether the work involved shall be structural or non-
structural in nature.

      G.  Water. Landlord shall furnish water to the Premises for drinking and
lavatory purposes to the extent piping and fixtures presently exist therein. If
Tenant uses water for any purpose other than ordinary drinking and lavatory
uses, Landlord may install water meter to measure Tenant's water consumption
for all purposes and Tenant agrees to pay for the installation and maintenance
thereof and for water consumed as shown on said meter and any sewer rent or tax
based thereon.

      H.  Electricity Service.

          (1) Landlord, at Landlord's expense, shall furnish electrical energy
to or for the use of Tenant in the Premises for the operation or servicing of
the lighting fixtures and the electrical receptacles installed in the Premises
on the Commencement Date. There shall be no specific charge by way of measuring
such electrical energy on any meter or otherwise, as the charge for the service
of redistributing or furnishing such electrical energy has been included in the
Rent on a so-called "rent inclusion" basis. The parties agree that although the
charge for the service of redistributing or furnishing electrical energy is
included in the Rent on a rent inclusion basis, the value to Tenant of such
service may not be fully reflected in the Rent. Accordingly, Tenant agrees that
Landlord may cause an independent electrical engineer or electrical consulting
firm, selected by Landlord, to make a final determination, following the
commencement of Tenant's normal business activities in the Premises, of the full
value to Tenant of such services supplied by Landlord, to wit: the estimated
consumption and demand of electrical energy supplied to Tenant annually based
upon the connected load and utilization of electricity by Tenant and the then
current on-peak rates of the public utility company serving the Premises. Such
engineer or consulting firm shall certify such determination in writing to
Landlord and Tenant, which shall be conclusive and binding upon Tenant. If it
shall be determined by such engineer or consulting firm that the full value to
Tenant of such service is in excess of the then Electricity Factor, the Rent and
the Electricity Factor shall be automatically and unconditionally increased,
without further act or instrument, retroactive to the date of the survey for the
balance of the Term (or until any subsequent determinations are made), by an
annual amount equal to such excess. However, if it shall be so determined that
the full value to Tenant of such service does not exceed the Electricity Factor,
there shall be no increase or decrease in the Rent or the Electricity Factor by
reason of such determination. Any such determination made by an engineer or
consulting firm shall be conclusive and binding upon Tenant. Therefore, Landlord
may, from time to time thereafter during the Term of this Lease, and at its sole
option, cause an engineer or consulting firm to make subsequent determinations
of the then full value of such services

                                       39
<PAGE>

supplied to Tenant on the basis hereinabove set forth, and if such value is in
excess of the then Electricity Factor, the Rent and the Electricity Factor shall
be adjusted accordingly.

          (2) If Tenant requires additional electrical energy beyond that
supplied by Landlord for any reason whatsoever, including without limitation,
the use of additional business machines, office equipment or other appliances in
the Premises which utilize electrical energy, Tenant shall request such
additional electrical energy from Landlord in each instance. If Landlord agrees
to provide the same, the Rent and the Electricity Factor will be increased
following a determination of the full value of such electrical service supplied
to Tenant pursuant to the procedure set forth in subparagraph (1) of this
Subsection H, plus a connection fee equal to landlord's then standard charge per
kilovolt ampere. In addition, any additional feeders or risers to be installed
to supply Tenant's additional electrical requirements, and all other equipment
proper and necessary in connection with such feeders or risers, shall be
installed by Landlord upon Tenant's request, at the sole cost and expense of
Tenant, provided that, in Landlord's judgment, such additional feeders or risers
are necessary and are permissible under applicable laws and insurance
regulations and the installation of such feeders or risers will not cause
permanent damage or injury to the Building or the Premises or cause or create a
dangerous or hazardous condition or entail excessive or unreasonable alterations
or interfere with or disturb other tenants or occupants of the Building. Tenant
covenants that at no time shall the use of electrical energy servicing the
Premises exceed the capacity of the existing feeders or wiring installations
then serving the Premises. Tenant shall not make or perform, or permit the
making. or performance of, any Alterations to wiring installations or other
electrical facilities in or serving the Premises without the prior consent of
Landlord in each instance and without paying Landlord's customary charges
therefor. Any such Alterations, additions or consent by Landlord shall be
subject to the provisions of subparagraph (3) of this Subsection H, as well as
to other provisions of this Lease including, but not limited to, the provisions
of Article 3 hereof.

          (3) If, at any time or times during the Term, electrical feeders,
risers, wiring or other electrical facilities serving the Premises shall be
installed by Landlord, Tenant or others, on behalf of Tenant or any person
claiming through or under Tenant in addition to the feeders, risers, wiring or
other electrical facilities necessary to serve the lighting fixtures and
electrical receptacles installed in the Premises on the Commencement Date, the
Rent, and Electricity Factor each shall be increased in an annual amount which
shall reflect the full value to Tenant of the additional service to be furnished
by Landlord, to wit: the estimated consumption of additional electrical energy
made available to Tenant annually based upon the connected load and utilization
of electricity by Tenant through such additional electrical feeders, risers,
wiring or other electrical facilities. The amount of any such increase in the
Rent and the Electricity Factor shall be finally determined by an independent
electrical engineer or electrical consulting firm selected by Landlord who
shall certify such determination in writing to Landlord and Tenant. Following
any such determination, the Rent and the Electricity Factor for the remainder of
the Term shall be increased in an annual amount equal to the value of such
additional service as so determined. Any such increase shall be effective as of
the date of the first availability to Tenant of such additional service and
shall be retroactive to such date if necessary.

          (4) If, at any time or times after the date of execution of this
Lease, the rates at which Landlord purchases electrical energy from the public
utility corporation supplying electrical service to the Building or any charges
incurred or taxes payable by Landlord in connection therewith shall be
increased, the Rent and the Electricity Factor shall be increased upon demand of
Landlord in an annual amount which shall fairly represent the estimated increase
in the annual value to Tenant of the electrical service provided by Landlord to
Tenant under the provisions of this Subsection H. If, within ten (10) days after
any such demand, Landlord and Tenant shall fail to agree upon the amount of such
increase in the Rent and the Electricity Factor then, in lieu of such agreement,
the estimated increase in the annual value to

                                       40
<PAGE>

Tenant of the electrical service provided by Landlord to Tenant under the
provisions of this Subsection H shall be finally determined by an independent
electrical engineer or electrical consulting firm selected by Landlord who shall
certify such determination in writing to Landlord and Tenant. Any such
determination made by an engineer or consulting firm shall be conclusive and
binding upon Tenant. Following any such agreement or determination of an
increase in such annual value, the Rent and the Electricity Factor for the
remainder of the Term shall be increased in an annual amount equal to such
estimated increase in the annual value to Tenant of the electrical service
provided by Landlord to Tenant under the provisions of this Subsection, as so
agreed or determined. Any such increase in the Rent and the Electricity Factor
shall be automatically and unconditionally effective without further act or
instrument, as of the date of such increase in rates, charges or taxes, and
shall be retroactive to such date if necessary. Anything in this subparagraph
(4) to the contrary notwithstanding, under no circumstances shall the
Electricity Factor be an amount less than the amount set forth herein, as
escalated.

          (5) Any increase in the Rent pursuant to the provisions of
Subparagraphs (1), (3) or (4) of this Subsection H with respect to the period
from the effective date of such increase to the last day of the month in which
such increase shall be fixed by agreement or determination shall be payable by
Tenant within ten (10) days of demand of Landlord. The monthly installments of
the Rent payable after the date upon which any such increase is so fixed shall
be proportionately adjusted to reflect such increase in the Rent.

          (6) Landlord shall have the option of installing sub-meters at
Tenant's expense to measure Tenant's consumption of electrical energy. If
Landlord exercises such option, Tenant shall pay to Landlord, as additional
rent, within ten (10) days of demand, from time to time, but no more frequently
than monthly, for its consumption of electrical energy at the then applicable
rate prescribed by the public utility company serving the Premises for
sub-metered electrical energy, plus Landlord's charge for overhead and
supervision in the amount of eight (8%) percent of the total electric bill. In
such event, the Rent shall be reduced by an amount equal to the then Electricity
Factor as of, commencement of the operation of such sub-meters. For the purpose
of this subparagraph (6) the rate to be paid by Tenant in the event of
sub-metering shall include any taxes or other charges in connection therewith.
If any tax shall be imposed upon Landlord's receipts from the sale or resale of
electrical energy to Tenant, the pro rata share allocable to the electrical
energy service received by Tenant shall be passed on to, included in the bill
of, and paid by Tenant if and to the extent permitted by law. Where more than
one meter measures the electricity supplied to Tenant, the electricity rendered
through each meter may be computed and billed separately in accordance with the
provisions hereinabove set forth. Tenant expressly acknowledges that, in
connection with the installation of the submeters, the electricity being
furnished to the Premises may be temporarily interrupted. Landlord shall use
reasonable efforts to minimize interference with the conduct of Tenant's
business in connection with such installation, but the foregoing shall not
require Landlord to utilize premium or overtime labor in connection therewith.

          (7) Landlord reserves the right to discontinue furnishing electricity
to Tenant in the Premises on not less than thirty (30) days' notice to Tenant.
If Landlord exercises such right to discontinue, or is compelled to discontinue
furnishing electricity to Tenant, this Lease shall continue in full force and
effect and shall be unaffected thereby, except only that from and after the
effective date of such discontinuance, Landlord shall not be obligated to
furnish electricity to Tenant and the Rent shall be reduced by an amount equal
to the then Electricity Factor. If Landlord so discontinues furnishing
electricity to Tenant, Tenant shall arrange to obtain electricity directly from
the public utility or other company servicing the Building. Such electricity may
be furnished to Tenant by means of the then existing electrical facilities
serving the Premises to the extent that the same are available, suitable and
safe for such purposes. All meters and all additional panel boards, feeders,
risers, wiring and other conductors and equipment which may be required to
obtain electricity, of substantially the same quantity, quality and

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<PAGE>

character, shall be installed by Landlord, at Tenant's sole cost and expense.
Landlord shall not voluntarily discontinue furnishing electricity to Tenant
until Tenant is able to receive electricity directly from the public utility or
other company servicing the Building.

          (8) Landlord shall not be liable to Tenant in any way for any
interruption, curtailment or failure, or defect in the supply or character of
electricity furnished to the Premises by reason of any requirement, act or
omission of Landlord or of any public utility or other company servicing the
Building with electricity or for any other reason except Landlord's gross
negligence or willful misconduct. If either the quantity or character of
electrical service is changed by the public utility or other company supplying
electrical service to the Building or is no longer available or suitable for
Tenant's requirements, no such change, unavailability or unsuitability shall
constitute an actual or constructive eviction, in whole or in part, or entitle
Tenant to any abatement or diminution of rent, or relieve Tenant fmm any of its
obligations under this Lease, or impose any liability upon Landlord, or its
agents, by reason of inconvenience or annoyance to Tenant, or injury to or
interruption of Tenant's business, or otherwise.

          (9) In the event Tenant shall occupy the Premises prior to the
Commencement Date, Tenant shall pay to Landlord a sum equivalent to one-twelfth
(1/12th) of the electricity Factor (the "INTERIM ELECTRIC CHARGE") on the fast
day of its occupancy of the Premises and on the fast day of each calendar month
thereafter until the Commencement Date, as additional rent representing the cost
of electricity consumed within the Premises for such period. If the first day of
Tenant's occupancy occurs on a date other than the first day of a calendar
month, the Interim Electric Charge for such month shall be an amount equal to
such proportion of the Interim Electric Charge as the number of days from and
including the first day of such occupancy through the last day in such calendar
month bears to the total number of days in such calendar month.

      I.  Energy Conservation.

          (i) Tenant agrees to cooperate fully with Landlord to ensure the most
effective and energy-efficient operation of the Building. Accordingly, Tenant
agrees as follows:

          (a) Tenant shall not waste electricity, water, heat, air conditioning
and other utilities and services at the Building.

          (b) Tenant shall not obstruct, alter or in any way impair the
efficient operation of the Building's heat, air conditioning and ventilation
systems. To this end, Tenant shall (1) not place furniture, equipment or other
objects where they would interfere with air flow, (2) not tamper with or change
the setting of any thermostats or temperature control valves, (3) keep corridor
doors closed and not open any windows (except that if the air circulation shall
not be in operation, and if the Premises contain operable windows, such windows
may be opened with Landlord's consent), and (4) during hot weather months, lower
and partially close window blinds or drapes when the sun's rays fall directly on
windows of the Premises.

          (ii) From time to time, Landlord may institute for the Building
certain programs (including energy conservation programs) that Landlord believes
will be in the best interests of the Building and its tenants. Similar programs
may be established by a local utility company. Tenant shall promptly comply
with and carry out, in good faith, any and all obligations issued by Landlord or
the utility company, as the case may be, under such programs, as the same may
exist from time to time.

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<PAGE>

      J.  Interruption of Services. Landlord reserves the right to stop service
of the HVAC system and all other Building Systems during any period of a
violation or breach by Tenant of the provisions of this Lease and to stop the
service of the HVAC system or the elevator, electrical, plumbing or other
mechanical systems or facilities in the Building when necessary, by reason of
accident or emergency, or for repairs, additions, alterations, replacements,
decorations or improvements in the judgment of Landlord desirable or necessary
to be made, until said repairs, alterations, replacements or improvements shall
have been completed. Landlord shall have no responsibility or liability for
interruption, curtailment or failure to supply cooled or outside air, heat,
elevator, plumbing or electricity when prevented by exercising its right to stop
service or by strikes, labor troubles or accidents or by any cause whatsoever
reasonably beyond landlord's control, or by failure of independent contractors
to perform or by laws, orders, rules or regulations of any federal, state,
county or municipal authority, or failure of suitable fuel supply, or inability
by exercise of reasonable diligence to obtain suitable fuel or by reason of
governmental preemption in connection with a National Emergency or by reason of
the conditions of supply and demand which have been or are affected by war or
other emergency.

30. PARTNERSHIP TENANT.

          A. Partnership Tenants. If Tenant is a partnership (or is comprised of
two (2) or more persons, individually and as co-partners of a partnership) or if
Tenant's interest in this Lease shall be assigned to a partnership (or to two
(2) or more persons, individually and as copartners of A partnership) pursuant
to Article 12 (any such partnership and such persons are referred to in this
Article 30 as a "Partnership Tenant"), the following provisions of this Article
30 shall apply to such Partnership Tenant: (i) the liability of each of the
parties comprising a Partnership Tenant shall be joint and several, and (ii)
each of the parties comprising a Partnership Tenant hereby consents in advance
to, and agrees to be bound by, any written instrument which may hereafter, be
executed, changing, modifying or discharging this Lease, in whole or in part, or
surrendering all or any part of the Premises to Landlord, and by any notices,
demands, requests or other communications which may hereafter be given by a
Partnership Tenant or by any of the parties comprising a Partnership Tenant, and
(iii) any bills, statements, notices, demands, requests or other communications
given or rendered to a Partnership Tenant and to all such parties shall be
binding upon a Partnership Tenant and all such parties, and (iv) if a
Partnership Tenant shall admit new partners, all of such new partners shall, by
their admission to a Partnership Tenant, be deemed to have assumed performance
of all OF the terms, covenants and conditions of this Lease on Tenant's part to
be observed and performed, and (v) a Partnership Tenant shall give prompt notice
to Landlord of the admission of any such new partners, and upon demand of
Landlord, shall cause each such new partner to execute and deliver to Landlord
an agreement in form satisfactory to Landlord, wherein each such new partner
shall assume performance of all the terms, covenants and conditions of this
Lease on Tenant's part to be observed and performed (but neither Landlord's
failure to request any such agreement nor the failure of any such new partner to
execute or deliver any such agreement to Landlord' shall vitiate the provisions
of subdivision (iv) of this Subsection A of this Article 30).

          B. Limited Liability Entities. If Tenant is a limited or general
partnership (or is comprised of two (2) or more persons, individually or as
co-partners), the change or conversion of Tenant to (a) a limited liability
partnership, (b) a limited liability company, or (c) any other entity which
possesses the characteristics of limited liability (any such limited liability
partnership, limited liability company or entity is referred to as a "Limited
Liability Successor Entity"), shall be prohibited unless the prior written
consent of Landlord is obtained, which consent may be withheld in Landlord's
sole discretion. Notwithstanding the foregoing, Landlord agrees not to
unreasonably withhold of delay such consent provided that: (i) The Limited
Liability Successor Entity succeeds to all or substantially all of Tenant's
business and assets; (ii) The Limited Liability Successor Entity shall have a
net worth, determined in accordance with generally accepted accounting
principles, consistently applied, of not less than the

                                       43
<PAGE>

greater of the net worth of Tenant on (1) the date of execution of this Lease,
and (2) the day immediately preceding the proposed effective date of such
conversion; (iii) Tenant is not in default of any of the terms, covenants or
conditions of this Lease on the proposed effective date of such conversion; (iv)
Tenant shall cause each partner of tenant to execute and deliver to Landlord an
agreement, in form and substance satisfactory to Landlord, wherein each such
partner agrees to remain personally liable for all of the terms, covenants and
conditions of this Lease that are to be observed and performed by the Limited
Liability Successor Entity; and (v) Tenant shall reimburse Landlord on demand
for any and all reasonable costs and expenses that may be incurred by landlord
in connection with said conversion of Tenant to a Limited Liability Successor
Entity, including any attorneys' fees and disbursements.

31.   VAULT SPACE. Any vaults, vault space or other space outside the boundaries
of the Real property, notwithstanding anything contained in this Lease or
indicated on any sketch, blueprint or plan are not included in the Premises.
Landlord makes no representation as to the location of the boundaries of the
Real Property. All vaults and vault space and all other space outside the
boundaries of the Real Property which Tenant may be permitted to use or occupy
is to be used or occupied under a revocable license, and if any such license
shall be revoked, or if the amount of such space shall be diminished or required
by any federal, state or municipal authority or by any public utility company,
such revocation, diminution or requisition shall not constitute an actual or
constructive eviction, in whole or in part, or entitle Tenant to any abatement
or diminution of rent, or relieve Tenant from any of its obligations under this
Lease, or impose any liability upon Landlord. Any fee, tax or charge imposed by
any governmental authority for any such vaults, vault space or other space shall
be paid by Tenant, to the extent any such vaults, vault space or other space is
used by Tenant.

32.   SECURITY DEPOSIT.

          A. Deposit of Security. Landlord and Tenant acknowledge that Tenant
has deposited with Landlord the Security Deposit as security for the faithful
performance and observance by Tenant of the terms, provisions and conditions of
the Lease, including but not limited to the payment of Minimum Rent and
additional rent. The parties agree that the Security Deposit shall remain on
deposit with the Landlord and that Landlord may use, apply or retain the whole
or any part of the Security Deposit to the extent required for the payment of
any Minimum Rent and additional rent or any other sum as to which Tenant is in
default or for any sum which Landlord may expend or may be required to expend by
reason of Tenant's default in respect of any of the terms, covenants and
conditions of the Lease, including but not limited to, any damages or deficiency
in the reletting of the Premises, whether such damages or deficiency accrued
before or after summary proceedings or other re-entry by Landlord. If any
portion of the Security Deposit is applied by Landlord to any default by Tenant
under this Lease, Tenant shall restore the sum so applied within five (5) days
after written notice from Landlord demanding such restoration and the amount to
be restored shall be deemed additional rent. In the event that the Security
Deposit is placed in an interest bearing account, Landlord shall be entitled to
and shall be paid from the interest accrued and credited on the Security
Deposit one (1%) percent (of the Security Deposit) per annum for administration
of the security account. Notwithstanding the foregoing, Landlord shall have no
obligation to deposit the Security Deposit into an interest-bearing account.
Landlord shall have no liability or obligation to Tenant for any loss suffered
by Tenant by reason of the placement by Landlord of the Security Deposit into
any commercial or savings bank account.

          B. Letter of Credit. In lieu of the cash deposit required pursuant to
Subsection A of this Article 32, Tenant may deliver to Landlord a clean,
irrevocable, non-documentary and unconditional letter of credit (the "LETTER OF
CREDIT") issued by and drawn upon any commercial bank (the "Issuing Bank") with
offices for banking purposes in the City of New York and having a net worth of
not less than One Hundred Million and 00/100 ($100,000,000.00) Dollars, which
Letter of Credit shall (a) have a term

                                       44
<PAGE>

of not less than one year, (b) be substantially in the form of Exhibit 3
attached hereto and otherwise in form and content satisfactory to Landlord, (c)
be for the account of Landlord, (d) be in the amount of the Security Deposit,
(e) be fully transferable by Landlord without any fees or charges therefor; (f)
have an expiration date that is not earlier than the date which is thirty (30)
days after the Expiration Date, and (g) provide that it shall be deemed
automatically renewed, without amendment, for consecutive periods of one (1)
year each thereafter during the term of this Lease, unless the Issuing Bank
sends notice (the "Non-Renewal Notice") to Landlord by certified mail, return
receipt requested, not less than thirty (30) days next preceding the then
expiration date of the Letter of Credit that it elects not to have such Utter of
Credit renewed. The Letter of Credit shall provide that Landlord shall have the
right, exercisable within twenty (20) days of its receipt of the Non-Renewal
Notice, by sight draft on the Issuing Bank, to receive the monies represented by
the existing Letter of Credit and to hold such proceeds pursuant to the terms of
this Article 32 as a cash security pending the replacement of such Letter of
Credit.

          C. Application of Security Deposit. In the event that Tenant defaults
beyond the giving of notice and the expiration of applicable grace periods in
respect of any of the terms, provisions and conditions of this Lease, including,
but not limited to, the payment of Minimum Rent and additional rent, Landlord
may apply or retain the, whole or any part of any cash security held by Landlord
or may notify the Issuing Bank and thereupon receive all the monies represented
by the Letter of Credit and use, apply or retain the whole or any part of such
proceeds, as the case may be, to the extent required for the payment of any Rent
and additional rent or any other sum as to which Tenant is in default or for any
sum which Landlord may expend or may be required to expend by reason of Tenant's
default in respect of my of the terms, covenants and conditions of this Lease,
including but not limited to, any damages or deficiency in the reletting of the
Premises, whether such damages or deficiency accrue or accrues before or after
summary proceedings or other reentry by Landlord. If Landlord applies or retains
any part of any cash security or proceeds of the Letter of Credit, as the case
may be, Tenant, within five (5) days after notice from Landlord and at
Landlord's option, shall deposit with Landlord the amount so applied or retained
or increase the amount of the Letter of Credit or provide an additional or
replacement Letter of Credit, so that Landlord shall have the full Security
Deposit on hand at all times during the Term. The failure by Tenant to deposit
such additional amount or provide an additional or replacement Letter of Credit
within the foregoing time period shall be deemed a material default pursuant to
Article 17 of this Lease. If Tenant shall fully and faithfully comply with all
of the terms, provisions, covenants and conditions of this Lease, any cash
security or the Letter of Credit, as the case may be, shall be promptly returned
to Tenant after the Expiration Date and after delivery of the entire possession
of the Premises to Landlord. In the event of a sale of the Real Property or the
Building or leasing of the Building, Landlord shall transfer any cash security
or so much thereof as remains following a default by Tenant to the vendee or
lessee and with respect to the Letter of Credit, within thirty (30) days of
notice of such sale or leasing, Tenant, at Tenant's sole cost and expense, shall
arrange for the transfer of the Letter of Credit to the new landlord, as
designated by Landlord in the foregoing notice or have the Letter of Credit
reissued in the name of the new landlord and Landlord shall thereupon be
released by Tenant from all liability for the return of such security. Tenant
agrees to look solely to the new landlord for the return of such cash security
or Letter of Credit and it is agreed that the provisions hereof shall apply to
every transfer or assignment made of the Security Deposit to a new landlord.
Tenant further covenants that it will not assign or encumber or attempt to
assign or encumber any monies or Letter of Credit deposited herein as security
and that neither Landlord nor its successors or assigns shall be bound by any
such assignment, encumbrance, attempted assignment or attempted encumbrance.

33.   CAPTIONS. The Captions are inserted only as a matter of convenience and
for reference and in no way define, limit or describe the scope of this Lease
nor the intent of any provision thereof.

34.   ADDITIONAL DEFINITIONS.

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<PAGE>

          A. The term "office" or "offices", wherever used in this Lease, shall
not be construed to mean premises used as a store or stores, for the sale or
display, at any time, of goods, wares or merchandise, of any kind, or as a
restaurant, shop, booth, bootblack or other stand, barber shop, or for other
similar purposes or for manufacturing.

          B. The words "reenter" and "reentry" as used in this Lease are not
restricted to their technical legal meaning.

          C. The term "rent" or "Rent" as used in this Lease shall mean and be
deemed to include Minimum Rent, any increases in Minimum Rent, all additional
rent and any other sums payable hereunder.

          D. The term "BUSINESS DAYS" as used in this Lease shall exclude
Saturdays, Sundays and all days observed by the State or Federal Government as
legal holidays and union holidays for those unions that materially affect the
delivery of services in the Building.

          E. The words "INCLUDE", "INCLUDING" AND "SUCH AS" shall each be
construed as if followed by the phrase "without being limited to" The words
"HEREIN", "HEREOF", "HEREBY", "HEREUNDER" and words of similar import shall be
construed to refer to this Lease as a whole and not to any particular Article or
subdivision hereof unless expressly so stated.

          F. The terms "SUBSTANTIAL COMPLETION" OR "SUBSTANTIALLY COMPLETED" or
words of similar import shall mean that any construction work (including
Alterations and Landlord's Work) has been substantially completed, it being
agreed that any such work all be deemed substantially complete notwithstanding
the fact that minor or insubstantial details of construction or demolition
and/or mechanical adjustment and/or decorative items remain to be performed,
provided that any such unperformed work shall not materially interfere with
Tenant's use and occupancy of the Premises for the Permitted Uses.

35.   PARTIES BOUND. The covenants, conditions and agreements contained in this
Lease shall bind and inure to the benefit of Landlord and Tenant and their
respective heirs, distributees, executors, administrators, successors, and,
except as otherwise provided in this Lease, their assigns.

36.   BROKER.

          A. Tenant represents and warrants that Tenant has dealt directly with
(and only with), the Landlord's Broker and the Tenant's Broker as broker in
connection with this Lease, and that insofar as Tenant knows no other broker
negotiated this Lease or is entitled to any commission in connection therewith,
and the execution and delivery of this Lease by Landlord shall be conclusive
evidence that Landlord has relied upon the foregoing representation and
warranty. Tenant shall indemnify and hold Landlord harmless from and against any
and all claims for commission, fee or other compensation by any other person who
shall claim to have dealt with Tenant in connection with this Lease and for any
and all costs incurred by Landlord in connection with such claims, including,
without limitation, reasonable attorneys' fees and disbursements.

          B. Tenant agrees that in the event it shall, during the Term, seek to
hire from Landlord any additional premises in the Building, it shall seek to do
so directly from the Landlord without the intervention of any broker or brokers
and if Landlord and Tenant shall enter into any lease with respect to any such
additional premises, Tenant shall be required to indemnify and hold harmless
Landlord from and against any and all claims or demand for brokerage commissions
in connection therewith (excluding any

                                       46


<PAGE>

commissions payable by Landlord as a result of any exclusive leasing agreements
entered into by Landlord which may give rise to the obligation to pay such
commissions). Tenant shall have the right, notwithstanding the foregoing, to
engage the services of a broker in connection with any leasing referred to in
this Subsection B, provided, however, that in such event Tenant shall be solely
responsible for the payment of any and all brokerage commissions in connection
therewith and shall pay the same.

37.   INDEMNITY. Tenant shall not do or permit any act or thing to be done upon
the Premises which may subject Landlord to any liability or responsibility for
injury, damages to persons or property or to any liability by reason of any
violation of law or of any legal requirement of public authority, but shall
exercise such control over the Premises as to fully protect Landlord against any
such liability. Tenant agrees to indemnify and save harmless Landlord from and
against (a) all claims of, whatever nature against Landlord arising from any
act, omission or negligence of Tenant, its contractors, licensees, agents,
servants, employees, invitees or visitors, including any claims arising from
any act, omission or negligence of Landlord or Landlord and Tenant, (b) all
claims against Landlord arising from any accident, injury or damage whatsoever
caused to any person or to the property of any person and occurring in or about
the Premises from the date access to the Premises is given to Tenant (including
during the, performance of Landlord's Work, if any), (c) all claims against
Landlord arising from any accident, injury or damage to any person, entity or
property, occurring outside of the Premises but anywhere within or about the
Real Property, where such accident, injury or damage results or is claimed to
have resulted from an act or omission of Tenant or Tenant's agents, employees,
invitees or visitors, including any claims arising from any act, omission or
negligence of Landlord or Landlord and Tenant, (d) any breach, violation or
nonperformance of any covenant, condition or agreement in this Lease set forth
and contained on the part of Tenant to be fulfilled, kept, observed and
performed, and (e) any claim, loss or liability arising or claimed to arise
from Tenant, or any of Tenant's contractors, licensees, agents, servants,
employees, invitees or visitors causing or permitting any Hazardous Substances
(hereinafter defined) to be brought upon, kept or used in or about the Premises
or the Real Property or any seepage, escape or release of such Hazardous
Substances. This indemnity and hold harmless agreement shall include indemnity
from and against any and all liability, fines, suits, demands, costs and
expenses of any kind or nature incurred in or in connection with any such claim
or proceeding brought thereon, and the defense thereof, including all reasonable
legal fees and expenses incurred in enforcing the provisions of this indemnity.
As used herein, "HAZARDOUS SUBSTANCES" shall mean, collectively, (a) asbestos
and polychlorinated biphenyls and (b) hazardous or toxic materials, wastes and
substances which are defined, determined and identified as such pursuant to any
law.

38.   ADJACENT EXCAVATION; SHORING. If an excavation shall be made upon
land adjacent to the Premises, or shall be authorized to be made, Tenant shall
afford to the person causing or authorized to cause such excavation, license to
enter upon the Premises for the purpose of doing such work as said person shall
deem necessary to preserve the wall or the Building from injury or damage and to
support the same by proper foundations without any claim for damages or
indemnity against Landlord, or diminution or abatement of Rent.

39.   MISCELLANEOUS.

          A. No Offer. This Lease is offered for signature by Tenant and it is
understood that this Lease shall not be binding upon Landlord unless and until
Landlord shall have executed and delivered a fully executed copy of this Lease
to Tenant.

          B. Signatories. If more than one person executes this Lease as Tenant,
each of them understands and hereby agrees that the obligations of each of them
under this Lease are and shall be joint and several, that the term "Tenant" as
used in this Lease shall mean and include each of them jointly and

                                       47
<PAGE>

severally and that the act of or notice from, or notice or refund to, or the
signature of, any one or more of them, with respect to the tenancy and/or this
Lease, including, but not limited to, any renewal, extension, expiration,
termination or modification of this Lease, shall be binding upon each and all of
the persons executing this Lease as Tenant with the same force and effect as if
each and all of them had so acted or so given or received such notice or refund
or so signed.

          C. Certificates. From time to time, within seven (7) days next
following request by Landlord or any Mortgagee, Tenant shall deliver to Landlord
or such Mortgagee, as the case may be, a written statement executed and
acknowledged by Tenant, in form satisfactory to Landlord or such Mortgagee, (i)
stating that this Lease is then in full force and effect and has not been
modified (or if modified, setting forth all modifications), (ii) setting forth
the date to which the Minimum Rent, additional rent and other charges hereunder
have been paid, together with the amount of fixed base monthly Minimum Rent then
payable, (iii) stating whether or not, to the best knowledge of Tenant, Landlord
is in default under this Lease, and, if Landlord is in default, setting forth
the specific nature of all such defaults, (iv) stating the amount of the
security deposit under this Lease, (v) stating whether there are any subleases
affecting the Premises, (vi) stating the address of Tenant to which all
notices and communications under the Lease shall be sent, the Commencement Date
and the Expiration Date, and (vii) as to any other matters requested by Landlord
or such Mortgagee. Tenant acknowledges that any statement delivered pursuant to
this Subsection may be relied upon by any purchaser or owner of the Real
Property or the Building, or Landlord's interest in the Real Property or the
Building or any Superior Lease, or by any Mortgagee, or by any assignee of any
Mortgagee, or by any Lessor.

          D. Directory Listings. Landlord agrees to provide Tenant, at
Landlord's sole cost and expense, with a single listing of Tenant's name on the
directory in the lobby of the Building. Upon written request by Tenant, Landlord
agrees to provide Tenant with a reasonable number of additional listings on such
directory, at Tenant's sole cost and expense, provided that in all events,
Tenant shall be limited to a number of listings determined by multiplying
Tenant's Proportionate Share by the total number of spaces for listings on such
directory.

          E. Authority. If Tenant is a corporation, partnership, limited
liability company or other business entity, each individual executing this Lease
on behalf of Tenant hereby represents and warrants that Tenant is a duly formed
and validly existing entity qualified to do business in the State of New York
and that Tenant has full right and authority to execute and deliver this Lease
and that each person signing on behalf of Tenant is authorized to do so.

          F. Signage.

          (i) Tenant shall not exhibit, inscribe, paint or affix any sign,
advertisement, notice or other lettering on any portion of the Building or the
outside of the Premises without the prior written consent of Landlord in each
instance. A plan of all signage or other lettering proposed to be exhibited,
inscribed, painted or affixed shall be prepared by Tenant in conformity with
building standard signage requirements and submitted to Landlord for Landlord's
consent. If the proposed signage is acceptable to Landlord, Landlord shall
approve such signage or other lettering by written notice to Tenant. All signage
or other lettering which has been approved by Landlord shall thereafter be
installed by Landlord at Tenant's  sole cost and expense. Payment of all
charges therefor shall be deemed additional rent hereunder and shall be payable
within ten (10) days of rendition of a bill therefor. In the event Landlord
requires payment in advance for the installation of any such signage or other
lettering, no installation shall be commenced by Landlord until Landlord has
received payment in full.

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<PAGE>

          (ii) Upon installation of any such signage or other lettering, such
signage or lettering shall not be removed, changed or otherwise modified in any
way without Landlord's prior written approval. The removal, change or
modification of any signage or other lettering theretofore installed shall be
performed solely by Landlord at  Tenant's sole cost and expense. Tenant shall
not exhibit, inscribe, paint or affix on any part of the Premises or the
Building visible to the general public any signage or lettering including the
words "temporary" or "personnel".

          (iii) Any signage, advertisement, notice or other lettering which
shall be exhibited, inscribed, painted or affixed by or on behalf of Tenant in
violation of the provisions of this subsection may be removed by Landlord and
the cost of any such removal shall be paid by Tenant as additional rent within
ten (10) days of rendition of a bill therefor.

          (iv) Tenant shall not permit any machinery, equipment, sign, banner or
any other thing to protrude from the Premises to the exterior of the Building
beyond any plane of the exterior windows of the Premises or beyond the Premises
within the interior of the Building.

          G. Consents and Approvals. Wherever in this Lease Landlord's consent
or approval is required, if Landlord shall delay or refuse such consent or
approval, Tenant in no event shall be entitled to make, nor shall Tenant make,
any claim, and Tenant hereby waives any claim for money damages (nor shall
Tenant claim any money damages by way of set-off, counterclaim or defense) based
upon any claim or assertion by Tenant that Landlord unreasonably withheld or
unreasonably delayed its consent or approval. Tenant's sole remedy shall be an
action or proceeding to enforce any such provision, for specific performance,
injunction or declaratory judgment.

          H. Rent Control. In the event the Minimum Rent or additional rent or
any part thereof provided to be paid by Tenant under the provisions of this
Lease during the demised term shall become uncollectible or shall be reduced or
required to be reduced or refunded by virtue of any Legal Requirements, Tenant
shall enter into such agreements) and take such other steps as Landlord may
reasonably request and as may be legally permissible to permit Landlord to
collect the maximum rents which from time to time during the continuance of such
legal rent restriction (but not in excess of the amounts reserved under this
Lease). Upon the termination of such legal rent restriction (a) the Minimum Rent
and/or additional rent shall become and thereafter be payable in accordance with
the amounts reserved herein for the periods following such termination, and (b)
Tenant shall pay to Landlord promptly upon being billed, to the maximum extent
legally permissible, and amount equal to (i) the Minimum Rent and/or additional
rent which would have been paid pursuant to this Lease but for such legal rent
restriction, less (ii) the amounts paid by Tenant during the period such legal
rent restriction was in effect.

          I. Right to Relocate.

          (i) Notwithstanding anything contained in this Lease to the contrary,
Landlord shall have the right to substitute in lieu of the Premises alternative
space in the Building designated by Landlord (the "RELOCATION SPACE") effective
as of the date (the "RELOCATION EFFECTIVE DATE") set forth in a notice given to
Tenant (the "RELOCATION NOTICE"). The Relocation Space shall be reasonably
comparable to the Premises with respect to internal configuration, quality of
finish and rentable square foot area (i.e., plus or minus ten (10%) percent).
The Relocation Effective Date shall not be less than thirty (30) days following
the date upon which the Relocation Notice is given to Tenant. In the event that
Landlord exercises its rights hereunder, (a) Tenant shall deliver to Landlord
possession of the Premises on or before the Relocation Effective Date vacant and
broom clean, free of all occupancies and encumbrances and otherwise in
accordance with the terns, covenants and conditions of the Lease as if the
Relocation Effective Date were the Expiration Date, (b) effective as of the
Relocation Effective Date, the

                                       49
<PAGE>

term and estate hereby granted with respect to the Premises originally demised
hereunder shall terminate, the Relocation Space shall be deemed to be the
Premises and the Minimum Rent and additional rent payable under this Lease shall
be adjusted, if necessary, so as to reflect any difference between the deemed
rentable square foot area of the original Premises and said Relocation Space.

          (ii) Provided that Tenant is not in default under this Lease, Landlord
shall at Landlord's cost and expense, remove and reinstall Tenants' personal
property, trade fixtures and equipment in the Relocation Space ("LANDLORD'S
RELOCATION WORK"). Landlord shall complete Landlord's Relocation Work on or
before the Relocation Effective Date provided that Tenant cooperates with
Landlord and gives Landlord full access to the Premises to facilitate the
performance thereof.

          (iii) Following any relocation undertaken pursuant to this subsection,
Tenant shall promptly execute and deliver an agreement confirming such
relocation and fixing any corresponding adjustments in Minimum Rent and
additional rent payable under this Lease, but any failure to execute such an
agreement by Tenant shall not affect such relocation and adjustments as
determined by Landlord.

          J. Access to Premises. Subject to its reasonable security regulations,
Landlord agrees that the Building shall be accessible to Tenant and Tenant shall
have the use of at least one (1) elevator subject to call, twenty four (24)
hours a day,  seven, (7) days a week.

          K. Confidentiality. Tenant acknowledges that the terms and conditions
of this Lease are to remain confidential for Landlord's benefit, and may not be
disclosed by Tenant to anyone, by any manner or means, directly or indirectly,
without Landlord's prior written consent. In addition, the parties recognize and
agree that the damage to Landlord resulting from any breach by Tenant of the
foregoing confidentiality covenant will be substantial and will be impossible to
accurately measure. Tenant therefore agrees that if Tenant breaches such
confidentiality covenant, Tenant shall pay to Landlord as liquidated damages the
sum of $25,000.00. The consent by Landlord to any disclosures shall not be
deemed to be a waiver on the part of Landlord of any prohibition against any
future disclosure.

          IN WITNESS WHEREOF, Landlord and Tenant have respectively executed
this Lease as of the day and year first above written.


                                    104 West 40th Street Partners, LLC, Landlord

                                    By: /s/ Aby Rosen
                                        -----------------------------
                                        Name: Aby Rosen
                                        Title: Member


                                    Bridgeline Software, Inc. Tenant

                                    By: /s/ Gary M. Cebula
                                        -----------------------------
                                        Name: Gary M. Cebula
                                        Title: CFO


                                    52-2263942
                                    ------------------------
                                    Tenant's Tax ID Number



                                       50
<PAGE>

                                    EXHIBIT 1

                             FLOOR PLAN OF PREMISES

THIS IS A SCHEMATIC PLAN AND IS INTENDED ONLY TO SHOW THE PROPOSED GENERAL
LAYOUT OF THE PREMISES. ALL MEASURES, DISTANCES AND DIMENSIONS ARE APPROXIMATE
AND NOT TO SCALE. THE DEPICTIONS HEREON DO NOT CONSTITUTE A WARRANTY OR
REPRESENTATION OF ANY KIND.



                          [SCHEMATIC PLAN APPEARS HERE]


<PAGE>

                                    EXHIBIT 2

                             CLEANING SPECIFICATIONS


      A. The following general cleaning will be performed nightly, Monday
through Friday, excluding union and legal holidays:

          (1) All carpeting will be vacuumed once per week and carpets swept, as
needed, the remaining four (4) nights.

          (2) All composition floor tiling will be swept and dust mopped with a
chemically treated mop for dust control one (1) time per week.

          (3) ALL desks will be dusted. Tenant personalty and work
product will not be moved:

          (4) Wastepaper baskets will be emptied and trash removed to a
designated location in the Premises. Plastic liners will be installed weekly
into all trash receptacles at Tenant's expense.

          (5) Wipe clean all water fountains and coolers; empty waste water.

      B. The following lavatory service will be performed Monday through
Friday, excluding union and legal holidays:

          (1) Porcelain fixtures will be scoured clean.

          (2) Both sides of toilet seats will be washed with a mild germicidal
              solution.

          (3) Bright work will be dry polished.

          (4) Trash receptacles will be emptied and cleaned, as needed.

          (5) Mirrors will be wiped clean.

          (6) Partitions will be wiped down, as necessary.

          (7) Shelves and counters will be wiped clean.

          (8) Floors will be mopped with a mild disinfectant.

          (9) Lavatory supplies will be furnished and installed at the
              Tenant's expense:

      C. The following shall be performed weekly:

          (1) All chairs, tables, cabinets and attachments will be dusted
              weekly. Tenant personalty and work product will not be moved.

          (2) Window sills will be dusted weekly. Tenant personalty and
              work product will not be moved.

<PAGE>

          (3) Moldings and ledges within hands' reach will be dusted weekly.

      D. The following shall be performed quarterly:

          (1) Dust in place all picture, frame, charts, graphs and similar wall
              hangings not reached in nightly cleaning.

          (2) Dust all vertical surfaces and walls, partition doors, door bucks
              and other surfaces not reached in nightly cleaning. Tenant
              personalty and work product will not be moved.

      E. Window Cleaning:

          (1) All windows are to be cleaned inside and outside two (2) times per
              year.





















<PAGE>

                                    EXHIBIT 3

                            FORM OF LETTER OF CREDIT

ISSUE DATE:________________
L/C NO.:___________________

APPLICANT:
************DIRECT**************                           [Tenant]
                                                           AMOUNT: USD $________

[LANDLORD]
c/o RFR Realty, LLC
400 PARK AVENUE
NEW YORK, NEW YORK 10022

GENTLEMEN:


We hereby establish our irrevocable standby letter of credit no.________________
in your favor for an aggregate amount not to exceed the amount indicated above,
expiring at our counters in New York with our close of business on ___________.

This letter of credit is available with the __________________ Bank, New York
against presentation of your draft at sight drawn on the ____________________
Bank, New York.

It is a condition of this irrevocable letter of credit that it shall be
automatically extended without amendment for additional one year periods from
the present or each future expiration date, unless at least 45 days prior to
such date we send you notice in writing by registered mail at the above address,
that we elect not to renew this letter of credit for such additional period.
However in no event shall this letter of credit be extended beyond the final
expiration date of _______________. Upon such notice to you, you may draw drafts
on us at sight for an amount not to exceed the balance remaining in this letter
of credit within the then applicable expiration date, accompanied by your dated
statement purportedly signed by one of your officials reading: "the amount of
this drawing USD _____________ under the Bank letter of credit number __________
represents funds due us as we have received notice from the _____________ - Bank
of its decision not to extend letter of credit number for an additional year,
and the obligation remains outstanding." We will not notify Applicant or any
other third party with respect to communications, or inquiries of Beneficiary,
including the presentation of the Letter of Credit for payment or any attempt to
draw against the Letter of Credit, until after the Letter of Credit has been
paid in accordance with the terms hereof.

This letter of credit is transferable in its entirety (but not in part) and
the ___________________ Bank only is authorized to act as the transferring bank.

We shall not recognize any transfer of this letter of credit until this original
letter of credit together with any amendments and a signed and completed
transfer form satisfactory to us is received by us.

Transfer charges are for the applicant's account. Forms are attached.. [Please
obtain forms from the Bank].

<PAGE>

The correctness of the signature and title of the person signing the transfer
forms must be verified by your bank.

In case of any transfer under this letter of credit, the draft and any required
statement must be executed by the transferee.

This letter of credit may not be transferred to any person with which U.S.
persons are prohibited from doing business under U.S. foreign assets control
regulations or other applicable U.S. laws and regulations.

All drafts must indicate: "Drawn under the Bank, New York letter of credit no.
dated ____________________."

The original letter of credit and all sight drafts must be presented for
drawing.

Except as otherwise expressly stated herein, this letter of credit is subject to
the Uniform Customs and Practice for documentary credits, 1993 Revision, ICC
Publication No. 500.

<PAGE>

                                   SCHEDULE A

                              RULES AND REGULATIONS

          (1) The rights of each tenant in the Building to the entrances,
corridors and elevators of the Building are limited to ingress to and egress
from such tenant's premises and no tenant shall use, or permit the use of the
entrances, corridors, or elevators for any other purpose. No tenant shall invite
to its premises, or permit the visit of persons in such numbers or under such
conditions as to interfere with the use and enjoyment of any of the plazas,
entrances, corridors, elevators and other facilities of the Building by other
tenants. No tenant shall encumber or obstruct, or permit the encumbrances or
obstruction of any of the sidewalks, plazas, entrances, corridors, elevators,
fire exits or stairways of the Building. Landlord reserves the right to control
and operate the public portions of the Building, the public facilities, as well
as facilities furnished for the common use of the tenants, in such manner as
Landlord deems best for the benefit of the tenants generally.

          (2) Landlord may refuse admission to the Building outside of ordinary
business hours to any person not known to the watchman in charge or not having a
pass issued by Landlord or not properly identified, and may require all persons
admitted to or leaving the Building outside of ordinary business hours to
register. All tenants' employees, agents and visitors shall be permitted to
enter and leave the Building whenever appropriate arrangements have been
previously made between Landlord and the tenant with respect thereto. Each
tenant shall be responsible for all persons for whom it requests such
permission andshall be liable to Landlord for all acts of such persons. Any
person whose presence in the Building at any time shall, in the judgment of
Landlord, be prejudicial to the safety, character, reputation or interests of
the Building or its tenants may be denied access to the Building or may be
ejected therefrom. In case of invasion, riot, public excitement or other
commotion Landlord may prevent all access to the Building during the continuance
of the same, by closing the doors or otherwise, for the safety of the tenants
and protection of property in the Building. Landlord may require any person
leaving the Building with any package or other object to exhibit a pass from the
tenant from whose premises the package or object is being removed, but the
establishment and enforcement of such requirement shall not impose any
responsibility on Landlord for the protection of any tenant against the removal
of property from the premises of tenant. Landlord shall, in no way, be liable to
any tenant for damages or loss arising from the admission, exclusion or ejection
of any person to or from a tenant's premises or the Building under the
provisions of this rule.

          (3) No tenant shall obtain or accept for use in its premises ice,
drinking water, towels, barbering, boot blacking, floor polishing, lighting
maintenance, cleaning or other similar services from any persons not authorized
by Landlord in writing to furnish such services. Such services shall be
furnished only at such hours, in such places within the tenant's premises and
under such regulation as may be fixed by Landlord.

          (4) No window or other air-conditioning units shall be installed by
any tenant, and only such window coverings as are supplied or permitted by
Landlord shall be used in a tenant's premises.

          (5) There shall not be used in any space, nor in the public halls of
the Building, either by any tenant or by jobbers, or other in the delivery or
receipt of merchandise, any hand trucks, except those equipped with rubber tires
and side guards.

<PAGE>

          (6) All entrance doors in each tenant's premises shall, be left locked
when the tenant's premises are not in use. Entrance doors shall not be left open
at any time. All windows in each tenant's premises shall be kept closed at all
times and all blinds therein above the ground floor shall be lowered when and as
reasonably required because of the position of the sun, during the operation of
the Building air-conditioning system to cool or ventilate the tenant's premises.

          (7) No noise, including the playing of any musical instruments, radio
or television, which, in the judgment of Landlord, might disturb other tenants
in the Building, shall be made or permitted by any tenant. No dangerous,
inflammable, combustible or explosive object, material or fluid shall be brought
into the Building by any tenant or with the permission of any tenant.

          (8) All damages resulting from any misuse of the plumbing fixtures
shall be borne by the tenant who, or whose servants, employees, agents, visitors
or licensees, shall have caused the same.

          (9) No additional locks or bolts of any kind shall be placed upon any
of the doors or windows in any tenant's premises and no lock on any door therein
shall be changed or altered in any respect. Duplicate keys for a tenant's
premises and toilet rooms shall be procured only from Landlord, which may make a
reasonable charge therefore: Upon the termination of a tenant's lease, all keys
of the tenant's premises and toilet rooms shall be delivered to Landlord.

          (10) Each tenant, shall, at its expense, provide artificial light in
the premises for Landlord's agents, contractors and employees while performing
janitorial or other cleaning services and making repairs or alterations in said
premises.

          (11) No tenant shall install or permit to be installed any vending
machines.

          (12) No animals or birds, bicycles, mopeds or vehicles of any kind
shall be kept in or about the Building or permitted therein.

          (13) No furniture, office equipment, packages or merchandise will be
received in the Building or carried up or down in the elevator, except between
such hours as shall be designated by Landlord. Landlord shall prescribe the
charge for, freight elevator use and the method and manner in which any
merchandise, heavy furniture, equipment or safes shall be brought in or taken
out of the Building, and also the hours at which such moving shall be done. Any
reserved usage of the freight elevator shall be in minimum increments of four
(4) hours. No furniture, office equipment, merchandise, large packages or
parcels shall be moved or transported in the passenger elevators at any time.

          (14) All lighting fixtures hung in offices or spaces along the
perimeter of any tenant's Premises must be fluorescent, of a quality, type,
design and bulb color approved by Landlord unless the prior consent of Landlord
has been obtained for other limping.

          (15) The exterior windows and doors that reflect or admit light and
air into any premises or the halls, passageways or other public places in the
Building, shall not be covered or obstructed by any tenant, nor shall any
articles be placed on the windowsills.

          (16) Canvassing, soliciting and peddling in the Building is
prohibited' and each tenant shall cooperate to prevent same.

          (17) No tenant shall do any cooking, conduct any restaurant,
luncheonette or cafeteria for the sale or service of food or beverages to its
employees or to others, except as expressly approved in


<PAGE>

writing by Landlord In addition, no tenant shall cause or permit any odors of
cooking or other processes or any unusual or objectionable odors to emanate from
the premises. The foregoing shall not preclude tenant from having food or
beverages delivered to the premises, provided that no cooking or food
preparation shall be carried out at the premises.

          (18) No tenant shall generate, store, handle, discharge or otherwise
deal with any hazardous or toxic waste, substance or material or oil or
pesticide on or about the Real Property.

<PAGE>

                                   SCHEDULE B

                                 LANDLORD'S WORK

        Landlord shall, at its expense, perform the following work and
installations ("Landlord's Work") all of which shall be of material, design,
capacity, finish and color (if applicable) to the standard adopted by Landlord
for the Building (but in no event more than the type and quantity of work set
forth below).

          Landlord shall build out the Premises in Building standard manner,
          substantially accordance with Schedule B-1 annexed hereto and made a
          part hereof.

          Landlord shall provide wood trim around two (2) glass side lights
          as described on Schedule B-1.

          Landlord shall provide wood trim on the conference room wall as
          described on Schedule B-1.

          Landlord shall provide the Tenant Upgrades as set forth on Schedule
          B-2. Simultaneously with the execution and delivery of this Lease,
          Tenant shall pay to Landlord the sum of $7,194.00, representing
          payment for the Tenant Upgrades.


<PAGE>

                                  SCHEDULE B-1

                       SPECIFICATIONS FOR LANDLORD'S WORK

THIS IS A SCHEMATIC PLAN AND IS INTENDED ONLY TO SHOW THE PROPOSED GENERAL
LAYOUT OF THE PREMISES. ALL MEASURES, DISTANCES AND DIMENSIONS ARE APPROXIMATE
AND NOT TO SCALE. THE DEPICTIONS HEREON DO NOT CONSTITUTE A WARRANTY OR
REPRESENTATION OF ANY KIND.


                     [SCHEMATIC PREMISES PLAN APPEARS HERE]
<PAGE>

                                                               November 25, 2003

Re: Bridgeline
    104 West 10th Dtreet - 10th Floor
    New York, NY 10018
    Proposal No. 03-2575R4

                           PRELIMINARY SCOPE OF WORK
                           -------------------------
<TABLE>
<CAPTION>
<S>     <C>
Item #                        Description       Toaal Quantity          Unit

1       Hollow Metal & Hardware
        -----------------------
        Furnish & deliver Schalge D-Series Athens Lever handle          1       ea.
        D50PD\US26D, four (4) pairs Stanley #CB 1960xUSD32D hinge,
        Ives #438 stop, three (3) #20 Ives gray rubber - closer
        Furnish & deliver Schalge D-Series Athens Lever handle          1       ea.
        D50PD\US26D, four (4) pairs Stanley #CB 1960xUSD32D hinge,
        Ives #438 stop, three (3) #20 Ives gray rubber - closer
        Furnish & deliver Schalge D-Series Athens Lever handle          8       ea.
        D50PD\US26D, two (2) pairs Stanley #CB 1960xUSD32D hinge,
        Ives #438 stop, three (3) #20 Ives gray rubber
        Furnish & deliuver pocket door hardware                         1       ea.
        Furnish & deliver sliding door hardware                         1       ea.
        Furnish & deliver 3'0" x 8'0" KD hollow metal frame             7       ea.
        Furnish & deliver 4'0" x 8'0" KD hollow metal frame             2       ea.
        Furnish & deliver 6'0" x 8'0" KD welded hollow metal frame      1       ea.
2       DRYWALL, CARPENTRY & CEILINGS
        -----------------------------
        Furnish & install 1'6" x 8'0" trimmed sheetroxk opening to      2       ea.
        receive sidelight glass
        Furnish & install 24" x 24" regular lay-in exposed spline   2,656       sq. ft.
        suspended acousticval ceiling, Armstrong beveled edge
        #1912 "Ultima", color white, in 9/16" Superfine white
        exposed tee grid
        Furnish & install 4'0" x 8'0" x 3/4" plywood panel in           1       ea
        telephone room
        Furnish & install bulding standard window pockets              60       lin. ft.
        Furnish and install drywall partitions using two and          228       lin. ft.
        one-half (2 1/2") metal studs, twenty-four (24) inches
        on center, six (6") inches above hung ceiling and (1)
        layer of five-eight (5/8") gypsum board. Tape and spackle
        to receive building standard paint.

        Handle and install 2'6"/3'0"x8'0" hollow metal frames - KD     10       ea.
        Handle and install 3'0"x8'0" hollow metal frame - welded        1       ea.
        Patch floor below true to MEP work                              1       lot
        Provide hip pocket door condition                               1       ea.
        Close door opening                                              1       ea.
</TABLE>

                                  Page 6 of 8

Tri-Star Construction Corporation - 770 Lexington Avenue - New York, N.Y. 10021
<PAGE>

                                                               November 25, 2003

Re: Bridgeline
    104 West 10th Dtreet - 10th Floor
    New York, NY 10018
    Proposal No. 03-2575R4

                           PRELIMINARY SCOPE OF WORK
                           -------------------------
<TABLE>
<CAPTION>
<S>     <C>
Item #                        Description       Toaal Quantity          Unit

3       ARCHITECTURAL WOODWORK
        ----------------------
        Furnish and install 2'6"/3'0" x 8'0" solid core wood door      11       ea.
        with cherry finish
        Furnish & install plastic laminated upper and lower             6       lin. ft.
        cabinets at pantry
        Furnish and install 3'0" x 8'0" solid core wood door with       1       pair
        cherry finish [illegible]
        Furnish and install 3'0" x 8'0" solid core wood door with       1       ea.
        cherry finish - pocket door
        Furnish & install coat closet interior                          5       lin. ft.
        Furnish & install wood frame at Conference Room                 5       ea.
        Furnish & install wood frame at Private Offices                 2       ea.
4       Glass & Glazing
        ---------------
        Furnish & install 18" x 96" x 3/8" clear tempered glass         2       ea.
        set in top and bottom surface mounted channels
        Furnish & install 96" x 3/8" clear tempered glass set          14       lin. ft.
        in top and bottom surface mounted channels - Conference
        Room wall
5       PAINTING
        --------
        Paint wall with two (2) finish coats of Benjamin Moore      4,248       sq. ft.
        Latex paint in satin finish
        Paint hollow metal frame with two (2) coats of semi-gloss      11       ea.
        enamal
        Allow for painting of metal convectors with two (2) coats      66       lin. ft.
        of semi-gloss enamal
        Allow for painting core walls, interior and exterior1       2,520       sq. ft.
        columns, etc.
6       CARPET & RESILIENT FLOORING
        ---------------------------
        Furnish & install building standard carpet via direct glue    310       sq. yd.
        down -  based upon labor and material allowance of $25.00
        per square yard

        Furnish & install 1" vinly base                               760       lin. ft.
        Prepare flooe slab to receive new finish                    2,656       sq. ft.
7       HVAC
        ----
        Furnish & install constant air distribution system for      3,532       sq. ft.
        demised space including new diffusers and returns
</TABLE>

                                  Page 7 of 8

Tri-Star Construction Corporation - 770 Lexington Avenue - New York, N.Y. 10021
<PAGE>

                                                               November 25, 2003

Re: Bridgeline
    104 West 10th Dtreet - 10th Floor
    New York, NY 10018
    Proposal No. 03-2575R4

                           PRELIMINARY SCOPE OF WORK
                           -------------------------
<TABLE>
<CAPTION>
<S>     <C>
Item #                        Description       Toaal Quantity          Unit

9       PLUMBING
        --------
        Furnish & install pantry sink consisting of Elkay               1       ea.
        "Celebrity" #ADAI - 2521 stainless steel & Delta #462
        chrome pull out spray with lever handle
        Allow to furnish & install thirty (30) feet of roughing        30       lin. ft.
9       ELECTRIC
        --------
        Allow to furnish & install exit lights (Lightolier SE-EGLID     3       ea.
        Series Edge Lite)
        Allow to furnish & install single pole light switch            11       ea.
        (Leviton Decora Rocker White)
        Furnish & install 20-amp separate circuit duplex receptacle     3       ea.
        Furnish & install buliding standard 2'0" x 2'0"/4'0" light     47       ea.
        fixture (Mark Lighting Aurora Series) with side mounted
        perforated shields

        Furnish & install one (1) duplex receptacle (Leviton White)    13       ea.
        Furnish & install one (1) quad receptacle (Leviton White)       7       ea.
        Furnish & install one (1) telephone/data stub-up                9       ea.
        Furnish and install homeruns                                    9       ea.
10      FIRE ALARM - ALLOWANCE
        ----------------------
        Provide for fire alarm work                                 3,532       sq. ft.
11      STONEWORK
        ---------
        Furnish & install stone flooring in Reception Area based      192       sq. ft.
        upon $25.00 per square feet labor and material allowance
</TABLE>

                                  Page 8 of 8

Tri-Star Construction Corporation - 770 Lexington Avenue - New York, N.Y. 10021
<PAGE>

                                  SCHEDULE B-2

                                TENANT UPGRADES

                                                               November 25, 2003

    RFR
- ---------------
RFR Realth, LLC


                        Re: Bridgeline
                            104 West 10th Dtreet - 10th Floor
                            New York, NY 10018
                            Proposal No. 03-2575R4

                        Please initial below to accept tenant upgrade.

                        LIST OF TENANT UPGRADES
                        -----------------------

                        Tenant Upgrade #1                               Approved
                        -----------------                               --------

                        Furnish & install three (3) separate
                        circuit outlet for L.T. room

                                            Add the sum of $1,770.00      jmc

521 FIFTH AVENUE

NEW YORK, NY 10175      Tenant Upgrade #2
                        -----------------
PHONE (212) 883-0526
                        Furnish & install six (6) wall-mounted
FAX (212) 883-0529      electric whips for furniture system

                                            Add the sum of $5,424.00      jmc

<PAGE>

                                  SCHEDULE C- l
                    REQUIREMENTS FOR PLANS AND SPECIFICATIONS

     Tenant shall submit two (2) sepias and four (4) prints each (as well as the
mylars specified in subparagraph (xx) below, and one (1) additional sepia if
structural engineering is anticipated) of final and completed dimensioned and
detailed Plans and Specifications. Plans and Specifications shall also be
submitted in CADD format on disk. The Plans and Specifications must comply with
all Legal Requirements. The Plans and Specifications shall be stamped and sealed
by Tenant's architect and shall include the following:

          (i)       Reflected ceiling layouts and locations, including exit
lights and special area lighting specification for inclusion in engineer's
contract documents.

          (ii)      Equipment loads (Btu/hr., voltage, amperage, phase, waits,
etc.) and requirements for general work stations, as well as special areas, such
as telephone equipment rooms, copy rooms, edit rooms, etc.

          (iii)     Areas requiring 24-hour air conditioning or areas requiring
air conditioning after normal operating hours for the Building.

          (iv)      Power and telephone layouts and locations.

          (v)       Emergency power requirements, including specific electric
equipment and air conditioning equipment.

          (vi)      Temperature and humidity requirements for all special areas
other than office spaces.

          (vii)     Rooms to have individual zone control (VAV boxes, etc.).

          (viii)    Population (i.e., number of people per area).

          (ix)      Noise criteria and acoustical design criteria for special
areas.

          (x)       Requirements for redundant air conditioning systems
(communications rooms, computer rooms, etc.).

          (xi)      Compressed air requirements, including SCFM, pressure,
valving, etc. In addition, provide division of responsibility for specific
equipment (i.e., Landlord or contractor supplied).

          (xii)     Equipment requiring special exhaust.

          (viii)    General conditions and special supplemental conditions for
specifications.

          (xiv)     Fire protection for special areas (preaction sprinkler,
sprinkler, smoke and heat detectors, etc.).

          (xv)      Raised floor areas, including heights of raised floors, etc.
<PAGE>

          (xvi)     Plumbing requirements (types of fixtures, etc.), including
division of responsibility for specifying fixtures.

          (xvii)    Paging requirements.

          (xviii)   A full set of architectural drawings (including fire-rated
wall sections, elevations, etc.).

          (xix)     Security, data and audio/visual requirements (sizes).

          (xx)      Wash-off, reverse reading, half-tone mylars, without
dimensions, of the following drawings:

                   (a) Three (3) per floor - reflected ceiling plan)
                   (b) One (1) per floor - power and telephone plan.
                   (c) One (1) per floor - construction plan (to be used for
                       plumbing layout, if applicable).

          (xxi)     Location and details of common corridor, if applicable.

          (xxii)    Color and finish specifications.

          (xxiii)   Any and all information as may be reasonably necessary to
complete the Alterations in the Premises.
<PAGE>

                                  SCHEDULE C-2

                             CONSTRUCTION PROCEDURES

          (1)       The Plans and Specifications as required by Schedule C-1 are
to be delivered to Landlord's Vice President of Construction (the
"VP/Construction"), and shall be distributed as follows:

          One (1) set to be retained by the VP/Construction
          One (1) set to Landlord's Consulting Engineer
          One (1) set to Landlord's Consulting Architect
          One (1) set to the Building Manager

          (2)       The VP/Construction shall set the date for the meeting with
the engineer, architect and building manger to discuss the Plans and
Specifications, submit comments and incorporate any response.

          (3)       No construction shall be permitted unless the building
manager has a copy of the approved Plans and Specifications as well as
Landlord's approval letter.

          (4)       If any Alterations require Permits, all applications
therefor must be submitted to:

                    Vice President of Construction
                    RFR Realty LLC
                    757 Third Avenue - 7th floor
                    New York, New York 10017

          (5)       The President of RFR Realty, LLC is the only individual
authorized to sign any Permit applications.

          (6)       All submissions must use the Building Department Filings
Approval Form, the Plans and Specifications Approval Form and the Comments to
Plans and Specifications Form, copies of which are annexed hereto.
<PAGE>

                                 RFR Realty LLC
                                 400 Park Avenue
                            New York, New York 10022

                    BUILDING DEPARTMENT FILINGS APPROVAL FORM

            DATE:        _______________________________________________
            LESSEE:      _______________________________________________
            PREMISES:    _______________________________________________
            OWNER:       _______________________________________________
            LEASE DATE:  _______________________________________________
            FORMS:       _______________________________________________

                       (IDENTIFY FORMS WHICH WERE SIGNED)

     YOU HAVE REQUESTED THAT WE SIGN THE ABOVE-REFERENCED NEW YORK CITY BUILDING
DEPARTMENT FORMS (THE "FORMS") IN CONNECTION WITH YOUR PROPOSED ALTERATIONS IN
THE PREMISES IN ORDER TO EXPEDITE YOUR APPLICATION PROCESS WE HAVE AGREED TO
SIGN THE FORMS ON YOUR BEHALF THE SIGNING OF THE FORMS DOES NOT CONSTITUTE AN
APPROVAL OF YOUR PLANS AND SPECIFICATIONS, YOUR PROPOSED WORK OR ANY OTHER
ASPECTS OF THE PROPOSED ALTERATIONS, NOR SHALL IT BE DEEMED TO BE AN APPROVAL OR
AN ACKNOWLEDGEMENT OF THE LAYOUT, FUNCTIONALITY OR ANY OTHER ASPECT OF YOUR
PROPOSED WORK, IT BEING UNDERSTOOD AND AGREED THAT THE SIGNING OF THESE FORMS IS
SIMPLY AN ACCOMMODATION TO YOU AND IS MADE WITHOUT ANY RECOURSE OR LIABILITY ON
THE PART OF THE OWNER OR ITS MANAGER AND IS NOT INTENDED TO IMPLY ANY AGREEMENT,
UNDERSTANDING OR OBLIGATION ON THE PART OF OWNER OR MANAGER THE SIGNING OF THE
FORMS CANNOT BE RELIED UPON OR USED BY YOU OR OTHERS IN ANY DISPUTE WITH OWNER
OR MANAGER EXCEPT FOR THE SOLE PURPOSE OF PROVING THAT OWNER SIGNED THE FORMS .

                                       Very truly YOURS,

                                       RFR REALTY LLC


                                       By: ______________________________
                                           Name: Frank Spadatora
                                           Title: Vice President, Construction
AGREED:

LESSEE:
By:__________________________
   Authorized Representative/Title:_____________


<PAGE>

                                 RFR Realty LLC
                                 400 Park Avenue
                            New York, New York 10022

                     PLANS AND SPECIFICATIONS APPROVAL FORM

            DATE:        _______________________________________________
            LESSEE:      _______________________________________________
            PREMISES:    _______________________________________________
            OWNER:       _______________________________________________
            LEASE DATE:  _______________________________________________
            FORMS:       _______________________________________________
                       (Include Dates, Architect's Name And Sheet Numbers)


YOU HAVE REQUESTED THAT WE APPROVE THE PLANS AND SPECIFICATIONS REFERRED. TO
ABOVE (THE "PLANS") IN CONNECTION WITH YOUR PROPOSED ALTERATIONS TO THE
PREMISES. OUR APPROVAL OF THE PLANS, YOUR PROPOSED WORK OR ANY OTHER ASPECT OF
THE ALTERATIONS, IS SOLELY FOR THE BENEFIT OF THE OWNER AND SHALL NOT BE DEEMED
TO BE AN APPROVAL OR ACKNOWLEDGMENT WITH RESPECT TO THE LAYOUT OR THE
FUNCTIONALITY OF YOUR DESIGN OR ANY OTHER ASPECT OF YOUR WORK, IT BEING
UNDERSTOOD AND AGREED THAT THE APPROVAL OF THE PLANS IS WITHOUT ANY RECOURSE OR
LIABILITY ON THE PART OF THE OWNER OR ITS MANAGER AND IS NOT INTENDED TO IMPLY
ANY AGREEMENT, UNDERSTANDING OR OBLIGATION ON THE PART OF OWNER OR MANAGER. THE
APPROVAL CANNOT BE USED BY YOU OR OTHERS IN ANY DISPUTE WITH OWNER OR MANAGER
EXCEPT FOR THE SOLE PURPOSE OF PROVING THAT YOU HAVE COMPLIED WITH THE
PROVISIONS OF THE LEASE REQUIRING YOU TO OBTAIN OWNER'S APPROVAL OF THE PLANS
OUR COMMENTS TO THE PLANS, IF ANY, ARE SET FORTH ON THE ATTACHED COMMENT FORM.

                                       Very truly YOURS,

                                       RFR REALTY LLC


                                       By: ______________________________
                                           Name:
                                           Title:
AGREED:

LESSEE:
By:__________________________
   Authorized Representative/Title:_____________
<PAGE>

                                 RFR REALTY LLC
                                 400 Park Avenue
                            New York, New York 10022

                      COMMENTS TO PLANS AND SPECIFICATIONS


            DATE:        _______________________________________________
            LESSEE:      _______________________________________________
            PREMISES:    _______________________________________________
            OWNER:       _______________________________________________
            LEASE DATE:  _______________________________________________
            FORMS:       _______________________________________________
                       (Include Dates, Architect's Name And Sheet Numbers)


[_]    NOT APPROVED                    Comments need to be addressed in writing
                                       and shown on plans, which need to be
                                       re-submitted.



[_]    PRELIMINARY APPROVAL            You may  proceed with only the work that
                                       has been approved on the drawings that
                                       require no additional comments or
                                       changes.


[_]    FINAL APPROVAL

COMMENTS:

______________________________________________________

______________________________________________________

______________________________________________________





                                       Very truly YOURS,

                                       RFR REALTY LLC


                                       By: ______________________________
                                           Name: Frank Spadatora
                                           Title: Vice President, Construction
<PAGE>

                                   SCHEDULE D

                   Current Construction Insurance Requirements

LIABILITY LIMITATIONS

Comprehensive or Commercial General Liability Insurance written on an occurrence
basis, to afford protection of $3,000,000 combined single limit for personal
injury, bodily injury and/or death and Broad Form property damage arising out of
any one occurrence; and which insurance shall include coverage for
premises-operations (including explosion, collapse and underground coverage),
elevators, contractual liability, owner's and contractor's protective liability,
and completed operations liability.

Comprehensive Auto Liability Insurance covering the use of all owned, non-owned
and hired vehicles with bodily injury and property damage coverage, all on a per
occurrence basis, at a combined single limit of $1,000,000.

Workmen's Compensation Insurance providing statutory benefits for contractor's
employees and Employer's Liability Coverage in an amount not less than
$100,000/$500,000/$100,000.

Property coverage damage to or loss of use of contractor's equipment.

CERTIFICATE HOLDER

[LANDLORD]
c/o RFR Realty LLC
400 PARK AVENUE
New York, New York 10022

ADDITIONAL INSUREDS

[LANDLORD]

RFR Realty LLC

In addition to listing each of the Additional Insured parties, as noted above,
the Certificate of Insurance, general liability form, shall state that "The
General Aggregate limited applied separately to each project."

The name and address of the Additional Insureds shall appear on the Certificate
of Insurance. The insurance agent's address and telephone number is also
required.
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10.3
<SEQUENCE>19
<FILENAME>ex10-3_14663.txt
<DESCRIPTION>LEASE AGREEMENT DATED 08-20-1999
<TEXT>
                                                                    EXHIBIT 10.3
                                                                    ------------





                               AGREEMENT OF LEASE




                                     Between



                          STARWOOD URBAN RETAIL I, LLC

                                    LANDLORD


                                       AND


                         INTERACTIVE APPLICATIONS GROUP

                                     Tenant
<PAGE>



                                      INDEX
                                      -----

Summary of Basic Lease Terms

Article

  1           Premises

  2           Term

  3           Rent

  4           Use of Premises

  5           Repairs and Maintenance

  6           Services and Utilities

  7           Common Areas

  8           Alterations

  9           Hold Harmless

  10          Lien On Tenant's Property

  11          Insurance

  12          Assignment & Subletting

  13          Landlord's Right to Access

  14          Damage or Destruction

  15          Condemnation

  16          Default

  17          Subordination

  18          Surrender of Possession

  19          Tenant Holding Over

  20          Estoppels

  21          Brokers

  22          Notices and Demands

  23          Quiet Enjoyment

  24          Waiver of Trial by Jury

  25          Miscellaneous

  26          Right of First Offer


Exhibits:     Exhibit A - Floor Plan
              Exhibit B - Rules and Regulations
              Exhibit C - Work Letter
              Exhibit D - Intentionally Omitted
<PAGE>

                               AGREEMENT OF LEASE

     THIS AGREEMENT OF LEASE ("Lease") is made and entered into this
20th day of August, 1999, by and between STARWOOD URBAN RETAIL I, LLC
(hereinafter referred to as "Landlord") and INTERACTIVE APPLICATIONS GROUP,
INC., a Delaware corporation (hereinafter referred to as "Tenant").

                                   WITNESSETH:

                       SUMMARY OF BASIC LEASE PROVISIONS:

     (a)  PROJECT: The Building (as defined in Section 1.01) located at
          2631-2641 Connecticut Avenue, N.W., WASHINGTON, D.C. 20008, along with
          the real property underneath and surrounding the same, and all common
          and garage areas and other improvements thereon owned by Landlord.

     (b)  PREMISES: Suite # 250, located on the second floor of the building,
          having an address of 2639 Connecticut Avenue, N.W., Washington, D.C.
          20008, which the parties hereby conclusively agree for the purposes of
          this Lease contains 6,336 square feet of rentable area (as determined
          in accordance with the current Standard Method of Measurement
          specifications).

     (c)  LEASE TERM: Eighty-Four (84) months, plus, if the Lease Commencement
          Date (as defined below) is not the first day of a calendar month, the
          period between the Lease Commencement Date and the last day of the
          calendar month in which the Lease Commencement Date occurs. (See
          Section 2.03 regarding Tenant's one (1) five (5) year renewal option).

     (d)  LEASE COMMENCEMENT DATE: The date on which Landlord substantially
          completes the Tenant Improvements (as defined in Section 1.02 and
          Exhibit C) and delivers possession of the Premises to Tenant in
          accordance with the terms of Article 1 and Exhibit C hereof, which
          date is targeted to be December 15, 1999.

     (e)  BASIC RENT: One Hundred Fifty-eight Thousand Four Hundred and 00/100
          Dollars ($158,400.00) per annum for the first Lease Year, payable in
          equal installments of Thirteen Thousand Two Hundred and 00/100 Dollars
          ($13,200.00) per month (as set forth in greater detail in Section
          3.01).

     (g)  ANNUAL BASIC RENT ESCALATION PERCENTAGE: 3%

     (h)  INTENTIONALLY OMITTED.

     (i)  PROPORTIONATE SHARE OF OPERATING COSTS AND REAL ESTATE TAXES: 19.6%

     (j)  SECURITY DEPOSIT AMOUNT: Thirteen Thousand Two Hundred and 00/100
          Dollars ($13,200.00).

     (k)  PERMITTED USE OF PREMISES: The Premises shall be used solely for
          general office purposes.

     (l)  TENANT'S TRADE NAME: Interactive Applications Group, Inc.

     (m)  TENANT'S NOTICE ADDRESS:     Interactive Applications Group, Inc.
                                       2639 Connecticut Avenue, N.W.
                                       Suite 250
                                       Washington, D.C. 20008

     (n)   TENANT'S EMPLOYER ID NUMBER:   52 - 1900280
                                          ------------

     (o)  INTENTIONALLY OMITTED.

     (p)  INTENTIONALLY OMITTED.

     (q)  INTENTIONALLY OMITTED.

     (r)  TENANT IMPROVEMENT ALLOWANCE: $15.00 per rentable square foot (See
          Section 1.04)

     PREMISES 1.01 - In consideration of the rent hereinafter reserved and of
the covenants hereinafter contained, Landlord does hereby lease to Tenant, and
Tenant hereby leases from Landlord, that certain office space located on the
second floor of the Building, shown on the floor plan attached hereto as Exhibit
"A" (and incorporated herein by this reference), and designated as Suite 250,
which space is hereinafter referred tows the "Premises." The agreed-upon
approximate rentable square footage of the Premises is 6,336 square feet. The
term "Building," as used herein, shall mean the building located at 2631-2641
Connecticut Avenue, N.W., Washington, D.C. 20008, which, along with the real
property underneath and surrounding the same, and all common and garage areas
and other improvements thereon owned by Landlord, are known as the "Project."

                                       1
<PAGE>

     1.02 - All improvements to the Premises necessary for the Tenant's use and
occupancy thereof shall be completed by Landlord, at Tenant's sole cost and
expense (except as provided below), as set forth in Exhibit "C" hereto (which is
incorporated herein by this reference) (the "Tenant Improvements"). Except for
the Tenant Improvements, Landlord shall deliver and Tenant agrees to accept the
Premises from Landlord in their current "as is" condition with all structural,
electrical and mechanical systems serving the Premises in good working order.
Landlord shall have no obligation to perform any improvements or alterations in
the Premises except those specifically listed as Tenant Improvements Exhibit C.
Tenant's taking possession of the Premises following substantial completion of
the Tenant Improvements described in Exhibit C shall be conclusive evidence as
against Tenant that the Premises are suitable for the Permitted Use, and that
the Premises were in satisfactory condition when Tenant took possession thereof
except for any latent defects and those items set forth in the punchlist, if
any, submitted by Tenant to Landlord. Within five (5) days of Landlord's
delivery of possession of the Premises to Tenant, Tenant shall inspect the
Premises and submit to Landlord a written punchlist of any contended defects in
the Tenant Improvements performed by Landlord. Thereafter, Landlord shall use
reasonable efforts to promptly correct any defects in the Tenant Improvements.

     1.03 - The Tenant Improvements shall be completed by Landlord in accordance
with the requirements and specifications set forth in Exhibit C. Tenant will
bear the cost of the Tenant Improvements, including, but not limited to,
architectural and engineering fees relating to the Premises and all costs and
expenses incurred in the construction of the Tenant Improvements over and above
the current "as is" condition of the Premises as described in Section 1.02 above
(collectively "Tenant's Costs"); provided, however, Landlord will credit against
the foregoing Tenant's Costs an allowance (the "Tenant Improvement Allowance")
of $15.00 per rentable square foot of the Premises. In addition, up to $1.50 per
square foot of said Allowance may be used by Tenant to cover moving expenses and
related costs (such as cabling and office fixtures and furnishings) incurred by
Tenant in connection with its relocation of its operations to the Premises.
Tenant will pay as Additional Rent any excess (the "Excess") of Tenant's Costs
over the Tenant Improvement Allowance as follows:

     (a) Tenant shall pay to Landlord prior to the commencement of construction
of the Tenant Improvements, an amount equal to fifty percent (50%) of such
Excess (as then estimated by Landlord);

     (b) After substantial completion of the Tenant Improvements, but prior to
Tenant's occupancy of the Premises, Tenant shall pay to Landlord an amount equal
to eighty percent (80%) of the Excess as than estimated by Landlord, less
payments received by Landlord according to (a) above;

     (c) Upon submission to Tenant of the final accounting for all costs
hereunder, Tenant shall pay to Landlord the entire unpaid balance of the actual
Excess based on the final costs.

     (d) Within ten (10) days of substantial completion of the Tenant
Improvements, Tenant shall open for business and thereafter operate its business
in the Premises throughout the Term of the Lease in accordance with the terms
hereof.

     TERM 2.01 - The term of this Lease shall commence on the date Landlord
substantially completes the Tenant Improvements and delivers possession of the
Premises to Tenant ("Lease Commencement Date") and shall expire at twelve
o'clock midnight on the Last day of the Eighty-Fourth (84th) full calendar month
thereafter, unless earlier terminated in accordance with the terms hereof.

     2.02 - The period commencing on the Lease Commencement Date and ending on
the last day of the 12th full calendar month thereafter, shall constitute the
first "Lease Year" as such term is used herein. Each successive twelve (12)
calendar month period during the Term, commencing on the annual anniversary of
the Lease Commencement Date (or if the Lease Commencement Date is not the first
day of a calendar month, the annual anniversary of the first full calendar month
following the Lease Commencement Date) shall constitute a "Lease Year" for the
purpose of this Lease.

     2.03 - (a) Landlord hereby grants to Tenant the right, exercisable at
Tenant's option, to renew and extend the Term of the Lease for one (1)
additional period of five (5) years ("Renewal Term"), exercisable as hereinafter
provided. If properly exercised and if the conditions applicable thereto have
been satisfied, the Renewal Term shall commence on the date immediately
following the expiration of the initial Lease Term defined in Section 2.01
above, and in such event, such Renewal Term shall be deemed to be part of the
Lease Term.

     (b) The right of renewal herein granted to Tenant shall be subject to, and
shall be exercised strictly in accordance with, the following terms and
conditions. Tenant shall exercise the renewal option by giving Landlord written
notice of the exercise thereof (the "Option Notice") not later than twelve (12),
nor earlier than eighteen (18), months prior to the expiration of the initial
Lease Term. Time is of the essence as to all dates pertaining to Tenant's
exercise of the renewal option. If: (1) the Option Notice is not timely given,
(2) Tenant does not exercise the renewal option, or (3) an Event of Default
exists at the time of Tenant's Option Notice or upon the commencement of the
Renewal Term, then, under any of the foregoing circumstances, Tenant's right of
renewal shall thereupon and thereafter lapse, terminate and be of no further
force or effect. In no event shall Tenant have the right to renew or extend the
Lease Term beyond the expiration of the Renewal Term. If the Renewal Option has
been properly exercised, during the Renewal Term, all of the terms, conditions,
covenants and agreements set forth in the Lease shall continue to apply and be
binding upon Landlord and Tenant (including the additional rent payable under
the terms of the Lease, with an appropriate adjustment of the Base Year used to
calculate the same), except that the annual Basic Rent payable by Tenant during
the Renewal Term shall be in an amount equal to the Fair Market Rent (as defined
below) for the Premises for the Renewal Term.

                                       2
<PAGE>

     (c) The term "Fair Market Rent" as used in this Section 2.03, shall mean
the annual market Basic Rent (including annual escalations thereof) for
comparable office space in comparable buildings in the Woodley Park submarket,
taking into account all appropriate factors. Within ten (10) days after Tenant
exercises a renewal option, Landlord shall notify Tenant of Landlord's
determination of the Fair Market Rent for the Renewal Term based upon the
foregoing parameters. Within ten (10) days following Landlord's notification
regarding the Fair Market Rent, Tenant shall notify Landlord in writing that
Tenant: (i) agrees with Landlord's determination of the Fair Market Rent
applicable to the Renewal Term, or (ii) disagrees with Landlord's determination
of the Fair Market Rent applicable to said Renewal Term, and provide Landlord
with an alternative proposed Fair Market Rent structure based on the foregoing
parameters. If Tenant does not dispute Landlord's determination, or agrees with
the same in writing within the aforesaid ten (10) day period, such amount shall
become the Basic Rent (as hereinafter defined) payable hereunder during the
Renewal Term. If Tenant disputes Landlord's determination in writing within the
aforesaid ten (10) day period, then Landlord and Tenant will negotiate in good
faith to determine the appropriate Fair Market Rent applicable to said Renewal
Term in accordance with the foregoing parameters. In the event that the parties
cannot agree upon the appropriate Fair Market Rent within sixty (60) days of
Tenant's Option Notice, then said Fair Market Rent shall be determined in
accordance with the following terms. Within ten (10) days after the expiration
of such sixty (60) day period, each party shall give written notice to the other
setting forth the name and address of a Broker (as hereinafter defined) selected
by such party who has agreed to act in such capacity, to determine the Fair
Market Rent applicable to the Renewal Term. If either party shall fail to select
a Broker as aforesaid, then the party which has selected a Broker as aforesaid
(the "Appointing Parry") shall have the right to issue a written notice to the
parry which failed to select a Broker as aforesaid (the "Non-Appointing Party")
advising such Non-Appointing Party that it has failed to appoint its Broker, in
which case, if the Non-Appointing Party does not then designate its Broker
within five (5) business days following receipt of the Appointing Party's
Notice, then the Fair Market Rent shall be determined by the Broker selected by
the other parry. Each Broker shall thereupon independently make his
determination of the Fair Market Rent applicable to the Renewal Term based upon
the parameters for determining Basic Rent outlined above within twenty (20) days
after the appointment of the second Broker. If the two Brokers' determinations
are not the same, but the higher of such two determinations (based upon the
initial Fair Market Rent and average Fair Market Rent over the course of the
Renewal Term) is not more than one hundred five percent (105%) OF the lower of
them, then the Fair Market Rent shall be deemed to be the average of the two
determinations. If the higher of such two determinations is more than one
hundred five percent (105%) of the lower of them, then the two Brokers shall
jointly appoint a third Broker within ten (10) days after the second of the two
determinations described above has been rendered. The third Broker than
independently make his determination of the Fair Market Rent within twenty (20)
days after his appointment. The highest and the lowest determinations among the
three Brokers shall be disregarded and the remaining determination shall be
deemed to be the Basic Rent payable by Tenant with respect to the Renewal Term.
Within thirty (30) days after the Basic Rent is determined as aforesaid, the
parties shall execute an amendment to this Lease setting forth the new Basic
Rent to be paid for the Renewal Term. For the purposes of this Section 2.03,
"Broker" shall mean a real estate broker licensed in the District of Columbia,
who has been regularly engaged in such capacity in the business of commercial
office leasing in Northwest Washington, D.C. for at least ten (10) years
immediately preceding such person's appointment hereunder. Each party shall pay
for the cost of its Broker and one-half of the cost of the third Broker.

     RENT 3.01 - (a) Beginning on the first day of the fourth (4th) full
calendar month during the Term, and thereafter throughout the Term of the Lease,
Tenant shall pay Landlord basic annual rent in the initial amount of $158,400.00
per annum, payable in equal monthly installments of $13,200.00, in advance on
the first day of each and every calendar month during the Lease Term (the "Basic
Rent"). [In addition, during the first Lease Year, if the Lease Commencement
Date is not the first day of a calendar month, on the first day of the fourth
(4n1) full calendar month, Tenant shall pay Landlord Basic Rent with respect to
the month in which the Lease Commencement Date occurs in an amount equal to the
product of: (i) the initial monthly Basic Rent set forth above divided by the
number of days in such calendar month, and (ii) the number of days remaining in
such calendar month beginning with the Lease Commencement Date (it being the
intent of the parties that Tenant not be obligated to pay Basic Rent for the
first three (3) full calendar months during the Term). Said initial Basic Rent
shall be escalated on the first day of the second Lease Year, and thereafter on
the first day of each and every Lease Year during the Term in accordance with
the schedule set forth below:

          Lease Year     Annual Basic Rent     Monthly Basic Rent
          ----------     -----------------     ------------------
              2             $163,152.00            $13,596.00
              3             $168,046.56            $14,003.88
              4             $173,087.95            $14,424.00
              5             $178,280.58            $14,856.72
              6             $183,628.99            $15,302.42
              7             $189,137.85            $15,761.49

     (b) Notwithstanding the terms of paragraph (a) above, and provided Tenant
is occupying the Premises and there exists no Event of Default throughout such
period: (1) Tenant's obligation to pay fifty percent (50%) of its Monthly Basic
Rent shall abate for the fourth, fifth, sixth and seventh full calendar months
following the Lease Commencement Date, and (2) Tenant's obligation to pay a
portion of its Monthly Basic Rent totaling $1,304.17 shall abate for the eighth,
ninth, tenth, eleventh and twelfth full calendar months following the Lease
Commencement Date. Therefore, provided that the foregoing conditions are met:
(i) on the first day of the fourth full calendar month during the Term, Tenant
shall pay Landlord (1) pro-rated Monthly Basic Rent for the partial month, if
any, in which the

                                       3
<PAGE>

Lease Commencement Date occurs and (2) $6,600, (ii) Tenant's first installment
of Monthly Basic Rent payable upon the execution of this Lease in accordance
with the terms of Section 3.06 hereof shall be credited against the fifth and
sixth full calendar month's Monthly Basic Rent obligations, (iii) on the first
day of the seventh full ,calendar month during the Term, Tenant shall pay
Landlord $6,600, (iv) on the first day of the eighth, ninth, tenth, eleventh and
twelfth full calendar months during the Term, Tenant shall pay Landlord Basic
Rent in the amount of $11,895.83, and (v) beginning on the first day of the
thirteenth full calendar month, Tenant shall pay Monthly Basic Rent in the
amounts set forth in the schedule in Paragraph (a) above.

     3.02 - The Basic Rent and any and all other amounts payable by Tenant to
Landlord hereunder (which amounts shall all constitute "additional rent"
hereunder) shall be paid promptly when due, in cash or by check, in lawful money
of the United States, without notice or demand and without deduction,
diminution, abatement, counterclaim or setoff of any amount or for any reason
whatsoever, payable to Landlord at the following address: Starwood Urban Retail
I, LLC, c/o Starwood Urban Investments, LLC, 1320 19th Street, N.W., Suite 800,
Washington, D.C. 20036, Attn: Constance Collins Davis, or to such other person
and place as may be designated by notice in writing from Landlord to Tenant from
time to time. Basic Rent and additional rent are sometimes collectively referred
to herein as "rent."

       3.03 - (a) Beginning on the first day of the second Lease Year and
thereafter throughout the Term of the Lease, Tenant shall pay as additional
rent, its Proportionate Share (as hereinafter defined) of any increase in the
Operating Costs (as hereinafter defined) beyond the Operating Costs applicable
to the calendar year in which the Lease Commencement Date occurs ("Base Year").
The Operating Costs applicable to any calendar year during the Term in excess of
the Operating Costs applicable to the Base Year are referred to herein as
"Excess Operating Costs." From time to time during the Term, Landlord shall
provide Tenant with a written estimate of the Project's Operating Costs and
Tenant's Proportionate Share of the Excess Operating Costs. Tenant shall pay
Landlord its Proportionate Share of such estimated Excess Operating Costs in
equal monthly installments. Following the end of each calendar year during the
Term, Landlord shall provide Tenant with a written statement setting forth the
Project's actual Operating Costs for the preceding calendar year. If said actual
Excess Operating Costs exceed the estimated Excess Operating Costs, Tenant shall
pay its Proportionate Share of the difference to Landlord within ten (10) days
of Tenant's receipt of said written statement. If the estimated Excess Operating
Costs paid by Tenant exceed the actual Excess Operating Costs, Tenant shall be
credited the difference toward any past due rent or other amounts owed to
Landlord hereunder, and then to the next due installment of rent (or any other
amounts) due hereunder, or if no such installment or amounts are due, refunded
to Tenant within thirty (30) days.

     (b) "Operating Costs" shall include all costs and expenses of every kind
and nature as may be paid or incurred by Landlord in connection with the
ownership, management, operation and maintenance of the Project (including the
Building, and all common and garage areas and facilities and other improvements
thereon), including, but not limited to, the cost and expense of: (i) all
management office expenses; (ii) operating, maintaining, repairing, replacing
lighting facilities, sound facilities, storm and sanitary drainage systems,
utility conduits, utility systems, utility ducts and similar items, fire
protection systems, sprinkler systems, sprinkler and security alarm systems;
(iii) gardening, landscaping and maintenance and replacements of any grass,
trees and shrubbery on the Project; (iv) all premiums and other was associated
with all liability, umbrella liability, and casualty insurance policies
maintained by Landlord in connection with the Project, including, without
limitation: liability for bodily injury, death and property damage, insurance on
the Project (including, without limitation, the Common Areas) against fire,
extended coverage, flood, theft or other casualties, workman's compensation,
plate glass insurance for glass exclusively serving the Common Areas, sign
insurance and rent loss insurance for up to a 12-month period; (v) security,
including, without limitation, security guards, security patrols, and alarm
systems; (vi) personal property taxes on equipment and systems in, pertaining
to, or used in maintaining and operating the Project; (vii) utility charges and
other costs of lighting, heating and cooling the Project; (viii) the cost of
operating, maintaining, inspecting and replacing any private utility systems
serving the Project; (ix) parking area line painting; (x) removal of snow and
ice; (xi) collection and removal of trash from the Project and from any
dumpsters provided by Landlord for the use of tenants; (xii) equipment,
machinery and supplies used in the operation and maintenance of the Project
(including, without limitation, cleaning and snow removal equipment) and of
signs, fixtures and furnishings (including the cost of inspection, maintenance,
repair and, at Landlord's option, depreciation thereof, which depreciation shall
be calculated on a straight-line basis and on useful lives based upon the
Internal Revenue Service guidelines from time to time extant); (xiii) power and
the] for operating equipment and systems, and for operating vehicles and
equipment used for cleaning, maintenance and snow removal; (xiv) salaries of
personnel directly engaged in operating, cleaning and maintaining the Project
(including, without limitation, security personnel and, if employed and paid by
Landlord [as opposed to the Parking Operator, as the same is defined in Section
7.02] parking attendants), and all related payroll charges, benefits and taxes;
(xv) licenses, permits and fees issued or assessed by governmental authorities
(as such authorities are defined in Section 4.01 below); (xvi) any management
fees paid by landlord for the management of the Project; (xvii) dues, fees and
assessments levied by with respect to any homeowner's association, P.U.D.,
business improvement district, neighborhood improvement association and/or
condominium association of which the Project is a part; (xviii) vault rentals;
(xix) Char Service (as defined in Section 6.03); and (xx) merchants' association
dues, fees and costs. The foregoing shall not be construed to impose any duty or
obligation on Landlord to incur ANY or all of the costs and expenses described
above. Operating Costs shall not include the following: (1) repairs or other
work occasioned: (i) by fire, windstorm or other casualty of the type which
Landlord has insured or is required to insure under the terms of this Lease, or
(ii) the taking of a portion of the Project by exercise of the right of eminent
domain to the extent that Landlord is reimbursed for the cost of such repairs or
other work by the condemning authority; (2) leasing commissions, attorney's fees
and other costs incurred in connection with negotiations or disputes

                                       4
<PAGE>

with particular other tenants, occupants or prospective tenants in the Project
and legal fees associated with the negotiation of this lease; (3) the cost of
renovating, building-out or otherwise improving, decorating of painting other
leasable space (but not the Common Areas) in the Project for other tenants,
occupants or prospective tenants; (4) the cost of providing extraordinary
electric and other services to particular other tenants in the Project to the
extent that the same are provided at the cost of such particular other tenants
(over and above the Basic Rent and escalated Operating Cost reimbursements paid
by such particular other tenants); (5) Except for capital expenditures required
to comply with the order, statutes, regulations or mandates of Local or Federal
governments or capital expenditures reasonably calculated to reduce other
Operating Costs, all costs incurred by Landlord which are generally classified
as capital in nature pursuant to Generally Accepted Accounting Principles; (6)
overhead and profit increments paid to subsidiaries or other affiliates of
Landlord for services provided with respect to the Project (or any portion
thereof) to the extent that the cost of such services exceeds the reasonable
competitive cost thereof if such services were provided by independent third
parties which are not subsidiaries or other affiliates of Landlord; (7) payments
of principal and interest on mortgages covering the Project or any portion
thereof; (8) rental payments due under any ground or underlying lease under
which Landlord is the tenant; (9) Landlord's general corporate overhead and
expenses for services not related to the Project, except to the extent that the
same are reasonably calculated to reduce other Operating Costs (and than only in
such amount as is reasonably allocable to the Project in light of such
reduction); (10) compensation paid to clerks, attendants or other persons
working for commercial concessions operated by landlord at the Project on a "for
profit" basis; (11) advertising and promotion costs for leasing activities at
the Project; (12) costs, fines or penalties incurred due to the willful
violation by Landlord of any Local or Federal law, statute, ordinance or any
rule, judgment or decree of any Court having jurisdiction over the Project; (13)
the cost of any investment grade sculpture, painting or other art; (14) wages,
salaries or other compensation paid to any executive employees of Landlord above
the grade of Project manager; (15) depreciation of the Building or the Project;
and (16) income, rental or other receipt, excess profit, excise or franchise
taxes other than that portion thereof, if any, which may be assessed in lieu of,
or as a substitute, in whole or in part, for Real Estate Taxes. Operating Costs
for any calendar year, may be determined by Landlord using an adjustment thereto
to reflect that the Project is at least ninety-five percent (95%) leased,
whether or not the Project is in fact 95% leased during any such year.

     (c) beginning on the first day of the Second Lease Year and thereafter
throughout the Term of the Lease, Tenant shall pay as additional rent, its
Proportionate Share (as hereinafter defined) of ANY increase in the Real Estate
Taxes beyond the Real Estate Taxes applicable to the calendar year in which the
Lease Commencement Date occurs ("Base Year"). The Real Estate Taxes applicable
to any calendar year during the Term in excess of the Real Estate Taxes
applicable to the Base Year are referred to herein as "Excess Real Estate
Taxes." From time to time during the Term, Landlord shall provide Tenant with a
written estimate of the Project's Real Estate Taxes (as hereinafter defined) and
Tenant's Proportionate Share of the Excess Real Estate Taxes. Tenant shall pay
Landlord its Proportionate Share of such estimated Excess Real Estate Taxes in
equal monthly installments. Following the end of each calendar year during the
Term, Landlord shall provide Tenant with a written statement setting forth the
Project's actual Excess Real Estate Taxes applicable to the preceding calendar
year. If said actual Excess Real Estate Taxes exceed the estimates thereof paid
by Tenant, Tenant shall pay its Proportionate Share of the difference to
Landlord within ten (10) days of Tenant's receipt of said written statement. If
the estimated Excess Real Estate Taxes paid by Tenant exceed the actual Excess
Real Estate Taxes, the difference shall be credited toward any past due rent or
other amounts owed to Landlord hereunder, and then toward the next due
installment of rent (or any other amounts) due hereunder, or if no such
installment or amounts are due, refunded to Tenant within thirty (30) days.

     (d) Real Estate Taxes shall mean (i) the total general and special real
estate taxes and assessments (including front-foot benefit fees, betterments,
assessments, and hook-up fees, arena taxes, as well as vault taxes and the like)
which are levied and assessed on all land and improvements (including fixtures)
in the Project, including, without limitation, the Premises, the Building, and
all Common Areas, and (ii) Landlord's expenses in contesting the validity of, or
seeking a reduction in, or in seeking to prevent an increase in any such tax or
assessment, or attempting to obtain any refund thereof or reassessment of the
value of the Project or any portion thereof.

     (e) Tenant's "Proportionate Share" shall be nineteen and six-tenths
percent (19.6%).

     3.04 - Other remedies for non-payment notwithstanding, any installment of
rent which is not paid within five (5) days after the due date shall be subject,
at Landlord's option each month, to a late charge equal to five percent (5%) of
the amount due, which shall be payable as additional rent. Any installment of
Basic Rent or additional rent not paid when due shall also accrue interest at
the rate of fifteen percent (15%) per annum (but in no event at a rate higher
than the maximum rate allowed by law) from the due date until paid in full,
which interest shall be deemed additional rent hereunder.

     3.05 - No payment by Tenant or receipt by Landlord of a lesser amount than
the monthly installments of rent herein stipulated shall be deemed to be other
than on account of the earliest stipulated rent nor shall any endorsement or
statement on any check or any letter accompanying any check or payment as rent
be deemed an accord and satisfaction, and Landlord may accept such check for
payment without prejudice to Landlord's right to recover the balance of such
rent or pursue any other remedy provided in this Lease. If Tenant shall present
to Landlord at any time during the term of this Lease a check or draft not
honored by the institution upon which the same is issued, then Landlord may
require that future payments of rent thereafter payable be made by certified or
cashier's check.

                                       5
<PAGE>

     3.06 - Upon execution hereof, Tenant shall pay Landlord: (i) the sum of
$13,200.00, which amount will be credited by Landlord against the fifth and
sixth full calendar month's installments of Basic Rent and additional rent
payable hereunder (or, if the conditions set forth in Section 3.01(b) are not
met, against the first due Monthly Basic Rent obligations of Tenant hereunder),
and (ii) a security deposit in the amount of $13,200.00 as Security for the
payment and performance of the obligations, covenants, conditions and agreements
contained herein, which deposit shall be held by Landlord, without interest
thereon, during the Term in accordance with the terms hereof. Landlord shall,
within forty-five (45) days after the expiration of the term hereof, refund to
Tenant the balance, if any, of the security deposit less any portion applied to
cure any Event of Default under this Lease. Should Landlord at any time during
the Term hereof apply all or any portion of said security deposit to cure an
Event of Default by Tenant hereunder, Tenant shall immediately deposit
additional funds with Landlord to restore the security deposit to the amount set
forth above.

     3.07 - Intentionally Omitted.

     3.08 - Landlord and Tenant agree that no rental or other payment for the
use or occupancy of the Premises is or shall be based in whole or in part on the
net income or profits derived by any person or entity from the Building or the
Premises. Tenant further agrees that it will not enter into any sublease,
license, concession or other agreement for any use or occupancy based in whole
or in part on the net income or profits derived by any person or entity from the
Premises so leased, used or occupied. Nothing in the foregoing provisions of
this Section, however, shall be construed as permitting or constituting
Landlord's approval of any sublease, license, concession, or other use or
occupancy agreement not otherwise approved by Landlord in accordance with the
provisions of Article 12.

     USE OF PREMISES 4.01 - Tenant covenants to utilize the Premises only for
general office use ("Permitted Use"), and for no other purpose. All of Tenant's
operations in the Premises shall be subject to all applicable zoning and other
regulations and restrictions of governmental authorities (as defined below). At
all times during the Term, Tenant shall: (a) comply, at its sole cost and
expense, with all Requirements (as defined below) which in any way affect or are
binding upon the Premises or the use and occupation thereof (except as expressly
provided in Section 5.02), (b) obtain and maintain in full force and effect all
licenses, permits and the like required by any governmental authority (as
defined below) to permit Tenant to occupy and use the Premises (except for the
initial Certificate of Occupancy, which shall be procured by Landlord), and (c)
be responsible for the cost of compliance with all Requirements with respect to
the Project arising from or related to Tenant's use of the Premises. As used in
this Lease, "Requirements" shall include but not be limited to all applicable
laws, statutes, rules, regulations, orders, ordinances, codes, approvals,
permits, interpretations, directives and requirements, whether now or hereafter
in force, of: (i) all federal, state, county, municipal, city and borough
legislatures, executive offices, courts, departments, bureaus, boards, agencies,
offices, commissions and other sub-divisions thereof, or of any official
thereof, or of any other governmental, judicial, public, quasi-public or quasi
judicial authority (collectively, "governmental authorities"), and (ii) the
National Board of Fire Underwriters or any other body exercising similar
functions.

     4.02 - Tenant shall have access to the Premises twenty-four (24) hours per
day, seven (7) days per week. Tenant's access to the Building and the Premises
shall be subject to all security measures as Landlord shall reasonably undertake
with respect to the Building.

     4.03 - Tenant shall not permit the Premises, or any part thereof, to be
used for any disorderly, unlawful or hazardous purpose, nor as a source of
annoyance or embarrassment to Landlord or other tenants, nor for any purpose
other than hereinbefore specified, nor for the manufacture of any commodity
therein, without the prior written consent of Landlord. Tenant shall be
responsible, at its sole cost and expense, for addressing any security issues
with respect to the Premises.

     4.04 - (a) Except as set forth herein, without the prior written consent of
Landlord, which consent may be withheld in Landlord's sole and absolute
discretion, Tenant may not erect or install on the exterior or interior of the
Building, on any window, or in any lobby, hallway or door therein located, any
sign or other type display. Tenant shall not place or permit to be placed or
maintained on any door, exterior wall, or window of the Premises any sign,
awning, canopy, decoration, lettering, notice, advertising matter or object of
any kind, nor place any structure, sign, obstruction or advertising device upon
the common areas without first obtaining Landlord's written consent, which
consent may be withheld in Landlord's sole and absolute discretion. Tenant
further agrees to maintain any such signs, awnings, canopies, decorations,
lettering, notices, advertising matter or other objects as may be approved by
Landlord in good condition, operating order and repair at all times. All signs,
advertisements and displays must be professionally prepared and maintained. In
the event of any such consent by Landlord (whether to such a display inside or
outside of the Premises) such display and the Exterior Sign described below
shall: (i) not, in the aggregate cover more than thirty-three percent (33%) of
the window area, and (ii) on or before the expiration or earlier termination of
this Lease, be removed and the portion of the Premises and the windows, walls,
and doors used for such display shall be restored to the condition existing
prior to the execution and delivery of this Lease. Notwithstanding the
foregoing, Tenant may erect an exterior building sign ("Exterior Sign") at a
location designated by Landlord, at Tenant's sole cost and expense. The Exterior
Sign shall incorporate letters no larger than ten (10) inches. The design and
method of installation of such sign, including the Exterior Sign, shall be
subject to Landlord's written consent, in Landlord's sole and absolute
discretion.

     (b) Landlord shall, at Landlord's cost and expense, install standard suite
entry signage at the Premises and a pro rata share of the directory strips
allocated to the second floor identifying Tenant and Tenant's location in the
Building's lobby directory.

                                       6
<PAGE>

     4.05 - Tenant covenants and agrees as follows: (a) Tenant will not obstruct
or interfere with the rights of other tenants, or injure or annoy them or those
having business with them, or conflict with them; (b) Tenant will not in any way
conflict with any Requirements or with any insurance policy upon the Building or
any part thereof; (c) Tenant shall be answerable for all nuisances caused or
suffered on the Premises, or caused by Tenant with respect to the Project, any
part thereof or on the approaches thereto; (d) Tenant will not suffer or permit
waste with respect to the Premises; (e) Tenant will not place a load on any
floor exceeding the floor load which such floor was designed to carry in
accordance with the plans and specifications of the Building, and will not
install, operate or maintain in the Premises any safe or heavy item of equipment
except in such manner and in such location as Landlord shall prescribe so as to
achieve a proper distribution of weight; (f) Tenant will not strip or overload,
damage or deface the Premises, hallways, stairways, elevators, parking
facilities or other public areas of the Building or Project, or the fixtures
therein or used therewith, nor permit any hole to be made in any of the same;
(g) Tenant will not suffer or permit any trade or occupation to be carried on or
use made of the Premises which trade or occupation: shall be unlawful, noisy,
offensive, or injurious to any person or property, or increase the danger of
fire or affect or make void or voidable any insurance on the building, or may
render any increased or extra premium payable for such insurance, or shall be
contrary to any law or ordinance, rule or regulation from time to time
established by any public authority; (h) Tenant will park vehicles only in the
area from time to time designated by Landlord; and (i) Tenant will conform to
all rules and regulations from time to time established by Landlord, including
those attached as Exhibit "B" hereto (which is incorporated herein by this
reference).

     4.06 - (a) At all time during the Lease Term, Tenant, at its sole cost and
expense, shall comply with: (1) all Requirements related to Hazardous Materials
(as defined below), which include but are not limited to: (i) all federal,
state, and municipal laws, ordinances, notices, orders, rules, regulations
related thereto, and (ii) those statutes, regulations and orders referenced in
subsection (b) below, and (2) the requirements of all public liability, fire,
and other policies .of insurance covering the Premises, relating to the
treatment, production, storage, handling, transfer, processing, transporting,
use, disposal, and release of Hazardous Materials. In addition, Tenant shall
take similar precautions with any other material or substance that, even if not
described in subsection (b) below, may or could pose a hazard to the health and
safety of the current or future occupants of the Project or the owners or
occupants of property adjacent to or in the vicinity of the Project. This
subsection (a) shall not be construed as Landlord's consenting to any of the
foregoing. Landlord represents that, to the best of Landlord's knowledge, there
are no Hazardous Materials (as defined below) present in the Premises.

     (b) "Hazardous Materials," as such term is used in this Lease, shall mean:
(i) any "hazardous waste" as defined by the Resource Conservation and Recovery
Act of 1976 (42 U.S.C, ss.6901 et. seg.) ("RCRA"), as amended from time to time,
and regulations promulgated thereunder; (ii) any "hazardous substance" being
"released" in "reportable quantity" as such terms are defined by the
Comprehensive Environmental Response, Compensation and Liability Act of 1980 (42
U.S.C. ss.9601 et. seg.) ("CERCLA"), as amended from time to time, and
regulations promulgated thereunder; (iii) asbestos; (iv) polychlorinated
biphenyls; (v) urea formaldehyde insulation; (vi) "hazardous chemicals" or
"extremely hazardous substances", in quantities sufficient to require reporting,
registration, notification or special treatment or handling under the Emergency
Planning and Community Right-to-Know Act of 1986 (42 U.S.C. ss.ss.11001, et.
semc.) ("EPCRA"), as amended from time to time and regulations promulgated
thereunder; (vii) any "hazardous chemicals" in levels that would result in
exposures greater than those allowed by permissible exposure limits established
pursuant to the Occupational Safety and Health Act of 1970 (29 U.S.C. ss.651 et.
semc .) ("OSHA"), as amended from time to time and regulations promulgated
thereunder; (viii) any substance which requires reporting, registration,
notification, removal, abatement or special treatment, storage, handling or
disposal under Section 6, 7 or 8 of the Toxic Substances Control Act (15 U.S.C.
ss.ss.2601 et. semc .) ("TSCA") as amended from time to time and regulations
promulgated thereunder; (ix) any toxic or hazardous chemicals described in the
Occupational Safety and Health Standards (29 C.F.R. 1910.1000-1047) in levels
which would result in exposures greater than those allowed by the permissible
exposure limits pursuant to such regulations; (x) the contents of any storage
tanks, whether above or below ground; (xi) medical wastes; (xiii) any toxic or
radioactive matter; (xiv) materials related to those described above in this
subsection (b); and (xiii) anything defined as hazardous or toxic under any now
existing or hereinafter enacted Requirement of any governmental authority.

     (c) Tenant will not use or permit the Premises or any part thereof to be
used in violation of any Requirement related to Hazardous Materials. Tenant
assumes sole and full responsibility for, and will remedy at its cost, any such
violation by Tenant or its employees or agents, provided that Tenant must first
obtain Landlord's written approval of any remedial actions related thereto.
Tenant will not use, carry, generate, release, store, treat, dispose of, or
otherwise deposit, in, on, under or about the Premises or the Project, any
Hazardous Materials, nor will Tenant permit or allow any third party to do so.
Landlord's election to conduct inspections of the Premises and/or the Project
shall not constitute an approval of Tenant's use of the Premises or any
activities conducted thereon, and will not constitute an assumption by Landlord
of any responsibility regarding Tenant's use of the Premises or Hazardous
Materials. Tenant's compliance with the terms of this Section 4.06 shall be at
Tenant's sole cost. Tenant will pay or reimburse Landlord for any costs or
expenses incurred by Landlord, including reasonable attorney's, engineers',
consultants', experts' fees and other Professional Fees and disbursements
incurred or payable to determine, review, approve, consent to or monitor the
requirements for compliance by Tenant with the Requirements and the other
obligations of Tenant under this Section 4.06, including, without limitation,
above and below ground testing. Landlord (and any representative, agent,
employee or contractor of Landlord) are hereby authorized to enter upon the
Premises for such purposes. Tenant will supply Landlord with historical and
operational information regarding the Premises, including without limitation,
all reports required to be filed with governmental authorities, as may be
reasonably requested by Landlord to facilitate site assessment, and will make
available for meetings with Landlord (or any representative,

                                       7
<PAGE>

agent, employee or contractor of Landlord), appropriate personnel having
knowledge of such matters. If Tenant fails to comply with the provisions of this
Section 4.06, or if Landlord receives notice or information asserting the
existence of any Hazardous Materials on the Premises, or on the Project related
to Tenant, Landlord has the right, but not the obligation, without in ANY way
limiting Landlords other rights and remedies, to enter upon the Premises or to
take such other actions Landlord deems necessary or advisable to clean up,
remove, resolve, remediate or minimize the impact of any Hazardous Materials on
or affecting the Premises or the Project. Tenant shall pay to Landlord on demand
as additional rent all costs and expenses paid or incurred by Landlord in the
exercise of any such rights. Tenant will notify landlord in writing, immediately
upon the discovery, notice (from a governmental authority or other entity) or
reasonable grounds to suspect, by Tenant or any Tenant Party (as defined in
Section 25.01 hereof) the presence in the Premises or on the Project of any
Hazardous Materials or conditions that result in a violation of or could
reasonably be expected to violate any Requirement or other obligation of Tenant
under this Section 4.06, together with a full description thereof.

     (d) Tenant shall be solely responsible for and shall defend, indemnify, and
hold Landlord, and its agents, successors, and assigns, harmless from and
against all claims, actions, damages, liabilities, and expenses (including,
without limitation, fees of investigators, attorneys and experts and other
Professional Fees) arising out of or in connection with: (1) any violation by
Tenant or Tenant's Agents of any Requirement with respect to Hazardous Materials
or any other obligation of Tenant under this Section 4.06, and (2) the removal,
cleanup, remediation and restoration work and materials necessary to remove
and/or remediate any Hazardous Materials from the Premises or to remove and/or
remediate any Hazardous Materials from the Project and any other property of
whatever nature (including but not limited to, property adjacent to or in the
vicinity of the Project) which Hazardous Materials were stored, carried,
released, used or disposed of by Tenant or Tenant's Agents. Tenant's obligations
pursuant to this Section 4.06 shall survive the expiration or termination of
this Lease. If at any time during or after the Term of this Lease, Tenant
becomes aware of any inquiry, investigation, administrative proceeding, or
judicial proceeding regarding or related to any Hazardous Materials, Tenant
shall within five (5) days after first learning of such inquiry, investigation
or proceeding give Landlord written notice providing All available information
regarding such inquiry, investigation, or proceeding.

     REPAIRS AND MAINTENANCE 5.01 - Tenant will not commit waste or nuisance
with respect to the Premises. At all times during the Term, Tenant will, at its
sole cost and expense, maintain the Premises and all equipment, systems and
fixtures located therein (other than portions of the Building's systems located
in the Premises which shall be maintained by Landlord) and/or exclusively
serving the Premises in good order and repair. Tenant's maintenance and repair
responsibilities shall include, without limitation: (1) the maintenance, repair
and replacement, if necessary, of any special equipment in or serving the
Premises, whether installed by Tenant or not, (2) the maintenance, repair and
replacement, if necessary, of all Tenant Improvements (as defined in Exhibit C
hereto), (3) the repair or replacement of any damage or injury to all or any
part of the Project or the Premises or any of the equipment, systems or fixtures
therein or serving the same caused by any act or omission of Tenant or Tenant's
Agents. If: (a) Tenant fails to make repairs to the Premises or the equipment,
systems or fixtures therein or serving the Premises, (b) requests that Landlord
make any repairs to the Premises or the equipment, systems or fixtures therein
or serving the Premises (although Landlord shall not be obligated to make same),
or (c) subject to the terms of Section 11.05, any act or neglect of Tenant
results in damage to the Premises, the Building, or the Project, or any part
thereof, Landlord may repair such damage, and within ten (10) days of receipt of
Landlord's invoice, Tenant shall reimburse Landlord for the cost thereof (plus
Landlord's overhead cost of ten percent (10%) of the cost) as additional rent.

     5.02 - Throughout the Term of the Lease, Landlord will: (i) maintain the
common areas and the foundation, roof and structural portions (but no other
portion) of the Building and the Project, except any portions thereof
constructed by Tenant, which shall be maintained and repaired by Tenant, (ii)
maintain all of the Building's systems associated with the delivery of the
services described in Article 6 below, and (iii) perform all work necessary in
the Building to ensure that the Common Areas of the Building comply with the
requirements established by the Americans with Disabilities Act of 1990, at
Landlord's sole cost and expense.

        SERVICES AND UTILITIES 6.01 -During the Term, Landlord shall furnish or
cause to be furnished to the Premises the following services in the manner
outlined below. The cost to the Landlord of providing the same shall form a
portion of the Operating Costs outlined in Article 3.

     (a) Landlord will provide basic char and janitorial service five (5) nights
per week after 5:30 p.m., excluding federal holidays in accordance with the
reasonable building standard janitorial specifications established by Landlord
from time to time ("Char Service") (which standards will be consistent with
buildings of similar, size, age and class in the Uptown Washington, D.C.
submarket). Tenant shall pay Landlord for services above building standard at
the charge reasonably established by Landlord.

     (b) Landlord will furnish normal passenger elevator service for Landlord,
tenants and visitors of the Building 24 hours per day, (with at least one
elevator subject to call at all times, except in the case of emergency or
necessary repairs).

     (c) During the hours, Monday through Friday from 8:00 a.m. to 7:00 p.m.
and 9:00 a.m. to 5:00 p.m. on Saturdays (but not on Sundays or federal
holidays), Landlord will provide heat or air-conditioning at reasonable
temperatures as determined by Landlord to provide reasonably comfortable
occupancy of the Premises under normal business conditions. If Tenant delivers a
written request to Landlord before 12:00 p.m. on the day prior to the date

                                       8
<PAGE>

for which such usage is requested, Landlord will furnish services at times not
specified above in exchange for Tenant's payment therefor at the hourly rate
Landlord reasonably establishes from time to time, which shall be based on
Landlord's actual cost.

     (d) Landlord will provide to the Premise electricity for normal business
usage 24 hours per day, 365 days per year. Tenant's use of electricity in the
Premises may not at any time exceed the capacity of the electrical conductors
and equipment serving the Premises which shall not be less than 5 watts/rentable
square foot. Landlord reserves the right to install, at the Landlord's sole
cost, check meters, which will be utilized to determine the amount Tenant wi11
reimburse Landlord for Tenant's excess usage. Without Landlord's prior written
consent, Tenant shall not: (i) connect equipment in the Premises that consumes
more electricity than permitted by, the building standard specifications or (ii)
make any alteration or addition to the electric system of the Premises. If
Landlord grants such consent, Landlord will provide at the cost to Landlord plus
Landlord's overhead charge of ten percent (10%) of the cost, which cost Tenant
shall pay to Landlord on demand, additional risers or other required equipment.
In addition, Landlord may require Tenant to pay, as additional rent, the cost of
any excess electrical capacity utilized by Tenant as a result of such risers or
other required equipment. In addition, Landlord may require Tenant to install
separate meters, at Tenant's sole cost, and to pay utilities directly to the
utility company.

     (e) Landlord will furnish or cause to be furnished to the Common Areas
water from the District of Columbia mains for drinking, lavatory (including warm
water at reasonable temperatures as determined by Landlord) and toilet purposes.
Tenant will not install any equipment that uses water without Landlord's prior
written consent. Tenant will not waste or permit the waste of water. Landlord
reserves the right to install a water meter for the Premises, and thereafter
Tenant shall pay for water based upon its usage. If Tenant's usage of water is
determined by such meter to be excessive (in comparison to other similar tenants
in the Building and other buildings owned by Landlord or its affiliates) Tenant
shall reimburse Landlord the cost of the water meter upon demand.

     (f) Tenant shall have access to the Premises twenty-four (24) hours per,
day, seven (7) days per week. Tenant's access to the Building and the Premises
shall be subject to all security measures as Landlord shall reasonably undertake
with respect to the Building or the project.

     Any Interruption or malfunction of any utility, telephone or other service
shall not constitute a breach by Landlord, nor shall it cause an eviction or
disturbance of Tenant, release Tenant from any obligation hereunder, or grant
Tenant any right to an offset against rent or rent abatement (except as
expressly provided below), and neither the landlord nor Landlord's agents are
liable for damages (consequential or otherwise).

     If there is a failure by Landlord to furnish the utilities or services
specified in this Lease, which failure: (i) interferes substantially with or
prevents Tenant's use of the Premises or any part thereof, (ii) is capable of
being remedied by Landlord by the exercise of commercially reasonable efforts
(as opposed to being outside of Landlord's control), and (iii) continues for
seven (7) consecutive days, the Monthly Basic Rent and regularly-recurring
additional rent charges shall abate for the period beginning on the eighth (8th)
day following such interruption and continuing until such interruption is
remedied, based upon the portion or portions of the Premises rendered unusable
by such interruption of utilities or services. If there is a failure by Landlord
to furnish the utilities or services specified in this Lease, which failure: (1)
interferes substantially with or prevents Tenant's use of the Premises or any
part thereof, and (2) can be remedied in whole or in part by Landlord, Landlord
shall promptly commence action to restore same and thereafter continue such
action with reasonable diligence until same are restored or Landlord has
completed such commercially reasonable efforts as are possible under the
circumstances to aid in the return of such utilities or services.

     6.02 - Landlord reserves the right (but shall not be obligated) to erect,
use, connect to, maintain and repair pipes, ducts, conduits, cables, plumbing,
vents and wires in, to and through the Premises as and to the extent that
Landlord deems necessary or appropriate for the proper operation and maintenance
of the Building (including the servicing of other tenants in the Building) and
the right at all times to transmit water, heat, air-conditioning and electric
current through such pipes, ducts, conduits, cables, plumbing, vents and wires,
provided it does not permanently and materially interfere with Tenant's use of
the Premises as permitted hereunder.

     COMMON AREAS/PARKING 7.01 - All automobile parking areas, entrances and
exits thereto, and other facilities furnished by Landlord, in its sole
discretion, from time to time in or near the Project, including, without
limitation, employee and customer parking areas, mall areas, the truck way or
ways, loading docks, package pick-up stations, signs, pedestrian sidewalks and
ramps, landscaped areas, exterior and interior stairways, hallways, exterior
wails and roofs of buildings and other improvements, common or shared utility
conduits and system, lighting fixtures and other equipment, display and
exhibit areas and other areas and improvements provided by Landlord for general
use, in common, of tenants of the Project, their officers, agents, employees and
customers, shall at all times be subject to the exclusive control and management
of Landlord or its designees and Landlord shall have the right from time to time
to establish, modify and enforce reasonable rules and regulations with respect
to all facilities and areas mentioned in this Article. All of said facilities
and areas (including, without limitation, the foundations, concrete floors,
exterior walls, structural portions of the Building, awnings and roofs of all
buildings within the Project) and all utility systems not installed by or
exclusively serving a single Tenant of the Project, (including, without
limitation, any and all ducts, conduits and similar items; heating,
ventilating, air conditioning, plumbing, security and fire detection and
protection systems; storm and sanitary drainage systems or other utility
systems) are hereinafter collectively called the "Common Areas." Landlord shall
have the right (but not the obligation): to construct, maintain and operate said
Common

                                       9
<PAGE>

Areas; to restrict parking by tenants, their officers, agents and employees to
an employee parking area; to close all or any portion of said Common Areas to
such extent as may, in the opinion of the Landlord's counsel, be legally
sufficient to prevent dedication thereof or accrual of any rights therein to any
person or the public; to close temporarily all or any portion of the Common
Areas; to erect, remove, maintain, repair or replace improvements or buildings
on the Common Areas and to lease such areas or improvements; to discourage
non-customer parking; to grant tenants of the Project or other parties rights to
use portions of the Common Areas (including sidewalks); and to do and perform
such other acts in and to said areas and improvements as, in the use of
reasonable business judgment, the Landlord shall determine to be advisable;
provided that no such acts or changes shall permanently deny or materially
interfere with reasonable ingress to, or egress from the Premises. In addition
to the foregoing, Landlord shall have the unfettered right to close down or
restrict access to all or any part of the Common Areas on a temporary basis to
make such alterations, modifications or repairs to the Project as shall be
advisable in Landlord's sole discretion. In exercising its rights hereunder,
Landlord shall use commercially reasonable efforts to minimize any interference
with Tenant's business operations. However, Landlord shall have no liability to
Tenant for any loss or damage that may accrue to Tenant's business by reason
thereof.

     7.02 (a) Tenant shall have the right during the Term to utilize the parking
garage and other parking areas of the Project (collectively, the "Parking Area")
subject to and in accordance with the terms of this Section 7.02. Tenant
understands and acknowledges that the parking garage and other parking areas of
the Project may be operated by or leased to a third party ("Parking Operator")
pursuant to an agreement with Landlord. As a result, the parties acknowledge
that Tenant's parking rights shall be subject to the terms and conditions of
Landlord's agreement with the Parking Operator. Tenant shall have the right
during the Term to lease up to six (6) unreserved spaces in the Parking Area at
the then current market rental rate ("parking fees"), as adjusted from time to
time by Landlord and/or the Parking Operator, for each of the spaces (per
parking space), payable monthly in advance on or before the first day of each
month throughout the Lease Term to Landlord, or, if applicable, the Parking
Operator. In the event that at any time following the ninety-first (9lst) day
after the Lease Commencement Date, Tenant leases less than the number of spaces
set forth above, at the current parking rates, at any time, Tenant's rights to
lease spaces shall thereafter be decreased to the amount Tenant is actually
leasing. Following any such decrease, Landlord may lease such spaces to any
third party. If Tenant subsequently desires to lease such spaces again, Tenant's
rights to lease the same shall be subject to the availability of spaces in the
Parking Area for leasing (it being understood that Tenant's rights with respect
to spaces which thereafter become available shall be superior to the rights of
third parties who are not tenants or occupants of the Project).

     (b) Subject to the limitations imposed thereon from time to time by
Landlord and/or the Parking Operator, Tenant's customers and visitors shall have
the right to use available spaces in the Parking Area for the purpose of parking
their vehicles therein while visiting the Premises. Tenant's customers and
visitors shall pay the then current hourly parking fees established by Landlord
and/or the Parking Operator, as adjusted from time to time, for the privilege of
using the Parking Area. The foregoing shall in no way be construed to imposed
upon Landlord any obligation to provide customer parking for Tenant.

     (c) Landlord's granting of parking rights hereunder does not create a
bailment between the parties, it being expressly agreed that the only
relationship created between landlord and Tenant hereby is that of right grantor
and right grantee. All motor vehicles (including all contents thereof) shall be
in the Parking Area at the sole risk of their owners and Tenant, and Landlord is
not responsible for the protection and security of such vehicles. Neither
Landlord nor any agent, employee or contractor of Landlord shall have any
liability for any property damage or personal injury arising out of or in
connection with said motor vehicles, and Tenant shall indemnify and hold
Landlord and any agent, employee or contractor of Landlord harmless against all
demands, claims, damages, costs, expenses, liabilities, or causes of action
arising out of or connected with Tenant's Or Tenant's Agents' use of the Parking
Area, or any acts or omissions arising out of or in connection with said motor
vehicles.

     (d) In its use of the Parking Area, Tenant will follow all applicable Rules
and Regulations enacted by Landlord with respect to the Building, the Project
and/or the Parking Area, and will cause Tenant's Agents to do the same. Any
violation of said applicable Rules and Regulations or failure by Tenant to pay
parking fees will constitute an Event of Default hereunder. Upon any such Event
of Default, in addition to Landlord's other rights and remedies, Landlord may
terminate Tenant's rights to lease parking spaces in the Parking Area in
accordance with the terms of subsection (a) above.

     (e) If: (i) all or a portion of the Parking Area is damaged by fire or
other casualty or taken by power of eminent domain or purchased in lieu thereof
by an governmental authority, (ii) the insurance proceeds payable as a result of
a casualty to the Parking Area are applied to a Mortgage, or (iii) there is any
material uninsured loss to the Parking Area, Landlord may terminate tenant's
rights to lease spaces in the Parking Area in accordance with the terms of
subsection (a) above. If Landlord does not so elect to terminate such rights of
Tenant pursuant to the foregoing provisions of this subsection (e), then: (1)
Landlord will either (i) proceed to restore the Parking Area (and Landlord shall
have no obligation to provide any alternative parking while such restoration is
being performed), or (ii) not restore the Parking Area, but provide Tenant, at
Tenant's sole cost and expense, with alternate parking throughout the remainder
of the Lease Term (if such alterative parking is reasonably available under the
circumstances).

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<PAGE>

     ALTERATIONS 8.01 - Tenant shall not at any time subsequent to the date of
this Lease make any alterations, additions, improvements or changes in the
Premises without in each instance having submitted to Landlord proposed written
plans for same and obtained Landlord's written consent. Such consent shall not
be unreasonably withheld provided that said alterations, additions, improvements
or changes are non-structural, and do not affect: the appearance of the Project;
any heating, ventilating, air conditioning, security, fire detection and
protection, utility, mechanical, electrical or plumbing system in or upon the
Project; or negatively affect the appearance of the Premises. All such permitted
alterations, additions, improvements and changes in the Premises shall be
undertaken and completed at Tenant's expense and shall be performed subject to
the terms and conditions and in accordance with the procedures set forth in
Paragraph 2 of Exhibit C hereto with respect to the initial Tenant's
Improvements. Subject to the provisions of Sections 15.01 and 18.01, all such
alterations, additions, improvements or changes shall become upon completion,
the property of Landlord, unless otherwise agreed to in writing by Landlord. All
work with respect to such alterations and additions shall be done in a good and
workmanlike manner using new materials and shall be diligently prosecuted to
completion Tenant shall not permit a mechanic's lien(s) to be placed upon the
Premises, the Building or the Project as a result of any alterations or
improvements made by Tenant or on behalf of Tenant, and Tenant agrees that if
any such lien be filed on account of the acts of Tenant, promptly to pay the
same. In the event that Tenant fails to pay any such lien, it may be paid by
Landlord and the cost charged to Tenant as additional rent under this Lease.
Tenant hereby expressly recognizes that in no event shall it be deemed the agent
of Landlord and no contractor of Tenant shall by virtue of its contract be
entitled to assert any lien against the Building or Project. All alterations or
additions shall become a part of the realty and surrendered to Landlord upon the
expiration or termination of this Lease, unless Landlord shall at the time of
its approval of such work require removal or restoration on the part of Tenant
as a condition of such approval.

     HOLD HARMLESS 9.01 - Landlord shall not be liable for any damage to, or
loss of, property in the Premises belonging to Tenant or Tenant's Agents, other
persons in or about the Premises, or for damage or loss suffered by the business
of Tenant, from any cause whatsoever, including, without limiting the generality
thereof, such damage or loss resulting from fire, steam, smoke, electricity,
gas, water, rain, ice or snow, which may leak or flow from or into any part of
the Premises, or from the breakage, leakage, obstruction or other defects of the
pipes, wires, appliances, plumbing, air-conditioning or lighting fixtures of the
same, whether the said damage or injury results from conditions arising upon the
Premises or upon other portions of the Building of which the Premises are a
part, or from other sources. Landlord shall not be liable in any manner to
Tenant, or Tenant's Agents for any injury or damage to Tenant, Tenant's Agents,
or their property, caused by the criminal or intentional misconduct, or by any
act or neglect of third parties or of Tenant, Tenant's Agents, or of any other
tenant of or visitor to the Building or the Project. Tenant covenants that no
claim shall be made against Landlord by Tenant, or by any of Tenant's Agents, or
by others claiming the right to be in the Premises, in the Building or on the
Project through or under Tenant, for any injury, loss or damage to the Premises
or to any person or property occurring upon the Premises, the Building or the
Project from any cause other than the gross negligence or willful misconduct of
Landlord, its agents or employees. In no event shall Landlord be liable to
Tenant for any consequential damages claimed or sustained by Tenant or Tenant's
Agents arising out of or in any way related to the Premises, the Building or the
Project.

     9.02 - Tenant agrees to pay, and to protect, indemnify and save harmless
Landlord and all beneficiaries, agents and employees of Landlord from and
against any and all liabilities, losses, damages, costs, expenses (including,
without limitation, all reasonable Professional Fees (as defined in Section
16.02) and expenses of Landlord), causes of action, suits, claims, demands or
judgments of any nature whatsoever (except those arising from the grossly
negligent acts of Landlord) arising from (a) any injury to, or the death of, ANY
person or any damage to property on the Premises or in any manner growing out of
or connected with the use, non-use, condition or occupation of the Premises or
any part thereof or resulting from the condition thereof, (b) ANY violation of
any agreement or condition of this Lease, (c) any violation by Tenant or
Tenant's Agents of any contract or agreement to which Tenant or Tenant's Agents
are a party or any restriction, statute, law, ordinance or regulation, in each
case affecting the Premises or any part thereof or the occupancy or use thereof,
and (d) any act, omission, negligence or willful misconduct of Tenant or
Tenant's Agents. Landlord agrees to pay, and to protect, indemnify and save
harmless Tenant and all beneficiaries, agents and employees of Tenant from and
against any and all liabilities, losses, damages, costs, expenses (including,
without limitation, all reasonable Professional Fees (as defined in Section
16.02) and expenses of Tenant), causes of action, suits, claims, demands or
judgments of any nature whatsoever (except those arising from the grossly
negligent acts or willful misconduct of Tenant) arising from the gross
negligence of willful misconduct of Landlord.

     LIEN ON TENANT'S PROPERTY 10.01 - Landlord shall have a lien for the
payment of the rent aforesaid upon all of the goods, wares, chattels, fixtures,
furniture and other personal property of Tenant which may be in or upon the
Premises. Tenant hereby specifically waives any and all exemptions allowed by
law; and such lien may be enforced upon an Event of Default (as defined in
Section 16.01) by the taking and selling of such property in the same manner as
in the case of chattel mortgages on default thereunder; said sale to be made
upon ten days notice served upon Tenant by posting upon the Premises or by
leaving same at his place of residence; or such lien may be enforced in any
other lawful manner at the option of the Landlord.

     INSURANCE 11.01 - Tenant shall, at its cost and expense, obtain and
maintain at all times during the term of this Lease, for the protection of
Landlord and Tenant, Public Liability Insurance (Commercial General Liability)
including Contractual Liability Insurance, with a combined personal injury and
property damage limit of not less than Two Million Dollars ($2,000,000.00) each
occurrence and not less than Three Million Dollars ($3,000,000.00) in the
aggregate, insuring against all liability of Tenant and its authorized
representatives arising out of and in connection

                                       11
<PAGE>

with Tenant's use or occupancy of the Premises. Landlord, and any agent of
Landlord and Landlord's ground lessor or mortgagees designated by Landlord,
shall be named as additional insureds.

     11.02 - Tenant shall, at its cost and expense, obtain and maintain at all
times during the term of this Lease, fire and extended coverage insurance on the
Premises and all of its contents, including any leasehold improvements made by
Tenant, for the full replacement value thereof so that no co-insurance penalty
shall be invoked in case of loss.

     11.03. - Tenant shall also, at its cost and expense, obtain and maintain
all other insurance coverage required by applicable law from time to time, as
well as any additional coverage which Landlord reasonably requires from time to
time consistent with then-current market practices. Tenant shall increase its
insurance coverage, as required, but not more frequently than each year if, in
the commercially reasonable opinion of Landlord or the mortgagee of Landlord,
the amount of public liability and property damage insurance coverage at that
time is not adequate.

     11.04 - All insurance required under this Lease shall be issued by
insurance companies licensed to do business in the jurisdiction where the
Premises are located. Such companies shall have a policyholder rating of at
least "A" and be assigned a financial size category of at least "Class VIII" as
rated in the most recent edition of "Best's Key Rating Guide" for insurance
companies. Each policy shall contain an endorsement requiring thirty days
written notice from the insurance company to Landlord before cancellation or any
change in the coverage, scope or amount of any policy. Each policy, or a
certificate showing it is in effect, together with evidence of payment of
premiums, shall be deposited with Landlord at the commencement of the Lease, and
renewal certificates or copies of renewal policies shall be delivered to
Landlord at least thirty days prior to the expiration of any policy.

     11.05 - Notwithstanding any provision hereof to the contrary, each party
hereby waives every right or cause of action for the events which occur or
accrue during the Lease Term for any and all loss of, or damage to, any of its
property (whether or not such loss or damage is caused by the fault or
negligence of the other party or anyone for whom said other party may be
responsible), which loss or damage is covered by fire, extended coverage, "All
Risk" or similar policies covering real property, personal property or business
interruption insurance policies (including those policies required to be carried
hereunder, whether or not the same are in effect), to the extent that such loss
or damage is recovered (or would have been recovered if the coverage required
hereunder were in place) under said insurance policies. Said waivers are in
addition to, and not in limitation or derogation of, any other waiver or release
contained in this Lease with respect to any loss or damage to property of the
parties hereto. Each parry will give its insurance carrier written notice of the
terms of such mutual waiver, and the insurance policies will be properly
endorsed, if necessary, to prevent the invalidation of coverage by reason of
said waiver.

     ASSIGNMENT & SUBLETTING 12.01- (a) Tenant shall not assign, transfer,
mortgage or encumber this Lease or sublet the Premises without obtaining the
prior written consent of Landlord, nor shall any assignment or transfer of this
Lease be effectuated by operation of law or otherwise without the prior written
consent of Landlord, which consent shall not be unreasonably withheld,
conditioned or delayed, provided that the same is sought by Tenant in strict
accordance with the terms set forth herein. If Tenant wishes to assign this
Lease, sublet the Premises, or permit occupancy or use of the Premises or any
part thereof by another party or parties, Tenant shall provide Landlord with at
least twenty (20) days prior written notice of Tenant's bona fide proposed
assignment or proposed subletting of all or any part of the Premises. If any
proposed sublease results (cumulatively, when considered with any previous
subleases) in the subleasing of more than fifty percent (50%) of the Premises,
or any proposed sublease is to extend for substantially the balance of the
then-remaining term of this Lease, then Landlord shall have the right, at its
sole option, during said twenty (20) day period, to terminate this Lease with
respect to such space, or to sublet all or any part of the Premises from the
Tenant at the same rental Tenant is paying Landlord, with the right to further
sublease such space. The consent by Landlord to any assignment, transfer, or
subletting to any party other than Landlord shall not be construed as a waiver
or release of Tenant from the terms of any covenant or obligation under this
Lease, nor shall the collection or acceptance of rent from any such assignee,
transferee, subtenant or occupant constitute a waiver or release of Tenant from
any covenant or obligation contained in this Lease, nor shall such assignment or
subletting be construed to relieve Tenant from giving Landlord said twenty (20)
days notice, nor from obtaining the consent in writing of Landlord to any
further assignment or subletting. In the event that Tenant defaults hereunder,
Tenant hereby assigns to Landlord the rent due from any subtenant of Tenant and
hereby authorizes each such subtenant to pay said rent directly to Landlord.

     (b) If Tenant is a partnership, any dissolution of Tenant or a withdrawal
or change, whether voluntary, involuntary or by operation of law, of partners
owning a controlling interest in Tenant shall be deemed a voluntary assignment
of this Lease and subject to the provisions of this Section 12.01. If Tenant is
a corporation, any dissolution, merger, consolidation or other reorganization of
Tenant, or the sale or transfer of a controlling interest of the capital stock
of Tenant, shall be deemed a voluntary assignment of this lease and subject to
the provisions of Section 12.01.

     (c) If any excess rent is payable under an assignment or sublease over the
Rent payable hereunder or any payment is trade to Tenant on account of or in
consideration of an assignment or sublease of Tenant's interest hereunder,
Tenant shall pay Landlord an amount equal to fifty percent (50%) of such excess
rent or other payment or consideration within five (5) days of the date on which
such amount is payable to Tenant pursuant to its agreement with the sublessee or
assignee. Said excess rent shall be determined net of Tenant's reasonable
brokerage commissions and improvement costs related to such transaction.

                                       12
<PAGE>

     (d) The consent by Landlord to any assignment or subletting to any party
other than Landlord shall not be construed as a waiver or release of Tenant from
the terms of any covenant or obligation under this Lease, nor shall the
collection or acceptance of rent from any such assignee, subtenant or other
occupant of the Premises constitute a waiver or release of Tenant from any
covenant or obligation contained in this Lease, nor shall such assignment or
subletting be construed to relieve Tenant from giving Landlord said thirty days
notice, nor from obtaining the consent in writing of Landlord to any further
assignment or subletting. In the event that Tenant defaults hereunder, Tenant
hereby assigns to Landlord the rent due from any subtenant of Tenant and hereby
authorizes each such subtenant to pay said rent directly to Landlord.

     (e) Notwithstanding anything herein to the contrary, Landlord may, in its
sole and absolute discretion, deny any request by Tenant to sublease all or any
portion of the Premises or assign this Lease if Landlord believes that any
income therefrom would not be classified as "rents from real property" as
defined in Section 856 of the Internal Revenue Code of 1986, as amended.

     LANDLORD'S RIGHT TO ACCESS 13.01 - Landlord may, at any time during
Tenant's occupancy upon reasonable prior notice (except in the event of an
emergency in which case no notice shall be required), enter the Premises to
inspect the same, or to show the same to others, or to facilitate repairs to the
Building, or to introduce, replace, repair, alter or make new or change existing
connections from any fixtures, pipes, wires, ducts, conduits or other
construction therein, or remove, without being held responsible therefor,
placards, signs, lettering, window or door coverings and the like not expressly
consented to by Landlord. Nothing herein contained, however, shall be deemed or
construed to impose upon Landlord any obligation or liability whatsoever for
care, supervision, repair, improvement, addition, change or alteration of the
Premises, the Building of which they are a part or the Project or any part
thereof other than as provided in this Lease. Landlord shall use reasonable
efforts to minimize any interference with Tenant's business operations resulting
from such entry. However, Landlord shall not be liable to Tenant in any way as a
result of such entry, except to the extent of Landlord's gross negligence or
willful misconduct, and no such entry by Landlord shall constitute a
constructive eviction of Tenant.

     13.02 - Landlord may within nine (9) months next preceding the expiration
of the term, enter the Premises free from hindrance or control of Tenant to show
the Premises to prospective tenants at times which will not unreasonably
interfere with Tenant's business.

     DAMAGE OR DESTRUCTION 14.01 - (a) In the event that the Premises or any
part thereof is damaged or destroyed by fire or other casualty from any cause so
as to render said Premises unfit for Tenant's use and occupancy thereof, a just
and proportionate part of the rent, according to the nature and extent of the
damage or injury to said Premises, shall be abated until said Premises have been
put in as good condition for use and occupancy as at the time immediately prior
to such damage or destruction. Landlord shall proceed, at its expense and as
expeditiously as may be practicable, to repair the damage to the roof,
foundation and structure of the Premises to the extent of insurance proceeds
received by Landlord with respect to such casualty, unless, because of the
substantial extent of the damage or destruction, Landlord should decide not to
repair or restore the Premises or the Building, in which event and at Landlord's
sole option, Landlord may terminate this Lease forthwith by giving Tenant a
written notice of its intention to terminate within sixty (60) days after the
date of the casualty.

     (b) In the event that more than twenty percent (20%) of the Building shall
be damaged or destroyed by fire or other casualty (whether or not the Premises
shall be damaged or destroyed), Landlord may, at its sole option, elect to
refrain from rebuilding or repairing the same, and terminate this Lease by
providing Tenant with written notice within sixty (60) days after the date of
the casualty.

     (c) If Landlord does not elect to terminate the Lease pursuant to the terms
of this Section 14.01, upon completion of Landlord's repair and rebuilding
obligations, Tenant shall, at its sole cost and expense, restore all
improvements and alterations in the Premises, as well as all fixtures, equipment
and personal property therein to their condition immediately preceding such
casualty.

     14.02 Landlord's rebuilding and repair obligations under the foregoing
Section 14.01 shall be limited to the extent of any insurance proceeds actually
received by Landlord with respect to the same (which shall not include insurance
proceeds which maybe required to be paid to or at the direction of Landlord's
mortgagee, ground lessor or holder of a deed of trust with respect to the
Premises, the Building or the Project). Landlord shall have no obligation to
repair, rebuild or replace any improvements, alterations, equipment, trade
fixtures or personal property of Tenant, which repair, rebuilding and
replacement shall be the obligation of Tenant, at its sole cost and expense.

     CONDEMNATION 15.01 - This Lease shall be terminated and the rental payable
hereunder shall be adjusted to the date of such termination in either of the
two following events, namely: (a) the forcible leasing or condemnation of the
Premises, Building or Project by any competent authority under right of eminent
domain for any public or quasi-public use for purpose or a sale in lieu thereof
(collectively, a "taking"); or (b) the taking by competent authority of
twenty-five percent (25%) or more of the Building or the Project. Except as
provided above, the taking by any competent authority of any portion of the
Building other than the Premises shall have no effect upon this Lease. In case
of any taking, whether or not the term of this Lease shall cease and terminate,
the entire award shall be the property of Landlord, and Tenant hereby assigns to
Landlord all of its right, title and interest in and to any such award, if any.
Tenant, however, shall be entitled to claim, prove and receive in the
condemnation proceeding such separate award as may be allowed for fixtures and
other equipment installed by it, but only if such award shall be

                                       13
<PAGE>

made by the Court in addition to the award made by it to Landlord for the land
and improvements or part thereof so taken.

     DEFAULT 16.01- (a) Each of the following shall constitute an "Event of
Default" under the Lease, entitling Landlord to exercise all remedies available
hereunder and under applicable law:

     (1) Tenant's failure to pay any installment or other payment of Basic Rent
or additional rent when the same shall become due and payable, which failure
continues for a period five (5) days following written notice from Landlord
regarding the same;

     (2) Tenant's failure to pay any installment or other payment of Basic Rent
or additional rent when the same shall become due and payable if Landlord has
previously delivered two (2) or more notices to Tenant pursuant to the terms of
clause (1) above during the twelve (12) month period immediately preceding such
failure to pay;

     (3) Tenant's failure to restore any deficiency in the amount of the
Security Deposit as required under Section 3.06 hereof within five (5) days
after a demand from Landlord to restore the same;

     (4) The assignment, transfer, mortgaging or encumbering of this Lease or
the subletting or encumbering of the Premises or any portion thereof (including
the imposition of any mechanics liens on the Premises) in a manner not permitted
under Section 12.01 hereof;

     (5) The abandonment of all or part of the Premises or the vacating of all
of the Premises for a period of five (5) consecutive days, coupled with the
failure to pay rent;

     (6) The occurrence of an Event of Insolvency (as defined in subsection (b)
below); and

     (7) Tenant's or Tenant's Agents' failure to comply with the terms of
Section 11.01 and any other provision of the Lease related to the maintenance of
insurance required under the terms of the I ease by Tenant or Tenant's Agents;

     (8) In addition to those matters set forth above, Tenant's violation of or
failure to perform or observe any other term, provision, covenant, condition,
obligation or requirement of Tenant under this Lease, which failure shall
continue uncured for a period of twenty (20) days after written notice thereof
from Landlord; it being understood and agreed that, in the event such failure to
perform or observe a term of this Lease shall be of such a nature that it is
incapable of being cured within the twenty (20) day period, Tenant's obligation
to cure hereunder shall be satisfied by Tenant undertaking diligent and
continuous efforts to cure such default within said twenty (20) day period and
thereafter diligently prosecuting the same to completion provided that such cure
is completed within sixty (60) days of the date of Landlord's notice.

     (b) For purposes of this Lease, an "Event of Insolvency" shall include any
of the following: (i) if Tenant becomes "insolvent", as defined in Title 11 of
the United States Code, entitled "Bankruptcy," 11 U.S.C. Section 101 et seq.
(hereinafter called the "Bankruptcy Code"), or under the insolvency laws of any
state, district, commonwealth or territory of the United States of America
("Insolvency Laws"); or (ii) if a receiver or custodian is appointed for any or
all of Tenant's property or assets, or if there is instituted a foreclosure
action on any of Tenant's property; or (iii) if Tenant files a voluntary
petition under the Bankruptcy Code or Insolvency Laws; or (iv) if there is filed
an involuntary petition against Tenant as the subject debtor under the
Bankruptcy Code or Insolvency Laws which is not dismissed within thirty (30)
days of filing or results in the issuance of an order for relief against the
Tenant; or (v) if Tenant at any time is generally not paying its debts as and
when the same come due; or (vi) if Tenant makes or consents to an assignment of
its assets, in whole or in part, for the benefit of creditors, or a common law
composition of creditors.

     16.02 - (a) At any time following the happening of any of the
aforementioned Events of Default, in addition to any other rights or remedies of
Landlord set forth herein or at law or at equity, Landlord may, at its sole
option without further notice to Tenant, exercise any of the following remedies
(said remedies being cumulative): (1) terminate this Lease; (2) with or without
terminating this Lease, terminate Tenant's right to possession of the Premises
and re-enter the Premises by process of law and remove all persons and property
therefrom (and remove and/or store Tenant's property at Tenant's risk and
expense), and otherwise proceed to recover possession of said Premises by
process of law; (3) re-rent the Premises for the account of Tenant; and/or (4)
declare immediately due and payable all Basic Rent and additional rent reserved
hereunder for the unexpired balance of the Lease Term and any Operating Costs
and Excess Real Estate Taxes which would be payable by Tenant hereunder), which
amount, discounted at the rate of six percent (6%) per annum to the then present
value thereof, shall be immediately payable by Tenant.

     (b) If Landlord exercises either of its remedies set forth in clause (a)(1)
or (2) above, Tenant will immediately surrender the Premises to Landlord upon
demand, and if Tenant fails to do so, Landlord may, without prejudice to any
other remedy re-enter the Premises with or without process of law and remove all
persons and property therefrom (and remove and/or store Tenant's property at
Tenant's risk and expense), and otherwise proceed to recover possession of said
Premises by process of law, or if necessary by lockout, without being liable for
prosecution or any claim of damages therefor. Under no circumstances shall
Tenant will be entitled to any notice to quit, whether required by statute or
otherwise (the provisions of this Article 16 shall operate as a notice to quit),
Tenant hereby expressly waives: (i) any notice to quit or of Landlord's
intention to re-enter the Premises (whether required by statute or

                                       14
<PAGE>

otherwise), and (ii) any right which Tenant may possess or acquire to redeem the
Premises or its interest in this Lease subsequent to an Event of Default.

     (c) Neither Landlord's termination of the Lease or termination of Tenant's
right to possession shall in any way affect Tenant's obligation to pay all rent
accrued under the Lease through the date of such termination, plus all damages
suffered by Landlord as a result of such Event of Default and/or termination, as
set forth below. Tenant shall pay to Landlord all damages, costs, expenses and
liabilities of any kind incurred or suffered by Landlord as a result of Tenant's
Event of Default or in any way connected with Landlord exercise of its remedies
hereunder.

     (d) If Landlord exercises its remedies set forth in clause (a)(3) above, at
any time following an Event of Default, Landlord may relet the Premises or any
part thereof for the account of Tenant and receive the rent therefor. Under such
circumstances, Tenant shall pay to Landlord as and when the same become due
under the terms of the Lease, sums equivalent to the difference between the
monthly rent reserved hereunder and the rents received by Landlord as a result
of any such referring, if any, or, at Landlord's option, upon Landlord's demand,
Tenant shall pay Landlord the difference between the Basic Rent and additional
rent reserved hereunder for the unexpired balance of the Lease Term (including
any estimated or actual Operating Costs and Excess Real Estate Taxes which would
be payable by Tenant hereunder), and the rent reserved under the terms of such
referring for the same time period, which difference, discounted at the rate of
six percent (6%) per annum to the then present value thereof. In connection with
any such referring, Landlord may make such alterations and repairs as may be
necessary in order to relet said Premises or any part thereof for such term or
terms (which may but need not necessarily be for a term extending beyond the
term of this Lease) and relet the Premises at such rental or rentals and upon
other terms and conditions as Landlord in its sole discretion may deem
advisable. All rentals received by Landlord during the Term of this Lease from
such reletting shall be applied first, to the payment of any costs and expenses
of recovering. and reletting the Premises (including but not limited to
reasonable Professional Fees (as defined in Section 16.02), brokerage
commissions and tenant improvement costs; it being understood that any such
costs associated with the reletting of the Premises will be amortized by
landlord over the lease term of such replacement lease and that Tenant shall be
responsible for that portion of such costs which is allocable to the remaining
Term of this Lease); second, to any damages suffered or incurred by Landlord as
a result of Tenant's Event of Default; third, to the payment of rent due and
unpaid hereunder; and the residue, if any, shall be held by the Landlord and
applied in payment of future rent as same may become due and payable hereunder.
Under no circumstances shall Tenant be entitled to any surplus rentals received
by Landlord as a result of such reletting. No re-entry or taking possession of
said Premises by Landlord shall be construed as an election on its part to
terminate this Lease unless a written notice of such intention be given to
Tenant or unless the termination thereof be decreed by a court of competent
jurisdiction. Notwithstanding any such reletting without termination, Landlord
may at any time thereafter elect to terminate this Lease for any such previous
Event of Default.

     (e) In addition to the remedies set forth above, Landlord may: (i) enjoin
any breach or threatened breach by Tenant of any of the covenants, agreements,
terms or conditions in this Lease, or (ii) cure the Event of Default at the
expense of Tenant, which cure may include Landlord's entry upon the Premises, by
force if necessary, without being liable for prosecution or any claim for
damages therefor, to do whatever Tenant is obligated to do under the terms of
this Lease. Under such circumstances, Tenant shall reimburse Landlord, on
demand, as additional rent, for any expenses Landlord incurs in curing such
Event of Default and/or performing such obligations of Tenant, including any
Professional Fees (as defined below), plus interest thereon from the date such
expenses were incurred at the rate specified in Section 3.04. Neither Landlord
nor Landlord's agents will be liable for any damages to Tenant or. any other
party due to such action.

     (f) If at any time after the execution of this Lease, (i) Landlord shall
undertake action or incur expenses (including reasonable attorney's,
accountant's, architect's, expert's or other professional fees, which fees are
sometimes collectively referred to herein as "Professional Fees") (which
decision to undertake action or incur expenses shall be at the sole and absolute
discretion of Landlord) for the purposes of enforcing the terms of the Lease
against Tenant or otherwise protecting Landlord's rights hereunder, whether or
not legal action is commenced and including those related to any trial, appeal
or Event of Insolvency, or (ii) Landlord shall incur expenses as a result of an
action brought by or against Tenant, Tenant shall reimburse Landlord for the
expenses incurred thereby as additional rent.

     (g) If any property belonging to Tenant, or otherwise, is found upon the
Premises at the time of re-entry or termination of Tenant's right to the
Premises, Landlord may remove and store the same in any warehouse, at Tenant's
cost, or, in Landlord's sole discretion, Landlord may deem the same abandoned by
Tenant and dispose of such property accordingly. Pursuit of any of the foregoing
remedies is not a forfeiture or waiver of any rent due to Landlord hereunder or
of any damages accruing to Landlord by reason of the violation of any of the
provisions herein contained. The foregoing rights and remedies are cumulative
and in addition to any other rights granted to Landlord by law or in equity, and
the exercise of any of them shall not constitute an election excluding the
exercise by Landlord at any time of another, a different or an inconsistent
remedy. The failure of Landlord at any time to exercise any right or remedy is
not a waiver of its right to exercise such right or remedy at any other future
time.

     16.03 - Landlord shall not be in default unless Landlord fails to perform
obligations required of Landlord under the express terms of this Lease within
thirty (30) days after written notice by Tenant to Landlord and to the holder of
any mortgage or deed of trust covering the Premises whose name and address shall
have therefor been furnished to Tenant in writing, specifying wherein Landlord
has failed to perform such obligations; provided, however, that if the nature of
Landlord's obligations is such that more than thirty (30) days are reasonably
required for performance, then Landlord shall not be in default if Landlord
commences performance within such thirty (30)

                                       15
<PAGE>

day period and thereafter diligently prosecutes the same to completion. In no
event shall Tenant have the right to terminate this Lease as a result OF
Landlord's default and Tenant's remedies shall be limited to ACTUAL DAMAGES.
Tenant's rights and remedies herein are subject to the PROVISIONS OF Section
17.02.

     SUBORDINATION 17.01- This Lease shall be subject and subordinate at all
times to the lien of any ground lease, mortgage or deed of trust encumbrance or
encumbrances which may now or which may at any time hereafter be made upon the
Building, the Project or upon Landlord's interest therein. This clause shall be
self operative, and no further instrument of subordination shall be required to
effect the subordination of this Lease. Nonetheless, in confirmation of such
subordination, Tenant shall execute and deliver such further instrument or
instruments subordinating this lease to the lien of any such ground lease,
mortgage or deed of trust, encumbrance or encumbrances as shall be desired by
any mortgagee or party secured or proposed mortgagee or party proposed to be
secured, and Tenant hereby appoints Landlord the attorney-in-fact of Tenant,
irrevocably, to execute and deliver any such instrument or instruments for
Tenant. If the interests of landlord under this Lease shall be transferred by
reason of foreclosure or other proceedings for enforcement of any mortgage or
deed of trust on the premises, the building or the project, tenant shall be
bound to the transferee at the option of the transferee, under the terms,
covenants and conditions of this Lease for the balance of the term remaining,
including any extensions or renewals, with the same force and effect as if the
transferee were Landlord under this lease, and, if requested by transferee,
Tenant agrees to attorney to the transferee as its Landlord. Landlord shall use
commercially reasonable efforts to obtain, for the benefit of Tenant, from any
ground lessor, mortgagee or beneficiary of any deed of trust with respect to the
Building, a written agreement (in such party's standard form) to recognize
Tenant's interest under this Lease upon such party's foreclosure upon or
purchase of Landlord's interest hereunder, provided Tenant is not then in
default of any of its obligations hereunder. Tenant agrees, upon the request of
any such party, to execute any such written agreement and agree to all
reasonable terms set forth therein. Tenant will reimburse Landlord, as
additional rent, for all costs incurred by Landlord in connection with obtaining
such written agreement up to a maximum of $1,500.00.

     17.02 - Tenant shall give any mortgagee or trustee of trust deed or deed of
trust ("mortgagee") of the Project or the Premises, by registered or certified
mail, a copy of any notice of default served upon the Landlord by Tenant,
provided that prior to such notice Tenant has been notified in writing (by way
of service on Tenant of a copy of Assignment of Rents and Leases, by estoppel
certificate or otherwise) of the address of such mortgagee. Tenant further
agrees that if Landlord shall have failed to cure such default within thirty
(30) days after such notice to Landlord (or if such default cannot reasonably be
cured or corrected within that time, then such additional time as may be
necessary if Landlord has commenced within such thirty (30) days and is
diligently pursuing the remedies or steps necessary to cure or correct such
default), mortgagee shall have such additional time as is reasonably required
for mortgagee to cure such default (including, without limitation, completion of
foreclosure proceedings if necessary to effect such a cure) provided that
mortgagee shall give notice to Tenant of its intent to cure such default and its
best estimate of such additional time as shall be required. Should any
prospective mortgagee require modification or modifications of this Lease, which
modification or modifications will not cause an increased cost or expense to
Tenant or in any other way substantially change the rights and obligations of
Tenant hereunder, then, and in such event, Tenant agrees that this Lease may be
so modified and agrees to promptly execute whatever documents are required
therefor and failure to do so shall constitute a default.

     17.03 - Notwithstanding any provision contained in this Lease to the
contrary, any mortgagee, transferee or purchaser at foreclosure or by deed in
lieu of foreclosure, and any such ground lessor or its successor under any such
ground or underlying lease who requests such attorney shall not (a) be bound by
ANY prepayment of rent for more than one month in advance for which Tenant might
have paid more than the current month's rent to any prior lessor (including
Landlord) so that rent shall be payable after such deed of trust or mortgage
foreclosure or termination of the ground or underlying lease, as the case may
be, in case of a requested attorney as aforesaid, in accordance with the terms
of the Lease as if such prepayment of rent for more than one month in advance
had not been made, nor (b) be bound by any amendment or modification to the
Lease or by any waiver or forbearance on the part of any prior lessor (including
Landlord) made or given without the written consent of Landlord's first
mortgagee or ground lessor; nor (c) be liable for any act or omission OF any
prior lessor (including Landlord); nor (d) be subject to any offsets or defenses
which Tenant might have against any prior lessor (including Landlord).
Landlord's mortgagee or transferee shall be discharged of any responsibility
hereunder to Tenant which may have arisen by reason of the mortgagee or
transferee becoming a mortgagee or transferee in possession, a lessor or
otherwise after such mortgagee or transferee disposes of its interest in the
Building of which the Premises forms a part.

     SURRENDER OF POSSESSION 18.01 - Tenant covenants, at the expiration or
other termination of this Lease, to remove all goods and effects from the
Premises not the property of Landlord, to remove all non-standard alterations
and restore the Premises to its initial state (or such previous condition as
Landlord shall designate, at its sole option), unless Landlord has agreed in
writing to allow such alterations to remain, all at tenants expense, and to
yield up to Landlord the Premises and all keys, gate cards, security cards,
locks and other fixtures connected therewith in good repair, order and condition
in all respects, reasonable wear and use thereof and damage by fire or other
casualty, not caused by Tenant's act or neglect, only excepted. At the time of
Landlord's approval of any non-standard alterations, Landlord will designate
whether the same must be removed upon the expiration or termination of this
Lease.

                                       16
<PAGE>

     TENANT HOLDING OVER 19.01 - If Tenant shall not immediately surrender
possession of the Premises at the expiration or termination of this Lease, and
Tenant shall continue to occupy the Premises without Landlord's prior written
consent to so holdover, Tenant shall become a tenant at will. For so long as
Tenant remains in possession of the Premises as a tenant at will, Tenant shall
be subject to all of the terms, covenants and conditions of this Lease, except
that Tenant shall be obligated to pay Landlord Basic Rent in an amount equal to
one hundred fifty percent of the monthly rate at which the same were payable
hereunder just prior to the expiration or termination of this Lease determined
(without giving effect to any abatement thereof). Notwithstanding any such
continued occupancy of the Premises by Tenant following the expiration or
termination of the Term, Landlord shall continue to be entitled to retake or
recover possession of the Premises, and Tenant shall be liable to Landlord for
any losses, liabilities, expenses or damages which Landlord may suffer or incur
by reason of Tenant's failure to surrender possession of the Premises
immediately upon the expiration or termination of the Term hereof (including any
renewals or extensions thereof by written agreement of the parties), and
Landlord's acceptance of rent during such period shall in no way be construed as
a waiver of the terms and conditions set forth in this Section 19.01 or any
other rights of Landlord under this Lease. Tenant hereby agrees that, except as
expressly modified above, all the obligations of Tenant and all rights of
Landlord applicable during the Term of this Lease shall be equally applicable
during such period of subsequent occupancy.

     ESTOPPELS 20.01 - Tenant shall, without charge therefor, at any time and
from time to time, within five (5) days after request by Landlord, execute,
acknowledge and deliver to Landlord a written estoppel certificate certifying to
Landlord, any mortgagee, transferee, assignee of a mortgagee, or any purchaser
of the Building or the Project, or any other person designated by Landlord, as
of the date of such estoppel certificate: (a) that Tenant is in possession of
the Premises; (b) that this Lease is unmodified and in full force and effect (or
if there have been modifications, that the Lease is in full force and effect as
modified and setting forth such modification); (c) whether or not there are than
existing any set-offs or defenses against the enforcement of any right or remedy
of Landlord, or any duty or obligation of Tenant hereunder (and, if so,
specifying the same in detail); (d) the amount of the Basic Rent and the dates
through which Basic Rent and additional rent have been paid; (e) that Tenant has
no knowledge of any then uncured defaults on the part of Landlord under this
Lease (or if Tenant has knowledge of any such uncured defaults, specifying the
same in detail); (f) that Tenant has no knowledge of any event having occurred
that authorizes the termination of this Lease by Tenant (or if Tenant has such
knowledge, specifying the same in detail); (g) the amount of any security
deposit held by Landlord; and (h) such other information requested by mortgagee.
Failure to deliver the certificate within ten days shall be conclusive upon
Tenant for the benefit of Landlord and any successor to Landlord that this Lease
is in full force and effect and has not been modified except as may be
represented by the parry requesting the certificate. If Tenant fails to deliver
the certificate within the ten days after request, Tenant by such failure
irrevocably constitutes and appoints Landlord as its special attorney-in-fact to
execute and deliver the certificate to any third parry, and the contents and
accuracy of any such certificate so executed and delivered shall be conclusively
upon Tenant for the benefit of Landlord and any successor to Landlord.

     BROKERS 21.01 - The respective parties hereto certify that no person or
company provided services as a broker, agent, finder or assisted in the
negotiations of this Lease except West, Lane & Schlager Realty Advisors, L.L.C.
and Insignia/ESG ("Brokers"), who shall be compensated by Landlord pursuant to
separate written agreements. It is understood that each party agrees to
indemnify the other for any claim asserted by any person or company other than
the aforesaid Brokers purporting to act on its behalf in providing services as a
broker, agent or finder in connection with this Lease.

     NOTICES AND DEMANDS 22.01- (a) All notices required or permitted hereunder
shall be hand delivered, delivered by a recognized overnight courier service, or
mailed in any United States Post Office by certified or registered mail, postage
prepaid, return receipt requested, addressed to Landlord or Tenant respectively,
at the following addresses or to such other addresses as the parties hereto may
designate in writing from time to time:

LANDLORD:                                   TENANT:

Starwood Urban Retail I, LLC                Interactive Applications Group, Inc.
c/o Starwood Urban Investments, LLC         2639 Connecticut Avenue, N.W.
1320 19th Street, N.W., Suite 800           Suite 250
Washington, D.C. 20036                      Washington, D.C. 20008
Attn: Constance Collins Davis
      General Counsel

Such notices shall be deemed delivered on the third day following deposit of the
same in the United States mail, certified and return receipt requested, and on
the next business day following the notifying party's deliver of the same to a
recognized overnight courier service.

     (b) Tenant hereby elects domicile at the Premises for the purpose of
service of all notices, writs of summons, or other legal documents or process,
in any suit, action or proceeding which Landlord may undertake under this Lease.
Tenant hereby waives any objection to the venue of any action filed by Landlord
against Tenant in any state or federal court of the jurisdiction in which the
Building is located, or any other jurisdiction in which Landlord may file an
action against Tenant, and Tenant further waives any right, claim or power,
under the doctrine of forum non convemens or otherwise, to transfer any such
action filed by Landlord to any other court.

                                       17
<PAGE>

     QUIET ENJOYMENT 23.01 - Landlord covenants and agrees that upon Tenant
paying the rent and additional rent and observing and performing all the terms,
covenants and conditions, on Tenant's part to be observed and performed, Tenant
may peaceably and quietly enjoy the Premises hereby demised, subject,
nevertheless, to the terms and conditions of this Lease and to any mortgages and
deeds of trust hereinbefore mentioned.

     WAIVER OF TRIAL BY JURY 24.01 - LANDLORD AND TENANT EACH AGREE TO AND THEY
HEREBY DO WANE TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM BROUGHT
BY EITHER OF THE PARTIES HERETO AGAINST THE OTHER ON ANY MATTERS WHATSOEVER
ARISING OUT OF OR IN ANY WAY CONNECTED WITH THIS LEASE, THE RELATIONSHIP OF
LANDLORD AND TENANT, TENANT'S USE OR OCCUPANCY OF THE PREMISES AND/OR ANY CLAIM
OF INJURY OR DAMAGE, AND ANY STATUTORY REMEDY.

     MISCELLANEOUS 25.01 - The term "Tenant," as used in this Lease, shall
include legal representatives, successors and permitted assigns. All covenants
herein made binding upon Tenant shall be construed to be equally applicable to
and binding upon its agents, representatives, officers, employees, servants,
partners, shareholders, contractors (independent or otherwise), licensees,
concessionaires, franchisees, invitees, or visitors of Tenant, or any party
claiming the right to be in the Premises or on the Project through or under
Tenant (which parties are collectively referred to herein as "Tenant's Agents").

     25.02 - If more than one individual, firm, or corporation shall join as
Tenant, singular context shall be construed to be plural wherever necessary and
the covenants of Tenant shall be the joint and several obligations of each party
signing as Tenant and when the parties signing as Tenant are partners, shall be
the obligation of the firm and of the individual members thereof.

     25.03 - No failure by Landlord to insist upon the strict performance of any
term, covenant, agreement, provision, condition or limitation of this Lease or
to exercise any right or remedy consequent upon a breach thereof, and no
acceptance by the Landlord of full or partial rent during the continuance of any
such breach, shall constitute a waiver of any such breach or of any such term,
covenant, agreement, provision, condition or limitation. No term, covenant,
agreement, provision, condition or limitation of this Lease to be kept, observed
or performed by Landlord or by Tenant, and no breach thereof, shall be waived,
altered or modified except by a written instrument executed by Landlord or by
Tenant, as the case may be. No such waiver or breach of any covenant, condition
or agreement herein contained shall operate as a waiver of the covenant,
condition or agreement itself, or of any subsequent breach thereof.

     25.04 - Notwithstanding anything to the contrary contained in this Lease,
Tenant shall look only to Landlord's ownership in the Building and the Project
for satisfaction of Tenant's remedies for the collection of a judgment (or other
judicial process) requiring the payment of money by Landlord in the event of any
default by Landlord hereunder, and no other property or assets of the partners
or principals of Landlord, disclosed or undisclosed, shall be subject to levy,
execution or the enforcement procedure for the satisfaction of Tenant's remedies
under or with respect to this Lease, the relationship of Landlord and Tenant
hereunder or Tenant's use or occupancy of the Premises. If any provision of this
Lease either expressed or implied obligates Landlord not to unreasonably
withhold its consent or approval, an action for declaratory judgment or specific
performance will be Tenant's sole right and remedy in any dispute as to whether
Landlord has breached such obligation.

     25.05 - TENANT AND LANDLORD EXPRESSLY AGREE THAT THERE ARE AND SHALL BE NO
IMPLIED WARRANTIES OF MERCHANTABILITY, HABITABILITY, FITNESS FOR A PARTICULAR
PURPOSE OR ANY OTHER KIND ARISING OUT OF THIS LEASE, AND THERE ARE NO WARRANTIES
WHICH EXTEND BEYOND THOSE EXPRESSLY SET FORTH IN THIS LEASE.

     25.06 - Feminine or neuter pronouns shall be substituted for those of the
masculine form and the plural shall be substituted for the singular, wherever
the context shall require. It is also agreed that no specific words, phrases or
clauses herein used shall be taken or construed to control, limit or cut down
the scope or meaning of any general words, phrases or clauses used in connection
therewith. Wherever the word "including" appears in this Lease, it shall be
deemed to mean "including but not limited to."

     25.07 - This Lease shall likewise be binding upon and shall inure to the
benefit of the parties hereto and their respective heirs, personal
representatives, successors and permitted assigns. This provision shall not be
deemed to grant Tenant any right to assign this Lease or sublet the Premises or
any part thereof other than as provided in Section 15.01 hereof.

     25.08 - It is understood and agreed by and between the parties hereto that
this Lease contains the final and entire agreement between said parties, that
this Lease supercedes any prior discussions, agreements, understandings, letters
(including any lease proposal or letter of intent), and that the parties shall
not be bound by any course of conduct, terms, statements, conditions or
representations, oral or written, express or implied, not herein contained.
Neither party hereto has made or relied upon any representations not set forth
herein in entering into this Lease. This Lease may not be modified orally or in
any manner other than by written agreement signed by the parties hereto.

     25.09 - Tenant hereby expressly and irrevocably waives the right to file or
interpose any non-mandatory counterclaim in any proceeding brought by Landlord
hereunder to recover possession of the Premises.

     25.10 - Time is of the essence with respect to the performance of all of
the parties' obligations hereunder.

                                       18
<PAGE>

     25.11 - This Lease may be executed in several counterparts, but all
counterparts shall constitute one and the same instrument.

     25.12 - The submission of an unsigned copy of this Lease to Tenant for
Tenant's consideration does not constitute an offer to lease the Premises or
constitute an option to or for the Premises. This Lease shall become effective
and binding only upon the execution and delivery of this Lease by both Landlord
and Tenant and approval of said Lease by Landlord's mortgagee, if applicable.

     25.13 - No determination by any Court, governmental authority, arbitrator
or otherwise that any provision of this Lease or any amendment hereof is invalid
or unenforceable in any instance shall effect the validity or enforceability of
(a) any other provision thereof, or (b) such provision and any circumstance not
controlled by such determination. Each such provision shall be valid and
enforceable to the fullest extent allowed by, and shall be construed wherever
possible as being consistent with, applicable law.

     25.14 - Intentionally Omitted.

     25.15 - Any provision of this Lease which obligates the Landlord or the
Tenant to pay an amount or perform an obligation before the commencement of the
Term or after the expiration of the Term shall be binding and enforceable
notwithstanding that payment or performance is not within the Term, and the same
shall survive.

     25.16 - Tenant shall not record this Lease nor any notice or memorandum
thereof without the written consent of Landlord, which consent may be withheld
in Landlord's sole and absolute discretion.

     25.17 - Tenant hereby covenants that it has the full right, power and
authority to enter into this Lease upon the terms and conditions herein set
forth and shall provide to Landlord any evidence required by Landlord to so
indicate said authority. If Tenant is a corporation or partnership, the
individual signing this Lease hereby confirms that he has the authority to bind
said corporation or partnership by his/her signature. If Tenant signs as a
corporation, each of the persons executing this lease on behalf of Tenant does
hereby covenant and warrant that Tenant is a duly authorized and existing
corporation, qualified to do business in the District of Columbia and that the
corporation has full right and authority to enter into this Lease. If Tenant
consists of more than one individual or entity, the liability of such parties
shall be joint and several.

     25.18 - This Lease shall be construed and governed pursuant to the laws of
the jurisdiction in which the Premises are located. Should any provision of this
Lease and/or its conditions be illegal or not enforceable under the laws of said
state, it or they shall be considered severable, and the Lease and its
conditions shall remain is force and be binding upon the parties as though the
said provision had never been included.

     25.19 - (a) Provided Tenant is not in default of any of its obligations
hereunder, Tenant shall have the conditional right to install and maintain
communications equipment ("Equipment") on the roof of the Building in accordance
with the terms of this Section 25.19.

     (b) Prior to installing any such Equipment, Tenant shall submit detailed
plans and specifications therefor to Landlord for its review. Said plans and
specifications shall describe in detail the size, weight, color and
configuration of the Equipment and any associated equipment (including cabling
or other conduits between the Equipment itself and the Premises), the proposed
location of the same on the Building, the manner in which the same shall be
installed and removed, and the name and license number of the qualified District
of Columbia licensed contractor who will perform such installation. All such
plans shall be subject to Landlord's prior written approval. The size and
location of such Equipment may be limited by Landlord in its sole and absolute
discretion. In addition, Landlord may require any reasonable additional changes
to the plans and specifications therefor, as Landlord, in its sole discretion,
deems necessary to protect the structure and aesthetic appearance of the
Building and/or Landlord's ability to properly maintain and operate the
Building. In addition, the design and installation of said Equipment shall be
subject to the design limitations of the Building and its structural, electrical
and mechanical systems. No work may commence with respect to the installation of
said Equipment until: (i) Landlord has provided Tenant with Landlord's prior
written approval of final plans therefor and of Tenant's contractor, and (ii)
Tenant has provided Landlord with written proof that Tenant has obtained all
licenses, permits and approvals from applicable government authorities necessary
for the installation and operation of said Equipment.

     (c) Tenant shall not do or permit to be done any act or thing on any
portion of the roof of the Building that would aired any contractor's guaranty
on the root or mat might result in leaks and/or damage in the root. Tenant shall
permit Landlord's roofing contractors (at Tenant's expense) to make any
necessary roof cuts or to do any other necessary work on the roof, and shall
permit Landlord's roofing contractor (at Tenant's expense) to supervise any such
work done by Tenant's contractors, so that the guaranty of Landlord's roofing
contractor is preserved.

     (d) Tenant shall, at all times, operate and maintain the Equipment in a
good and orderly fashion. The installation, operation and maintenance of the
Equipment shall, at all times, comply with all applicable present and future:
(i) laws, ordinances (including zoning ordinances and land use requirements),
regulations, orders or other legal requirements of the United States of America,
the District of Columbia, and any other public or quasi-public authority having
jurisdiction over the Building, the Equipment or Tenant's operations in the
Premises, and (ii) insurance

                                       19
<PAGE>

requirements relating to or affecting the Premises, the Building, the condition
thereof, and all machinery, equipment and furnishings therein, as well as
Tenant's occupancy of the Building and its use thereof. The Equipment shall be
modified, removed or relocated (subject to Landlord's prior written approval)
from time to time by Tenant in order to ensure continued compliance with the
foregoing requirements. Landlord's approval of any plans and specifications
related to the Equipment or any contractor of Tenant shall in no way constitute
a representation or warranty by Landlord that the same are in compliance with
any of the foregoing requirements. The installation and subsequent maintenance
and operation of the Equipment shall also be subject to such reasonable
regulations and restrictions as are imposed thereon by Landlord (including but
not limited to those related to access to the roof). In the event that the
installation or maintenance of the Equipment results in damage to the Building
or the Project, or Landlord incurs any liability relating to or arising from the
same, Tenant agrees: (i) to pay Landlord on demand the costs incurred by
Landlord in repairing any such damage, and (ii) to indemnify Landlord against
any such liability.

     (e) Tenant shall pay all costs associated with the design, installation,
maintenance, operation, relocation and removal of the Equipment. In addition,
Tenant shall be responsible for the cost of bringing electricity and any other
required utilities to the Equipment and for the costs of consumption of
electricity and any other utilities for the Equipment. All such installations
and work (as well as the contractors performing the same) related to any such
utility service shall be subject too the prior written approval of Landlord.
Landlord shall not be obligated to furnish any services, maintenance, utilities
or repairs with respect to the Equipment. Tenant shall reimburse Landlord, as
additional rent, for any costs incurred by Landlord with respect to the
Equipment, including but not limited to: (i) any increased insurance premiums,
(ii) any engineering or architectural fees related to reviewing the aforesaid
plans and specifications, and (iii) any legal fees related to the review of the
aforesaid requirements and Tenant's compliance therewith. Tenant covenants not
to damage the roof or any other part of the Building or the Project in the
course of installing, maintaining and removing the Equipment. Except as
expressly set forth in the approved plans therefor, no such installation,
maintenance or removal of the Equipment shall involve any penetration of the
Building's roof or exterior walls. Tenant hereby indemnifies and holds Landlord
harmless from and against any claims, liabilities, causes of action, losses,
damages and costs incurred by Landlord as a result of or in any manner related
to the installation, operation, maintenance, relocation or removal of the
Equipment.

     (f) Tenant covenants that the installation, maintenance, operation,
relocation and removal of the Equipment and any associated equipment shall in no
way interfere with Landlord's operation of the Building or its systems or with
other tenants' or licensees' use of their premises or operation of their
equipment at the Project (which shall included but not be limited to any
interference or intermodulation with any television, FM radio and other
transmissions, or the transmission and/or equipment of any other party having
communications equipment at the Project). In the event of any such interference,
the Equipment shall be modified, removed or relocated (subject to Landlord's
prior written approval) from time to time by Tenant as necessary to eliminate
such interference. In addition, Landlord shall have the right to require Tenant
to temporarily relocate the Equipment in order to allow Landlord to complete
repairs, maintenance or modification of the Building or the Project. In
exercising its rights set forth in the immediately preceding sentence,
Landlord will use reasonable efforts to minimize any interference with Tenant's
use of the Equipment.

     (g) Tenant shall use any such communications Equipment for internal
corporate purposes only. No Equipment which Tenant is permitted to install on
the roof of the Building in accordance with the terms of this Section 25.19
shall be utilized by anyone other than Tenant or in any manner as a source of
revenue to Tenant.

     RIGHT OF FIRST OFFER 26.01 - (a) Subject to the terms of this Section
26.01, Tenant shall have a Right of First Offer with respect to all space on the
second floor of the Building which becomes available for leasing during the Term
hereof (the "Expansion Space"). Landlord will notify Tenant of the availability
of any portion of the Expansion Space, if and when said space becomes available
for leasing during the Term. Following Tenant's receipt of such notice, Tenant
will have ten (10) days during which to notify Landlord in writing of Tenant's
intent to lease the available Expansion Space or to reject leasing same.
Tenant's failure to timely exercise its Right of First Offer within said ten
(10) day period shall be deemed an absolute waiver by Tenant of its right to
lease the available Expansion Space described in Landlord's notice. Upon
Tenant's rejection (or deemed rejection) of the available Expansion Space,
Landlord shall be free to lease said space to any other person or entity upon
terms determined by Landlord in its sole and absolute discretion. Tenant's Right
of First Offer shall be subject to the following conditions: (i) at the time of
the exercise of such right and throughout the period prior to Landlord's
delivery of such Expansion Space to Tenant, there is no existing Event of
Default which is not remedied within the applicable cure periods set forth in
Article 16 hereof; and (ii) throughout the period following Landlord's delivery
of the Premises to Tenant and prior to Landlord's delivery of any such Expansion
Space to Tenant, the original named Tenant is in possession of the entire
Premises (as the same is defined in Section 1.01 hereof).

     (b) Upon Tenant's timely and proper exercise of the Right of First Offer,
Tenant's leasing of the applicable Expansion Space shall be upon all of the
terms and conditions of this Lease as modified by the terms of this subparagraph
(b). Landlord shall deliver the Expansion Space to Tenant in its then current
condition (unless the parties otherwise agree in writing). Upon Landlord's
delivery of the applicable Expansion Space, the Premises (as defined in Section
1.01 hereof) shall include the applicable Expansion Space, and the rentable
square footage thereof shall be appropriately increased. Tenant shall pay
Landlord Basic Rent in an amount equal to the Fair Market Rent (as defined in
Section 2.03 above) for the applicable Expansion Space.

     (c) If Tenant timely and properly exercises the Right of First Offer
granted hereby, prior to Landlord's

                                       20
<PAGE>

delivery of the applicable Expansion Space to Tenant, Tenant and Landlord shall
execute an amendment to the Lease memorializing said expansion of the Premises.
If Tenant refuses to execute a document memorializing the terms of such
expansion, then Tenant shall be deemed to have waived its right first offer
granted hereby.

     (d) The parties acknowledge that the Expansion Space is currently leased to
a third party, and Landlord shall not have any obligation to take action to
regain possession of the Expansion Space for the purpose of offering the same to
Tenant.

     (e) In the event of: (i) a failure of any of the conditions set forth in
clauses (i) and (ii) of subparagraph (a) above prior to Landlord's delivery of
the applicable Expansion Space to Tenant, or (ii) Tenant's failure to take
possession of the applicable Expansion Space: (x) Tenant shall pay Landlord upon
demand, as Additional Rent hereunder, any costs incurred by Landlord with
respect to the applicable Expansion Space, including but not limited to the cost
of any improvements to the applicable Expansion Space (which shall be computed
without reference to any Expansion Space Improvement Allowance, which shall no
longer apply), and any attorneys' fees incurred by Landlord in connection with
Tenant's exercise of the Right of First Offer with respect to the applicable
Expansion Space, and (y) notwithstanding the fact that Tenant shall not occupy
the Expansion Space, Tenant shall pay Landlord, as and when the same come due
all Basic Rent and additional rent due with respect to the Expansion Space for
the remainder of the Term (less any proceeds received by Landlord with respect
to any reletting of same). In the event of: (i) a failure of any of the
conditions set forth in subparagraph (a) above prior to Landlord's delivery of
the applicable Expansion Space to Tenant, or (ii) Tenant's failure to take
possession of the applicable Expansion Space, and a reasonable determination
that Tenant will not take possession of the applicable Expansion Space, Landlord
shall undertake commercially reasonable efforts to mitigate its damages arising
therefrom.

     IN WITNESS WHEREOF, Landlord has hereunto set its hand and seal, or has
caused its name to be hereunto subscribed and Tenant has hereunto set its hand
and seal, or has caused its corporate name to be hereunto subscribed and its
corporate seal to be hereunto affixed and attested by its duly authorized
officers, as the case may be, as of the day and year first above written.


                                      LANDLORD

                                      STARWOOD URBAN RETAIL I, LLC

                                      BY: STARWOOD URBAN I, LLC,
                                          a Delaware limited liability COMPANY

WITNESS:                                  BY: STARWOOD URBAN LLC,
                                              Sole Member

                                              BY: WENNETT/URBAN RETAIL, LLC
                                                  OPERATING MEMBER


/s/ Kandis A. Ulrich                          BY: /s/ Constance Collins Davis
- ----------------------------                      -----------------------------
                                                  Constance Collins Davis
                                                  Authorized Signatory
                                                  Date: 8/25/99


[CORPORATE SEAL]


WITNESS:                              TENANT


                                      INTERACTIVE APPLICATIONS GROUP, INC.


/s/ Erin B. Holly                     BY: /s/ Miles Fawcett             (SEAL)
- -----------------------------             ------------------------------
                                      Name: Miles Fawcett
                                      Title: President
                                      Date: 8/20/99


                                       21
<PAGE>

                                    EXHIBIT A



                                   FLOOR PLAN

This floor plan is merely a rendition of the approximate size and location of
the Premises.


                      [GRAPHIC OF FLOOR PLAN APPEARS HERE]





<PAGE>

                                    EXHIBIT B

                              RULES AND REGULATIONS

1.   Tenant shall not change locks or install additional locks on doors without
     prior written consent of Landlord. Tenant shall not make or cause to be
     made duplicates of keys without prior approval of Landlord. All keys to the
     Premises shall be surrendered to Landlord upon termination of this Lease.

2.   Tenant shall refer all contractor's representatives and installation
     technicians rendering any service for Tenant at the Premises to Landlord
     before performance of any contractual service. Tenant's contractors and
     installation technicians shall comply with Landlord's rules and regulations
     pertaining to construction and installation. This provision shall apply to
     all work performed on or about the Premises or Project including
     installation of telephones, telegraph equipment, electrical devices and
     attachments and installations of any nature affecting floors, walls,
     woodwork, trim, windows, ceilings and equipment or any other physical
     portion of the Premises or Project.

3.   Tenant shall not at any time occupy any part of the Premises or Project as
     sleeping or lodging quarters.

4.   Tenant shall not place, install or operate on the Premises or in any part
     of the Project any engine, stove or machinery, conduct mechanical
     operations, cook thereon or therein or place or use in or about the
     Premises or Project any explosives, gasoline, kerosene, oil, acids,
     caustics, flammable explosives or hazardous material without written
     consent of Landlord.

5.   Landlord shall not be responsible for lost or stolen personal property,
     equipment, money or jewelry from the Premises or the Project regardless of
     whether or not such loss occurs when the area is locked against entry.

6.   No dogs, cats, fowl or other animals shall be brought into or kept in or
     about the Premises or Project.

7.   Employees of Landlord shall not receive or carry messages for or to any
     Tenant or Tenant's Agents or other person nor shall they render free or
     paid services to any Tenant or Tenant's Agents.

8.   None of the parking, plaza, recreation or lawn areas, entries, passages,
     doors, elevators, hallways or stairways, if any, shall be locked or
     obstructed with any rubbish, litter, trash or material of any nature which
     would be placed, emptied or thrown into these areas by Tenant or Tenant's
     Agents.

9.   The water closets and other water fixtures shall not be used for any
     purpose other than those for which they were constructed. Any damage
     resulting to them from misuse or by the defacing of any part of the
     Building shall be home by the person who shall occasion it. No person shall
     waste water by interfering with the faucets or otherwise.

10.  No person shall disturb occupants of the Project by the use of any radios,
     record players, tape recorders, musical instruments, the making of unseemly
     noises or any other unreasonable use.

11.  Nothing shall be thrown out of the windows of the Building or down the
     stairways or other passages. 12. Tenant, and Tenant's Agents shall park
     their vehicles only in those parking areas designated by Landlord. Tenant
     shall not leave any vehicle at the Project in a state of disrepair
     including without limitation, flat tires, out of date inspection stickers
     or license plates. If Tenant or Tenant's Agents park their vehicles in
     areas other than the designated parking areas or leave any vehicle in a
     state of disrepair, Landlord shall have the right to remove such vehicle at
     Tenant's expense.

13.  Parking in any parking garage or parking area on the Project shall be in
     compliance with all parking rules and regulations including any sticker or
     other identification system established by Landlord. Failure to observe the
     roles and regulations shall terminate Tenant's right to use the parking
     garage or area and subject the vehicle in violation to removal and/or
     impoundment. No termination of parking privileges or removal of a vehicle
     shall create any liability on Landlord or be deemed to interfere with
     Tenant's right to possession of the Premises. Vehicles must be parked
     entirely within the stall Lines and all directional signs, arrows and
     posted speed limits must be observed. Parking is prohibited in areas not
     striped for parking, in aisles, where "No Parking" signs are posted, on
     ramps, in cross hatched areas and in other areas as may be designated by
     Landlord. Parking stickers or other forms of identification supplied by
     Landlord shall retrain the property of Landlord and not the property of
     Tenant and ARE not transferable. Every person is required to park and lock
     his vehicle. All responsibility for damage to vehicles or persons is
     assumed by the owner of the vehicle or its driver.

14.  Movement of furniture, merchandise and equipment, in or out of the
     Building, Premises or Project, dispatch or receipt by Tenant of any
     merchandise or materials which requires use of elevators or stairways, or
     movement through the Building entrances or lobby shall be restricted to
     hours designated by Landlord. All such movement shall be carried out in a
     manner which takes into account limitations imposed by safety or other
     concerns which may prohibit any article, equipment or any other item from
     being brought into the Building. Tenant shall indemnify Landlord against
     all risks and claims of damage to person and property arising in connection
     with any

<PAGE>

     said movement.

15.  Landlord shall not be liable for any damages from the stoppage of elevators
     for necessary or desirable repairs or improvements or delays of any sort in
     connection with the elevator service.

16.  Tenant shall not lay floor covering within the Premises without written
     approval of Landlord. The use of cement or other similar adhesive materials
     not easily removed with water is expressly prohibited.

17.  Tenant agrees to cooperate and assist Landlord in the prevention of
     canvassing, soliciting and peddling within the Project.

18.  It is Landlord's desire to maintain in the Building or Project the highest
     STANDARD of dignity and good taste consistent with comfort and convenience
     for all tenants. My action or condition not meeting this high standard
     should be reported directly to Landlord. Your cooperation will be mutually
     beneficial and sincerely appreciated.

19.  Landlord reserves the right to make such other and further reasonable rules
     and regulations as in its judgment may from time to time be necessary for
     the safety, care and cleanliness of the Premises and for the preservation
     of good order therein.










                                        2
<PAGE>

                                     EXHIBIT

                                   WORK LETTER




     This Exhibit C is attached to and made a part of that certain Agreement of
Lease, dated as of the day of 20th day of August, 1999 (the "Lease") by and
between STARWOOD URBAN RETAIL I, LLC (hereinafter refer to as "Landlord") and
INTERACTIVE APPLICATIONS GROUP, INC. (hereinafter referred to as "Tenant"). The
terms used in this Exhibit that are defined in the Lease shall have the same
meanings as provided in the Lease.

     Tenant Improvements. (a) Landlord, at Tenant's sole cost and expense
(subject to the Tenant Improvement Allowance as provided in Section 1.03), shall
complete all improvements and alterations to the Premises necessary for Tenant's
use and occupancy thereof and operation of its business therein, which
improvements and alterations shall hereinafter be referred to as the "Tenant
Improvements." Said Tenant Improvements shall be performed in accordance with
the terms of this Exhibit C.

     (b) Tenant agrees to submit to Landlord plans and SPECIFICATIONS covering
all Tenant Improvements in accordance with the requirements therefor set forth
below within forty (40) days of execution of this Lease. Tenant acknowledges
that Landlord's approval of any plan and specifications shall not constitute a
representation or warranty by LANDLORD that the same conform to any applicable
Requirements. Tenant shall provide Landlord with three (3) sets of such plans
and specifications duly sealed and signed by a registered Architect in the
jurisdiction where the Premises are located, CONTAINING the following
information (unless otherwise specifically agreed by Landlord):


(1)   Floor Plan                               1/8' scale
(2)   Overall Sections                         1/8" scale
(3)   Storefront and Interior Elevations       1/8" scale
(4)   Sections of Partition Types              1/2" scale
(5)   Details of Special Conditions            1/2" scale
(6)   Door Schedule with Door and Head Detail  1/2" scale
(7)   Finish Schedule                          1/2" scale
(8)   Sign Drawings and Details                1/2" scale
(9)   Electrical, Plumbing and Mechanical Plans indicating item not presently
      existing.
(10)  Outline specifications covering all Tenant work, including additional
      plans drawn to suitable scale indicating additional items of construction
      not specifically mentioned above.
(11)  Sprinkler Plans (if applicable)
(12)  Electrical load calculations and riser diagrams, if other than existing.
(13)  HVAC load calculations and heating and air conditioning unit
      specifications, if other than existing. (Tenant is responsible for
      evaluating the adequacy of the existing HVAC capacity for Tenant's
      intended use and Landlord makes no representations with respect to the
      same).
(14)  Number, locations and size of all roof openings and penetrations, with
      complete data on the operating weight and load support plan for all
      equipment located within or above the Premises.

     (c) Within fourteen (14) days after receipt of Tenant's plans and
specifications in conformance with the foregoing requirements, Landlord shall
either: (1) evidence its approval by endorsement to that effect by signature or
initials on one (1) set of said plans and specifications and return of such
signed or initialed set to Tenant (whereupon such approved preliminary plans and
specifications shall then constitute the final plans and specifications); or (2)
refuse such approval. Landlord shall not unreasonably withhold its approval,
provided that Landlord may refuse to approve Tenant's plans and specifications
for reasons that include, without limitation, a determination by Landlord that
the same: (i) do not conform to the standard design, motif and decor established
or adopted by Landlord or other tenants in the Project; or (ii) would subject
Landlord to any additional cost, expense or liability or the Premises to any
violation of any Requirement; or (iii) would in any way adversely affect the
reputation, character or nature of the Project; or (iv) would provide for or
require any installation or work which is or might be unlawful or create an
unsound or dangerous condition or adversely affect the structural soundness of
the Premises or the Building of which the Premises are a part; or (v) would
interfere with or abridge the use and enjoyment of the Common Areas of the
Project or any adjoining space in the Building in which the Premises are
located. If the Landlord does not approve said plans and specifications,
Landlord shall advise Tenant of those revisions or corrections which Landlord
requires and Tenant shall, within twenty (20) days thereafter, submit proposed
plans and specifications, so revised or corrected as to satisfy Landlord's
requirements, to Landlord for its approval in accordance with this Exhibit C.
Tenant shall make no changes in such approved plans and specifications without
landlord's prior written consent and the cost of any additional architectural or
construction costs incurred in making changes, substitutions or eliminations in
such approved plans and specifications as may be required by Landlord shall be
included in Tenant's Costs (as defined below).

     (d) Tenant will bear all costs associated with the Tenant Improvements,
which costs will include: (1) the cost of architectural and engineering fees, if
any, relating to the Tenant Improvements (including: (i) the architectural fees
related to the preparation and any revision of all plans and specifications,
(ii) any reasonable architectural and engineering fees which Landlord incurs in
reviewing plans prepared by Tenant's architect, and (iii) engineering fees
related to any participation by Tenant's engineer in the planning and
performance of the Tenant Improvements), (2) all costs associated with obtaining
any necessary permits or other necessary approvals from governmental authorities

<PAGE>

(as such term is defined in the Lease) (including the applicable municipal
building inspector(s), fire marshal and any other governmental authority having
jurisdiction), (3) any necessary approvals from utility providers for any
additional connections related to the Tenant Improvements, (4) a construction
management fee payable to Landlord to cover costs associated with reviewing
plans and specifications and monitoring the Tenant Improvements, which fee shall
be in an amount equal to 5% of the total of all other Tenant's Costs (excluding
the architectural fees which Tenant pays to its own architect which shall be
excluded for the purpose of calculating said construction management fee), and
(5) all costs and expenses incurred in the construction of Tenant Improvements
over and above the current "as is" condition of the Premises (as the same is
described in Section 1.02 of the Lease) (collectively "Tenant's Costs").

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10.4
<SEQUENCE>20
<FILENAME>ex10-4_14663.txt
<DESCRIPTION>FIRST AMENDMENT TO LEASE AGREEMENT DATED 01-16-01
<TEXT>
                                                                    EXHIBIT 10.4
                                                                    ------------

                            FIRST AMENDMENT TO LEASE

         THIS FIRST AMENDMENT TO LEASE (this "AMENDMENT") is made and entered
into as of January 16, 2001, by and between STARWOOD URBAN RETAIL I, LLC, a
Delaware limited liability company("LANDLORD"), and INTERACTIVE APPLICATIONS
GROUP, INC., a Delaware corporation ("TENANT").

                                   WITNESSETH:

         WHEREAS, Landlord and Tenant entered into that certain Agreement of
Lease dated August 20, 1999 (the "LEASE"), for approximately six thousand three
hundred thirty-six (6,336) square feet of rentable area, commonly known as Suite
250, having an address of 2639 Connecticut Avenue, N.W., Washington, D.C. (the
"INITIAL PREMISES") located on the second (2nd) floor of that certain office
building located at 2631-2641 Connecticut Avenue, N.W., Washington, D.C. (the
"BUILDING");

         WHEREAS, Tenant desires to lease from Landlord certain additional
office space located on the lower level of the Building; and

         WHEREAS, Landlord and Tenant desire to expand the rentable area of the
Initial Premises to incorporate such additional office space and make certain
other modifications to the Lease in connection therewith, upon the terms and
conditions and as more particularly set forth hereinbelow.

         NOW, THEREFORE, in consideration of the mutual covenants and agreements
set forth hereinbelow and of other good and valuable consideration, the receipt
and sufficiency of which are hereby acknowledged by the parties hereto, Landlord
and Tenant, intending legally to be bound, hereby agree as follows:

         1. Expansion Space.

         (a) Tenant does hereby lease from Landlord that certain area deemed to
be three thousand forty-seven (3,047) square feet of rentable area located on
the lower level of the Building, known as Suite 113, having an address of 2639
Connecticut Avenue, N.W., Washington, D.C. (the "LOWER LEVEL EXPANSION SPACE").
The Lower Level Expansion Space is more particularly described on Exhibit A
attached hereto.

         (b) Notwithstanding anything in Paragraph (b) of the Summary of Basic
Lease Provisions or otherwise in the Lease to the contrary, effective as of the
Lower Level Expansion Space Commencement Date (as hereinafter defined), (i) the
term "Premises" as used in the Lease and herein shall be deemed to mean
approximately nine thousand three hundred eighty-three (9,383) square feet of
rentable area located on the second floor and lower level of the Building, and
(ii) the Lower Level Expansion Space shall be subject to all of the terms and
conditions of the Lease for the remainder of the Lease Term (as defined in the
Lease), except as otherwise expressly provided herein.

         (c) The Lease Term with respect to the Lower Level Expansion Space
shall commence on the earlier of the date on which (a) the work and materials to
be provided by Landlord pursuant to Exhibit C attached hereto and hereby made a
part hereof are substantially complete as determined pursuant to Exhibit C, and
Landlord delivers the Lower Level Expansion Space to Tenant (but in no event
earlier than February 1, 2001),

<PAGE>

or (b) Tenant commences beneficial use of the Lower Level Expansion Space (but
in no event earlier than February 1, 2001) (the "LOWER LEVEL EXPANSION SPACE
COMMENCEMENT DATE"), and shall be coterminous with the Lease Term for the
Initial Premises, as such Lease Term may be extended or earlier terminated in
accordance with the terms of the Lease (as modified hereby). Tenant shall be
deemed to have commenced beneficial use of the Lower Level Expansion Space when
Tenant begins to move furniture, furnishings, inventory, equipment or trade
fixtures into the Lower Level Expansion Space. Notwithstanding the foregoing,
Tenant shall not have any right to commence beneficial use of the Lower Level
Expansion Space unless the same is vacant and delivered to Tenant by Landlord
and during any period Tenant is in breach of any of its obligations under the
Lease (as amended hereby). The period commencing on the Lower Level Expansion
Space Commencement Date and ending on the last day of the twelfth (12th) full
calendar month thereafter, shall constitute the first "LOWER LEVEL LEASE YEAR."
Each successive twelve month period during the Lease Term, commencing on the
annual anniversary of the Lower Level Expansion Space Commencement Date (or if
the Lower Level Expansion Space Commencement Date is not the first day of a
calendar month, the annual anniversary of the first full calendar month
following the Lower Level Expansion Space Commencement Date) shall constitute a
"Lower Level Lease Year" for purposes of the Lease. Promptly after the Lower
Level Expansion Space Commencement Date is ascertained, Landlord shall provide
and Tenant shall execute a certificate confirming the Lower Level Expansion
Space Commencement Date in the form attached hereto as Exhibit B. Landlord shall
obtain a certificate of occupancy for the Lower Level Expansion Space.

         (d) It is presently anticipated that the Lower Level Expansion Space
will be delivered to Tenant on or about September 1, 2001 (the "LOWER LEVEL
EXPANSION SPACE ANTICIPATED DELIVERY DATE") in its then as is condition;
provided, however, that if Landlord does not deliver possession of the Lower
Level Expansion Space on or prior to such date, Landlord shall not have any
liability whatsoever, and this Amendment shall not be rendered void or voidable,
as a result thereof. Tenant acknowledges that the Lower Level Expansion Space is
currently leased to and occupied by another tenant of the Building pursuant to a
lease with Landlord (the "EXISTING LEASE") the term of which Existing Lease is
scheduled to expire on May 31, 2001. Landlord is currently investigating the
possibility of terminating the Existing Lease prior to the scheduled expiration
thereof. Accordingly, notwithstanding anything in this Amendment to the
contrary, the occurrence of the Lower Level Expansion Space Commencement Date
will be conditioned upon the expiration or earlier termination (upon terms
satisfactory to Landlord in its sole and absolute determination) of the Existing
Lease and the complete vacancy of the Lower Level Expansion Space by all
occupants. Notwithstanding the Lower Level Expansion Space Anticipated Delivery
Date, in the event the current occupant of the Lower Level Expansion Space
vacates such space and delivers it to Landlord prior to the scheduled expiration
of the Existing Lease, Landlord shall exercise commercially reasonable efforts
to deliver the Lower Level Expansion Space to Tenant prior to the Lower Level
Expansion Space Anticipated Delivery Date.

         (e) Provided no default by Tenant has occurred under the Lease, Tenant
and its contractors shall be allowed access to the Lower Level Expansion Space
during the Early Access Period (as hereinafter defined) in order to install
Tenant's furniture, furnishings

                                        2
<PAGE>

and equipment into the Lower Level Expansion Space (but in no event to commence
business operations therein), subject to the terms and conditions of this
paragraph, all other applicable provisions of the Lease (including, without
limitation, Article 8), and Landlord's reasonable rules and regulations. The
"EARLY ACCESS PERIOD" shall commence on the fourteenth (14th) day prior to
Landlord's estimated date of substantial completion of the work and materials to
be provided by Landlord pursuant to Exhibit C and continue through the day
before the date of substantial completion. At Tenant's request from time to
time, Landlord shall endeavor to inform Tenant of Landlord's good faith
determination of Landlord's non-binding estimate of the date of substantial
completion of such work. At least three (3) business days prior to any such
early access, Tenant shall deliver to Landlord written evidence in a form
satisfactory to Landlord specifying that Tenant is then carrying all insurance
required by Article 11 of the Lease to be carried by Tenant and written evidence
of the insurance carried by any such contractor (which insurance must be
approved in writing by Landlord prior to any such contractor entering the Lower
Level Expansion Space). Landlord shall not be responsible for, nor shall the
Lower Level Expansion Space Commencement Date be delayed as a result of, any
delay caused by or related to Tenant's activities during the Early Access
Period. Any and all activity by Tennant, its emp1oyees, agents, contractor's or
other invitees (individually, an "INVITEE" and collectively, "INVITEES") in the
Lower Level Expansion Space prior to the Lower Expansion Space Commencement Date
shall be coordinated with Landlord and its general contractor to ensure that
such activities in the Lower Level Expansion Space do not interfere with the
work being performed by Landlord and its contractors. If Landlord determines
that Tenant or any Invitee is interfering with Landlord's work in the Lower
Level Expansion Space, then Landlord shall have the right to require the
offending party to leave the Lower Level Expansion Space, and, in any such
event, Tenant shall have no right to assert that the Lower Level Expansion Space
Commencement Date or Tenant's other obligations under the Lease, as amended
hereby, are affected thereby. Notwithstanding anything in the Lease to the
contrary, all of the provisions of the Lease (including, without limitation, all
insurance and indemnity provisions) shall apply during the Early Access Period,
except that during such period Tenant shall not be obligated to pay Basic Rent
or increases in Operating' Costs and Real Estate Taxes and Landlord shall not be
obligated to provide any service or other item. Tenant shall indemnify and hold
Landlord harmless from and against any and all losses, damages, liabilities,
actions, claims, costs and expenses, including court costs and reasonable
attorneys' fees, to the extent arising out of or relating to Tenant's and any
Invitee's entry, or installation or movement of equipment or other property,
into the Lower Level Expansion Space.

         (f) Notwithstanding anything to the contrary contained herein, if
Landlord does not deliver the Lower Level Expansion Space to Tenant in the
condition required herein on or before December 31, 2001 (as such date may be
extended as hereinbelow described, the "OUTSIDE DATE"), then Tenant shall have
the option to notify Landlord of Tenant's intent to cancel the Lease solely with
respect to the Lower Level Expansion Space by written notice delivered to
Landlord. If Tenant provides such notice, then Landlord shall have fifteen (15)
days from receipt thereof to so deliver to Tenant the Lower Level Expansion
Space. If Landlord fails to so deliver the Lower Level Expansion Space pursuant
to the terms hereof within such fifteen (15) day period, then the Lease solely
with respect to the Lower Level Expansion Space shall be deemed terminated and

                                        3
<PAGE>

the parties hereto shall have no further liability to each other with respect to
the Lower Level Expansion Space. In the event of any delay in Landlord's
delivery of the Lower Level Expansion Space (a) because of any acts or omissions
of Tenant, including without limitation, any entry into the Lower Level
Expansion Space during the Early Access Period, and/or (b) because of any delay
due to fire, act of God, governmental act or failure to act, strike, labor
dispute, inability to procure materials, or any other cause beyond Landlord's
reasonable control (whether similar or dissimilar to the foregoing events), then
Tenant's option to cancel the Lease with respect to the Lower Level Expansion
Space shall be postponed for the period of such delay and the Outside Date (or
cure period, as applicable) shall be automatically extended for a period equal
to the period of such delay. In addition, if this Amendment has not been
executed by Tenant and delivered to Landlord in form satisfactory to Landlord by
January 15, 2001, Tenant's option to cancel the Lease with respect to the Lower
Level Expansion Space shall be postponed and the Outside Date automatically
extended by the number of days after January 15, 2001, until this Amendment is
executed by Tenant and delivered to Landlord in form satisfactory to Landlord.

         2. Annual Basic Rent.

                  (a) Notwithstanding anything to the contrary contained in
Section 3.01 of the Lease, from and after the Lower Level Expansion Space
Commencement Date, in addition to Annual Basic Rent payable for the Initial
Premises, Tenant shall pay in equal monthly installments the following amounts
as Annual Basic Rent for the Lower Level Expansion Space for the corresponding
Lower Level Lease Year, which amounts are based on the amounts set forth below
per square foot of agreed upon rentable area in the Lower Level Expansion Space:

Lower Level                                                     Basic Rent Per
Lease Year       Annual Basic Rent      Monthly Basic Rent        Square Foot
- -----------      -----------------      ------------------      --------------
1                   $58,655.00             $4,887.90                 $19.25
2                   $60,422.00             $5,035.17                 $19.83
3                   $62,250.00             $5,187.52                 $20.43
4                   $64,109.00             $5,342.41                 $21.04
5                   $66,028.00             $5,502.37                 $21.67


         (b) Each monthly installment of Annual Basic Rent payable for the Lower
Level Expansion Space shall be payable in advance on or before the first day of
each calendar month and otherwise in accordance with the terms and conditions
contained in Section 3.02 of the Lease. Concurrently with the execution of this
Amendment, Tenant shall pay to Landlord a sum equal to Four Thousand Eight
Hundred Eighty-Seven and 90/100ths Dollars (4,887.90), which amount shall be
applied against the first (1s) monthly installment of Annual Basic Rent payable
for the Lower Level Expansion Space. Notwithstanding anything to the contrary
contained in the Lease, no abatement or other concession whatsoever shall apply
with respect to the annual Basic Rent payable for the Lower Level Expansion
Space. If the Lower Level Expansion Space Commencement

                                        4
<PAGE>

Date is not the first day of a calendar month, then the Annual Basic Rent
payable for the Lower Level Expansion Space for the period commencing on the
Lower Level Expansion Space Commencement Date and expiring on the last day of
the ten-current calendar month shall be prorated on a per diem basis at the rate
of one-thirtieth (1/30) of the monthly installment of the Annual Basic Rent
payable for the Lower Level Expansion Space during such first twelve (12) month
period, and Tenant shall pay such prorated installment in advance on the Lower
Level Expansion Space Commencement Date.

         (c) It is expressly understood and agreed that the Annual Basic Rent
payable for the Lower Level Expansion Space shall be net of all electric service
to the Lower Level Expansion Space, it being understood and agreed that Tenant
shall be responsible for all costs thereof, in accordance with the terms of
Paragraph 11 herein.

         3. Additional Rent. Notwithstanding anything to the contrary contained
in the Lease, in addition to Tenant's responsibility to pay Tenant's pro-rata
share of (a) Excess Real Estate Taxes (as defined in the Lease) over the Real
Estate Taxes paid during the Base Year pursuant to Section 3.03(c) of the Lease,
and (b) Excess Operating Costs (as defined in the Lease) over the Operating
Costs paid during the Base Year pursuant to Section 3.03(a) of the Lease,
commencing on the first anniversary of the Lower Level Expansion Space
Commencement Date, and continuing thereafter throughout the Lease Term, Tenant
shall pay to Landlord as additional rent and otherwise in accordance with the
terms and conditions contained in Section 3.03 of the Lease, Tenant's pro rata
share with respect to the Lower Level Expansion Space of all (i) increases in
Real Estate Taxes to the extent the same exceed the Real Estate Taxes for the
2001 calendar year (the "LOWER LEVEL BASE YEAR"), which for purposes of the
Lease, shall be deemed to be included within the term "Excess Real Estate
Taxes," and (b) increases in Operating Costs to the extent the same exceed the
Operating Costs for the Lower Level Base Year, which for purposes of the Lease,
shall be deemed to be included within the term "Excess Operating Costs." For
purposes hereof, Tenant's pro rata share with respect to the Lower Level
Expansion Space (the "EXPANSION PRO RATA SHARE") shall be eight and ninety-three
hundredths of one percent (8.93%) of all such Real Estate Taxes and Operating
Costs incurred in excess of those incurred for the Lower Level Base Year..
Effective as of the Lower Level Expansion Space Commencement Date, Section 3.03
(b)(vii) of the Lease shall be amended to insert the words, "except to the
extent paid directly by Tenant for the Lower Level Expansion Space," following
the words, "utility charges and other costs of lighting, heating and cooling the
Project."

         4. Alterations and Tenant Improvements.

                  (a) The original improvements to the Lower Level Expansion
Space (except as set forth below) shall be accomplished by Landlord or its
designated contractor(s) or subcontractor(s) in accordance with Exhibit C
attached to this Amendment and made a part hereof. Notwithstanding anything to
the contrary contained in the Lease, Landlord is under no obligation to make any
structural or other alterations, decorations, additions, improvements or other
changes in or to the Lower Level Expansion Space, or the Initial Premises or the
Project in connection with this Amendment except as otherwise expressly provided
in this Amendment. Following Landlord's delivery of the Lower Level Expansion
Space to Tenant, Tenant shall install in the Lower Level Expansion Space, in
accordance with Section 8.01 of the Lease, (i) all

                                        5
<PAGE>

connections for telephone systems and required outlets and computer wires and
systems, including all conduit, equipment boards and wiring, and (ii) new offce
trade fxtures, including all electrical connections.

         5. Security Deposit. Simultaneously with the execution of this
Amendment, Tenant shall deposit with Landlord the sum of Four Thousand Eight
Hundred Eighty-Seven and 90/100ths Dollars ($4,887.90) to be added to the
security deposit held by Landlord in accordance with the terms of Section 3.06
of the Lease.

         6. Option. From and after the date hereof, Tenant's right to renew the
Lease Term and the terms and conditions thereof, as more particularly set forth
in Section 2.03 of the Lease, shall be deemed to apply to the entire Premises
(i.e., the Lower Level Expansion Space as well as to the initial Premises);
provided, however, that Tenant shall not be required to exercise the right of
renewal for the entirety of the Premises and may exercise the renewal right
solely with respect to either the Initial Premises or the Lower Level Expansion
Space. Notwithstanding anything to the contrary contained in Section 2.03 of the
Lease, Tenant shall remain responsible for the separate and direct payment for
the electricity provided to the Lower Level Expansion Space during any renewal
term applicable thereto.

         7. Signage. Landlord, at its expense, will provide Tenant with one (1)
additional listing in the directory located in the lobby of the Building, which
such listing shall set forth Tenant's name and the Lower Level Expansion Space
suite number. Tenant shall install, in accordance with Section 8.01 of the Lease
and at Tenant's sole cost and expense (except to the extent permitted to be paid
from the Lower Level Allowance pursuant to the terms of Paragraph 2 of Exhibit C
attached hereto), one (1) suite entry sign for the Lower Level Expansion Space,
the design, size, style, location, colors, manner of installation and all other
aspects of which such sign shall be subject to Landlord's prior written approval
in its reasonable discretion.

         8. [Intentionally Omitted.]

         9. Parking. Nothing contained in this Amendment (i) shall affect
Tenant's existing parking rights, as more particularly set forth in Section 7.02
of the Lease or (ii) shall prevent Tenant from contracting directly with the
Parking Operator (as defined in the Lease) for any additional parking permits
Tenant desires to purchase from the Parking Operator for the Parking Area (as
defined in the Lease).

         10. Brokers. Landlord and Tenant each warrants to the other that in
connection with this Amendment it has not employed or dealt with any broker,
agent or finder, other than Insignia/ESG, Inc. and West, Lane & Schlager Realty
Advisors, Inc. (collectively, the "Brokers"). Landlord acknowledges that
Landlord shall pay any commission or fee due to the Brokers pursuant to separate
written agreements entered into between Landlord and West, Lane & Schrager.
Tenant shall indemnify and hold Landlord harmless from and against any claim for
brokerage or other commissions asserted by any broker, agent or finder employed
by Tenant or with whom Tenant has dealt, other than the Brokers.

         11. Services and Utilities. Notwithstanding anything to the contrary
contained in Section 6.01 (d) of the Lease, Landlord will not provide
electricity services to the Lower Level Expansion Space. The provisions of
Section 6.01(d) of the Lease shall only apply

                                        6
<PAGE>

to the Initial Premises. Tenant shall arrange with the appropriate utility
company for the provision of electricity service to the Lower Level Expansion
Space from and after the Lower Level Expansion Space Commencement Date. Tenant
shall pay to the appropriate electric utility company all charges for such
electricity to the Lower Level Expansion Space as and when such charges become
due and payable.

         12. Notices. Notwithstanding anything to the contrary contained in the
Lease, the address to which notices shall be delivered to Landlord is as
follows: c/o Starwood Urban Investments, LLC, 132019d Street, N.W., Suite 800,
Washington, D.C. 20036, Attn: Constance Collins Davis, Esq.

         13. Lender Approval. This Amendment is contingent upon the lender that
currently holds the first lien which encumbers the Building approving this
Amendment. Landlord shall endeavor to obtain prompt lender approval of this
Amendment within seven (7) days following Landlord's receipt of an executed
original of this Amendment from Tenant. In the event that such lender does not
approve this Amendment within thirty (30) days following Landlord's receipt of
an executed original of this Amendment, Landlord and Tenant shall each have the
right to terminate this Amendment by delivering written notice thereof to the
other party hereto within five (5) business days following the expiration of the
aforementioned thirty (30) day period.

         14. Ratification. Except as otherwise expressly modified by the terms
of this Amendment, the Lease shall remain unchanged and continue in full force
and effect. All terms, covenants and conditions of the Lease not expressly
modified herein are hereby confirmed and ratified and remain in full force and
effect, and, as further amended hereby, constitute valid and binding obligations
of Tenant enforceable according to the terms thereof.

         15. Authority. Tenant and each of the persons executing this Amendment
on behalf of Tenant hereby covenants and warrants that Tenant is a duly
organized partnership, validly existing and in good standing under the laws of
the State of Delaware, that Tenant has full right and authority to enter into
this Amendment, and that the person signing on behalf of Tenant is authorized to
do so on behalf of Tenant.

         16. Binding Effect. All of the covenants contained in this Amendment,
including, but not limited to, all covenants of the Lease as modified hereby,
shall be binding upon and shall inure to the benefit of the parties hereto and
their respective heirs, legal representatives and permitted successors and
assigns.

         17. Effectiveness. The submission of this Amendment shall not
constitute an ofer, and this Amendment shall not be effective and binding unless
and until fully executed and delivered by each of the parties hereto.

         18. Counterparts. This Amendment maybe, executed in multiple
counterparts, each of which shall be an original, but all of which shall
constitute one and the same Amendment.

         19. Recitals. The foregoing recitals are intended to be a material part
of this Amendment and are incorporated herein by this reference.

         20. Defined Terms. Unless otherwise provided herein, all terms used in
this Amendment that are defined in the Lease shall have the meanings provided in
the Lease.

                                        7
<PAGE>

IN WITNESS WHEREOF, Landlord and Tenant have executed this Amendment effective
as of the date first above written.

WITNESS/ATTEST:           LANDLORD:


                          STARWOOD URBAN RETAIL I, LLC, a
                          Delaware limited liability company


                          By: STARWOOD URBAN I, LLC, its
                              Managing Member

                              By: STARWOOD URBAN LLC, its sole member

                                  By: WENNETT/URBAN RETAIL
                                      L.L.C., its operating member

                                      By: /S/ CONSTANCE COLLINS DAVIS [SEAL]
                                             ----------------------------------

                                             Robert S. Wennett or Constance
                                             Collins Davis, Authorized Signatory

WITNESS/ATTEST:           TENANT:


                          INTERACTIVE APPLICATIONS GROUP, INC.,
                          A Delaware corporation

/S/ WITNESS               By:/S/ MILES FAWCETT [SEAL]
- ---------------           ----------------------------------


                          Name: MILES FAWCETT

                          Title: PRESIDENT

                                        8
<PAGE>

                                    Exhibit A

                                  [Floor Plan]





























<PAGE>

                                    EXHIBIT B

       CERTIFICATE AFFIRMING LOWER LEVEL EXPANSION SPACE COMMENCEMENT DATE

         This Certificate is being provided pursuant to that certain First
Amendment to Lease dated as of January____ 2001 (the "FIRST AMENDMENT"), by and
between STARWOOD URBAN RETAIL I, LLC, a Delaware limited liability company
("LANDLORD"), and INTERACTIVE APPLICATIONS GROUP, INC., a Delaware corporation
("TENANT"). The parties to the First Amendment desire to confirm the following:

         1. The Lower Level Expansion Space Commencement Date is__________,
2001.

         Attached to this Certificate is evidence of payment of premiums for all
insurance required pursuant to the Lease.

         IN WITNESS WHEREOF, Landlord and Tenant have executed this Certificate
under seal on ______________________, 2001.

WITNESS/ATTEST:                     LANDLORD:


                                    STARWOOD URBAN RETAIL I, LLC

                                    By: STARWOOD URBAN I, LLC, its
                                        Managing Member

                                        By: STARWOOD URBAN LLC, its sole member

                                            By: WENNETT/URBAN RETAIL

                                                L.L.C., its operating member

                                                By: ________________[SEAL]

                                                    Robert S. Wennett or
                                                    Constance Collins Davis,
                                                    Authorized Signatory


<PAGE>


WITNESS/ATTEST:                     TENANT:

                                    INTERACTIVE APPICATIONS GROUP, INC



/S/ WITNESS                         By: /S/ MILES FAWCETT
- -----------------                       -----------------------

                                        Name: MILES FAWCETT
                                        Title: PRESIDENT























<PAGE>

                                    EXHIBIT C

                                 WORK AGREEMENT

         This Exhibit is attached to and made a part of that certain First
Amendment to Lease (the "AMENDMENT") dated as of January___, 2001, by and
between STARWOOD URBAN RETAIL I, LLC ("LANDLORD") and INTERACTIVE APPLICATIONS
GROUP, INC. ("TENANT"). Terms used but not defined in this Exhibit shall have
the meaning ascribed to them in the Lease, as amended hereby.

         1. Tenant's Authorized Representative. Tenant designates Miles A.
Fawcett ____________________("TENANT'S AUTHORIZED REPRESENTATIVE") as the person
authorized to initial all plans, drawings, change orders and approvals pursuant
to this Exhibit. Landlord shall not be obligated to respond to or act upon any
such item until such item has been initialed by Tenant's Authorized
Representative.

         2. Lower Level Tenant Improvements. Landlord or its designated
contractor shall install in the Lower Level Expansion Space those initial
improvements specified in Schedule C-1 attached hereto (the "LOWER LEVEL TENANT
IMPROVEMENTS"). Landlord shall not be obligated to provide any improvements, and
the Lower Level Expansion Space shall be delivered containing no property of any
kind, other than the Lower Level Tenant Improvements. Tenant shall pay all costs
and expenses (including a fee for Landlord's construction management services in
an amount equal to 5% of the "hard costs" of the work performed by Landlord in
connection with the Lower Level Tenant improvements, and the cost of any
services provided by Landlord's architect or engineer) incurred in connection
with the Lower Level Tenant Improvements to the extent such costs and expenses
exceed an allowance (the "LOWER LEVEL ALLOWANCE") equal to Sixty-Eight Thousand
Five Hundred Fifty-Seven and 50/100ths Dollars ($68,557.50) product of (a)
Twenty-Two and 50/100ths Dollars ($22.50), multiplied by (b) the of square feet
of rentable area in the Lower Level Expansion Space). The Lower Level Allowance
may be applied against all costs incurred in connection with the design,
permitting and construction of the Lower Level Tenant Improvements, any
modification of the HVAC system required as a result of Tenant's design of the
Lower Level Tenant Improvements in the Lower Level Expansion Space (as approved
by Landlord), connections, cabling and wiring for Tenant's telecommunications
equipment and trade fixtures, and the cost of construction of the suite entry
sign for the Lower Level Expansion Space (up to a maximum of One Thousand
Dollars ($1,000) (the "SIGNAGE ALLOWANCE"); provided, however, that the maximum
amount which may be applied toward all soft costs (such as moving expenses,
furniture and trade fixture costs, Tenant's signage, and the costs of the
installation of connections, cabling and wiring for Tenant's telecommunications
equipment), shall not exceed Fifteen Thousand Two Hundred Thirty-Five Dollars
($15,235.00) (the product of (i) Five Dollars ($5.00), multiplied by (ii) the
number of rentable square feet in the Lower Level Expansion Space). Tenant shall
not receive any credit, cash or otherwise, for any unused portion of the Lower
Level Allowance. Tenant

<PAGE>

shall pay one hundred percent (100%) of Landlord's reasonable estimate of those
costs and expenses (if any) which exceed the Lower Level Allowance on or before
the later to occur of (I) the date of Tenant's execution of the Amendment, or
(II) the tenth (10th) day after the date Landlord gives Tenant notice of
Landlord's estimate of such expenses. Tenant shall pay for all such costs and
expenses (minus any estimated payments made as aforesaid) when the Lower Level
Tenant Improvements are substantially complete and Tenant receives a bill
therefor. Tenant shall pay such bill, if any, no later than the earlier of the
Lower Level Expansion Space Commencement Date or ten (10) days after Tenant's
receipt thereof, provided, however, that Tenant shall not be permitted to take
possession of the Lower Level Expansion Space until Landlord has received
Tenant's payment in full of such bill. If such estimated excess expenses paid to
Landlord by Tenant exceed the actual excess expenses attributable to the Lower
Level Tenant Improvements, the amount of such excess shall be credited against
the first installment(s) of rent payable under the Amendment. All amounts
payable pursuant to this Exhibit by Tenant shall be considered additional rent
and are subject to the provisions of the Lease.

3. Schedule.

         (a) If any plans and drawings are prepared by Landlord's architect or
engineer, such plans and drawings will be prepared on Tenant's behalf and Tenant
shall be solely responsible for the compliance of all plans and drawings with
all Requirements (as defined in the Lease). Certain plans and specifications for
the Project (as defined in the Lease) are available for Tenant's inspection at
Landlord's offices. Otherwise, all plans shall be prepared by a licensed
architect and engineer approved by Landlord, shall be in a form sufficient to
secure the approval of government authorities with jurisdiction over the
approval thereof, and shall be otherwise satisfactory to Landlord.

         (b) Tenant shall prepare and submit to Landlord a final space plan and
all specifications, details, finishes (including, paint and carpet selections),
elevations and sections, all as approved by Tenant and Landlord ("TENANT'S SPACE
PLAN") on or before February 15, 2001. Tenant's Space Plan shall indicate
partition layout, door location, special equipment types, floor load
requirements exceeding fifty (50) pounds per square foot live load, telephone
and electrical outlet locations, and the seating capacity of all conference
rooms, if any.

         (c) Tenant shall prepare and submit to Landlord final architectural
working drawings approved by Tenant and Landlord on or before March 16, 2001.
Such architectural working drawings shall include: master legend, construction
plan, reflected ceiling plan, telephone and electrical outlet layout, finish
plan and all architectural details, elevations and specifications necessary to
construct the Lower Level Expansion Space. To the extent necessary, promptly
after submission of the final architectural working drawings, engineering
working drawings, Landlord shall prepare and provide to Tenant an estimation of
the cost of providing the Lower Level Tenant Improvements.

<PAGE>

         (d) The deadlines specified in this Paragraph shall apply whether plans
and drawings are prepared by Landlord's architect or engineer or an architect or
engineer selected by Tenant. All deadlines must be met in order to allow
Landlord sufficient time to review plans and drawings, discuss with Tenant any
changes thereto which Landlord believes to be necessary or desirable, and
complete substantially the Lower Level Expansion Space within the time fame
provided in Paragraph 1 (d) of the Amendment. The parties intend for each such
deadline to be the applicable deadline, even if any such deadline is before the
date the Amendment is executed. Tenant acknowledges that time is of the essence
in proceeding with the design and construction of the Lower Level Expansion
Space and Tenant agrees to review and finally approve each and every submission
from Landlord regarding the Lower Level Expansion Space and to provide Landlord
with all materials or information requested by Landlord within five (5) business
days after Tenant's receipt of any submission or request.

         4. Approval. All plans and drawings (and changes thereto) shall be
subject to Landlord's written approval, which approval may be granted or
withheld in Landlord's sole and absolute discretion. Such approval shall not
constitute either (a) approval of any delay caused by Tenant or a waiver of any
right or remedy that may arise as a result of such delay, or (b) Landlord's
representation that such approved plans, drawings or changes comply with all
applicable laws.

         5. Change Orders. If Tenant requests any change or addition to the work
or materials to be provided by Landlord pursuant to this Exhibit after Tenant's
approval of the final space plan, then Landlord shall not be obligated to
perform such change or addition unless Landlord approves in writing the same,
which approval shall not be unreasonably withheld, conditioned or delayed.
Subject to the application of the Lower Level Allowance, all additional expenses
attributable to any change order requested by Tenant and approved by Landlord
shall be payable by Tenant prior to the performance of the work contemplated by
such change order. If Landlord submits an estimate of the additional expenses
attributable to a change order, then Tenant shall pay such estimated additional
expenses prior to the performance of the work contemplated by such change order,
subject to the application of the Lower Level Allowance. If the actual
additional expenses attributable to such change order exceed such estimated
additional expenses, then Tenant shall pay the amount of such excess no later
than the earlier of the Lower Level Expansion Space Commencement Date or ten
(10) days after Tenant's receipt of a bill therefor, subject to the application
of the Lower Level Allowance. If such estimated additional expenses exceed the
actual additional expenses attributable to such change order, then the amount of
such excess shall be credited against the first installment(s) of rent

         6. Substantial Completion.

         (a) Except as provided in Paragraph 6(b) below, the Lower Level
Expansion Space shall be deemed to have been substantially complete when the
work and materials

<PAGE>

to be provided by Landlord pursuant to this Exhibit (except for items of work
and adjustment of equipment and fixtures that can be completed after the Lower
Level Expansion Space is. occupied without causing substantial interference with
Tenant's use of the Lower Level Expansion Space (i.e., the "punch list" items))
have been completed, as reasonably determined by Landlord, and a certificate of
occupancy for the Lower Level Expansion Space has been issued by the District of
Columbia.

         (b) If Landlord shall be delayed in completing the work and materials
to be provided pursuant to this Exhibit as a result of (1) Tenant's failure to
comply with any of the deadlines specified in this Exhibit or with any of the
other requirements of this Exhibit or the Lease, (2) Tenant's request for
modifications to plans or working drawings subsequent to the date such plans or
working drawings are approved by Landlord, (3) Tenant's failure to pay when due
any amount required pursuant to this Exhibit, (4) Tenant's request for long lead
time materials, finishes or installations, or (5) the performance of any work,
or the entry into the Lower Level Expansion Space, by Tenant or any person or
firm employed or retained by Tenant, then for purposes of determining the Lower
Level Expansion Space Commencement Date, the work and materials to be provided
pursuant to this Exhibit shall be deemed to have been substantially complete on
the date that Landlord determines in its reasonable judgment that such work and
materials would have been substantially complete if such delay(s) had not
occurred.

         7. Possession. Tenant's taking of possession of the Lower Level
Expansion Space shall constitute Tenant's acknowledgment that the Lower Level
Expansion Space is in good condition and that all work and materials are
satisfactory, except as to punch list items described in Section 6(a) above.
Tenant and its agents shall have no right to make any alteration in the Lower
Level Expansion Space until Tenant submits such written notice. Landlord will
correct and complete those defects and incomplete items described in such notice
which Landlord confirms, in its reasonable judgment, are in fact defects or
incomplete items. At Landlord's request, Tenant shall accompany Landlord to
prepare the punch list on or before the date Tenant takes possession of the
Lower Level Expansion Space.


<PAGE>

                                   EXHIBIT C

                                   SCHEDULE I

                         LOWER LEVEL TENANT IMPROVEMENTS


I. TENANT FITUP (CAPITAL COSTS)

         A.       Demolition

                  1.       Demolish all unwanted non-bearing interior partition
                           walls pursuant to Tenant's plans.

                  2.       Remove existing wallhung fixtures, paneling or
                           finishes as required to provide surface suitable for
                           new finish.

                  3.       Modify the existing HVAC system if required pursuant
                           to Tenant's plans (as approved by Landlord).

         B. HVAC

                  1.       Place base HVAC in good working order, including new
                           belts, Freon, oil and parts as required (at
                           Landlord's sole cost and expense).

                  2.       Rework the existing HVAC distribution system and add
                           to it based on the Tenant's floor plan (including
                           registers and grills) utilizing the existing HVAC
                           unit.

                  3.       Modify the existing HVAC system if required pursuant
                           to Tenant's plans (as approved by Landlord).

         C.       Plumbing

                  1.       Installation of additional new sprinkler heads per
                           code based on Tenant's plans.

         D.       Electrical

<PAGE>

                  1.       Installation of 20 new 2 x 4 fluorescent lay-in light
                           fixtures with parabolic lens based on 1 per 100
                           square feet +/-.


                  2.       Installation of track or specialty lighting, if any,
                           per Tenant's plans.

                  3.       Installation of the emergency and exit lighting based
                           on Tenant's plans.

                  4.       [Intentionally Omitted.]

                  5.       Installation of 110-volt wall duplex outlets per
                           Tenant's specifc plans and requirements.

         E.       Interior Fit Out

                  1.       Patch and repair existing walls, suitable for new
                           finishes.

                  2.       Installation of new wall paint finishes.

                  3.       Installation of new floor finishes (including all
                           flash patching).

                  4.       Installation of interior partitions to either the
                           deck or the underside of ceiling, including drywall,
                           taped, spackled and ready for finish based on
                           Tenant's plans.

                  5.       Installation of single interior door frame and
                           hardware in new partition walls based on Tenant's
                           plans.

                  6.       Installation of specialty ceiling system, if any,
                           based on Tenant's plans.

                  7.       Replace damaged acoustical ceiling tiles and metal
                           grid.

II. SIGNAGE

                  1.       Installation of new lobby directory sign panel
                           pursuant to Landlord's sole and absolute discretion.
<PAGE>

III. A&E

                  1.       Provide architectural/engineering documents for the
                           Lower Level Tenant Improvements.

                  2.       Provide design development drawings, including all
                           details, sufficient for Landlord to prepare
                           construction documents.

                  3.       Secure required permits, including payments of all
                           fees, as required by applicable jurisdictions and
                           codes for the Lower Level Tenant Improvements
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10.6
<SEQUENCE>21
<FILENAME>ex10-6_14663.txt
<DESCRIPTION>LEASE AGREEMENT DATED 12-06-2004
<TEXT>
                                                                    EXHIBIT 10.6
                                                                    ------------

                                      LEASE

         1. CAMERON-ELMWOOD REALTY, LLC, a Massachusetts corporation ("LESSOR"),
which expression shall include its successors and assigns where the context so
admits, does hereby lease to NEW TILT, INC, a Delaware corporation with a
principal place of business at 48 Grove Street, Somerville, Massachusetts
("LESSEE"), which expression shall include its successors, heirs, nominees and
assigns where the context so admits, and the LESSEE hereby leases the PREMISES.

         2. PREMISES: 5,000 rentable square feet of space (the "PREMISES") in
the Building known as 36-38 Cameron Avenue, Cambridge and 87 Elmwood Street,
Somerville, both in Massachusetts (together, the `Building"), together with
nonexclusive access thereto over the land on which the Building is located
(together with the Building, the "Property"), as more particularly shown on
Exhibit "A" attached hereto and made a part hereof, including the exclusive use
of nine (9) parking spaces in the parking lot shown on said Exhibit A (the
"Lot"), as designated from time to time by LESSOR, which parking spaces shall be
at no additional cost to LESSEE. LESSEE's use of the Lot shall be subject to the
right of the LESSOR to reasonably restrict parking during repair, maintenance
and restriping work affecting the parking area and during snowplowing
operations, and to reasonably and temporarily designate the use of one (1)
parking space for snow storage.

         3. TERM: The term of this Lease shall be three (3) years, commencing
March 6, 2006 and terminating on March 5, 2009.

         LESSOR hereby acknowledges that LESSEE has entered into a sublease
between LESSEE, as subtenant, and ALZHEIMER'S DISEASE and RELATED DISORDERS
ASSOC TION OF EASTERN MASSACHUSETTS, INC., as sublandlord (the "Sublandlord")
dated [December] 2004 (the "Sublease"), pursuant to which LESSEE has leased the
PREMISES from Sublandlord. Notwithstanding anything to the contrary contained
herein, (i) execution of this Lease shall not be considered LESSOR's consent to
the Sublease, (ii) all of LESSEE's rights and obligations hereunder are
expressly contingent on the Sublease being executed between Sublandlord and
LESSEE and on LESSOR consenting to such Sublease, and (iii) if said Sublease is
not executed by LESSEE and Sublandlord on or before December 31, 2004 and
original executed copies of same provided to LESSOR, this Lease shall be null
and void, and otherwise, this Lease shall be in full force and effect.

         In the event LESSOR permits LESSEE, or any agent, employee or
contractor of LESSEE, to enter, use or occupy the Premises prior to the
commencement of the term of the Sublease, such entry, use or occupancy shall be
subject to all the provisions of this Lease other than the payment of rent,
including, without limitation, LESSEE's compliance with the insurance
requirements of Article 16.
<PAGE>

         4. BASE RENT: For the term of the lease, the LESSEE shall pay to the
LESSOR monthly in advance, without setoff prior demands, or deductions, base
rent as follows:

- ------------------------ ------------------ ------------------ -----------------
                                            MONTHLY BASE RENT  ANNUAL BASE RENT
- ------------------------ ------------------ ------------------ -----------------
(i)                      First Lease Year   $7,812.50          $ 93,750.00
- ------------------------ ------------------ ------------------ -----------------
(ii)                     Second Lease Year  $8,229.16          $ 98,750.00
- ------------------------ ------------------ ------------------ -----------------
(iii)                    Third Lease Year   $9,062.50          $108,750.00
- ------------------------ ------------------ ------------------ -----------------

Notwithstanding the above, the first month's rent shall be paid upon execution
of this Lease.

         5. RENT ADJUSTMENTS:

         (A) LESSEE hereby acknowledges that LESSEE is responsible for its
proportionate share of any and all Operating Expenses arising with respect to
the Property in excess of the Operating Expenses Base and all Tax Expenses in
excess of the Tax Base in the manner hereinafter set forth (as such terms are
hereinafter defined). Accordingly, the LESSEE shall pay to the LESSOR as
additional rent 33% ('LESSEE's Share") of all excess Operating Expenses and
excess Tax Expenses incurred by LESSOR annually for the Property of which the
leased PREMISES are a part. The parties acknowledge and agree that the
percentage representing LESSEE's Share will be adjusted on a pro rata basis if,
as and when the total rentable square footage of the Building or the PREMISES
changes during the Term.

         (B)      (i) The LESSEE shall pay to the LESSOR as additional rent
LESSEE's Share of all real estate taxes, betterment charges, water and sewer
charges, and any other charges levied against the land and building of which the
leased PREMISES are a part, due and payable in each year (together "Tax
Expenses") which are in excess of the Tax Base.

                  (ii) Such additional rent shall be due on the first day of
each calendar month based upon LESSOR's reasonable estimate of one-twelfth
(1/12th) of the annual Tax Expenses in excess of the Tax Base. As and when
actual real estate tax bills are issued by the City of Cambridge and City of
Somerville LESSOR shall provide to LESSEE a statement setting forth the Tax
Expenses and LESSEE's proportionate share of the amount thereof in excess of the
Tax Base. Based upon such bills, there shall be an adjustment of the monthly
sums due based upon the actual tax bill and the amounts previously paid by
LESSEE.

                  (iii) The Tax Base shall be deemed to be the Real Estate Taxes
for fiscal year 2005, (July 1, 2004 through June 30, 2005) as finally determined
(i.e. assessed as the same may be adjusted by any abatement granted).

                                     - 2 -
<PAGE>


         (C)      (i) LESSEE shall also pay to LESSOR as additional rent
LESSEE's Share of the amount of any and all additional costs and expenses
related to the operation and maintenance of the land and Building of which the
PREMISES are a part, which are in excess of the "Operating Expense Base" (as
hereinafter defined), including annual costs of casualty, liability, rent loss,
and other insurance; betterment assessments; utilities not paid directly by
LESSEE as described in Paragraph 6; maintenance, repairs, cleaning and
reasonably necessary replacement of the Building and common elements thereof,
including reasonable amortized (over their useful life, as reasonably determined
by LESSOR) capital repairs and replacements with a reasonable interest factor
which are correctly characterized for accounting purposes as "capital" (but
excluding capital expenditures for improvements unless designed to comply with
legal requirements or to improve the operating efficiency of the Building);
air-conditioning and heating maintenance costs; waste disposal; snow removal and
landscaping; security, safety and alarm services; parking lot and driveway
restriping; reasonable material costs; reasonable equipment costs including the
costs of maintenance, repair and service agreements; reasonable tool costs;
costs of necessary licenses, permits and inspection fees; wages and salaries
allocable to the Building; employee benefits and payroll taxes allocable to the
Building; accounting fees; management and administrative fees (so long as such
fees are consistent with management and administrative fees charged in the
Boston area for similar buildings), and any and all other reasonable operating
expenses for the Property, subject to the provisions of subsection (ii) below
(together "Operating Expenses"). Such additional rent shall be due monthly,
payable in advance on the first day of each month based upon LESSOR's reasonable
estimate of annual Operating Expenses. Within 120 days of the end of each
calendar year, LESSOR shall provide LESSEE with a final accounting of Operating
Expenses for such year, which final accounting shall be accompanied by a
statement of Operating Costs for the Calendar Year for which LESSOR's notice
applies. If the amount of additional rent for each calendar year shall be based
upon LESSOR's reasonable estimate thereof, such estimate maybe adjusted by
LESSOR from time to time based upon more current information. Year-end
adjustments shall be made accordingly after the end of each Calendar Year as
aforesaid or the end of the Lease Term as appropriate when the final statement
of costs and expenses for each Calendar Year is available. If, during any
portion of a calendar year for which operating expenses are being computed
(including 2005 for computing the Operating Expense Base) pursuant to this
Section, less than the entire rentable area of the Building is occupied or
LESSOR is not supplying all occupants with the same services being supplied
hereunder, such costs and expenses shall be reasonably extrapolated in order to.
take into account the costs and expenses which would have been incurred had the
entire rentable area of the Building been occupied and had such services been
supplied to all occupants. LESSEE's Share of Operating Expenses for any portion
of the Term that is not a full Calendar Year shall be on a pro rata basis except
for those expenses which are expressly and identifiably specific to the time
period included in the Term, which shall be allocated to the Term.

                  (ii) Notwithstanding the foregoing, Operating Expenses shall
not include the following: (a) the cost of repairs or replacements (i) resulting
from casualty losses or eminent domain takings (other than the amount of any
deductible), (ii)

                                     - 3 -
<PAGE>

correcting defects in design or construction of the Building, or (iii) for
interior and exterior capital improvements to the roof and exterior walls of
Buildings (except that repointing of the bricks of #36 Cameron Ave. once during
the Term shall be included in Operating Expenses); (b) costs incurred due to
violation by LESSOR or other tenants of the Building of the terms and conditions
of any lease for space in the Building; (c) depreciation or amortization of the
Building or any part thereof (d) replacement or contingency reserves; (e) ground
lease rents or payment of any debt or equity obligations; (f) legal and other
professional fees relating to negotiations with or eviction of tenants, leasing,
financing or other services not related to the normal operation, maintenance,
cleaning, repair and protection of the Property; (g) brokerage fees and
commissions; (h) any expenses for which LESSOR is reimbursed (either by a
tenant, insurer, condemnor or other person or entity), but only to the extent of
such reimbursement, including the cost of special services rendered to Building
tenants which are directly chargeable to such tenants; (i) expenses for
renovating tenant space for the sole benefit of a particular tenant; (j)
executive salaries; (k) mortgage financing charges; (1) any ground lease rental
or financing costs (including debt service) for the Property, fines or costs due
to violations of law, unless such fines or costs are caused by LESSEE's acts or
omissions; (m) costs incurred for marketing expenses and real estate broker
commissions; or (n) LESSOR's legal fees and costs, provided, however, that
LESSEE shall be responsible for legal fees and costs incurred by LESSOR as
otherwise provided under this Lease Operating Expenses shall be reduced by the
amount of any proceeds, awards, payments, guarantees, credits, reimbursements or
other savings, including operational savings, which LESSOR actually receives and
which are applicable to Operating Expenses, less the cost reasonably incurred in
recovering such amount.

                  (iii) The "Operating Expense Base" shall be deemed to mean the
actual operating expenses for the Property for calendar year 2005 (as reasonably
extrapolated by LESSOR in order to take into account the costs and expenses
which would have been incurred had the entire rentable area of the Building been
occupied.

         6.       (a) SERVICES AND UTILITIES: LESSOR shall provide access to the
Building's utilities (together, the "Utilities"), including but not limited to
electricity, gas, heat and air conditioning, water and sewer to the PREMISES and
the hallways and stairways serving the PREMISES during normal business hours on
regular business days of the heating and cooling seasons of each year, and
LESSOR agrees to light passageways and stairways appurtenant to the PREMISES if
any, during such business hours as is customary in similar buildings in the city
or town in which the Property is located. LESSOR shall in no event be
responsible for interruptions due to an accident, to the making of repairs,
alterations or improvements, to labor difficulties, to trouble in obtaining
fuel, electricity, service, or supplies from the sources from which they are
usually obtained for said building, or to any cause beyond the LESSOR's control.
Notwithstanding anything to the contrary contained herein, LESSEE shall have the
right to terminate this Lease if any such interruption continues for more than
one hundred twenty (120) days. LESSOR shall provide to the common areas
cleaning,. repairs and maintenance, restroom supplies, lighting, HVAC and
janitorial services for which

                                     - 4 -
<PAGE>

LESSEE shall pay its LESSEE Share of the cost thereof as provided in Paragraph
5(c) hereof.

                  (b) Upon LESSEE's request, LESSOR shall furnish the same
Utilities and related equipment used during normal business hours to the
PREMISES, the hallways and stairways serving the PREMISES during non-normal
business hours and on non-normal business days. If any such Utilities are not
separately metered for the PREMISES, LESSEE shall pay for same at a cost
reasonably established from time to time by LESSOR.

         The LESSEE shall pay directly to the utility supplying such services
all Utility costs invoiced for or relating to the PREMISES and arising during
the Term. Such charges shall include any Utility taxes (for example water and
sewer taxes) and access charges (i.e., electric hookup or linkage charges)
charged relative to Utilities used on the PREMISES. In the event any such
charges relating to the PREMISES or Common Areas are billed to LESSOR, the
LESSEE shall pay to LESSOR the portion thereof directly attributable to the
PREMISES or, if such charges are grouped together for the Building as a whole,
the LESSEE's Share thereof as additional rent. Such additional rent shall be due
and payable to LESSOR within ten (10) days of written notice by LESSOR of the
amount of said additional rent. Said amount shall be calculated using LESSEE's
Share of the Building or, less than the entire building, LESSEE's reasonable pro
rata share of the metered area that includes the PREMISES. Upon request of
LESSEE, LESSOR shall provide LESSEE with copies of any invoices received from
such utilities.

         7. USE OF LEASED PREMISES; The LESSEE shall use the leased PREMISES for
the purpose of general office use, as defined in the City of Cambridge Zoning
Ordinance. LESSEE shall not do, permit or suffer in, on, or about the Premises
the sale of any alcoholic liquor without the written consent of LESSOR first
obtained.

         LESSEE shall not, and shall not direct, suffer or permit any of its
agents, contractors, employees, licensees or invitees (collectively, the "LESSEE
Entities") to at any time handle, use, manufacture, store or dispose of in or
about the Premises or the Building any (collectively "Hazardous Materials")
flammables, explosives, radioactive materials, hazardous wastes or materials,
toxic wastes or materials, or other similar substances, petroleum products or
derivatives or any substance subject to regulation by or under any federal,
state and local laws and ordinances relating to the protection of the
environment or the keeping, use or disposition of environmentally hazardous
materials, substances, or wastes, presently in effect or hereafter adopted, all
amendments to any of them, and all rules and regulations issued pursuant to any
of such laws or ordinances (collectively `Environmental Laws"), nor shall LESSEE
suffer or permit any Hazardous Materials to be used in any manner not fully in
compliance with all Environmental Laws, in the Premises or the Building and
appurtenant land or allow the environment to become contaminated with any
Hazardous Materials. Notwithstanding the foregoing, LESSEE may handle, store,
use or dispose of products containing standard quantities of Hazardous

                                     - 5 -
<PAGE>

Materials (such as aerosol cans containing insecticides, toner for copiers,
paints, paint remover, cleaning materials and solvents commonly used in offices
in the Boston, Massachusetts area, and the like) to the extent customary and
necessary for the use of the Premises for general office purposes; provided that
LESSEE shall always handle, store, use, and dispose of any such Hazardous
Materials in a safe and lawful manner and never allow such Hazardous Materials
to contaminate the Premises, Building and appurtenant land or the environment.
LESSEE shall protect, defend, indemnify and hold each and all of the LESSOR its
agents or employees, harmless from and against any and all loss, claims,
liability or costs (including court costs and attorney's fees) incurred by
reason of any actual failure of LESSEE to fully comply with all applicable
Environmental Laws, or the presence, handling, use or disposition in or from the
Premises of any Hazardous Materials by LESSEE or any LESSEE Entity (even though
permissible under all applicable Environmental Laws or the provisions of this
Lease), or by reason of any actual failure of LESSEE to keep, observe, or
perform any provision of this Section 7.

         8. COMPLIANCE WITH LAWS: The LESSEE acknowledges that no trade or
occupation shall be conducted in the leased PREMISES or use made thereof which
will be unlawful, improper, noisy or offensive as more fully referenced in the
Rules and Regulations attached hereto, or contrary to any law or any municipal
by-law or ordinance in force in the city or town in which the PREMISES are
situated.

         9. FIRE INSURANCE: The LESSEE shall not permit any use of the leased
PREMISES which will make voidable any insurance on the Property of which the
leased PREMISES are a part, or on the contents of said property or which shall
be contrary to any law or regulation from time to time established by the New
England Fire Insurance Rating Association, or any similar body succeeding to its
powers.

         10. MAINTENANCE OF PREMISES: The LESSEE agrees to maintain at its own
expense the leased PREMISES in the same condition as they are at the
commencement of the term or as they may be put in during the term of this Lease,
reasonable wear and tear, damage by fire and other casualty only excepted, and
whenever necessary, to replace plate glass whole if damaged. The LESSEE shall
not permit the leased PREMISES to be overloaded, damaged, stripped or defaced,
nor suffer any waste nor will LESSEE engage in any yard sales or "going out of
business sales" at the PREMISES. LESSEE shall obtain written consent of LESSOR
before erecting any sign on the PREMISES.

         LESSEE shall be responsible, at its own cost and expense, for
reasonable cleaning services to the Premises.

         The LESSOR agrees to arrange for any structural repairs necessary to
the Building and to fix roof leaks. The costs of such repairs shall only be
considered Operating Expenses to the extent permitted by Section 5(c) hereof,
except that LESSEE shall be responsible for the costs thereof if the repairs are
due to LESSEE's negligent acts

                                     - 6 -
<PAGE>

or omissions. The LESSOR agrees as an Operating Expense to maintain, repair and
clean all common areas including common bath rooms, and to provide a common
dumpster on the Property for trash disposal.

         11. ALTERATIONS - ADDITIONS: The LESSEE shall not make structural
alterations or additions to the leased PREMISES or alterations or repairs to the
Building Systems (such as HVAC, plumbing and electrical systems), but may make
non-structural alterations provided the LESSOR consents thereto in writing,
which consent shall not be unreasonably withheld, conditioned or delayed,
provided the quality of the alteration is equal to or better than the
improvements previously existing. No wiring may be affixed to sprinkler pipes in
the Building.

         Notwithstanding the foregoing, LESSEE may make alterations to the
Premises without LESSOR's consent, which shall not be unreasonably withheld,
conditioned or delayed, provided (i) the quality of the alteration is equal to
or better than the improvements previously existing; (ii) the aggregate cost of
all alterations not consented to by LESSOR in any two (2) month period are less
$5,000, (iii) the alterations do not involve or effect the Building Structure or
systems (such as, but not limited to HVAC, and plumbing and electrical) and (iv)
such alterations do not involve attachments to the wall, except for pictures,
paintings, clocks and other items commonly hung on the walls of offices in the
Boston, Massachusetts area. All such allowed alterations shall be at LESSEE's
expense and shall be in quality at least equal to the present construction and
in compliance with all applicable laws. For any alterations requiring LESSOR
consent, LESSEE shall use only contractors and mechanics approved by LESSOR and
shall not proceed until LESSOR has approved LESSEE's plans for the alterations,
which plans shall be in reasonable detail. LESSEE shall not permit any
mechanics' liens, or similar liens, to remain upon the leased PREMISES for labor
and material furnished to LESSEE or claimed to have been furnished to LESSEE in
connection with work of any character performed or claimed to have been
performed at the direction of LESSEE and shall cause any such lien to be
released of record forthwith without cost to LESSOR. Any alterations or
improvements made by the LESSEE and affixed to the PREMISES shall become the
property of the LESSOR at the termination of occupancy as provided herein.

         12. ASSIGNMENT - SUBLEASING: LESSEE shall not have the right to assign
or pledge this Lease or to sublet the whole or any part of the Premises whether
voluntarily or by operation of law, or permit the use or occupancy of the
Premises by anyone other than LESSEE, and shall not make, suffer or permit such
assignment, subleasing or occupancy without the prior written consent of LESSOR,
such consent not to be unreasonably withheld, conditioned or delayed, and said
restrictions shall be binding upon any and all assignees of the Lease and
subtenants of the Premises. If LESSOR elects to grant such consent, LESSEE shall
remain liable to LESSOR for the payment of all rent and for the full performance
of the covenants and conditions of this Lease.

                                     - 7 -
<PAGE>

         In connection with any request by LESSEE for consent to an assignment
or sublet, LESSEE shall submit to LESSOR, in writing, a statement containing the
name of the proposed assignee, subtenant or other third party, such information
as to its financial responsibility and standing as LESSOR may reasonably
require, and all of the terms and provisions upon which the proposed transaction
is to take place. If the rent received by LESSEE on account of a proposed
assignment or sublease exceeds the Yearly Fixed Rent and Additional Rent,
allocated to the space subject to any such sublease in the proportion of the
area of such space to the area of the entire leased Premises, plus actual out
of-pocket expenses incurred by LESSEE in connection therewith, including
brokerage commissions and the cost of preparing such space for occupancy, LESSEE
shall pay to LESSOR one hundred percent (100%) of such excess, monthly as
received by LESSEE.

         LESSEE shall reimburse LESSOR promptly, as Additional Rent, for
reasonable legal and other expenses incurred by LESSOR in connection with any
request by LESSEE for any consent required under the provisions of this Article.

         The listing of any name other than that of LESSEE, whether on the doors
of the leased Premises or on the Building directory, or otherwise, shall not
operate to vest any right or interest in this Lease or in the leased Premises or
be deemed to be the written consent of LESSOR mentioned in this Article, it
being expressly understood that any such listing is a privilege extended by
LESSOR revocable at will by written notice to LESSEE.

         If this Lease be assigned, or if the leased Premises or any part
thereof be sublet or occupied by anybody other than LESSEE, LESSOR may at any
time and from time to time, collect rent and other charges from the assignee,
subtenant or occupant, and apply the net amount collected to the Rent and other
charges herein reserved, but no such collection shall be deemed a waiver of this
covenant, or the acceptance of the assignee, subtenant or occupant as a tenant,
or a release of LESSEE from the further performance by LESSEE of covenants on
the part of LESSEE herein contained. The consent by LESSOR to an assignment or
subletting or occupancy shall not in any way be construed to relieve LESSEE from
obtaining the express consent in writing of LESSOR to any further assignment or
subletting or occupancy. LESSEE shall remain fully and primarily liable for all
its obligations hereunder notwithstanding any assignment, subletting or
occupancy.

         In the event that LESSEE shall desire to enter into an assignment or
sublease to any party other than an Affiliate, then LESSEE shall give LESSOR
notice thereof and LESSOR may elect to recapture such space from LESSEE by
giving notice to LESSEE of such election not later than fifteen (15) days after
receiving notice of such sublease or assignment from LESSEE. In the event that
LESSOR shall not elect so to recapture such space for any reason, then LESSEE
may enter into such assignment or sublease within one hundred eighty (180) days
after LESSOR has elected not to recapture such space on terms and conditions not
materially more favorable to the assignee or subtenant than

                                     - 8 -
<PAGE>

those set forth in the notice to LESSOR. If LESSEE shall not so enter into such
assignment or, sublease, or if after LESSOR has elected not to recapture such
space, LESSEE shall alter the terms and conditions thereof to make them
materially more favorable as aforesaid, LESSEE shall again notify LESSOR and
LESSOR shall have an additional fifteen (15) days within which to elect to
recapture such space. In the event that LESSOR recaptures such space from
LESSEE, LESSOR and LESSEE shall execute an amendment terminating this Lease as
to that portion of the Premises which is recaptured by LESSOR, and such
termination shall be effective upon the execution of such amendment and the
vacating of such space in the condition required by Section 20 hereof by LESSEE
and LESSEE shall have no further liability for rent or other liabilities
accruing under the Lease for such recaptured space after the date of such
termination (but neither party shall be released from obligations to the other
existing as of the day preceding such termination).

         LESSOR shall not unreasonably withhold or delay its consent to a
subletting or assignment requested by LESSEE, provided that: (i) in LESSOR's
reasonable judgment, the business of the proposed subtenant or assignee or the
proposed use of the Premises will not adversely affect the reputation or image
of the Building (subleases or assignments for governmental uses, for medical or
dental offices or for health or fitness facilities being examples of businesses
or uses which may adversely affect the Building's reputation or image as a first
class office building); (ii) the total number of tenants (including LESSEE)
occupying any floor within the Premises at any one time shall not exceed three
(3), which number shall be prorated for partial floors; (iii) such sublease(s)
shall not, in the aggregate, cover more than 25% of the Rentable Area of the
Premises; (iv) the rent to be derived by such sublease or assignment is payable
monthly at a fixed rate or at a rate which is determinable from the terms of the
sublease or assignment and not based on the net or gross income or profits
derived by such subtenant assignee from the Premises;(v) the proposed subtenant
or assignee is a reputable party of financial worth and stability sufficient in
the LESSOR's sole and reasonable judgment to perform its obligations pursuant to
a sublease or assignment, and would not impose a greater load upon the Premises,
and the Building Services (such as janitorial and security services, if any)
than is imposed by LESSEE; (vi) the sublease or assignment agreement requires
payment of the rent and other amounts as required of LESSEE hereunder with
respect to the space being sublet or assigned which are in no event less than
that being offered by LESSOR for similar space in the Building under Leases then
being or recently negotiated; (vii) the proposed subtenant or assignee (nor any
person which, directly or indirectly controls, is controlled by, or is under
common control with, the proposed assignee and, or subtenant) is not then an
occupant of any part of the Building and within the prior six (6) months, has
not had negotiations with LESSOR to lease space in the Building; (viii) LESSEE
is not then in default of its obligations under the Lease and (ix) LESSOR has
been furnished with information sufficient to make a determination as to each of
the foregoing requirements. If LESSOR shall withhold such consent, it shall set
forth in writing the reasons therefor.

                                     - 9 -
<PAGE>

         13. SUBORDINATION AND ESTOPPELS: This lease shall be subject and
subordinate to any and all mortgages, deeds of trust and other instruments in
the nature of a mortgage, now or at any time hereafter, a lien or liens on the
Property of which the leased PREMISES are a part and the LESSEE shall, when
requested, promptly execute and deliver such written instruments as shall be
necessary to show the subordination of this Lease to said mortgages, deeds or
trust or other such instruments in the nature of a mortgage. The foregoing
subordination is expressly conditioned upon LESSEE hereby reserving the right to
continued occupancy of the PREMISES in accordance with the terms of this Lease
for so long as LESSEE is not in default hereunder. LESSEE shall attorn to any
mortgagee of LESSOR, and agrees to execute such further evidence of attornment
as said mortgagee may from time to time request. Such attornment shall not be
terminated by foreclosure by mortgagee, and said mortgagee may, at his option,
accept or reject such attornments. Within ninety (90) days of execution of this
Lease, LESSOR agrees to obtain a written subordination, nondisturbance and
attornment agreement from its present Lender which has the effect of Lender
agreeing to recognize LESSEE's tenancy in the event of foreclosure, provided
LESSEE pays any reasonable fees incurred by LESSOR in connection therewith.
LESSOR further agree to use reasonable efforts to obtain a similar such
agreement from any future lenders.

         LESSEE shall at any time and from time to time upon not less than ten
(10) days' prior notice by LESSOR or by a Mortgagee to LESSEE, execute,
acknowledge and deliver to the party making such request a statement in writing
certifying that this Lease is unmodified and in full force and effect (or if
there have been modifications, that the same is in full force and effect as
modified and stating the modifications), and the dates to which Rent has been
paid in advance, if any, and stating whether or not to the best knowledge of the
signer of such certificate LESSOR is in default in performance of any covenant,
agreement, term, provisions or condition contained in this Lease and, if so,
specifying each such default of which the signer may have knowledge, it being
intended that any such statement delivered pursuant hereto may be relied upon by
any prospective purchaser of any interest in the Property, any Mortgagee or
prospective Mortgagee, any prospective assignee of any Mortgage, or any other
party designated by LESSOR. The form of any such estoppel certificate requested
by a Mortgagee shall be satisfactory to such Mortgagee.

         14. LESSOR'S ACCESS: The LESSOR or agents of the LESSOR may, during the
last nine (9) months of the Term, at reasonable times and upon reasonable
advance notice, which notice may, for the purpose of this Paragraph 14 only, be
given orally if given to any full-time employee of LESSEE, enter to view the
leased PREMISES or to show the leased PREMISES to prospective tenants or
individuals involved in, or who may become involved in, renovating or renting
the PREMISES to prospective tenants and may affix to any suitable part of the
leased PREMISES a notice for letting or selling the leased PREMISES or property
of which the leased PREMISES are a part and keep the same so affixed without
hindrance or molestation. LESSOR may, without prior notice to LESSEE, enter the
PREMISES at any time for purposes of emergency repair of the PREMISES or the
Building. LESSOR may, upon reasonable

                                     - 10 -
<PAGE>

prior notice to LESSEE, which notice may, for the purpose of this Paragraph 14
only, be given orally if given to any full-time employee of LESSEE, enter the
PREMISES at reasonable times for purposes of maintenance of the PREMISES or any
portion of the Building. LESSOR shall use reasonable efforts to minimize
disturbance to LESSEE upon any such entry. LESSOR may remove placards and signs
in the PREMISES and the Building not approved and affixed as herein provided.

         15. INDEMNIFICATION AND LIABILITY: To the extent not covered by
insurance proceeds, the LESSEE shall save the LESSOR harmless from all claims,
loss, liability, costs, and damages of whatever nature arising from any event of
default by LESSEE under this Lease and from any accident, injury, death or
damage whatsoever to any person, or to the property of any person including all
loss and damage occasioned by fire or other casualty, by use or escape of water
or by bursting of pipes, or by any nuisance made or suffered on the leased
PREMISES to the extent of LESSEE's sole negligence or LESSEE's proportionate
share of any joint or concurrent negligence, unless such loss is solely caused
by an omission, fault, negligence or other misconduct of Lessor. The removal of
snow and ice from the sidewalks bordering upon the leased premises shall be
LESSOR's responsibility.

         16. LESSEE'S LIABILITY INSURANCE: The LESSEE shall maintain with
respect to the leased PREMISES and the Property, of which the leased PREMISES
are a part, comprehensive public liability insurance in combined single limit of
not less than the amount of $2,000,000, which amount shall be increased, from
time to time, to such higher amounts as may be reasonably required by LESSOR and
are customarily carried by responsible tenants in comparable premises in the
Greater Boston area, with property damage insurance in limits of $250,000, plus
insurance on the contents of the PREMISES in limits of $250,000 in responsible
companies qualified to do business in Massachusetts and in good standing therein
insuring the LESSOR as well as LESSEE against injury to persons or damage to
property and contents as provided. The LESSEE shall deposit with the LESSOR
certificates for such insurance at or prior to the commencement of the term, and
thereafter within thirty (30) days prior to the expiration of any such policies.
All such insurance certificates shall provide that such policies shall not be
canceled without at least ten (10) days prior written notice to each assured
named therein. LESSEE can have less insurance provided the amount is approved by
the LESSOR and a certificate is supplied.

         17. FIRE, CASUALTY - EMINENT DOMAIN: Should a substantial portion of
the leased PREMISES, or of the Property of which they are a part, be
substantially damaged by fire or other casualty, or be taken by eminent domain,
the LESSOR may elect to terminate the lease, in which event neither party shall
have any further rights or obligations hereunder, except as expressly set forth
herein. "Substantial" as used in the preceding sentence shall mean at least
twenty-five (25%) percent or any portion rendering the Premises unfit for
LESSEE's use. When such fire, casualty or taking renders the leased PREMISES
substantially unsuitable for their intended use, a

                                     - 11 -
<PAGE>

just and proportionate abatement of rent shall be made, and the LESSEE may elect
to terminate this Lease if:.

         (a) The LESSOR fails to give written notice within forty five (45) days
of intention to restore leased PREMISES or

         (b) The LESSOR fails to restore the leased PREMISES to a condition
substantially similar to the condition in which they were in immediately prior
to such fire, casualty or taking within one hundred twenty (120) days of said
fire, casualty or taking.

         The LESSOR reserves, and the LESSEE grants to the LESSOR, all awards to
which the LESSEE may be entitled for damages or injury to the leased PREMISES
for any taking by eminent domain, except for damage to the LESSEE's fixtures,
property or equipment and relocation expenses, provided the same is separately
designated by the taking award.

         18. DEFAULT AND BANKRUPTCY: In the event that:

         (a) The LESSEE shall default in the payment of any installment of rent
or other sum herein specified and such default shall continue for five (5) days
after written notice thereof; or

         (b) The LESSEE shall default in the observance of performance of any
other of the LESSEE's covenants, agreements or obligations hereunder and such
default shall not be corrected within thirty (30) days after written notice
thereof, or if such default cannot be cured within thirty (30) days, then if
LESSEE has not diligently commenced curing such default within such thirty (30)
day period, and shall not thereafter with diligence and good faith, proceed to
remedy or cure such default and shall cure such default within ninety (90) days
thereafter; or

         (c) The LESSEE shall be declared bankrupt or insolvent according to
law, or, if any assignment shall be made of LESSEE's property for the benefit of
creditors, then the LESSOR shall have the right thereafter, while such default
continues, to re-enter and take complete possession of the leased PREMISES, to
declare the term of this Lease ended, and remove the LESSEE's effects, without
prejudice to any remedies which might be otherwise used for arrears of rent or
other default. The LESSEE shall indemnify the LESSOR against all loss of rent
and other payments which the LESSOR may incur by reason of such termination
during the residue of the term. If the LESSEE shall default, after reasonable
notice thereof and the expiration of any applicable cure period, in the
observance or performance of any conditions or covenants on LESSEE's part to be
observed or performed, LESSOR, without being under any obligation to do so and
without thereby waiving such default, may remedy such default for the account
and at the expense of the LESSEE. If the LESSOR makes any expenditures or incurs
any

                                     - 12 -
<PAGE>

obligations for the payment of money in connection therewith, including but not
limited to, reasonable attorneys' fees in instituting, prosecuting or defending
any actions or proceeding, such sums paid or obligations insured, with interest
at the rate of higher of (i) the rate of twelve (12%) percent per annum or (ii)
the Prime Rate as published by the Wall Street Journal plus five (5%) percent
per annum, and costs, shall be paid to the LESSOR by the LESSEE as additional
rent, pursuant to Paragraph 5 herein.

         (d) Upon the termination of this Lease under the provisions of this
Article, LESSEE shall pay to LESSOR the Rent payable by LESSEE to LESSOR up to
the time of such termination, shall continue to be liable for any preceding
breach of covenant, and in addition, shall pay to LESSOR as damages, at the
election of LESSOR

         either:

                  (x) the amount by which, at the time of the termination of
this Lease (or at any time thereafter if LESSOR shall have initially elected
damages under Subparagraph (y), below), (i) the aggregate of the Rent projected
over the period commencing with such time and ending on the originally scheduled
Termination Date as stated in Article 1 exceeds (ii) the aggregate projected
rental value of the leased PREMISES for such period,

         or,

                  (y) amounts equal to the Rent which would have been payable by
LESSEE had this Lease not been so terminated, payable upon the due dates
therefor specified herein following such termination and until the originally
scheduled Termination Date as specified in Article 1, provided, however, if
LESSOR shall re let the Demised PREMISES during such period, that LESSOR shall
credit LESSEE with the net rents received by LESSOR from such re letting, such
net rents to be determined by first deducting from the gross rents as and when
received by LESSOR from such re letting the expenses incurred or paid by LESSOR
in terminating this Lease, as well as a pro rata portion of the expenses of
re-letting, including altering and preparing the Demised, PREMISES for new
LESSEE's, brokers' commissions, and all other similar and dissimilar expenses
properly chargeable against the Demised PREMISES and the rental therefrom, it
being understood that any such re-letting may be for a period equal to or
shorter or longer than the remaining term of this Lease; and provided, further,
that (i) in no event shall LESSEE be entitled to receive any excess of such net
rents over the sums payable by LESSEE to LESSOR hereunder and (ii) in no event
shall LESSEE be entitled in any suit for the collection of damages pursuant to
this Subparagraph (y) to a credit in respect of any net rents from a re letting
except to the extent that such net rents are actually received by LESSOR prior
to the commencement of such suit. If the Demised PREMISES or any part thereof
should be re-let in combination with other space, then proper apportionment on a
square foot area basis shall be made of the rent received from such re letting
and of the expenses of re letting.

                                     - 13 -
<PAGE>

         Notwithstanding anything to the contrary contained herein, in the event
of termination, LESSOR shall use reasonable efforts to promptly relet the
Premises and mitigate LESSEE's damages. In no event shall (i) LESSEE be entitled
to receive any excess of such net rents over the sums payable by LESSEE to
LESSOR hereunder and (ii) LESSEE be entitled in any suit for the collection of
damages pursuant to this Subparagraph (y) to a credit in respect of any net
rents from a re letting except to the extent that such net rents are actually
received by LESSOR prior to the commencement of such suit. If the leased
PREMISES or any part thereof should be re-let in combination with other space,
then proper apportionment on a square foot area basis shall be made of the rent
received from such re letting and of the expenses of re letting.

         Suit or suits for the recovery of such damages, or any installments
thereof may be brought by LESSOR from time to time at its election, and nothing
contained herein shall be deemed to require LESSOR to postpone Suit until the
date when the term of this Lease would have expired if it had not been
terminated hereunder.

         Nothing herein contained shall be construed as limiting or precluding
the recovery by LESSOR against LESSEE of any sums or damages to which, in
addition to the damages particularly provided above, LESSOR may lawfully be
entitled by reason of any default hereunder on the part of LESSEE.

         (e) If LESSEE shall default in the performance of any covenant on
LESSEE's part to be performed as in this Lease contained, LESSOR may immediately
after the expiration of any applicable cure period, or at any time thereafter,
without notice, perform the same for the account of LESSEE. If LESSOR at any
time is compelled to pay or elects to pay any sum of money, or do any act which
will require the payment of any sum of money, by reason of the failure of LESSEE
to comply with any provision hereof, or if LESSOR is compelled to or does incur
any expense, including without limitation reasonable attorneys' fees, in
successfully prosecuting and/or defending any action or proceeding arising by
reason of any default of LESSEE hereunder, LESSEE shall on demand pay to LESSOR
by way of reimbursement the sum or sums so paid by LESSOR with all interest,
costs and damages. Without limiting the generality of the foregoing, in the
event that any Rent is in arrears, LESSEE shall pay, as Additional Rent, a
delinquency charge equal to two percent (2%) of the arrearage for each calendar
month (or fraction thereof during which it remains unpaid, provided, however,
that LESSOR agrees not to charge such a fee on the first occasion that Rent is
overdue during any twelve (12) month period during the Term provided the same is
paid within five (5) days of the expiration of the cure period therefor, as set
forth herein.

         (f) The specified remedies to which LESSOR may resort hereunder are
cumulative and are not intended to be exclusive of any remedies or means of
redress to which LESSOR may at any time be lawfully entitled, and LESSOR may
invoke any remedy (including without limitation the remedy of specific
performance) allowed at law or in equity as if specific remedies were not herein
provided for.

                                     - 14 -
<PAGE>

         19. NOTICE: Any notice from the LESSOR to the LESSEE relating to the
leased PREMISES or to the occupancy thereof, shall be deemed duly served, if
left at the leased PREMISES, or if sent by recognized overnight delivery service
such as Federal Express providing records of delivery or registered or certified
mail, return receipt requested, postage prepaid, addressed to the LESSEE. Any
notice from the LESSEE to the LESSOR relating to the leased PREMISES or to the
occupancy thereof, shall be deemed duly served if sent by recognized overnight
delivery service such as Federal Express providing records of delivery or
registered or certified mail, return receipt requested, postage prepaid,
addressed to the LESSOR at such address as the LESSOR may from time to time
advise in writing. All rent and notices shall be paid and sent to the LESSOR at:

         c/o Joshua Massey
         76 Town Farm Road
         Ipswich, MA 01938-1368

         or such other locations as LESSOR may designate from time to time in
         writing.

         20. SURRENDER: The LESSEE shall at the expiration or other termination
of this Lease remove all LESSEE's good and effects from the leased PREMISES
(including, without hereby limiting the generality of the foregoing, all signs
and lettering, affixed or painted by the LESSEE, either inside or outside the
leased PREMISES). LESSEE shall deliver to the LESSOR the leased PREMISES, and
all keys, locks thereto, and other fixtures connected therewith and all
alterations and additions made to or upon the leased PREMISES, in the same
condition as they were at the commencement of the term, or as they were put in
during the term hereof reasonable wear and tear and damage by fire or other
casualty only excepted. In the event of the LESSEE's failure to remove any of
LESSEE's property from the PREMISES, LESSOR is hereby authorized, without
liability to LESSEE for damage thereof, and at the sole risk of LESSEE, to
remove and store any of the property at LESSEE's expense, or to retain same
under LESSOR's control or, if LESSEE fails to remove such property after thirty
(30) days written notice from LESSOR, to sell at public or private sale, without
notice any or all of the property not so removed and to apply the net proceeds
of such sale to the payment of any sum due hereunder, or to destroy such
property.

         21. NON-SUBROGATION: Insofar as and to the extent that the following
provision may be effective without invalidating or making it impossible to
secure insurance coverage obtainable from responsible insurance companies doing
business in the locality in which the PREMISES are located: LESSOR and LESSEE
mutually agree that, with respect to any hazard which is covered by insurance
then being carried by them, respectively, the one carrying such insurance and
suffering such loss releases the other of and form any and all claims with
respect to such loss; and they further mutually agree that their respective
insurance companies shall have no right of subrogation against

                                     - 15 -
<PAGE>

the other on account thereof. In the event that extra premium is payable by
either party as a result of this provision, the other party shall reimburse the
party paying such premium the amount of such extra premium. If, at the request
of one party, this release and non-subrogation provision is waived, then the
obligation of reimbursement shall cease for such period of time as such waiver
shall be effective, but nothing contained in this paragraph shall derogate from
or otherwise affect releases elsewhere herein contained of either party for
claims.

         22. COVENANT OF QUIET ENJOYMENT: LESSEE, subject to the terms and
provisions of this Lease on payment of the rent and observing, keeping and
performing all of the terms and conditions of this Lease on its part to be
observed, kept and performed, shall lawfully, peaceably and quietly have, hold,
occupy and enjoy the demised PREMISES during the terms hereof without hindrance
or ejection by any persons lawfully claiming under LESSOR and its successors and
assigns. In addition, LESSEE specifically agrees to look solely to LESSOR's
interest in the PREMISES for recovery of any judgment from LESSOR, it being
specifically agreed that neither the LESSOR nor anyone claiming under the LESSOR
shall ever be personally liable for any such judgment. It is further understood
and agreed that with respect to any services to be furnished by LESSOR to
LESSEE, LESSOR shall in no event be liable for failure to furnish the same when
prevented from doing so by strike, lockout, breakdown, accident, order or
regulation of or by any governmental authority, or failure of supply, or
inability by the exercise of reasonable diligence to obtain supplies, parts, or
employees necessary to furnish such services, or because of war or other
emergency, or for any cause beyond the LESSOR's reasonable control, or for any
cause due to any act or neglect of the LESSEE or its servants, agents,
employees, licensees, or any person claiming by, through or under the LESSEE or
any termination for any reason of LESSOR's occupancy of the PREMISES from which
the service is being supplied by LESSOR, provided that LESSEE shall have the
right to terminate this Lease if any such interruption continues for more than
one hundred twenty (120) days.

         23. SECURITY DEPOSIT: LESSEE shall pay to LESSOR, simultaneously with
the execution of this Lease, a security deposit in the amount of Eighteen
Thousand One Hundred Twenty Five Dollars ($18,125.00), which sum LESSOR shall
hold throughout the Term of this Lease as security for the performance b y
LESSEE of all obligations on the part of LESSEE hereunder. LESSOR shall have the
right from time to time without prejudice to any other remedy LESSOR may have on
account t hereof, to apply such deposit, or any part thereof, to LESSOR'S
damages arising from, or to cure, any Default of LESSEE after the expiration of
any applicable cure period. If LESSOR shall so apply any or all of such deposit,
LESSEE shall immediately deposit with LESSOR the amount so applied to be held as
security hereunder and any failure on the part of LESSEE to so restore the
Security Deposit within five (5) business days of LESSOR'S demand therefor shall
constitute a Default of LESSEE under this Lease. There then existing no Default
of LESSEE, LESSOR shall return the deposit, or so much thereof as shall
theretofore not been applied in accordance with the terms of this Section
promptly to LESSEE on the expiration or earlier termination of the Term of this
Lease

                                     - 16 -
<PAGE>

and surrender of possession of the Premises by LESSEE to LESSOR at such time.
While LESSOR holds such deposit, LESSOR shall have no obligations to pay
interest on the same and shall have the right to commingle the same with
LESSOR'S other funds. If LESSOR conveys LESSOR'S interest under this Lease, the
deposit, or any part thereof not previously applied, may be turned over by
LESSOR to LESSOR'S grantee, and, if so turned over, LESSEE agrees to look solely
to such grantee for proper application of the deposit in accordance with the
terms of this Section and the return thereof in accordance therewith. The holder
of a mortgage shall not be responsible to LESSEE for the return or application
of any such deposit, whether or not it succeeds to the position of LESSOR
hereunder, unless such deposit shall have been received in hand by such holder.
LESSOR hereby represents and warrants that LESSOR shall properly transfer any
such deposit to LESSOR's successor in interest, if any, including, without
limitation, the holder of any mortgage who succeeds to the position of LESSOR
hereunder. The provisions of this Paragraph 24 shall survive the expiration or
early termination of the Lease.

         24. FINANCIAL STATEMENTS. LESSEE shall annually provide LESSOR with
LESSEE's financial statements (including a balance sheet, a profit and loss
statement and cash flow statement) certified as accurate by an officer of the
LESSEE within 90 days of the close of LESSEE's fiscal year.

         25. LESSOR WORK: LESSOR shall provide the following improvements to the
Premises: (i) repair or replace bent window blinds, (ii) repaint existing gypsum
wallboard existing color. LESSOR shall install building standard signage for
LESSEE on the Building's tenant directory and next to the 36 Cameron Avenue main
entrance. LESSOR shall be responsible for the costs of such improvements. LESSEE
agrees to take the Premises in their AS IS condition, except for the LESSOR's
Work.

         26. RULES AND REGULATIONS: Provided that such rules and regulations do
not materially diminish LESSEE's use and enjoyment of the Premises and are not
materially inconsistent with the terms hereof, LESSOR may impose from time to
time reasonable rules and regulations for the Building such as may be necessary
or desirable for the reputation, safety, care or appearance of the Property, or
the maintenance thereof or comfort of other tenants in the Building, and LESSEE
shall faithfully observe the same. LESSOR agrees to use reasonable efforts to
apply such rules and regulations in a non-discriminatory manner among the
various tenants in the Building. LESSOR shall not be liable to LESSEE for
violation of the same by other tenants of the Building, or persons having
business with them. The current Rules and Regulations are attached hereto as
Exhibit RR. Notwithstanding anything to the contrary contained herein or in the
Rules and Regulations, (i) LESSEE shall not be responsible for the compliance
with the Rules and Regulations of any other tenant or occupant of the Building,
and (ii) LESSEE shall be permitted pictures, paintings, clocks and other items
commonly hung on the walls of offices in the Boston, Massachusetts area in
accordance with Paragraph 11 hereof.

                                     - 17 -
<PAGE>

         27. PARKING. LESSEE hereby acknowledges that parking spaces at and near
the Building are at a premium and that parking by tenants (and their employees,
guests and other agents) of the Building on the public streets near the Building
is a serious problem in terms of relations with the residential neighbors of the
Building. Accordingly, the parties have negotiated the following provisions
relative to parking and acknowledge that compliance therewith is a material
element of the LESSEE's performance of its obligations under this Lease

         (a) LESSEE shall maintain and keep current and dependable information
on the mode and manner in which its employees arrive at work (i.e. both the
times and mode of transportation utilized by such workers). At such time as
LESSEE employs fourteen (14) or more employees or independent contractors at the
Building, such information shall be provided to LESSOR as and when requested by
LESSOR but, in any event, no less frequently than every six months. LESSOR and
LESSEE hereby agree that (i) LESSOR shall provide the nine (9) parking spaces in
the Lot for LESSEE's use, and (ii) LESSOR shall not object to LESSEE's employees
parking up to five (5) vehicles on the streets at any time.

         (b) At such time as fourteen (14) or more of LESSEE'S employees or
independent contractors on any particular day commute to work by driving. LESSEE
shall be responsible for obtaining, at a location other than at the Building,
off-street parking for every such employee in excess of fourteen (14) and for
insuring that such employees use such off-street parking and shall provide the
information described in (a) above to LESSOR

         (c) If LESSEE fails to comply fully with the provisions of subparagraph
(b) above, LESSOR may elect to (but shall not be required to) either (i) obtain
such off-street parking for such additional employees or independent contractors
upon terms reasonably acceptable to LESSEE in which event LESSEE shall insure
that such additional employees use such spaces and the cost thereof shall be
deemed additional rent owed by LESSEE to LESSOR on the first of each month
during the Term, or, (ii) charge LESSEE additional rent of $100 per month for
each parking space in the Lot used by LESSEE'S employees or independent
contractors in excess of fourteen (14) spaces (which additional rent shall then
be due on the first day of each month during the Term); and such latter sums (to
the extent in excess of LESSOR's actual costs) in that event will be used by
LESSOR, in its sole discretion, to foster local block relations (potentially
including but not limited to a block party, block beautification, or any other
idea chosen by LESSOR for the purpose of improving relations with the
neighborhood).

         (d) LESSEE also agrees to reasonably encourage use of transportation
alternatives by LESSEE's employees and to utilize, as available, whatever
programs reasonably would assist in encouraging employee use of such alternative
transportation, including, but not limited to, MBTA transit pass programs, at no
cost to LESSEE.

                                     - 18 -
<PAGE>

         28. LIMITATION OF LESSOR'S LIABILITY. None of the provisions of this
Lease shall cause LESSOR to be liable to LESSEE, or anyone claiming through or
on behalf of LESSEE, for any special, indirect or consequential damages:
including, without limitation, lost profits or revenues. In no event shall any
individual partner, officer, shareholder, trustee, beneficiary, director or
similar party, including, without limitation, LESSOR's managing agent, be liable
for the performance of or by LESSOR or LESSEE under this Lease or any amendment,
modification or agreement with respect to this Lease. LESSEE agrees to look
solely to LESSOR's interest in the Premises in connection with the enforcement
of LESSOR's obligations in this Lease or for recovery of any judgment from
LESSOR, it being agreed that LESSOR shall never be personally liable for any
judgment, or incidental or consequential damages sustained by LESSEE from
whatever cause. LESSEE agrees to look solely to LESSOR'S interest in the
Premises in connection with the enforcement of LESSOR's obligations in this
Lease or for recovery of any judgment from LESSOR, it being agreed that LESSOR
shall never be personally liable for any judgment, or incidental or
consequential damages sustained by LESSEE from whatever cause.

         29. SUCCESSORS AND ASSIGNS. The covenants and agreements herein
contained shall, subject to the provisions of this Lease, bind and inure to the
benefit of LESSOR, his successors and assigns, and LESSEE, and LESSEE's
successors and assigns, and no extension, modification or change in the terms of
this Lease effected with any successor, assignee or transferee shall cancel or
affect the obligations of the original LESSEE hereunder unless agreed to in
writing by LESSOR. The term "LESSOR" as used herein and throughout the Lease
shall mean only the owner or owners at the time in question of LESSOR's interest
in this Lease. Upon any transfer of such interest, from and after the date of
such transfer, LESSOR herein named (and in case of any subsequent transfers the
then transferor), shall be relieved of all liability for the performance or
observance of any agreement, conditions or obligations on the part of the LESSOR
contained in this Lease except for default by LESSOR prior to such transfer or
monies owed by LESSOR to LESSEE and which were not assigned to and repayment
thereof assumed by such transferee, provided that if any monies are in the hands
of LESSOR or the then transferor at the time of such transfer, and in which
LESSEE has an interest, shall be delivered to the transferee, then LESSEE shall
look only to such transferee for the return thereof.





                                     - 19 -
<PAGE>

         IN WITNESS WHEREOF, the LESSOR and LESSEE have hereunto executed this
document under seal on this 6th day of December, 2004.


- ------------------------------------- ------------------------------------------
LESSEE:                               LESSOR:


NEW TILT, INC                         CAMERON-ELMWOOD REALTY, LLC


By: /S/ MICHELLE CHAMBERS             By: /S/ JOSHUA MASSEY
    Name: Michelle Chambers           Name: Joshua Massey
    Its:  President                   Its:  Managing Member



- ------------------------------------- ------------------------------------------




Hereunto duly authorized


Exhibits. The following exhibits are attached hereto and made a part hereof:


A        Plan of leased Premises


RR -     Rules and Regulations




                                     - 20 -
<PAGE>


                                    Exhibit A


                             Plan of leased Premises


                                [picture omitted]
<PAGE>

                                   EXHIBIT RR

                              Rules and Regulations

         1. The sidewalks, entrances, passages, courts, vestibules, stairways,
corridors or halls of the Building shall not be obstructed or encumbered or used
for any purpose other than ingress and egress to and from the premises demised
to any tenant or occupant.

         2. No awnings or other projections shall be attached to the outside
walls or windows of the Building without the prior consent of Landlord. No
curtains, blinds, shades, or screens shall be attached or hung in, or used in
connection with, any window or door of the premises demised to any tenant or
occupant, projections, curtains, blinds, shades, screens, or other fixtures
permitted by Landlord must be of a quality type, design and color, and attached
in a manner, approved by Landlord.

         3. No sign, advertisement, object notice or other lettering shall be
exhibited, inscribed, painted or affixed on any part of the outside or inside of
the premises demised to any tenant or occupant of the Building without the prior
consent of Landlord. Interior signs on entrance or vestibule doors, walls or
directory tables, if any, shall be of a size, color and style approved by
Landlord.

         4. The sashes, sash doors, skylights, windows and doors that reflect or
admit light and air into the halls, passageways or other public places in the
Building shall not be covered or obstructed nor shall any bottles, parcels or
other articles be placed on any window sills.

         5. No show cases or other articles shall be put in front of or affixed
to any part of the exterior of the Building, nor placed in the halls, corridors,
vestibules or other pars of the Building.

         6. The water and wash closets and other plumbing fixtures shall not be
used for any purposes other than those for which they were constructed, and no
sweepings, rubbish, rags, or other substances shall be thrown therein.

         7. No tenant or occupant shall mark, paint drill into, or in any way
deface any part of the Building or the premises demised. No boring, cutting or
stringing of wires shall be permitted, except with the prior consent of the
Landlord, and as Landlord may direct. No tenant or occupant shall install any
resilient tile or similar floor covering in the premises demised to such tenant
or occupant except in a manner approved by Landlord.
<PAGE>

         8. No bicycles, vehicles or animals of any kind shall be brought into
or kept in or about the premises demised except that bicycles may be left at
such bicycle racks, if any, as may be erected from time to time. No cooking
shall be done or permitted in the Building by any tenant without the approval of
Landlord. Minor ancillary use of a microwave oven shall be permitted. No tenant
shall cause or permit any unusual or objectionable odors to emanate from the
premises demised to such tenant.

         9. No tenant shall make, or permit to be made, any unseemly or
disturbing noises or disturb or interfere with other tenants or occupants of the
Building whether by the use of any musical instrument, radio, television set or
other audio device, unmusical noise, whistling, singing, or in any other way.
Nothing shall be thrown out of any doors or windows.

         10. No additional locks or bolts of any kind shall be placed upon any
of the doors or windows, nor shall any changes be made in locks or the mechanism
thereof. Each tenant must, upon the termination of its tenancy, restore to
Landlord all keys of storerooms, offices and toilet rooms, either furnished to,
or otherwise procured by, such tenant.

         11. Each tenant shall, at its expense, provide artificial light in the
premises demised to such tenant for Landlord's agents, contractors, and
employees while making repairs or alterations in said premises.

         12. No premises shall be used, or permitted to be used, for lodging or
sleeping, or for any immoral or illegal purpose.

         13. There shall not be used in the Building, either by any tenant or
occupant or by their agents or contractors, in the delivery or receipt of
merchandise, freight or other matter, any hand trucks or other means of
conveyance except those equipped with rubber tires rubber side guards and such
other safeguards as Landlord may require.

         14. Canvassing, soliciting and peddling in the Building are prohibited
and each tenant and occupant shall cooperate in seeking their prevention.

         15. If the premises demised to any tenant becomes infested with vermin,
rodents, insects, or pests, such tenant, at its sole cost and expense, shall
cause its premises to be exterminated from time to time, to the satisfaction of
Landlord, and shall employ such exterminators therefore as shall be approved by
Landlord.

         16. Whether or not approval of Landlord is required under the lease,
tenants arranging for work in any portion of the Building will refer all
contractors, contractors' representatives and installation technicians rendering
any service to them to Landlord for
<PAGE>

Landlord's supervision and approval before the performance of any contractual
services. This provision shall apply to all work performed in the Building
including, but not limited to, installations of telephones, telegraph equipment,
electrical devices and attachments, and any and all installations of every
nature affecting floors, walls, woodwork, trim, windows, ceilings, equipment and
any other physical portion of the Building. Should a tenant require telegraphic,
telephonic, annunciator or other communication services, Landlord will direct
the electrician where and how wires are to be introduced and placed and none
shall be introduced or placed except as Landlord shall direct. Electric current
shall not be used for heating without Landlord's prior written permission.

         17. Any deliveries, removals or relocations of large bulky or
voluminous items, such as furniture, office machinery and equipment, etc., can
only be made after obtaining approval from the Landlord and at those times
specified by the Landlord. A tenant shall notify the Building manager when safes
or other heavy equipment are to be taken in or out of the Building, and the
moving shall be done under the supervision of the Building manager, after
written permission from Landlord. Persons employed to move such property must be
acceptable to Landlord. Landlord shall have the right, reasonably exercised, to
prescribe the weight and position of safes and other heavy equipment items,
which shall in all cases, to distribute weight, stand on supporting devices
approved by Landlord. Landlord hereby grants tenant's contractors reasonable
access to the premises for the provision of services to the premises for water
delivery other normal and customary services associated with the tenant's
permitted use.

         18. All movement referred to in the Paragraph above shall be under the
supervision of Landlord and in the manner agreed between the tenant and Landlord
by prearrangement before performance. Such prearrangement initiated by a tenant
will include determination by Landlord, and subject to Landlord's decision, as
to the time, method, and routing of movement and as to limitations for safety or
other concerns which may prohibit any article, equipment or any other item from
being brought into the Building. The tenants are to assume all risks and
indemnify and hold Landlord harmless, as to damage to articles moved and injury
to persons engaged or not engaged in such movement, including without limitation
equipment, property and personnel of Landlord if damaged or injured as a result
of acts in connection with carrying out this services for a tenant from the time
of entering the property to completion of work, and Landlord shall not be liable
for and the tenant shall indemnify and hold harmless Landlord from and against,
act of any person engaged in, or any damage or loss to any of said property or
persons resulting from, any act in connection with such service performed for a
tenant unless caused by Landlord's willful act or omission. All damages done to
the Building by the installation or removal of any property of a tenant, or done
by a tenant's property while in the Building, shall be repaired at the expense
of such tenant.

         19. Each tenant shall keep its premises neat and clean. Landlord shall
be in no way responsible to the tenants, their agents, employees or invitees for
any loss of
<PAGE>

property from their premises or public areas or for any damages to any property
thereon from any cause whatsoever unless caused by Landlord's willful act or
omission.

         20. Nothing shall be swept or thrown into the corridors, halls, or
stairways. No birds or animals shall be brought into or kept in, on or about the
Building.

         21. No machinery of any kind other than standard office equipment shall
be operated by a tenant on its leased premises without the prior written consent
of Landlord which consent shall not be unreasonably withheld or delayed.

         22. Tenants shall not do anything, or permit anything to be done, in or
on about the Building, or bring or keep anything therein, including without
limitation any inflammable or explosive fluid or substance, that will in any way
increase the possibility of fire or other casualty, or do anything in conflict
with valid laws, rules or regulations of any governmental authority.

         23. Landlord reserves the right to rescind any of these rules and
regulations and to make such other and further rules and regulations as in its
judgment shall from time to time be needful for the safety, protection, care and
cleanliness of the Building, the operation thereof, the preservation of good
order therein and the protection and comfort of the tenants and their agents,
employees and invitees, which rules and regulations, when made and written
notice thereof is given to a tenant, shall be binding upon it in like manner as
if originally herein prescribed.
<PAGE>

                               CLERK'S CERTIFICATE
                               -------------------

         I, MICHELLE CHAMBERS, do hereby certify that I am the Clerk of New Tilt
Inc. (the "Corporation), a Delaware corporation with its principal place of
business in Somerville, Massachusetts, and that I have been duly elected and am
presently serving in that capacity in accordance with the Bylaws of the
Corporation.

         I further certify that by unanimous written consent of the directors of
the Corporation, votes in the form of Rider A attached hereto were duly adopted
by all present at a meeting of said directors duly called and as to which notice
was duly given as required by law and the By-laws of the Corporation. The votes
as specified are presently in full force and effect and have not been revoked or
rescinded as of the date hereof.

         I further certify that as of this date the following is the current
duly elected and acting officer of the Corporation who is authorized pursuant to
the attached votes.


                          Michelle Chambers:            President
                          ------------------            ---------
                          Name                          Title






         IN WITNESS WHEREOF, I have hereunto set my hand and the seal of the
Corporation this 6th day of December, 2004.


                          /S/ MICHELLE CHAMBERS
                          -----------------------------------
                          Michelle Chambers, Clerk





         [CORPORATE SEAL]
<PAGE>

                                     RIDER A
                                     -------


VOTED:   That the Corporation be authorized on the signature of its President,
         Michelle Chambers, to enter into a leasing arrangement with
         CAMERON-ELMWOOD REALTY, LLC, a Massachusetts limited liability company
         (the "LESSOR") in respect of the Building known as and numbered 36
         Cameron Avenue, Cambridge, Massachusetts, as evidenced by a lease (the
         "Lease") for same.


VOTED:   That the Lease in the form submitted by the LESSOR be and is hereby
         approved, and that the named President is hereby authorized to execute,
         seal, and deliver such document on behalf of the Corporation with such
         changes therein as such officer so acting may deem necessary or
         desirable, the execution and delivery thereof to be conclusive evidence
         that the same have been separately authorized by the Directors of the
         Corporation.


VOTED:   That the President of the Corporation is hereby authorized to execute
         and deliver such other documents, instruments, and certificates and to
         do such other acts as may be necessary or desirable to consummate the
         leasing arrangement approved above, the execution and delivery thereof
         or the doing of any such act to be the conclusive evidence that such
         has been separately approved by the Directors of the Corporation.
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10.7
<SEQUENCE>22
<FILENAME>ex10-7_14663.txt
<DESCRIPTION>MASSIE EMPLOYMENT AGREEMENT DATED 10-01-2001
<TEXT>
                                                                    EXHIBIT 10.7
                                                                    ------------
                               EMPLOYMENT CONTRACT
                               -------------------

This Employment Agreement, effective as of October 1, 2001, is made between
BRIDGELINE Software, Inc., a Delaware corporation (hereinafter referred to as
"Employer"), and THOMAS L. MASSIE (hereinafter referred to as "Employee").

In Consideration of the mutual promises made herein, Employer and Employee agree
as follows:

                                    ARTICLE 1
                               TERM OF EMPLOYMENT

                                SPECIFIED PERIOD

SECTION 1.1

Employer hereby employs Employee, and Employee hereby accepts employment with
Employer for a period of three (3) years beginning as of the effective date of
this Agreement.

                               AUTOMATIC EXTENSION

SECTION 1.2

This Agreement shall be automatically extended for a further day, without
written amendment, on each and every day after October 1, 2001 so that is always
effective for a period of three (3) years, subject to earlier termination as
provided in Section 6.1.

                            "EMPLOYMENT TERM" DEFINED

SECTION 1.3

As used herein, the phrase "employment term" refers to entire period of
employment of Employee by Employer hereunder, whether for the periods provided
above, or whether terminated earlier as hereinafter provided or extended by
mutual agreement between Employer and Employee.


Page 1
                                --------        --------        --------
                                Employee        Employer        Employer
<PAGE>

                                    ARTICLE 2
                       DUTIES AND OBLIGATIONS OF EMPLOYEE

                                 GENERAL DUTIES

SECTION 2.1

Employee shall serve as Chief Executive Officer, President, and Member of the
Board of Directors of Employer and any of its wholly owned subsidiaries. In such
capacity, Employee shall perform general and active supervision of the affairs,
business, offices and employees of the Employer and do and perform all other
services, acts or things in accordance with the bylaws of the Employer and the
policies heretofore and hereinafter set by Employer's Board of Directors. The
Employee shall perform such services at 130 New Boston Street, Woburn,
Massachusetts, or at such other location within thirty (30) miles of said
address as may be designated by Employer.

                         DEVOTION TO EMPLOYER'S BUSINESS

SECTION 2.2

   (a)  Employee shall devote his entire productive time, ability and attention
        to the business of employer during the term of this Agreement.

   (b)  Employee shall not engage in any business duties or pursuits whatsoever,
        or directly or indirectly render any services of a business, commercial
        or professional nature to any other person or organization, whether for
        compensation or otherwise, without the prior written consent of the
        Employer's Board of Directors. However, the expenditure of reasonable
        amounts of time for education, charitable or professional activities
        shall not be deemed a breach of this Agreement if those activities do
        not materially interfere with the services required under this
        Agreement.

   (c)  This Agreement shall not be interpreted to prohibit Employee from making
        personal investments, becoming a Board member of a non-competing
        business, or conducting private business affairs if those activities do
        not materially interfere with the services required under this
        Agreement.

                   CONFIDENTIAL INFORMATION; TANGIBLE PROPERTY
                             COMPETITIVE ACTIVITIES

SECTION 2.3

   (a)  Employee shall hold in confidence and not use or disclose to any person
        or entity without the express written authorization of Employer, either
        during the term of employment or at any time thereafter, secret or
        confidential information of Employer. Information and materials received
        in confidence from third parities by Employee is included within the
        meaning of this section. If any confidential information described below
        is sought by legal process, Employee will promptly notify Employer and
        will cooperate with Employer in preserving its confidentiality in
        connection with any legal proceeding.


Page 2
                                --------        --------        --------
                                Employee        Employer        Employer
<PAGE>

     The parties hereto hereby stipulate that the following information is
important, material and has independent economic value (actual or potential)
from not being generally known to others who could obtain economic value from
its disclosure or use ("Confidential Information"), and that any breach of any
term of this Section 2.3 is a material breach of this Agreement.

        (i)      The names, buying habits and practices of Employer's customers
                 or prospective customers;

        (ii)     Employer's marketing methods and related data;

        (iii)    The names of Employer's vendors and suppliers;

        (iv)     Costs of labor or materials;

        (v)      The prices Employer obtains or has obtained or for which it
                 sells or has sold its products or services;

        (vi)     Compensation paid to employees or other terms of employment;

        (vii)    Employer's past and projected sales volumes;

        (viii)   Proposed new products;

        (ix)     Enhancements of existing products; and

        (x)      Any addition information deemed by Employer to be confidential
                 by marking or stamping "Confidential "or similar words on the
                 cover of such information, by advising Employee orally or in
                 writing that certain information is confidential or by
                 generally treating such information in such a manner that
                 Employee should reasonably believe it to be deemed confidential
                 by Employer.

Notwithstanding the foregoing, the parties contemplate that the categories of
information described in subsections (iii), (ix), and (x) above may be disclosed
to customers and potential customers of the Employer in the normal course of
business, and such disclosure shall not constitute a breach of this Agreement.

All Confidential Information, as well as all software code, methodologies,
models, samples, tools, machinery, equipment, notes, books, correspondences
drawings and other written, graphical or electromagnetic records relating to any
of the Confidential Information of Employer which Employee shall prepare, use,
construct, observe, possess, or control shall be and shall remain the sole
property of Employer and shall be returned to Employer upon termination of
employment.

   (b)  For a period of twelve (12) months following Employee's termination of
        employment with Employer, Employee agrees not to engage in any
        employment or activity that is any way competitive with Employer's
        business.


Page 3
                                --------        --------        --------
                                Employee        Employer        Employer
<PAGE>

   (c)  During the term of this contract, Employee shall not, directly or
        indirectly, either as an employee, consultant, agent, principal,
        partner, stockholder (except in a publicly held company), corporate
        officer, director, or in any other individual or representative
        capacity, engage or participate in any business that is in competition
        in any manner whatsoever with then business of Employer.

   (d)  During his employment hereunder, Employee agrees that Employer will not
        undertake planning for or organization of any business activity
        competitive with Employer's business, or combine or conspire with other
        employees or representative of Employer's business for the purpose of
        organizing any competitive business activity.

   (e)  During his employment hereunder and for twelve (12) months thereafter,
        Employee agrees that he will not directly or.indirectly, or by action in
        concert with others, induce or influence (or seek to induce or
        influence) any person who is engaged (as an employee, agent, independent
        contractor or otherwise) by Employer to terminate his or her employment
        or engagement.

   (f)  Covenants of this Section 2.3 shall be construed as separate covenants
        covering their subject matter in each of the separate counties and
        states in the United States in which Employer transacts its business. To
        the extent that any covenant shall be judicially unenforceable in any
        one or more of said counties or states, said covenants shall not
        affected with respect to each other county and state; each covenant with
        respect to each county and state being construed as severable and
        independent.

   (g)  Employee represents and warrants the Employee is free to enter into this
        Agreement and to perform each of the terms and covenants contained
        herein, and that doing so will not violate the terms or conditions of
        any agreement between Employee and any third party.

                          INVENTIONS AND ORIGINAL WORKS

SECTION 2.4

Employee agrees that he will promptly make full written disclosure to Employer,
will hold in trust for the sole right ft and benefit of Employer, and hereby
assigns to Employer, all of his right, title and interest in and to any and all
inventions (and patent rights with respect thereto), original works of
authorship (including all copyrights with respect thereto), developments,
improvements or trade secrets which Employer may solely or jointly conceive or
develop or reduce to practice, or cause to be conceived or developed or reduced
to practice, during the course of performing his duties under this Agreement.

Employee acknowledges that all original works of authorship which are made by
him (solely or jointly with others) within the scope of his duties under this
Agreement and which are protect able by Copyrights are "works made for hire" as
that term is defined in the United States Copyright Act (17 U.S.C.A., Section
101) and that Employee is an employee as defined under that Act. Employee
further agrees from time to time to execute written transfers to Employer of
ownership of specific original works of authorship (and all copyrights therein)
made by Employee (solely or jointly with others) which may, despite the
proceeding sentence, be deemed by a court of law not to be


Page 4
                                --------        --------        --------
                                Employee        Employer        Employer
<PAGE>

"works made for hire" in such form as is acceptable to Employer in its
reasonable discretion.

                             MAINTENANCE OF RECORDS

SECTION 2.5

Employee agrees to keep and maintain adequate and reasonable written records of
all inventions, original works of authorship, trade secrets developed or made by
him (solely or jointly with others) during the term of this Agreement. The
records will be in the form of notes, sketches, drawings and other formats that
may be specified by Employer. The records will be available to and remain the
sole property of Employer at all times.

               OBTAINING LETTERS PATENT AND COPYRIGHT REGISTRATION

SECTION 2.6

Employee agrees to assist Employer to obtain United States or foreign letters
patent, and copyright registration (as well as any transfers of ownership
thereof) covering inventions and original works of authorship assigned hereunder
to Employer.


                                    ARTICLE 3
                             OBLIGATIONS OF EMPLOYER

                               GENERAL DESCRIPTION

SECTION 3.1

Employer shall provide Employee with the compensation, incentives and benefits
specified elsewhere in this Agreement.

                                OFFICE AND STAFF

SECTION 3.2

Employer shall provide Employee with a private office, administrative help,
office equipment, supplies and other facilities and services suitable to
Employee's position and adequate for the performance of his duties.


Page 5
                                --------        --------        --------
                                Employee        Employer        Employer
<PAGE>

                                    ARTICLE 4
                            COMPENSATION OF EMPLOYEE

                                  ANNUAL SALARY

SECTION 4.1

   (a)  As compensation for his services hereunder, Employee shall be paid a
        salary at the rate of not less than one hundred and fifty thousand
        dollars ($150,000) per year effective as of the effective date of this
        Agreement. Salary shall be paid in equal installments not less
        frequently than twice per month.

   (b)  Employee shall receive increases in salary during the term of this
        Agreement as may be determined by Employer's Board of Directors in its
        sole discretion from time to time and, if so increased, Employee's
        salary shall not thereafter be decreased except with Employee's consent.

                               BONUS COMPENSATION

SECTION 4.2

In addition to his annual salary, Employee shall be entitled to receive an
annual cash bonus of minimally fifty thousand dollars ($50,000) to be paid each
year, based on mutually agreed upon goals that will be set by the Board of
Directors. The goals will be realistic and attainable and shall be determined on
a basis consistent with the criteria used for determining the goals in prior
years. Based on achieving the agreed upon goals, the annual cash bonus shall be
paid in installments of $12,500 on April 30, July 30, October 30, and January
30. The Directors may from time to time elect to pay any additional bonuses
based on performance that exceeds the mutually agreed upon goals.

                   ANNUAL COMPENSATION. REVIEW AND ADJUSTMENT

SECTION 4.3

The Employer agrees that by December 31st of every calendar year the Board of
Directors, or the Board of Directors Compensation Committee will review the
compensation of three Chief Executive Officers of other similar companies, of
similar size, and of similar status (private or public) who perform their duties
in the same geographical location that Employee performs his duties. The
Employer agrees that the Employees annual compensation will be adjusted
annually, so that the Employees annual Compensation will be no less than the
average of the three Chief Executive Officers of the three similar companies
reviewed.

                                 TAX WITHHOLDING

SECTION 4.4

Employer shall have the right to deduct or withhold from the compensation due to
Employee hereunder any and all sums required for federal income and social
security


Page 6
                                --------        --------        --------
                                Employee        Employer        Employer
<PAGE>

taxes and all state or local taxes now applicable or that may be enacted and
become applicable in the future.


                                    ARTICLE 5
                                EMPLOYEE BENEFITS

                                 ANNUAL VACATION

SECTION 5.1

Employee shall be entitled to twenty (20) Business days of paid vacation during
each year of this contract. In the event Employee is unable to or does not take
all of the vacation days to which he is entitled hereunder, he shall be paid for
those days at his normal daily rate (to be calculated by dividing his annual
salary and bonus, at the rate in effect at the end of the relevant fiscal year
of Employer by the number of Business Days in the relevant fiscal year) within
forty-five (45) days of the end of the Employer's fiscal year. Unused vacation
shall not be carried over into the next year. As used in this Agreement, a
Business Day shall mean any day other than Saturday, Sunday or national holiday.

                                    BENEFITS

SECTION 5.2

Employee shall participate in any and all benefit plans, including without
limitation group health an dental insurance programs, provided by Employer,
should Employee elect to participate in any such plans. In addition, Employer
shall pay, or at Employee's option reimburse Employee for, the premiums on (a) a
disability insurance policy $20,000 and (b) a term life providing a monthly
disability benefit of no less than insurance policy in the amount of $2,000,000
payable to Employee's beneficiary(ies) (which may be or include the estate or
Family Limited Partnership of the Employee).

                                BUSINESS EXPENSES

SECTION 5.3

Employer shall reimburse Employee for all appropriate expenses for travel and
entertainment by Employee for legitimate business purposes, provided that
Employee furnishes to Employer adequate records and documentary evidence for the
substantiation of each such expenditure.


Page 7
                                --------        --------        --------
                                Employee        Employer        Employer
<PAGE>

                                    ARTICLE 6
                            TERMINATION OF EMPLOYMENT


                                   TERMINATION

SECTION 6.1

Employee's employment hereunder may be terminated by Employee or Employer as
herein provided, without further obligation or liability, except as expressly
provided herein.

                  RESIGNATION, RETIREMENT, DEATH OR DISABILITY

SECTION 6.2

Employee's employment hereunder shall be terminated at any time by Employee's
resignation (other than by resignation for Good Reason), or by Employee's
retirement at or after attainment of age sixty five (65) ("Retirement"), death,
or by his inability to perform his duties under this Agreement on a fulltime
basis for a period of at least six (6) consecutive months because of a physical
or mental illness ("Disability").

                              TERMINATION FOR CAUSE

SECTION 6.3

Employees' employment hereunder may be terminated for Cause upon the affirmative
vote of all members of the Board of Directors other than the Employee. "Cause"
shall mean embezzlement of assets of the Employer or an Affiliate, or breach of
fiduciary duty involving materially personal or family profit; willfully
engaging in conduct with the purpose and effect of materially injuring Employer,
or the willful and continued failure by the employee to substantially perform
his duties hereunder.

For purposes of this Section, no act, or failure to act, on the Employee's part
shall be considered "willful" unless done, or omitted to be done, by not in good
faith and without reasonable belief that his action or omission was in the best
interest of the Employer. Notwithstanding the foregoing, the Employee shall not
be deemed to have been terminated for Cause without (i) reasonable notice to the
Employee setting forth the reasons for the Employer's intention to terminate for
Cause; (ii) an opportunity for the Employee, together with his counsel, to be
heard before the Board; and (iii) delivery to Employee of a Notice of
Termination as defined in Section 6.7 hereof from the entire Board finding that
in the good faith opinion of such the entire Board, the Employee was guilty of
conduct set forth above, and specifying the particulars thereof in detail.

                            TERMINATION WITHOUT CAUSE

SECTION 6.4

Employee's employment hereunder may be terminated without Cause upon thirty (30)
days' notice for any reason, subject to the payment of any amounts required by
Section 7.3.


Page 8
                                --------        --------        --------
                                Employee        Employer        Employer
<PAGE>

                                   EXPIRATION

SECTION 6.5

Employee's employment hereunder shall be terminated upon expiration of the Term
of Employment as provided in Section 1.1 and 1.2.

                           RESIGNATION FOR GOOD REASON

SECTION 6.6

   (a)  At any time within one (1) year following a Change in Control, Employee
        may regard Employee's employment as being constructively terminated, and
        may therefore resign within ninety (90) days of Employee's discovery of
        any one of the following events, which will constitute "Good Reason" for
        such resignation:

        (i)      Without Employee's express written consent, the assignment to
                 Employee of any duties materially inconsistent with Employee's
                 position, duties, responsibilities and status with Employer
                 immediate prior to the Change in Control, or any subsequent
                 removal of Employee from or any failure to re elect Employee to
                 any such position, with the determination of whether such an
                 event had taken place to be in the sole discretion of Employee;

        (ii)     Without Employee's express written consent, the termination
                 and/or material reduction in Employee's facilities (including
                 office space and general location) and staff reporting and
                 available to Employee's immediately prior to the Change in
                 Control, with the determination of whether such an event has
                 taken place to be in the sole discretion of Employee;

        (iii)    A geographical relocation of Employee without Employee's
                 written consent;

        (iv)     A failure by the Employer to comply with any material provision
                 of this Agreement which is not been cured within ten (10) days
                 after notice of such noncompliance has been given by the
                 Employee to the Employer;

        (v)      Any purported termination of Employee's employment by the
                 Employer or the Board which is not effected pursuant to the
                 requirements of this Article 6 with respect to death,
                 Retirement, Disability or Termination for Cause;

        (vi)     Any purported termination of the Employee's employment which is
                 not effected pursuant to a Notice of Termination satisfying the
                 requirements of paragraph 6.7 (and for purposes of this
                 Agreement no such purported termination shall be effective);

        (vii)    Receipt of notice by Employee that this Agreement will not be
                 renewed pursuant to Section 1.2;

Page 9
                                --------        --------        --------
                                Employee        Employer        Employer
<PAGE>



        (viii)   A material reduction by Employer of Employee's compensation
                 and/or benefits in effect prior to the Change in Control.

        (ix)     A failure by the Employer to comply with Section 4.3 of this
                 Agreement.

   (b)  At any time during the sixty (60) days after the first anniversary of a
        Change in Control, Employee may resign for any reason or no reason and
        such resignation during such period shall conclusively constitute "Good
        Reason" for such resignation.

   (c)  Employee may also resign his employment under the following
        circumstances which shall constitute "Good Reason" for such resignation:
        if his health should become impaired to an extent that makes his
        continued performance of duties hereunder hazardous to his physical or
        mental health or his life, provided that the Employee shall have
        furnished the Employer with a written statement from a qualified doctor
        to such effect and provided, further, that, at the Employer's request,
        the Employee shall submit to an examination by a doctor selected by the
        Employer and such doctor shall have concurred in the conclusion of the
        Employee's doctor.

                             NOTICE OF TERMINATION

SECTION 6.7

Any termination of the Employee's employment by the Employer or by the Employee
(other than termination by reason of resignation, except for Good Reason, which
shall require Notice of Termination), retirement, or death, shall be
communicated by written Notice of Termination to the other party hereto. For
purposes of this Agreement, a "Notice of Termination" shall mean a notice which
shall include the specific termination provision in this Agreement relied upon,
and shall set forth ion reasonable detail the facts and circumstances claimed to
provide a basis for termination of the Employee's employment under the provision
so indicated.


                               DATE OF TERMINATION

SECTION 6.8

The "Date of Termination" shall be:

   (a)  If the Employee's employment is terminated by his death, the date of his
        death;

   (b)  If the Employee's employment is terminated by Employer by reason of
        Employee's disability, thirty (30) days after Notice of Termination is
        given (provided that the Employee shall not have returned to the
        performance of his duties on a full-time basis during such thirty (30)
        day period);

   (c)  If the Employee's employment is terminated for Cause, the date the
        Notice of Termination is given or after if so specified in such Notice
        of Termination;

Page 10
                                --------        --------        --------
                                Employee        Employer        Employer
<PAGE>



   (d)  If the Employee's employment is terminated for Good Reason, thirty (30)
        days after Notice of Termination is given; and

   (e)  If the Employee's employment is terminated for any other reason, the
        date on which a Notice of Termination is given; provided that if within
        thirty (30) days after any Notice of Termination is given the party
        receiving such Notice of Termination notifies the other party that a
        dispute is finally determined, either by arbitration award or by a final
        judgment, order or decree of a Court competent jurisdiction (the time
        for appeal therefore having expired and no appeal having been
        perfected).

                            CHANGE OF CONTROL DEFINED

SECTION 6.9

For purposes of this Agreement, a "Change in Control" shall mean a change in
control of Employer of a nature that would be required to be reported in
response to Item 6(e) of Schedule 14A of Regulation 14A promulgated under the
Securities Exchange Act of 1934, as amended (the "Exchange Act"); provided that,
without limitation, such a change in control shall, be deemed to have occurred
if:

   (a)  Any "person" (as such term is used in Sections 13(d) and 14(d) of the
        Exchange Act) becomes the "beneficial owner" (as defined in Rule 13d-3
        under the Exchange Act), directly or indirectly, of securities of the
        Employer representing twenty percent (20%) or more of the combined
        voting power of the Employer's then outstanding securities; or

   (b)  During any period of two (2) consecutive years during the term of this
        Agreement, individuals who at the beginning of such period constitute
        the board cease for any reason would constitute at least a majority
        thereof, unless the election of each Director who was not a Director at
        the beginning of such period has been approved in advance by Directors
        representing at least two-thirds (213) of the Directors then in office
        who were Directors at the beginning of the period.


                                    ARTICLE 7
                       PAYMENTS TO EMPLOYEE ON TERMINATION

                         DEATH, DISABILITY OR RETIREMENT

SECTION 7.1

In event of Employee's Retirement, death or Disability, the amounts and benefits
due Employee pursuant to Article 4 and 5 through the Date of Termination, and
all benefits generally available to Employer's employees as of the date of such
an event, shall be payable to Employee or Employee's estate, or Family Limited
Partnership without reduction, in accordance with the terms of this Agreement or
of any plan, contract, understanding or arrangement forming the basis for such
payment. Employee shall be entitled to such other payments as might arise from
any other plan, contract, understanding or arrangement between Employee and
Employer at the time of any such event.

Page 11
                                --------        --------        --------
                                Employee        Employer        Employer
<PAGE>



                                          TERMINATION FOR CAUSE
                             OR RESIGNATION WITHOUT GOOD REASON

  SECTION 7.2

  In event Employee's is terminated by Employer for Cause or Employee resigns
for any reason other tan Good Reason, Employer shall pay and provide the amounts
and benefits due Employee pursuant to Article 4 and 5 through the Date of
Termination and shall have no further obligation to Employee under this
Agreement or otherwise, except to the extent provided in any other plan,
contract, understanding or arrangement, or as may be expressly required by law.

                            TERMINATION WITHOUT CAUSE
                         OR RESIGNATION FOR GOOD REASON

SECTION 7.3

The following provisions shall apply in the event Employee is either terminated
by Employer without Cause or resigns for Good Reason:

   (a)  Employer shall pay to Employee, or in the event of Employee's subsequent
        death, to Employee's surviving spouse, or if none, to Employee's estate
        or the Family Limited Partnership, the amounts and benefits due Employee
        pursuant to Article 4 and 5 through the Date of Termination and, in
        addition, as severance pay a lump sum payment ("Severance Payment") of
        one million dollars ($1,000,000) or equal to three (3) times the total
        of the following amounts: (1) Employee's annual salary, plus the minimum
        annual bonus compensation described in Section 4.2, at the rate in
        effect at the time Notice of Termination is given; (2) any other similar
        cash compensation or allowances, then in effect for Employee, which ever
        is greater. Not withstanding the foregoing, if Employee reasonably
        believes, on advice of legal counsel, that the payment in full of the
        Severance Payment would result in lesser after-tax proceeds to Employee,
        after taking into account all income, payroll and excise taxes (if any,
        under Internal Revenue Code ("Code") Section 4999 as amended or
        superseded) than if the Severance Payment were reduced, Employee may
        elect to reduce the Severance Payment to an amount which would maximize
        his after-tax proceeds.

   (b)  To the extent permissible under applicable law, including Code
        anti-discrimination standards which must be met to retain favorable tax
        status of any employee benefit plan, contract or arrangement, Employer
        shall continue to provide to Employee during unexpired term of. this
        Agreement, those benefits to which Employee is entitled to immediately
        prior to the termination. In 'the event that Employee's participation in
        any such plan, contract or arrangement is barred, Employer shall, at its
        expense, arrange to provide Employee with benefits substantially similar
        to those which Employee would otherwise have been entitled to receive
        under such plans, contracts or arrangements from which his continued
        participation is barred.

   (c)  Employer shall cause any stock options issued to Employee which have not
        lapsed and which are not otherwise exercisable to be accelerated so as
        to be immediately

Page 12
                                --------        --------        --------
                                Employee        Employer        Employer
<PAGE>

        exercisable by Employee and to remain exercisable for the full term
        specified in the applicable stock option agreement. In the event that
        under the plan, agreement or arrangement governing the stock options
        issued to Employee, Employee's options would expire or become
        unexercisable sooner than the full term originally specified as a result
        of Employee's termination or resignation, Employer shall amend the
        applicable stock option plan, agreement or arrangement to permit the
        exercise of Employee's options for the full term otherwise provided. If
        retaining Employee as a consultant for a term coextensive with the term
        remaining on Employee's stock options would permit their exercise for
        full term originally specified notwithstanding Employee's termination or
        resignation, Employer may satisfy its obligation hereunder be retaining
        Employee as a consultant provided that Employee and Employer agree on
        the essential terms of the consulting arrangement.

   (d)  The total of any payment pursuant to this Agreement shall be limited to
        the extent necessary, in the opinion of legal counsel reasonably
        acceptable to Employee and Employer, to avoid the payment of an "excess
        parachute" payment within the meaning of Internal Revenue Code Section
        280G or a successor provision.

                                    ARTICLE 8
                               GENERAL PROVISIONS

                                     NOTICES

SECTION 8.1

Any notices to be given hereunder by either party to the other shall be in
writing and may be transmitted by personal delivery or by certified mail,
postage prepaid with return receipt requested. Mailed notices shall be addressed
to the parties at:

                                   "Employee":

                                THOMAS L. MASSIE
                              6 JONAS STONE CIRCLE
                         LEXINGTON, MASSACHUSETTS 02173

                                   "Employer"

                            BRIDGELINE SOFTWARE, INC
                           ATTN: HUMAN RESOURCES DEPT
                              130 NEW BOSTON STREET
                                WOBURN, MA 08101

Each party may change that address by written notice in accordance with this
section. Notices delivered personally shall be deemed communicated as of the
date of actual receipt. Mailed notices shall be certified, and shall be deemed
communicated as of the date of the certified mail receipt.

Page 13
                                --------        --------        --------
                                Employee        Employer        Employer
<PAGE>

                                   ARBITRATION

SECTION 8.2

   (a)  Any controversy between Employer and Employee involving the construction
        or application of any of the terms, provisions or conditions of this
        Agreement or the breach thereof shall be settled by arbitration, and
        judgment upon the award rendered by the arbitrator(s) may be entered in
        any court having jurisdiction. Arbitration shall comply with and be
        governed by the provisions of the American Arbitration Association,
        Commercial Division.

   (b)  Employer and Employee shall each appoint one person to hear and
        determine the dispute. If the two persons so appointed are unable to
        agree, then those persons shall select a third, impartial arbitrator
        whose, decision shall be final and conclusive upon both parties.

   (c)  The cost of arbitration shall be borne by the losing party or in such
        proportions as the arbitrators decide.

   (d)  Such arbitration shall take place in Middlesex County, Massachusetts (or
        the county in Massachusetts closest to Middlesex County having an office
        of the American Arbitration Association).

                            ATTORNEY'S FEES AND COSTS

SECTION 8.3

If any action at law or in equity is necessary to enforce or interpret the terms
of this Agreement, the prevailing party shall be entitled to reasonable
attorney's fees, costs and necessary disbursements in addition to any other
relief to which that party may be entitled. This provision shall be construed as
applicable to the entire contract.

                                ENTIRE AGREEMENT

SECTION 8.4

This Agreement supersedes any and all other agreements, either oral or in
writing, between the parties hereto with respect to the subject matter contained
herein and contains all the covenants and agreements between the parties with
respect to that subject matter. Each party to this Agreement acknowledges that
no representations, inducements, promises or agreements, orally or otherwise,
have been made by any party, or anyone acting on behalf of any party, which are
not embodied herein, and that no other agreement, statement or promise not
contained in this Agreement shall be valid or binding on either party.

                                  MODIFICATIONS

SECTION 8.5

Any modification of this Agreement will be effective only if it is in writing
and signed by the Employee and properly authorized by Employer's Board of
Directors and signed by two (2) officers of Employer.

Page 14
                                --------        --------        --------
                                Employee        Employer        Employer
<PAGE>

                                EFFECT OF WAIVER

SECTION 8.6

The failure of either party to insist on strict compliance with any of the
terms, covenants or condition of this Agreement by the other party shall not be
deemed a waiver of that term, covenant or condition, nor shall any waiver or
relinquishment of that right or power for all or any other times.

                               PARTIAL INVALIDITY

SECTION 8.7

If any provision in this Agreement is held by a court of competent jurisdiction
to be invalid, void or unenforceable, the remaining provisions shall
nevertheless continue in full force without being impaired or invalidated in any
way.

This Employment Contract is executed on October 1, 2001

                                       "Employer"

                                       BRIDGELINE Software, Inc.



                                       By: /S/ JOHN C. CAVALIER
                                          -----------------------------
                                          John C. Cavalier
                                          Chairman of the Board





                                       By: /S/ GARY M. CEBULA
                                          -----------------------------
                                          Gary M. Cebula
                                          Vice President &
                                          Chief Financial Officer


                                       "Employee"





                                       By: /S/ THOMAS L. MASSIE
                                          -----------------------------
                                          Thomas L. Massie

Page 15
                                --------        --------        --------
                                Employee        Employer        Employer
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10.8
<SEQUENCE>23
<FILENAME>ex10-8_14663.txt
<DESCRIPTION>CEBULA EMPLOYMENT AGREEMENT DATED 01-01-2006
<TEXT>
                                                                    EXHIBIT 10.8
                                                                    ------------

                                [BRIDGELINE LOGO]

                              EMPLOYMENT AGREEMENT

     Bridgeline Software, Inc., a Delaware Corporation (the "EMPLOYER" or the
"COMPANY") and Gary Cebula (the "Employee"), in consideration of the mutual
promises made herein, agree as follows:

                                    ARTICLE 1

                               TERM OF EMPLOYMENT

SECTION 1.1 SPECIFIED PERIOD. Employer hereby employs Employee, and Employee
hereby accepts employment with Employer for the term of one (1) year, with the
period beginning on January 1, 2006 (the "COMMENCEMENT DATE"), and terminating
on December 31, 2006 ("INITIAL TERM").

SECTION 1.2 SUCCEEDING TERM. At the end of the Initial Term, or any succeeding
one year term, this Employment Agreement shall renew for successive periods of
one (1) year each (a "SUCCEEDING TERM") only if the Employer gives written
notice to Employee not less than sixty (60) days prior to the end of the Initial
Term. If such notice of renewal is not provided to the Employee by the Employer
this Employment Agreement will terminate, except the provisions of Sections 2.3,
2.4, 2.5 and 2.6 shall continue in force so long as the Employee remains
employed by the Employer or any Affiliate of the Employer, whether under this
Agreement or not, and whether as a consultant or not, and shall survive any
termination of employment under this Agreement for the periods specified
therein, all as is more specifically provided in Section 7.10. Once this
Employment Agreement terminates then the Employee shall become an employee at
will at the end of the Initial Term or Succeeding Term.

SECTION 1.3 EMPLOYMENT TERM DEFINED. As used herein, the phrase "employment
term" refers to the entire period of employment of Employee by Employer
hereunder, whether such employment is during the Initial Term, Succeeding Term
or, following the end of the Succeeding Term, as an employee at will.

                                    ARTICLE 2

                       DUTIES AND OBLIGATIONS OF EMPLOYEE

SECTION 2.1 GENERAL DUTIES. . Employee shall serve as Executive Vice President,
Chief Financial Officer, Treasurer and Secretary for the Company. In such
capacity, Employee shall do and perform all services, acts or things consistent
within the scope of his employment and with the Employee's skill and expertise
in accordance with the instructions of and policies set by Employer's Chief
Executive Officer, or his designee. Employee shall perform such services at 10
Sixth Road, Woburn, MA 01801 or at such other location as may be designated by
Employer. The Employee shall be available to make business trips both within and
outside the United States for the purpose of meeting with and consulting with
other members of the Employer's management, as well as with present and proposed
customers and parties with whom the Employer does business, all on such
reasonable terms, bearing in mind the position of the Employee.

<PAGE>

SECTION 2.2 DEVOTION TO EMPLOYER'S BUSINESS.

     (a) Employee shall devote his best efforts and entire productive time,
ability and attention to diligently promote and improve the business of Employer
during the Term.

     (b) Employee shall not engage in any other business duties or pursuits
whatsoever, or directly or indirectly render any services of a business,
commercial or professional nature to any other person or organization, whether
for compensation or otherwise, without the prior written consent of the
Employer's President & CEO. This Agreement shall not be interpreted to prohibit
Employee from making passive personal investments or conducting private business
affairs if those private business affairs do not materially interfere with the
services required under this Agreement.

SECTION 2.3 CONFIDENTIAL INFORMATION; TANGIBLE PROPERTY; COMPETITIVE ACTIVITIES.

     (a) Employee shall hold in confidence and not use or disclose to any person
or entity without the express written authorization of Employer, either during
the term of employment or any time thereafter, secret or confidential
information of Employer, as well as secret or confidential information and
materials received in confidence from third parties by Employee or Employer. If
any confidential information described below is sought by legal process,
Employee will promptly notify Employer and will cooperate with Employer in
preserving its confidentiality in connection with any legal proceeding.

     The parties hereto hereby stipulate that, to the extent it is not known
publicly, the information described in this Section (herein referred to as
"Confidential Information") is important, material and has independent economic
value (actual or potential) from not being generally known to others who could
obtain economic value from its disclosure or use and that any breach of any
terms of this Section 2.3 is a material breach of this Agreement: (i) the names,
buying habits and practices of Employer's customers or prospective customers;
(ii) Employer's sales and marketing strategy and methods and related data; (iii)
the names of Employer's vendors and suppliers; (iv) cost of materials/services;
(v) the prices Employer obtains or has obtained or for which it sells or has
sold its products or services; (vi) development costs; (vii) compensation paid
to employees or other terms of employment; (viii) Employer's past and projected
sales volumes; (ix) confidential information relating to actual products,
proposed products or enhancements of existing products, including, but not
limited to, source code, programming instructions, engineering methods and
techniques, logic diagrams, algorithms, development environment, software
methodologies, and technical specifications for the Employer's web design and
content management software. Confidential Information shall also include all
information which the Employee should reasonably understand is secret or
confidential information, provided the same is clearly designated as
confidential by marking or stamping "Confidential" or similar words on the cover
of such information, or by orally communicating such confidentiality and
confirming such confidentiality in a later written communication. Confidential
Information shall also include all information which the Employee should
reasonably understand is secret or confidential information, if the Employee has
participated in

                                        2
<PAGE>

or otherwise been involved with the development, analysis, invention or
origination of such Confidential Information belonging to the Employer,
including, without limitation, methods, know-how, formula, customer and supplier
lists, personnel and financial data, business plans, as well as product
information, product plans and product strategies. Notwithstanding the
foregoing, "Confidential Information" does not include any information which (A)
is now available to the public or which becomes available to the public, (B) is
or becomes available to the Employee from a source other than the Employer and
such disclosure is not a breach of a confidentiality agreement with the
Employer, or (C) is required to be disclosed by any government agency or in
connection with a court proceeding.

     All Confidential Information, as well as all software code, methodologies,
models, samples, tools, machinery, equipment, notes, books, correspondence,
drawings and other written, graphical or electromagnetic records relating to any
of the products of Employer or relating to any of the Confidential Information
of Employer which Employee shall prepare, use, construct, observe, possess, or
control shall be and shall remain the sole property of Employer and shall be
returned by Employee upon termination of employment.

     (b) During his employment hereunder and for twelve (12) months thereafter,
Employee shall not, directly or indirectly, without the consent of the Employer:
(i) invest (except for the ownership of less than 3% of the capital stock of a
publicly held company), or hold a directorship or other position of authority in
any of the Employer's Direct Competitors ("DIRECT COMPETITORS" defined as: any
person or entity, or a department or division of an entity, whereby more than
25% of the person's or entity's total revenues are derived from the Competitive
Services ("COMPETITIVE SERVICES" defined as design and development for third
parties of: Internet and Intranet Web sites and solutions, content management or
document management software, custom web (internet) applications, and/or
multimedia CDs and DVDs or services such as Intranet and Extranet consulting
services or Web hosting services)), (ii) undertake preparation of or planning
for an organization or offering of Competitive Services, (iii) combine or
collaborate with other employees or representatives of the Employer or any third
party for the purpose of organizing, engaging in, or offering Competitive
Services, or (iv) be employed by, serve as a consultant to or otherwise provide
services to (whether as principal, partner, shareholder, member, officer,
director, stockholder, agent, joint venturer, creditor, investor or in any other
capacity), or participate in the management of a Direct Competitor or
participate in any other business that the Employer may be engaged or is
planning to undertake in at the date of the termination of this Agreement.

     (c) During his employment hereunder and for twelve (12) months thereafter,
Employee shall not, directly or indirectly, without the consent of the Employer:
contact, recruit, solicit, induce or employ, or attempt to contact, recruit,
solicit, induce or employ, any employee, consultant, agent, director or officer
of the Employer to terminate his/her employment with, or otherwise cease any
relationship with, the Employer; or contact, solicit, divert, take away or
accept business from, or attempt to contact, solicit, divert or take away, any
clients, customers or accounts, or prospective clients, customers or accounts,
of the Employer, or any of the Employer's business with such clients, customers
or accounts which were, directly or indirectly, contacted, solicited or served
by Employee, or were directly or indirectly under his responsibility, while
Employee was employed by the Company, or the identity of which Employee became
aware during the term of his employment.

                                        3
<PAGE>

As used in this agreement the term "client," "customer," or "accounts" shall
include: (i) any person or entity that is a client, customer or account of the
Employer on the date hereof or becomes a client, customer or account of the
Employer during the covered period; (ii) any person or entity that was a client,
customer or account of the Employer at anytime during the two-year period
preceding the date of Employee's termination; and (iii) any prospective client,
customer or account to whom the Employer has made a presentation (or similar
offering of services) within a period of 180 days preceding the date of the
termination of Employee's employment.

     (d) The covenants of this Section 2.3 shall be construed as separate
covenants covering their subject matter in each of the separate counties and
states in the United States in which Employer (or its Affiliates) transacts its
business. If at any time the foregoing provisions shall be deemed to be invalid
or unenforceable or are prohibited by the laws of the state or place where they
are to be enforced, by reason of being vague or unreasonable as to duration or
place of performance, this Section shall be considered divisible and shall
become and be immediately amended to include only such time and such area as
shall be determined to be reasonable and enforceable by the court or other body
having jurisdiction over this Agreement; and the Employer and the Employee
expressly agree that this Section, as so amended, shall be valid and binding as
though any invalid or unenforceable provision had not been included herein.

     (f) The Employee represents and warrants that Employee is free to enter
into this Agreement and to perform each of the terms and covenants contained
herein, and that doing so will not violate the terms or conditions of any
agreement between Employee and any third party.

SECTION 2.4 INVENTIONS AND ORIGINAL WORKS.

     (a) Subject to Section 2.4(b) below, the Employee agrees that he will
promptly make full written disclosure to Employer, will hold in trust for the
sole right and benefit of Employer, and hereby assigns to Employer all of his
right, title and interest in and to any and all inventions (and patent rights
with respect thereto), original works of authorship (including all copyrights
with respect thereto), developments, improvements or trade secrets which
Employee may solely or jointly conceive or develop or reduce to practice, or
cause to be conceived or developed or reduced to practice, while performing his
duties under this Agreement.

     Employee acknowledges that all original works of authorship relating to the
business of Employer which are made by him (solely or jointly with others)
within the scope of his duties under this Agreement and which are protectable by
copyrights are "works made for hire" as that term is defined in the United
States Copyright Act (17 U.S.C.A., Section 101), and that Employee is an
employee as defined under that Act. Employee further agrees from time to time to
execute written transfers to Employer of ownership or specific original works or
authorship (and all copyrights therein) made by Employee (solely or jointly with
others) which may, despite the preceding sentence, be deemed by a court of law
not to be "works made for hire" in such form as is acceptable to Employer in its
reasonable discretion.

                                        4
<PAGE>

     (b) The parties agree that the "business of the Employer" for the purposes
of this Section 2.4 is acting as a "WEB DEVELOPMENT SERVICE ENTERPRISE, ENGAGING
A DIVERSE CLIENT LIST WITH TECHNOLOGY THAT WILL FURNISH THEIR INTERNET
OBJECTIVES, INCLUDING CONTENT MANAGEMENT, SITE USAGE, VISITOR INTELLIGENCE,
CAMPAIGN TRACKING, DATA MINING, RICH MEDIA, FORMS AND DOCUMENT MANAGEMENT, GRANT
MANAGEMENT, MARKETING MANAGEMENT." Employee shall provide to Employer, and
attach hereto as Exhibit 2.4(b), a list identifying and describing in reasonable
detail all inventions (and patent rights with respect thereto), original works
of authorship (including all copyrights with respect thereto), developments,
improvements, concepts or trade secrets which Employee has solely or jointly
conceived or developed or reduced to practice, or caused to be conceived or
developed or reduced to practice to date, and other intellectual property of the
Employee. For the avoidance of doubt, Employee will identify on Exhibit 2.4(b)
with sufficient detail any intellectual property belonging to the Employee prior
to the date hereof, including that related to the business of the Employer
(collectively the "Employee's Personal Intellectual Property"). Employer
acknowledges and agrees that the provisions of Section 2.4(a) shall not apply to
Employee's Personal Intellectual Property or to any inventions (and patent
rights with respect thereto), original works of authorship (including all
copyrights with respect thereto), developments, improvements, concepts or trade
secrets conceived of or developed by Employee during the term of this Agreement
that is not Employer Intellectual Property.

SECTION 2.5 MAINTENANCE OF RECORDS. Except with respect to the Intellectual
Property for which the Employer has no rights, Employee agrees to keep and
maintain reasonable written records of all inventions, original works of
authorship, trade secrets developed or made by him (solely or jointly with
others) during the employment term. The Employee also agrees to make and
maintain adequate and reasonable written records customarily maintained by
corporate managers, including, without limitation, lists and telephone numbers
of persons and companies he has contacted during his engagement by the Employer.
Immediately upon the Employer's request and promptly upon termination of the
Employee's engagement with the Employer, the Employee shall deliver to the
Employer all written records as described in this Section, together with all
memoranda, notes, records, reports, photographs, drawings, plans, papers,
computer storage media, Confidential Information or other documents made or
compiled by the Employee or made available to the Employee during the course of
his engagement by the Employer, and any copies or abstracts thereof, whether or
not of a secret or confidential nature, and all of such records, memoranda or
other documents shall, during and after the engagement of the Employee by the
Employer, be and shall be deemed to be the property of the Employer.

SECTION 2.6 OBTAINING LETTERS PATENT AND COPYRIGHT REGISTRATION. During the
employment term hereunder, Employee agrees to assist Employer, at Employer's
expense, to obtain United States or foreign letters patent, and copyright
registrations (as well as any transfers of ownership thereof) covering
inventions and original works of authorship assigned hereunder to Employer. Such
obligation shall continue beyond the termination of this Agreement for a
reasonable period of time not to exceed one (1) year subject to Employer's
obligation to compensate Employee at such rates as may be mutually agreed upon
by the Employer and Employee at the time, but not exceeding the annualized rate
provided for in Section 4.1 of this Agreement, and reimbursement to Employee of
all expenses incurred.

                                        5
<PAGE>

     If Employer is unable for any reason whatsoever, including Employee's
mental or physical incapacity to secure Employee's signature to apply for or to
pursue any application for any United States of foreign letters, patent or
copyright registrations (or any document transferring ownership thereof)
covering inventions or original works or authorship assigned to Employer under
this Agreement, Employee hereby irrevocably designates and appoints Employer and
its duly authorized officers and agents as Employee's agent and attorney-in-fact
to act for and in his behalf and stead to execute and file any such applications
and documents and to do all other lawfully permitted acts to further the
prosecution and issuance of letters patent or copyright registrations or
transfers thereof with the same legal force and effect as if executed by
Employee. This appointment is coupled with an interest in and to the inventions
and works of authorship and shall survive Employee's death or disability.
Employee hereby waives and quitclaims to Employer any and all claims of any
nature whatsoever which Employee now or may hereafter have against third parties
for infringement of any patents or copyrights resulting from or relating to any
such application for letters, patent or copyright registrations assigned
hereunder to Employer.

                                    ARTICLE 3

                            COMPENSATION OF EMPLOYEE

SECTION 3.1 ANNUAL SALARY. As compensation for his services hereunder, Employee
shall be paid a salary at the rate of One Hundred Twenty Thousand and 00/100
Dollars ($120,000.00) per year from the Commencement Date. Salary shall be paid
in equal installments not less frequently than twice each month.

SECTION 3.2 QUARTERLY BONUS. The Employee shall be eligible to be paid a
quarterly bonus earned in accordance with the terms set forth on Exhibit 4.2.

SECTION 3.3 TAX WITHHOLDING. Employer shall have the right to deduct or withhold
from the compensation due to Employee hereunder any and all sums required for
federal income and social security taxes and all state or local taxes now
applicable or that may be enacted and become applicable in the future, for which
withholding is required by law.

SECTION 3.4 INCENTIVE STOCK OPTIONS. The Employer may, at the Employer's sole
discretion, issue Incentive Stock Options to the Employee. All stock options
granted the Employee shall be subject to a stock option agreement, a stock
option plan and such other restrictions as are generally applicable to stock
options issued to employees of the Employer, as each may be amended from time to
time.

                                    ARTICLE 4

                                EMPLOYEE BENEFITS

SECTION 4.1 ANNUAL VACATION. Employee shall be entitled to twenty (20) business
days of paid vacation during each year of this Agreement. Employee may be absent
from his employment for vacation at such times as are approved by the Employer's
President and CEO. Unused vacation shall not be carried over into the next year,
and will not be paid in the form of cash.

                                        6
<PAGE>

SECTION 4.2 BENEFITS. Employee shall be eligible to participate in any and all
benefit plans provided by Employer, including health, disability and life
insurance coverage should Employer elect to participate in any such plans.

SECTION 4.3 BUSINESS EXPENSES. Employer shall reimburse Employee for all
appropriate expenses for travel and entertainment by Employee for legitimate
business purposes, provided that they are approved in writing by the person to
whom the Employee reports, and provided that Employee furnishes to Employer
adequate records and documentary evidence for the substantiation of each such
expenditure, as required by the Internal Revenue Code of 1986, as amended.

                                    ARTICLE 5

                            TERMINATION OF EMPLOYMENT

SECTION 5.1 TERMINATION. Employee's employment hereunder may be terminated by
Employee or Employer as herein provided, without further obligation or
liability, except as expressly provided in this Agreement.

SECTION 5.2 RESIGNATION, RETIREMENT, DEATH OR DISABILITY. Employee's employment
hereunder shall be terminated at any time by Employee's resignation, or by
Employee's retirement, death, or his inability to perform the essential
functions of his position under this Agreement, with or without reasonable
accommodation, for a total of ninety (90) days or more in any continuous two
hundred (200) day period because of a substantial physical or mental impairment
("Disability"). Employer shall not be liable for payment of base or bonus
compensation during any period of disability, though benefits shall continue to
accrue.

SECTION 5.3 TERMINATION FOR CAUSE. Employee's employment hereunder may be
terminated for Cause. "Cause" is conduct, as determined by the Chief Executive
Officer, or his designee, involving one or more of the following: (i) gross
misconduct by the Employee; or (ii) the willful disregard of the rules or
policies of the Company; or (iii) the material violation of any noncompetition
or nonsolicitation covenant with, or assignment of inventions obligation to, the
Company; or (iv) the conviction of the Employee of a felony; or (v) the
commission of an act of embezzlement, fraud or breach of fiduciary duty which
results in loss, damage or injury to the Company; or (vi) engaging in an act,
omission or pattern of behavior which, in the reasonable opinion of the Company,
impugns the reputation of the Company or which creates an environment materially
non-conducive to the growth and development of the Company, provided the Company
provides written notice to the Employee that such act, omission or pattern of
behavior may be the basis for termination and the Employee engages in similar
acts, omissions or behavior after receipt of such notice, or (vii) the failure
of the Employee to perform in a material respect his employment obligations as
set forth in this Agreement without proper cause and the continuation thereof
after delivery to Employee of written notice from the Employer specifying in
reasonable detail the nature of such failure. In making such determination, the
Chief Executive Officer (or his designee) shall act in good faith. For purposes
of this Section, no act, or failure to act, on the Employee's part shall be
considered "willful" unless done, or omitted to be done, by him not in good
faith and without reasonable belief that his action or omission was in the best
interest of the Employer.

                                        7
<PAGE>

SECTION 5.4 TERMINATION WITHOUT CAUSE; TERMINATION FOR GOOD REASON. Employee's
employment hereunder may be terminated without Cause upon ten (10) business
days' notice for any reason. Employee's employment may be terminated by Employee
at any time for Good Reason. For purposes of this Agreement, "Good Reason" shall
mean:

     (a) failure of the Employer to continue Employee in the position of
Executive Vice President, Chief Financial Officer, Treasurer and Secretary for
the Company; (b) material diminution in the nature or scope of the Employee's
responsibilities, duties or authority (provided, however, any general diminution
of the business of the Employer, shall not constitute "Good Reason"); or (c)
material failure of the Employer to provide the Employee the compensation and
benefits in accordance with the terms of Articles 3 and 4 hereof.

SECTION 5.5 EXPIRATION. Employee's employment hereunder shall be terminated upon
expiration of the Term of Employment as provided in Sections 1.1 and 1.2, unless
the parties agree that the Employee's employment shall become "at will."

SECTION 5.6 NOTICE OF TERMINATION. Any termination of the Employee's employment
by the Employer or by the Employee (other than termination by reason of
resignation, retirement, or death), shall be communicated by written Notice of
Termination to the other party hereto. For purposes of this Agreement, a "Notice
of Termination" shall mean a notice which shall include the specific termination
provision in this Agreement relied upon, and shall set forth in reasonable
detail the facts and circumstances claimed to provide a basis for termination of
the Employee's employment under the provision so indicated.

SECTION 5.7 DATE OF TERMINATION. The "Date of Termination" shall be: (a) if the
Employee's employment is terminated by his death, the date of his death; (b) if
the Employee's employment is terminated by reason of Employee's disability,
thirty (30) days after Notice of Termination is given; (c) if the Employee's
employment is terminated for Cause, the date the Notice of Termination is given
or after if so specified in such Notice of Termination; (d) if the Employee's
employment is terminated for any other reason, the date on which a Notice of
Termination is given.

                                    ARTICLE 6

                      PAYMENTS TO EMPLOYEE UPON TERMINATION

SECTION 6.1 DEATH, DISABILITY OR RETIREMENT. In the event of Employee's
Retirement, Death or Disability, all benefits generally available to Employer's
employees as of the date of such an event shall be payable to Employee or
Employee's estate, in accordance with the terms of any plan, contract,
understanding or arrangement forming the basis for such payment. Employee shall
be entitled to such other payments as might arise from any other plan, contract,
understanding or arrangement between Employee or Employer at the time of any
such event.

SECTION 6.2 TERMINATION FOR CAUSE OR RESIGNATION. In the event Employee is
terminated by Employer for Cause or Employee resigns (other than a Termination
by Employee for Good Reason), neither Employer nor any affiliate shall have any
further obligation to Employee under

                                        8
<PAGE>

this Agreement or otherwise, except for payment to Employee of any and all
accrued salary and bonuses, provision of COBRA health care continuation and
otherwise as may be expressly required by law.

SECTION 6.3 TERMINATION WITHOUT CAUSE; TERMINATION FOR GOOD REASON. Subject to
other provisions in this Article 6 to the contrary and during the Initial Term
and any Succeeding Annual Terms only, upon the occurrence of a termination
without Cause by Employer or a Termination for Good Reason by Employee, Employer
shall:

     (a) Pay to Employee any and all accrued salary, vacation and bonuses;

     (b) Pay to Employee, or in the event of Employee's subsequent death, to
Employee's surviving spouse, or if none, to Employee's estate, as severance pay
or liquidated damages, or both, during each calendar month for a period
extending over the number of months during which this Agreement would have
remained in effect, without renewal, but for such termination, a sum equal to
(i) the monthly rate of Salary payable under this Agreement for a period of six
(6) months, and (ii) an amount equal to the quarterly bonus paid or payable to
Employee over the two (2) quarters immediately prior to Employee's termination;

     (c) Cause any stock options issued to Employee which have not lapsed and
which are not otherwise exercisable to be accelerated so as to immediately be
exercisable by Employee;

     (d) Pay the Employer's portion of the COBRA health insurance continuation
premium in the same amount Employer contributed for Employee's health insurance
as of the date of Employee's termination through the remaining period of months
of the Initial Term or Succeeding Term and thereafter provide COBRA health care
continuation at Employee's cost (provided that the Employee makes the required
premium contributions); provided, however, that Employer's obligation to
contribute its portion of the COBRA insurance premium will cease immediately in
the event Employee becomes employed following termination. Employee agrees to
notify Employer immediately regarding such new employment; and

     (e) Provide to Employee such other payments or benefits as may be expressly
required by law.

                                    ARTICLE 7

                               GENERAL PROVISIONS

SECTION 7.1 NOTICES. Any notices to be given hereunder by either party to the
other shall be in writing and may be transmitted by personal delivery or by
mail, first class, postage prepaid, or by electronic facsimile or email
transmission (with verification of receipt). Mailed notices shall be addressed
to the parties at their respective addresses set forth herein. Each party may
change that address by written notice in accordance with this section. Notices
delivered personally shall be deemed communicated as of the date of actual
receipt. Mailed notices shall be deemed communicated as of one day after the
date of mailing.

                                        9
<PAGE>

SECTION 7.2 GOVERNING LAW; JURISDICTION. This Agreement shall be governed by,
construed and interpreted in accordance with the laws of the Commonwealth of
Massachusetts, without regard to its principles of conflicts of laws. Any action
or proceeding seeking to enforce any provision of, or based on any right arising
out of, this Agreement or any of the transactions contemplated hereby, shall be
brought against any of the parties in the courts of the Commonwealth of
Massachusetts, and each of the parties irrevocably submits to the exclusive
jurisdiction of such courts (and of the appropriate appellate courts) in any
such action or proceeding, waives any objection to venue laid therein, agrees
that all claims in respect of any action or proceeding shall be heard and
determined only in any such court and agrees not to bring any action or
proceeding arising out of or relating to this Agreement or any transaction
contemplated hereby in any other court. Process in any action or proceeding
referred to in the preceding sentence may be served on any party anywhere in the
world.

SECTION 7.3 ATTORNEY'S FEES AND COSTS. If Employer commences any action at law
or in equity against Employee to enforce the terms of this Agreement and
prevails in such action, Employee shall reimburse Employer its reasonable
attorneys' fees, costs and necessary disbursements in addition to any other
relief to which Employer may be entitled. This provision shall be construed as
applicable to the entire contract.

SECTION 7.4 ENTIRE AGREEMENT. This Agreement supersedes any and all other
agreements, either oral or in writing, between the parties hereto with respect
to the subject matter contained herein and contains all of the covenants and
agreements between the parties with respect to that subject matter. Each party
to this Agreement acknowledges that no representations, inducements, promises or
agreements, orally or otherwise, have been made by any party, or anyone acting
on behalf of any party, which are not embodied herein, and that no other
agreement, statement or promise not contained in this Agreement shall be valid
or binding on either party.

SECTION 7.5 MODIFICATION. Any modification of this Agreement will be effective
only if it is in writing and signed by the Employee and properly authorized by
Employer's Board of Directors and signed by an officer of Employer.

SECTION 7.6 EFFECT OF WAIVER. The failure of either party to insist on strict
compliance with any of the terms, covenants or conditions of this Agreement by
the other party shall not be deemed a waiver of that term, covenant or
condition, nor shall any waiver or relinquishment of any right or power at any
one time or times be deemed a waiver or relinquishment of that right or power
for all or any other times.

SECTION 7.7 PARTIAL INVALIDITY. If any provision in this Agreement is held by a
court of competent jurisdiction to be invalid, void or unenforceable, the
remaining provisions shall nevertheless continue in full force without being
impaired or invalidated in any way.

SECTION 7.8 ASSIGNMENT. The rights and obligations of the parties hereto shall
inure to the benefit of, and shall be binding upon, the successors and assigns
of each of them; provided, however, that the Employee shall not, during the
continuance of this Agreement, assign this Agreement without the previous
written consent of the Employer, and provided, further, that

                                       10
<PAGE>

nothing contained in this Agreement shall restrict or limit the Employer in any
manner whatsoever from assigning any or all of its rights, benefits or
obligations under this Agreement to any successor corporation or entity or to
any affiliate of the Employer without the necessity of obtaining the consent of
the Employee. "Affiliate" as used throughout this Agreement means any person or
entity which directly or indirectly controls, or is controlled by, or is under
common control with, the Employer.

SECTION 7.9 SPECIFIC PERFORMANCE. If there is any violation of the Employee's
obligations herein contained, the Employer, or any of its Affiliates, shall have
the right to specific performance in addition to any other remedy which may be
available at law or at equity.

SECTION 7.10 SURVIVAL OF SECTIONS. The provisions of Sections 2.3, 2.4, 2.5 and
2.6 shall continue in force so long as the Employee remains employed by the
Employer or any Affiliate of the Employer, whether under this Agreement or not,
and whether as a consultant or not, and shall survive any termination of
employment under this Agreement for the periods specified therein.
Notwithstanding the foregoing, the provision of Sections 2.5 shall survive for
only three years following any termination of employment under this Agreement.

SECTION 7.11 INJUNCTIVE RELIEF/ACKNOWLEDGEMENT. Employee understands and
acknowledges that the Employer's Proprietary Information, Inventions and good
will are of a special, unique, unusual, extraordinary character which gives them
a peculiar value, the loss of which cannot be reasonably compensated by damages
in an action at law. Employee understands and acknowledges that, in addition to
any and all other rights or remedies that the Employer may possess, Employer
shall be entitled to injunctive and other equitable relief, without posting a
bond, to prevent a breach or threatened breach of this Agreement (and/or any
provision thereof) by Employee . In the event that a court of appropriate
jurisdiction awards the Company injunctive or other equitable relief due to
Employee's breach of the terms of this Agreement, Employee agrees that the time
periods provided in Article 2.3 of this Agreement shall be tolled for the period
during which Employee is in breach of the Agreement, and shall resume once
Employee complies with such injunctive or other equitable relief.

     IN WITNESS WHEREOF, the parties have executed this Agreement by their duly
authorized officers as an instrument under seal at Woburn, Massachusetts on this
10th day of May, 2006.

EMPLOYER:                                     EMPLOYEE:
BRIDGELINE SOFTWARE, INC.

By: /s/ THOMAS L. MASSIE                     /S/ GARY CEBULA
    ------------------------                 --------------------------
    Thomas L. Massie                         Gary Cebula
    President & CEO

                                       11
<PAGE>

                                 EXHIBIT 2.4(B)
                                 --------------

                    Employee's Personal Intellectual Property
























                                       12
<PAGE>

                                   EXHIBIT 4.2
                                   -----------

GARY CEBULA, INCENTIVE BONUS COMPUTATION

JANUARY 1, 2006 TO DECEMBER 31, 2006

2006 BONUS:

You have the opportunity to earn a maximum annual bonus of $60,000, some earned
quarterly based on the achievement of the following Corporate initiatives:

A) DAYS OUTSTANDING ON ACCOUNTS RECEIVABLE ("DSO") INCENTIVE: For fiscal year
2006, you will entitlted to earn a quarterly bonus of $2,500 per quarter for
managing outstanding accounts receivable collections at or under forty-five (45)
days. DSO shall be calculated on a rolling quarterly average.

B) EBITDA INCENTIVE: For fiscal year 2006, you will be entitled to earn a
quarterly incentive bonus of $7,500 provided the Company's achieves minnimally
80% of its pre-approved 2006 quarterly EBITDA (Earnings Before Interest, Taxes,
Depreciation and Amortization) objectives. The pre-approved qualterly EBITDA
objectives bt Bridgeline Board of Directors for 2006 are:

          QUARTER           EBITDA PLAN               AT 80% OF PLAN
          -------           -----------               --------------
          Q106              $116,500                  $ 93,200
          Q206              $175,900                  $140,700
          Q306              $182,000                  $145,600
          Q406              $245,000                  $196,000

C) ACQUISTION INCENTIVE: You will be entitled to earn a bonus of $5,000 for the
completion of each acquisition clompleted in 2006.

D) INITIAL PUBLIC OFFERING INCENTIVE: You will be entitled to earn a bonus of
$10,000 for the completion of a Intial Public Offering in 2006.

All earned bonuses shall be paid on the 30th/31st payroll of the month following
the calendar quarter end provided that the employee is still employed by
Bridgeline at that time.





                                       13
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10.9
<SEQUENCE>24
<FILENAME>ex10-9_14663.txt
<DESCRIPTION>ZUCKER EMPLOYMENT AGREEMENT DATED 01-01-2006
<TEXT>
                                                                    EXHIBIT 10.9
                                                                    ------------

                                [BRIDGELINE LOGO]

                              EMPLOYMENT AGREEMENT

     Bridgeline Software, Inc., a Delaware Corporation (the "EMPLOYER" or the
"COMPANY") and Brett Zucker (the "Employee"), in consideration of the mutual
promises made herein, agree as follows:

                                    ARTICLE 1

                               TERM OF EMPLOYMENT

SECTION 1.1 SPECIFIED PERIOD. Employer hereby employs Employee, and Employee
hereby accepts employment with Employer for the term of one (1) year, with the
period beginning on January 1, 2006 (the "COMMENCEMENT DATE"), and terminating
on December 31, 2006 ("INITIAL TERM").

SECTION 1.2 SUCCEEDING TERM. At the end of the Initial Term, or any succeeding
one year term, this Employment Agreement shall renew for successive periods of
one (1) year each (a "SUCCEEDING TERM") only if the Employer gives written
notice to Employee not less than sixty (60) days prior to the end of the Initial
Term. If such notice of renewal is not provided to the Employee by the Employer
this Employment Agreement will terminate, except the provisions of Sections 2.3,
2.4, 2.5 and 2.6 shall continue in force so long as the Employee remains
employed by the Employer or any Affiliate of the Employer, whether under this
Agreement or not, and whether as a consultant or not, and shall survive any
termination of employment under this Agreement for the periods specified
therein, all as is more specifically provided in Section 7.10. Once this
Employment Agreement terminates then the Employee shall become an employee at
will at the end of the Initial Term or Succeeding Term.

SECTION 1.3 EMPLOYMENT TERM DEFINED. As used herein, the phrase "employment
term" refers to the entire period of employment of Employee by Employer
hereunder, whether such employment is during the Initial Term, Succeeding Term
or, following the end of the Succeeding Term, as an employee at will.

                                    ARTICLE 2

                       DUTIES AND OBLIGATIONS OF EMPLOYEE

SECTION 2.1 GENERAL DUTIES. . Employee shall serve as Executive Vice President
and General Manager for the New York region of the Employer. In such capacity,
Employee shall do and perform all services, acts or things consistent within the
scope of his employment and with the Employee's skill and expertise in
accordance with the instructions of and policies set by Employer's Chief
Executive Officer, or his designee. Employee shall perform such services at 104
West 40th Street, New York, NY 10018 or at such other location as may be
designated by Employer. The Employee shall be available to make business trips
both within and outside the United States for the purpose of meeting with and
consulting with other members of the Employer's management, as well as with
present and proposed customers and parties with whom the Employer does business,
all on such reasonable terms, bearing in mind the position of the Employee.

<PAGE>

SECTION 2.2 DEVOTION TO EMPLOYER'S BUSINESS.

                  (a) Employee shall devote his best efforts and entire
productive time, ability and attention to diligently promote and improve the
business of Employer during the Term.

                  (b) Employee shall not engage in any other business duties or
pursuits whatsoever, or directly or indirectly render any services of a
business, commercial or professional nature to any other person or organization,
whether for compensation or otherwise, without the prior written consent of the
Employer's President & CEO. This Agreement shall not be interpreted to prohibit
Employee from making passive personal investments or conducting private business
affairs if those private business affairs do not materially interfere with the
services required under this Agreement.

SECTION 2.3 CONFIDENTIAL INFORMATION; TANGIBLE PROPERTY; COMPETITIVE ACTIVITIES.

                  (a) Employee shall hold in confidence and not use or disclose
to any person or entity without the express written authorization of Employer,
either during the term of employment or any time thereafter, secret or
confidential information of Employer, as well as secret or confidential
information and materials received in confidence from third parties by Employee
or Employer. If any confidential information described below is sought by legal
process, Employee will promptly notify Employer and will cooperate with Employer
in preserving its confidentiality in connection with any legal proceeding.

         The parties hereto hereby stipulate that, to the extent it is not known
publicly, the information described in this Section (herein referred to as
"Confidential Information") is important, material and has independent economic
value (actual or potential) from not being generally known to others who could
obtain economic value from its disclosure or use and that any breach of any
terms of this Section 2.3 is a material breach of this Agreement: (i) the names,
buying habits and practices of Employer's customers or prospective customers;
(ii) Employer's sales and marketing strategy and methods and related data; (iii)
the names of Employer's vendors and suppliers; (iv) cost of materials/services;
(v) the prices Employer obtains or has obtained or for which it sells or has
sold its products or services; (vi) development costs; (vii) compensation paid
to employees or other terms of employment; (viii) Employer's past and projected
sales volumes; (ix) confidential information relating to actual products,
proposed products or enhancements of existing products, including, but not
limited to, source code, programming instructions, engineering methods and
techniques, logic diagrams, algorithms, development environment, software
methodologies, and technical specifications for the Employer's web design and
content management software. Confidential Information shall also include all
information which the Employee should reasonably understand is secret or
confidential information, provided the same is clearly designated as
confidential by marking or stamping "Confidential" or similar words on the cover
of such information, or by orally communicating such confidentiality and
confirming such confidentiality in a later written communication. Confidential
Information shall also include all information which the Employee should
reasonably understand is secret or confidential information, if the Employee has
participated in

                                        2
<PAGE>

or otherwise been involved with the development, analysis, invention or
origination of such Confidential Information belonging to the Employer,
including, without limitation, methods, know-how, formula, customer and supplier
lists, personnel and financial data, business plans, as well as product
information, product plans and product strategies. Notwithstanding the
foregoing, "Confidential Information" does not include any information which (A)
is now available to the public or which becomes available to the public, (B) is
or becomes available to the Employee from a source other than the Employer and
such disclosure is not a breach of a confidentiality agreement with the
Employer, or (C) is required to be disclosed by any government agency or in
connection with a court proceeding.

                  All Confidential Information, as well as all software code,
methodologies, models, samples, tools, machinery, equipment, notes, books,
correspondence, drawings and other written, graphical or electromagnetic records
relating to any of the products of Employer or relating to any of the
Confidential Information of Employer which Employee shall prepare, use,
construct, observe, possess, or control shall be and shall remain the sole
property of Employer and shall be returned by Employee upon termination of
employment.

                  (b) During his employment hereunder and for twelve (12) months
thereafter, Employee shall not, directly or indirectly, without the consent of
the Employer: (i) invest (except for the ownership of less than 3% of the
capital stock of a publicly held company), or hold a directorship or other
position of authority in any of the Employer's Direct Competitors ("DIRECT
COMPETITORS" defined as: any person or entity, or a department or division of an
entity, whereby more than 25% of the person's or entity's total revenues are
derived from the Competitive Services ("COMPETITIVE SERVICES" defined as design
and development for third parties of: Internet and Intranet Web sites and
solutions, content management or document management software, custom web
(internet) applications, and/or multimedia CDs and DVDs or services such as
Intranet and Extranet consulting services or Web hosting services)), (ii)
undertake preparation of or planning for an organization or offering of
Competitive Services, (iii) combine or collaborate with other employees or
representatives of the Employer or any third party for the purpose of
organizing, engaging in, or offering Competitive Services, or (iv) be employed
by, serve as a consultant to or otherwise provide services to (whether as
principal, partner, shareholder, member, officer, director, stockholder, agent,
joint venturer, creditor, investor or in any other capacity), or participate in
the management of a Direct Competitor or participate in any other business that
the Employer may be engaged or is planning to undertake in at the date of the
termination of this Agreement.

                  (c) During his employment hereunder and for twelve (12) months
thereafter, Employee shall not, directly or indirectly, without the consent of
the Employer: contact, recruit, solicit, induce or employ, or attempt to
contact, recruit, solicit, induce or employ, any employee, consultant, agent,
director or officer of the Employer to terminate his/her employment with, or
otherwise cease any relationship with, the Employer; or contact, solicit,
divert, take away or accept business from, or attempt to contact, solicit,
divert or take away, any clients, customers or accounts, or prospective clients,
customers or accounts, of the Employer, or any of the Employer's business with
such clients, customers or accounts which were, directly or indirectly,
contacted, solicited or served by Employee, or were directly or indirectly under
his responsibility, while Employee was employed by the Company, or the identity
of which Employee became aware during the term of his employment.

                                        3
<PAGE>

As used in this agreement the term "client," "customer," or "accounts" shall
include: (i) any person or entity that is a client, customer or account of the
Employer on the date hereof or becomes a client, customer or account of the
Employer during the covered period; (ii) any person or entity that was a client,
customer or account of the Employer at anytime during the two-year period
preceding the date of Employee's termination; and (iii) any prospective client,
customer or account to whom the Employer has made a presentation (or similar
offering of services) within a period of 180 days preceding the date of the
termination of Employee's employment.

                  (d) The covenants of this Section 2.3 shall be construed as
separate covenants covering their subject matter in each of the separate
counties and states in the United States in which Employer (or its Affiliates)
transacts its business. If at any time the foregoing provisions shall be deemed
to be invalid or unenforceable or are prohibited by the laws of the state or
place where they are to be enforced, by reason of being vague or unreasonable as
to duration or place of performance, this Section shall be considered divisible
and shall become and be immediately amended to include only such time and such
area as shall be determined to be reasonable and enforceable by the court or
other body having jurisdiction over this Agreement; and the Employer and the
Employee expressly agree that this Section, as so amended, shall be valid and
binding as though any invalid or unenforceable provision had not been included
herein.

                  (f) The Employee represents and warrants that Employee is free
to enter into this Agreement and to perform each of the terms and covenants
contained herein, and that doing so will not violate the terms or conditions of
any agreement between Employee and any third party.

SECTION 2.4 INVENTIONS AND ORIGINAL WORKS.

                  (a) Subject to Section 2.4(b) below, the Employee agrees that
he will promptly make full written disclosure to Employer, will hold in trust
for the sole right and benefit of Employer, and hereby assigns to Employer all
of his right, title and interest in and to any and all inventions (and patent
rights with respect thereto), original works of authorship (including all
copyrights with respect thereto), developments, improvements or trade secrets
which Employee may solely or jointly conceive or develop or reduce to practice,
or cause to be conceived or developed or reduced to practice, while performing
his duties under this Agreement.

                  Employee acknowledges that all original works of authorship
relating to the business of Employer which are made by him (solely or jointly
with others) within the scope of his duties under this Agreement and which are
protectable by copyrights are "works made for hire" as that term is defined in
the United States Copyright Act (17 U.S.C.A., Section 101), and that Employee is
an employee as defined under that Act. Employee further agrees from time to time
to execute written transfers to Employer of ownership or specific original works
or authorship (and all copyrights therein) made by Employee (solely or jointly
with others) which may, despite the preceding sentence, be deemed by a court of
law not to be "works made for hire" in such form as is acceptable to Employer in
its reasonable discretion.

                                        4
<PAGE>

                  (b) The parties agree that the "business of the Employer" for
the purposes of this Section 2.4 is acting as a "WEB DEVELOPMENT SERVICE
ENTERPRISE, ENGAGING A DIVERSE CLIENT LIST WITH TECHNOLOGY THAT WILL FURNISH
THEIR INTERNET OBJECTIVES, INCLUDING CONTENT MANAGEMENT, SITE USAGE, VISITOR
INTELLIGENCE, CAMPAIGN TRACKING, DATA MINING, RICH MEDIA, FORMS AND DOCUMENT
MANAGEMENT, GRANT MANAGEMENT, MARKETING MANAGEMENT." Employee shall provide to
Employer, and attach hereto as Exhibit 2.4(b), a list identifying and describing
in reasonable detail all inventions (and patent rights with respect thereto),
original works of authorship (including all copyrights with respect thereto),
developments, improvements, concepts or trade secrets which Employee has solely
or jointly conceived or developed or reduced to practice, or caused to be
conceived or developed or reduced to practice to date, and other intellectual
property of the Employee. For the avoidance of doubt, Employee will identify on
Exhibit 2.4(b) with sufficient detail any intellectual property belonging to the
Employee prior to the date hereof, including that related to the business of the
Employer (collectively the "Employee's Personal Intellectual Property").
Employer acknowledges and agrees that the provisions of Section 2.4(a) shall not
apply to Employee's Personal Intellectual Property or to any inventions (and
patent rights with respect thereto), original works of authorship (including all
copyrights with respect thereto), developments, improvements, concepts or trade
secrets conceived of or developed by Employee during the term of this Agreement
that is not Employer Intellectual Property.

SECTION 2.5 MAINTENANCE OF RECORDS. Except with respect to the Intellectual
Property for which the Employer has no rights, Employee agrees to keep and
maintain reasonable written records of all inventions, original works of
authorship, trade secrets developed or made by him (solely or jointly with
others) during the employment term. The Employee also agrees to make and
maintain adequate and reasonable written records customarily maintained by
corporate managers, including, without limitation, lists and telephone numbers
of persons and companies he has contacted during his engagement by the Employer.
Immediately upon the Employer's request and promptly upon termination of the
Employee's engagement with the Employer, the Employee shall deliver to the
Employer all written records as described in this Section, together with all
memoranda, notes, records, reports, photographs, drawings, plans, papers,
computer storage media, Confidential Information or other documents made or
compiled by the Employee or made available to the Employee during the course of
his engagement by the Employer, and any copies or abstracts thereof, whether or
not of a secret or confidential nature, and all of such records, memoranda or
other documents shall, during and after the engagement of the Employee by the
Employer, be and shall be deemed to be the property of the Employer.

SECTION 2.6 OBTAINING LETTERS PATENT AND COPYRIGHT REGISTRATION. During the
employment term hereunder, Employee agrees to assist Employer, at Employer's
expense, to obtain United States or foreign letters patent, and copyright
registrations (as well as any transfers of ownership thereof) covering
inventions and original works of authorship assigned hereunder to Employer. Such
obligation shall continue beyond the termination of this Agreement for a
reasonable period of time not to exceed one (1) year subject to Employer's
obligation to compensate Employee at such rates as may be mutually agreed upon
by the Employer and Employee at the time, but not exceeding the annualized rate
provided for in Section 4.1 of this Agreement, and reimbursement to Employee of
all expenses incurred.

                                        5
<PAGE>

                  If Employer is unable for any reason whatsoever, including
Employee's mental or physical incapacity to secure Employee's signature to apply
for or to pursue any application for any United States of foreign letters,
patent or copyright registrations (or any document transferring ownership
thereof) covering inventions or original works or authorship assigned to
Employer under this Agreement, Employee hereby irrevocably designates and
appoints Employer and its duly authorized officers and agents as Employee's
agent and attorney-in-fact to act for and in his behalf and stead to execute and
file any such applications and documents and to do all other lawfully permitted
acts to further the prosecution and issuance of letters patent or copyright
registrations or transfers thereof with the same legal force and effect as if
executed by Employee. This appointment is coupled with an interest in and to the
inventions and works of authorship and shall survive Employee's death or
disability. Employee hereby waives and quitclaims to Employer any and all claims
of any nature whatsoever which Employee now or may hereafter have against third
parties for infringement of any patents or copyrights resulting from or relating
to any such application for letters, patent or copyright registrations assigned
hereunder to Employer.

                                    ARTICLE 3

                            COMPENSATION OF EMPLOYEE

SECTION 3.1 ANNUAL SALARY. As compensation for his services hereunder,
Employee shall be paid a salary at the rate of One Hundred Twenty Thousand and
00/100 Dollars ($120,000.00) per year from the Commencement Date. Salary shall
be paid in equal installments not less frequently than twice each month.

SECTION 3.2 QUARTERLY BONUS. The Employee shall be eligible to be paid a
quarterly bonus earned in accordance with the terms set forth on Exhibit 4.2.

SECTION 3.3 TAX WITHHOLDING. Employer shall have the right to deduct or
withhold from the compensation due to Employee hereunder any and all sums
required for federal income and social security taxes and all state or local
taxes now applicable or that may be enacted and become applicable in the future,
for which withholding is required by law.

SECTION 3.4 INCENTIVE STOCK OPTIONS. The Employer may, at the Employer's
sole discretion, issue Incentive Stock Options to the Employee. All stock
options granted the Employee shall be subject to a stock option agreement, a
stock option plan and such other restrictions as are generally applicable to
stock options issued to employees of the Employer, as each may be amended from
time to time.

                                    ARTICLE 4

                                EMPLOYEE BENEFITS

SECTION 4.1 ANNUAL VACATION. Employee shall be entitled to fifteen (15) business
days of paid vacation during each year of this Agreement. Employee may be absent
from his employment for vacation at such times as are approved by the Employer's
President and CEO. Unused vacation shall not be carried over into the next year,
and will not be paid in the form of cash.

                                        6
<PAGE>

SECTION 4.2 BENEFITS. Employee shall be eligible to participate in any and all
benefit plans provided by Employer, including health, disability and life
insurance coverage should Employer elect to participate in any such plans.

SECTION 4.3 BUSINESS EXPENSES. Employer shall reimburse Employee for all
appropriate expenses for travel and entertainment by Employee for legitimate
business purposes, provided that they are approved in writing by the person to
whom the Employee reports, and provided that Employee furnishes to Employer
adequate records and documentary evidence for the substantiation of each such
expenditure, as required by the Internal Revenue Code of 1986, as amended.

                                    ARTICLE 5

                            TERMINATION OF EMPLOYMENT

SECTION 5.1 TERMINATION. Employee's employment hereunder may be terminated by
Employee or Employer as herein provided, without further obligation or
liability, except as expressly provided in this Agreement.

SECTION 5.2 RESIGNATION, RETIREMENT, DEATH OR DISABILITY. Employee's employment
hereunder shall be terminated at any time by Employee's resignation, or by
Employee's retirement, death, or his inability to perform the essential
functions of his position under this Agreement, with or without reasonable
accommodation, for a total of ninety (90) days or more in any continuous two
hundred (200) day period because of a substantial physical or mental impairment
("Disability"). Employer shall not be liable for payment of base or bonus
compensation during any period of disability, though benefits shall continue to
accrue.

SECTION 5.3 TERMINATION FOR CAUSE. Employee's employment hereunder may be
terminated for Cause. "Cause" is conduct, as determined by the Chief Executive
Officer, or his designee, involving one or more of the following: (i) gross
misconduct by the Employee; or (ii) the willful disregard of the rules or
policies of the Company; or (iii) the material violation of any noncompetition
or nonsolicitation covenant with, or assignment of inventions obligation to, the
Company; or (iv) the conviction of the Employee of a felony; or (v) the
commission of an act of embezzlement, fraud or breach of fiduciary duty which
results in loss, damage or injury to the Company; (vii) the failure of the
Employee to perform in a material respect his employment obligations as set
forth in this Agreement without proper cause and the continuation thereof after
delivery to Employee of written notice from the Employer specifying in
reasonable detail the nature of such failure. In making such determination, the
Chief Executive Officer (or his designee) shall act in good faith. For purposes
of this Section, no act, or failure to act, on the Employee's part shall be
considered "willful" unless done, or omitted to be done, by him not in good
faith and without reasonable belief that his action or omission was in the best
interest of the Employer.

                                        7
<PAGE>

SECTION 5.4 TERMINATION WITHOUT CAUSE; TERMINATION FOR GOOD REASON.
Employee's employment hereunder may be terminated without Cause upon ten (10)
business days' notice for any reason. Employee's employment may be terminated by
Employee at any time for Good Reason. For purposes of this Agreement, "Good
Reason" shall mean:

                  (a) failure of the Employer to continue Employee in the
position of Executive Vice President and General Manager for the New York region
of the Employer; (b) material diminution in the nature or scope of the
Employee's responsibilities, duties or authority (provided, however, any general
diminution of the business of the Employer, shall not constitute "Good Reason");
or (c) material failure of the Employer to provide the Employee the compensation
and benefits in accordance with the terms of Articles 3 and 4 hereof.

SECTION 5.5 EXPIRATION. Employee's employment hereunder shall be terminated upon
expiration of the Term of Employment as provided in Sections 1.1 and 1.2, unless
the parties agree that the Employee's employment shall become "at will."

SECTION 5.6 NOTICE OF TERMINATION. Any termination of the Employee's employment
by the Employer or by the Employee (other than termination by reason of
resignation, retirement, or death), shall be communicated by written Notice of
Termination to the other party hereto. For purposes of this Agreement, a "Notice
of Termination" shall mean a notice which shall include the specific termination
provision in this Agreement relied upon, and shall set forth in reasonable
detail the facts and circumstances claimed to provide a basis for termination of
the Employee's employment under the provision so indicated.

SECTION 5.7 DATE OF TERMINATION. The "Date of Termination" shall be: (a) if the
Employee's employment is terminated by his death, the date of his death; (b) if
the Employee's employment is terminated by reason of Employee's disability,
thirty (30) days after Notice of Termination is given; (c) if the Employee's
employment is terminated for Cause, the date the Notice of Termination is given
or after if so specified in such Notice of Termination; (d) if the Employee's
employment is terminated for any other reason, the date on which a Notice of
Termination is given.

                                    ARTICLE 6

                      PAYMENTS TO EMPLOYEE UPON TERMINATION

SECTION 6.1 DEATH, DISABILITY OR RETIREMENT. In the event of Employee's
Retirement, Death or Disability, all benefits generally available to Employer's
employees as of the date of such an event shall be payable to Employee or
Employee's estate, in accordance with the terms of any plan, contract,
understanding or arrangement forming the basis for such payment. Employee shall
be entitled to such other payments as might arise from any other plan, contract,
understanding or arrangement between Employee or Employer at the time of any
such event.

SECTION 6.2 TERMINATION FOR CAUSE OR RESIGNATION. In the event Employee is
terminated by Employer for Cause or Employee resigns (other than a Termination
by Employee for Good Reason), neither Employer nor any affiliate shall have any
further obligation to Employee under this Agreement or otherwise, except for
payment to Employee of any and all accrued salary and

                                        8
<PAGE>

bonuses, provision of COBRA health care continuation and otherwise as may be
expressly required by law.

SECTION 6.3 TERMINATION WITHOUT CAUSE; TERMINATION FOR GOOD REASON. Subject to
other provisions in this Article 6 to the contrary and during the Initial Term
and any Succeeding Annual Terms only, upon the occurrence of a termination
without Cause by Employer or a Termination for Good Reason by Employee, Employer
shall:

         (a) Pay to Employee any and all accrued salary, vacation and bonuses;

         (b) Pay to Employee, or in the event of Employee's subsequent death, to
Employee's surviving spouse, or if none, to Employee's estate, as severance pay
or liquidated damages, or both, during each calendar month for a period
extending over the number of months during which this Agreement would have
remained in effect, without renewal, but for such termination, a sum equal to
(i) the monthly rate of Salary payable under this Agreement for a period of six
(6) months, and (ii) an amount equal to the quarterly bonus paid or payable to
Employee over the two (2) quarters immediately prior to Employee's termination;

         (c) Cause any stock options issued to Employee which have not lapsed
and which are not otherwise exercisable to be accelerated so as to immediately
be exercisable by Employee;

         (d) Pay the Employer's portion of the COBRA health insurance
continuation premium in the same amount Employer contributed for Employee's
health insurance as of the date of Employee's termination through the remaining
period of months of the Initial Term or Succeeding Term and thereafter provide
COBRA health care continuation at Employee's cost (provided that the Employee
makes the required premium contributions); provided, however, that Employer's
obligation to contribute its portion of the COBRA insurance premium will cease
immediately in the event Employee becomes employed following termination.
Employee agrees to notify Employer immediately regarding such new employment;
and

         (e) Provide to Employee such other payments or benefits as may be
expressly required by law.

                                    ARTICLE 7

                               GENERAL PROVISIONS

SECTION 7.1 NOTICES. Any notices to be given hereunder by either party to the
other shall be in writing and may be transmitted by personal delivery or by
mail, first class, postage prepaid, or by electronic facsimile or email
transmission (with verification of receipt). Mailed notices shall be addressed
to the parties at their respective addresses set forth herein. Each party may
change that address by written notice in accordance with this section. Notices
delivered personally shall be deemed communicated as of the date of actual
receipt. Mailed notices shall be deemed communicated as of one day after the
date of mailing.

                                        9
<PAGE>

SECTION 7.2 GOVERNING LAW; JURISDICTION. This Agreement shall be governed by,
construed and interpreted in accordance with the laws of the Commonwealth of
Massachusetts, without regard to its principles of conflicts of laws. Any action
or proceeding seeking to enforce any provision of, or based on any right arising
out of, this Agreement or any of the transactions contemplated hereby, shall be
brought against any of the parties in the courts of the Commonwealth of
Massachusetts, and each of the parties irrevocably submits to the exclusive
jurisdiction of such courts (and of the appropriate appellate courts) in any
such action or proceeding, waives any objection to venue laid therein, agrees
that all claims in respect of any action or proceeding shall be heard and
determined only in any such court and agrees not to bring any action or
proceeding arising out of or relating to this Agreement or any transaction
contemplated hereby in any other court. Process in any action or proceeding
referred to in the preceding sentence may be served on any party anywhere in the
world.

SECTION 7.3 ATTORNEY'S FEES AND COSTS. If Employer commences any action at law
or in equity against Employee to enforce the terms of this Agreement and
prevails in such action, Employee shall reimburse Employer its reasonable
attorneys' fees, costs and necessary disbursements in addition to any other
relief to which Employer may be entitled. This provision shall be construed as
applicable to the entire contract.

SECTION 7.4 ENTIRE AGREEMENT. This Agreement supersedes any and all other
agreements, either oral or in writing, between the parties hereto with respect
to the subject matter contained herein and contains all of the covenants and
agreements between the parties with respect to that subject matter. Each party
to this Agreement acknowledges that no representations, inducements, promises or
agreements, orally or otherwise, have been made by any party, or anyone acting
on behalf of any party, which are not embodied herein, and that no other
agreement, statement or promise not contained in this Agreement shall be valid
or binding on either party.

SECTION 7.5 MODIFICATION. Any modification of this Agreement will be effective
only if it is in writing and signed by the Employee and properly authorized by
Employer's Board of Directors and signed by an officer of Employer.

SECTION 7.6 EFFECT OF WAIVER. The failure of either party to insist on strict
compliance with any of the terms, covenants or conditions of this Agreement by
the other party shall not be deemed a waiver of that term, covenant or
condition, nor shall any waiver or relinquishment of any right or power at any
one time or times be deemed a waiver or relinquishment of that right or power
for all or any other times.

SECTION 7.7 PARTIAL INVALIDITY. If any provision in this Agreement is held by a
court of competent jurisdiction to be invalid, void or unenforceable, the
remaining provisions shall nevertheless continue in full force without being
impaired or invalidated in any way.

SECTION 7.8 ASSIGNMENT. The rights and obligations of the parties hereto shall
inure to the benefit of, and shall be binding upon, the successors and assigns
of each of them; provided, however, that the Employee shall not, during the
continuance of this Agreement, assign this Agreement without the previous
written consent of the Employer, and provided, further, that nothing contained
in this Agreement shall restrict or limit the Employer in any manner

                                       10
<PAGE>

whatsoever from assigning any or all of its rights, benefits or obligations
under this Agreement to any successor corporation or entity or to any affiliate
of the Employer without the necessity of obtaining the consent of the Employee.
"Affiliate" as used throughout this Agreement means any person or entity which
directly or indirectly controls, or is controlled by, or is under common control
with, the Employer.

SECTION 7.9 SPECIFIC PERFORMANCE. If there is any violation of the Employee's
obligations herein contained, the Employer, or any of its Affiliates, shall have
the right to specific performance in addition to any other remedy which may be
available at law or at equity.

SECTION 7.10 SURVIVAL OF SECTIONS. The provisions of Sections 2.3, 2.4, 2.5 and
2.6 shall continue in force so long as the Employee remains employed by the
Employer or any Affiliate of the Employer, whether under this Agreement or not,
and whether as a consultant or not, and shall survive any termination of
employment under this Agreement for the periods specified therein.
Notwithstanding the foregoing, the provision of Sections 2.5 shall survive for
only three years following any termination of employment under this Agreement.

SECTION 7.11 INJUNCTIVE RELIEF/ACKNOWLEDGEMENT. Employee understands and
acknowledges that the Employer's Proprietary Information, Inventions and good
will are of a special, unique, unusual, extraordinary character which gives them
a peculiar value, the loss of which cannot be reasonably compensated by damages
in an action at law. Employee understands and acknowledges that, in addition to
any and all other rights or remedies that the Employer may possess, Employer
shall be entitled to injunctive and other equitable relief, without posting a
bond, to prevent a breach or threatened breach of this Agreement (and/or any
provision thereof) by Employee . In the event that a court of appropriate
jurisdiction awards the Company injunctive or other equitable relief due to
Employee's breach of the terms of this Agreement, Employee agrees that the time
periods provided in Article 2.3 of this Agreement shall be tolled for the period
during which Employee is in breach of the Agreement, and shall resume once
Employee complies with such injunctive or other equitable relief.

         IN WITNESS WHEREOF, the parties have executed this Agreement by their
duly authorized officers as an instrument under seal at Woburn, Massachusetts on
this __ day of February, 2006.

EMPLOYER:                                     EMPLOYEE:
BRIDGELINE SOFTWARE, INC.

By: /S/ THOMAS L. MASSIE                     /S/ BRETT ZUCKER
    -------------------------                --------------------------
    Thomas L. Massie                         Brett Zucker
    President & CEO

                                       11
<PAGE>

                                EXHIBIT 2.4(B)

                    Employee's Personal Intellectual Property

































                                       12
<PAGE>

                                   EXHIBIT 4.2

      BRETT ZUCKER, INCENTIVE BONUS COMPUTATION

      JANUARY 1, 2006 TO DECEMBER 31, 2006

      2006 BONUS:

      YOU WILL HAVE THE OPPORTUNITY TO EARN A QUARTERLY INCENTIVE BONUS BASED ON
      THE ACHIEVEMENT OF NEW YORK OFFICE UTILIZATION, GROSS MARGIN, PRODUCT
      LICENSE REVENUE AND INDIA OUTSOURCING GOALS.

      A) UTILIZATION BONUS METRIC: For fiscal year 2006, you will entitlted to
      earn a quarterly bonus of $2,500 per quarter based on achieving New York
      regional office billability of 75% for each calendar quarter. Billability
      is defined as hours coded to projects that Bridgeline has recognized
      revenue on in the applicable calendar quarter. This amount is divided by
      the total billable hours in each calendar quarter, defined as the number
      of working days multiplied by 8 hours. To qualify for this bonus, such
      percentage must equal or exceed 75%. This bonus shall not be prorated if
      the combined billability of the office is less than 75%.

      Billable work is further defined as all time recorded on external client
      projects provided that such time worked is within the pre-approved
      budgeted parameters set forth for each project. In general, all time coded
      to internal (Bridgeline) projects (i.e. sales support, proposals,
      marketing, etc.) should be coded as non-billable.

      However, for bonus purposes only, should the pre-approved budget for an
      internal project equal or exceed twenty-four (24) hours, and the total
      hours worked for the applicable week(s) exceed 45 hours for each of the
      staff members involved, such project will be considered billable provided
      a new internal project number is established and hours worked on such
      projects are coded to that project as "billable".

      Lastly, external (client) projects always take priority over internal
      (non-billable) work, and if there is a conflict whereby the CEO in his
      discretion, allocates resources to internal work instead of external work,
      such hours worked shall be considered billable for such time, regardless
      if such hours do not exceed 24 hours expended on such work, provided the
      total hours worked for the applicable week(s) exceeds 45 hours for each of
      the staff members involved.

      B) GROSS MARGIN BONUS METRIC: For fiscal year 2006, you will be entitled
      to earn a quarterly incentive bonus equal to 1.0% of the actual delivered
      gross margin achieved by the New York regional office provided the
      quarterly gross margin equal or exceeds 56% of sales.

      Gross margin is defined as total revenue reduced by Cost of Sales that
      includes Direct Labor, 1099 Contract Labor, Cost of Hosting, and
      Production Overhead.

                                       13
<PAGE>

                             EXHIBIT 4.2 (CONTINUED)

      C) PRODUCT LICENSING REVENUE METRIC: You will be entitled to earn an
      additional bonus based on New York's sales of Bridgeline Software Product
      Licenses such as netEDITOR, netEDITOR-pro and Orgitecture. The bonus shall
      be 10% of the value of the Bridgeline Software Product License sold that
      exceeds the minimum revenue per licenses listed below:

      -   The published market price of netEDITOR is $25,000, and to receive a
          10% bonus from the sale of netEDITOR the minimum sales price is
          $15,000 per license.

      -   The published market price of netEDITOR-pro is $35,000, and to receive
          a 10% bonus of the sale of netEDITOR-pro the minimum sales price is
          $25,000 per license.

      -   The published market price of Origitecture varies by component. To
          receive a 10% bonus of the License of Orgitecutre modules, the minimum
          sales price for all Orgitecutre modules licensed to one customer on
          any single sale transaction must equal or exceed $10,000 in aggregate.

          EXAMPLE: IF YOU SELL NETEDITOR-PRO FOR $30,000 YOU WILL RECEIVE A
          $3,000 BONUS ONCE THE CUSTOMER HAS PAID FOR THE PRODUCT. IF YOU SELL
          NETEDITOR-PRO FOR $34,000 YOU WILL RECEIVE A $3,400 BONUS ONCE THE
          CUSTOMER HAS PAID FOR THE PRODUCT. IF YOU SELL NETEDITOR-PRO FOR
          $24,999 YOU WILL RECEIVE $0 BONUS.

      D) BRIDGELINE INDIA OUTSOURCING HOURS METRIC: You will be entitled to earn
      a quarterly incentive bonus based on outsourcing a minimum of New York's
      billable hours to Bridgeline's subsidiary in Bangalore, India. Bridgeline
      has established the following minimum billable hour targets per quarter
      for outsourcing to India:

                  Q106              1,900
                  Q206              2,000
                  Q306              2,100
                  Q406              2,200

                  Total 2006        8,200

      You will be entitled to earn a bonus equal to $1,250 per calendar quarter
      provided that the total hours outsourced to Bridgeline-India exceeds the
      above stated targets.

      The incentive bonuses detailed in "A", "B", "C" and "D" above shall be
      computed on a calendar quarter basis, and all earned bonuses shall be paid
      on the 30th/31st payroll of the month following the calendar quarter end
      provided that the employee is still employed by Bridgeline at that time.

                                       14
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10.10
<SEQUENCE>25
<FILENAME>ex10-10_14663.txt
<DESCRIPTION>SEEGER EMPLOYMENT AGREEMENT DATED 01-01-2006
<TEXT>
                                                                   EXHIBIT 10.10
                                                                   -------------

                                [BRIDGELINE LOGO]

                              EMPLOYMENT AGREEMENT

         Bridgeline Software, Inc., a Delaware Corporation (the "EMPLOYER" or
the "COMPANY") and Robert Seeger (the "EMPLOYEE"), in consideration of the
mutual promises made herein, agree as follows:

                                    ARTICLE 1

                               TERM OF EMPLOYMENT

SECTION 1.1 SPECIFIED PERIOD. Employer hereby employs Employee, and Employee
hereby accepts employment with Employer for the term of one (1) year, with the
period beginning on January 1, 2006 (the "COMMENCEMENT Date"), and terminating
on December 31, 2006 ("INITIAL TERM").

SECTION 1.2 SUCCEEDING TERM. At the end of the Initial Term, or any
succeeding one year term, this Employment Agreement shall renew for successive
periods of one (1) year each (a "SUCCEEDING TERM") only if the Employer gives
written notice to Employee not less than sixty (60) days prior to the end of the
Initial Term. If such notice of renewal is not provided to the Employee by the
Employer this Employment Agreement will terminate, except the provisions of
Sections 2.3, 2.4, 2.5 and 2.6 shall continue in force so long as the Employee
remains employed by the Employer or any Affiliate of the Employer, whether under
this Agreement or not, and whether as a consultant or not, and shall survive any
termination of employment under this Agreement for the periods specified
therein, all as is more specifically provided in Section 7.10. Once this
Employment Agreement terminates then the Employee shall become an employee at
will at the end of the Initial Term or Succeeding Term.

SECTION 1.3 EMPLOYMENT TERM DEFINED. As used herein, the phrase "employment
term" refers to the entire period of employment of Employee by Employer
hereunder, whether such employment is during the Initial Term, Succeeding Term
or, following the end of the Succeeding Term, as an employee at will.

                                    ARTICLE 2

                       DUTIES AND OBLIGATIONS OF EMPLOYEE

SECTION 2.1 GENERAL DUTIES. . Employee shall serve as Senior Vice President of
Business Development for the New York region of the Employer. In such capacity,
Employee shall do and perform all services, acts or things consistent within the
scope of his employment and with the Employee's skill and expertise in
accordance with the instructions of and policies set by Employer's Chief
Executive Officer, or his designee. Employee shall perform such services at 104
West 40th Street, New York, NY 10018 or at such other location as may be
designated by Employer. The Employee shall be available to make business trips
both within and outside the United States for the purpose of meeting with and
consulting with other members of the Employer's management, as well as with
present and proposed customers and parties with whom the Employer does business,
all on such reasonable terms, bearing in mind the position of the Employee.

<PAGE>

SECTION 2.2 DEVOTION TO EMPLOYER'S BUSINESS.

                  (a) Employee shall devote his best efforts and entire
productive time, ability and attention to diligently promote and improve the
business of Employer during the Term.

                  (b) Employee shall not engage in any other business duties or
pursuits whatsoever, or directly or indirectly render any services of a
business, commercial or professional nature to any other person or organization,
whether for compensation or otherwise, without the prior written consent of the
Employer's President & CEO. This Agreement shall not be interpreted to prohibit
Employee from making passive personal investments or conducting private business
affairs if those private business affairs do not materially interfere with the
services required under this Agreement.

SECTION 2.3 CONFIDENTIAL INFORMATION; TANGIBLE PROPERTY; COMPETITIVE ACTIVITIES.

                  (a) Employee shall hold in confidence and not use or disclose
to any person or entity without the express written authorization of Employer,
either during the term of employment or any time thereafter, secret or
confidential information of Employer, as well as secret or confidential
information and materials received in confidence from third parties by Employee
or Employer. If any confidential information described below is sought by legal
process, Employee will promptly notify Employer and will cooperate with Employer
in preserving its confidentiality in connection with any legal proceeding.

         The parties hereto hereby stipulate that, to the extent it is not known
publicly, the information described in this Section (herein referred to as
"Confidential Information") is important, material and has independent economic
value (actual or potential) from not being generally known to others who could
obtain economic value from its disclosure or use and that any breach of any
terms of this Section 2.3 is a material breach of this Agreement: (i) the names,
buying habits and practices of Employer's customers or prospective customers;
(ii) Employer's sales and marketing strategy and methods and related data; (iii)
the names of Employer's vendors and suppliers; (iv) cost of materials/services;
(v) the prices Employer obtains or has obtained or for which it sells or has
sold its products or services; (vi) development costs; (vii) compensation paid
to employees or other terms of employment; (viii) Employer's past and projected
sales volumes; (ix) confidential information relating to actual products,
proposed products or enhancements of existing products, including, but not
limited to, source code, programming instructions, engineering methods and
techniques, logic diagrams, algorithms, development environment, software
methodologies, and technical specifications for the Employer's web design and
content management software. Confidential Information shall also include all
information which the Employee should reasonably understand is secret or
confidential information, provided the same is clearly designated as
confidential by marking or stamping "Confidential" or similar words on the cover
of such information, or by orally communicating such confidentiality and
confirming such confidentiality in a later written communication. Confidential
Information shall also include all information which the Employee should
reasonably understand is secret or confidential information, if the Employee has
participated in

                                        2
<PAGE>

or otherwise been involved with the development, analysis, invention or
origination of such Confidential Information belonging to the Employer,
including, without limitation, methods, know-how, formula, customer and supplier
lists, personnel and financial data, business plans, as well as product
information, product plans and product strategies. Notwithstanding the
foregoing, "Confidential Information" does not include any information which (A)
is now available to the public or which becomes available to the public, (B) is
or becomes available to the Employee from a source other than the Employer and
such disclosure is not a breach of a confidentiality agreement with the
Employer, or (C) is required to be disclosed by any government agency or in
connection with a court proceeding.

                  All Confidential Information, as well as all software code,
methodologies, models, samples, tools, machinery, equipment, notes, books,
correspondence, drawings and other written, graphical or electromagnetic records
relating to any of the products of Employer or relating to any of the
Confidential Information of Employer which Employee shall prepare, use,
construct, observe, possess, or control shall be and shall remain the sole
property of Employer and shall be returned by Employee upon termination of
employment.

                  (b) During his employment hereunder and for twelve (12) months
thereafter, Employee shall not, directly or indirectly, without the consent of
the Employer: (i) invest (except for the ownership of less than 3% of the
capital stock of a publicly held company), or hold a directorship or other
position of authority in any of the Employer's Direct Competitors ("DIRECT
COMPETITORS" defined as: any person or entity, or a department or division of an
entity, whereby more than 25% of the person's or entity's total revenues are
derived from the Competitive Services ("COMPETITIVE SERVICES" defined as design
and development for third parties of: Internet and Intranet Web sites and
solutions, content management or document management software, custom web
(internet) applications, and/or multimedia CDs and DVDs or services such as
Intranet and Extranet consulting services or Web hosting services)), (ii)
undertake preparation of or planning for an organization or offering of
Competitive Services, (iii) combine or collaborate with other employees or
representatives of the Employer or any third party for the purpose of
organizing, engaging in, or offering Competitive Services, or (iv) be employed
by, serve as a consultant to or otherwise provide services to (whether as
principal, partner, shareholder, member, officer, director, stockholder, agent,
joint venturer, creditor, investor or in any other capacity), or participate in
the management of a Direct Competitor or participate in any other business that
the Employer may be engaged or is planning to undertake in at the date of the
termination of this Agreement.

                  (c) During his employment hereunder and for twelve (12) months
thereafter, Employee shall not, directly or indirectly, without the consent of
the Employer: contact, recruit, solicit, induce or employ, or attempt to
contact, recruit, solicit, induce or employ, any employee, consultant, agent,
director or officer of the Employer to terminate his/her employment with, or
otherwise cease any relationship with, the Employer; or contact, solicit,
divert, take away or accept business from, or attempt to contact, solicit,
divert or take away, any clients, customers or accounts, or prospective clients,
customers or accounts, of the Employer, or any of the Employer's business with
such clients, customers or accounts which were, directly or indirectly,
contacted, solicited or served by Employee, or were directly or indirectly under
his responsibility, while Employee was employed by the Company, or the identity
of which Employee became aware during the term of his employment.

                                        3
<PAGE>

As used in this agreement the term "client," "customer," or "accounts" shall
include: (i) any person or entity that is a client, customer or account of the
Employer on the date hereof or becomes a client, customer or account of the
Employer during the covered period; (ii) any person or entity that was a client,
customer or account of the Employer at anytime during the two-year period
preceding the date of Employee's termination; and (iii) any prospective client,
customer or account to whom the Employer has made a presentation (or similar
offering of services) within a period of 180 days preceding the date of the
termination of Employee's employment.

                   (d) The covenants of this Section 2.3 shall be construed as
separate covenants covering their subject matter in each of the separate
counties and states in the United States in which Employer (or its Affiliates)
transacts its business. If at any time the foregoing provisions shall be deemed
to be invalid or unenforceable or are prohibited by the laws of the state or
place where they are to be enforced, by reason of being vague or unreasonable as
to duration or place of performance, this Section shall be considered divisible
and shall become and be immediately amended to include only such time and such
area as shall be determined to be reasonable and enforceable by the court or
other body having jurisdiction over this Agreement; and the Employer and the
Employee expressly agree that this Section, as so amended, shall be valid and
binding as though any invalid or unenforceable provision had not been included
herein.

                  (f) The Employee represents and warrants that Employee is free
to enter into this Agreement and to perform each of the terms and covenants
contained herein, and that doing so will not violate the terms or conditions of
any agreement between Employee and any third party.

SECTION 2.4 INVENTIONS AND ORIGINAL WORKS.

                  (a) Subject to Section 2.4(b) below, the Employee agrees that
he will promptly make full written disclosure to Employer, will hold in trust
for the sole right and benefit of Employer, and hereby assigns to Employer all
of his right, title and interest in and to any and all inventions (and patent
rights with respect thereto), original works of authorship (including all
copyrights with respect thereto), developments, improvements or trade secrets
which Employee may solely or jointly conceive or develop or reduce to practice,
or cause to be conceived or developed or reduced to practice, while performing
his duties under this Agreement.

                  Employee acknowledges that all original works of authorship
relating to the business of Employer which are made by him (solely or jointly
with others) within the scope of his duties under this Agreement and which are
protectable by copyrights are "works made for hire" as that term is defined in
the United States Copyright Act (17 U.S.C.A., Section 101), and that Employee is
an employee as defined under that Act. Employee further agrees from time to time
to execute written transfers to Employer of ownership or specific original works
or authorship (and all copyrights therein) made by Employee (solely or jointly
with others) which may, despite the preceding sentence, be deemed by a court of
law not to be "works made for hire" in such form as is acceptable to Employer in
its reasonable discretion.

                                        4
<PAGE>

                  (b) The parties agree that the "business of the Employer" for
the purposes of this Section 2.4 is acting as a "WEB DEVELOPMENT SERVICE
ENTERPRISE, ENGAGING A DIVERSE CLIENT LIST WITH TECHNOLOGY THAT WILL FURNISH
THEIR INTERNET OBJECTIVES, INCLUDING CONTENT MANAGEMENT, SITE USAGE, VISITOR
INTELLIGENCE, CAMPAIGN TRACKING, DATA MINING, RICH MEDIA, FORMS AND DOCUMENT
MANAGEMENT, GRANT MANAGEMENT, MARKETING MANAGEMENT." Employee shall provide to
Employer, and attach hereto as Exhibit 2.4(b), a list identifying and describing
in reasonable detail all inventions (and patent rights with respect thereto),
original works of authorship (including all copyrights with respect thereto),
developments, improvements, concepts or trade secrets which Employee has solely
or jointly conceived or developed or reduced to practice, or caused to be
conceived or developed or reduced to practice to date, and other intellectual
property of the Employee. For the avoidance of doubt, Employee will identify on
Exhibit 2.4(b) with sufficient detail any intellectual property belonging to the
Employee prior to the date hereof, including that related to the business of the
Employer (collectively the "Employee's Personal Intellectual Property").
Employer acknowledges and agrees that the provisions of Section 2.4(a) shall not
apply to Employee's Personal Intellectual Property or to any inventions (and
patent rights with respect thereto), original works of authorship (including all
copyrights with respect thereto), developments, improvements, concepts or trade
secrets conceived of or developed by Employee during the term of this Agreement
that is not Employer Intellectual Property.

SECTION 2.5 MAINTENANCE OF RECORDS. Except with respect to the Intellectual
Property for which the Employer has no rights, Employee agrees to keep and
maintain reasonable written records of all inventions, original works of
authorship, trade secrets developed or made by him (solely or jointly with
others) during the employment term. The Employee also agrees to make and
maintain adequate and reasonable written records customarily maintained by
corporate managers, including, without limitation, lists and telephone numbers
of persons and companies he has contacted during his engagement by the Employer.
Immediately upon the Employer's request and promptly upon termination of the
Employee's engagement with the Employer, the Employee shall deliver to the
Employer all written records as described in this Section, together with all
memoranda, notes, records, reports, photographs, drawings, plans, papers,
computer storage media, Confidential Information or other documents made or
compiled by the Employee or made available to the Employee during the course of
his engagement by the Employer, and any copies or abstracts thereof, whether or
not of a secret or confidential nature, and all of such records, memoranda or
other documents shall, during and after the engagement of the Employee by the
Employer, be and shall be deemed to be the property of the Employer.

SECTION 2.6 OBTAINING LETTERS PATENT AND COPYRIGHT REGISTRATION. During the
employment term hereunder, Employee agrees to assist Employer, at Employer's
expense, to obtain United States or foreign letters patent, and copyright
registrations (as well as any transfers of ownership thereof) covering
inventions and original works of authorship assigned hereunder to Employer. Such
obligation shall continue beyond the termination of this Agreement for a
reasonable period of time not to exceed one (1) year subject to Employer's
obligation to compensate Employee at such rates as may be mutually agreed upon
by the Employer and Employee at the time, but not exceeding the annualized rate
provided for in Section 4.1 of this Agreement, and reimbursement to Employee of
all expenses incurred.

                                        5
<PAGE>

                  If Employer is unable for any reason whatsoever, including
Employee's mental or physical incapacity to secure Employee's signature to apply
for or to pursue any application for any United States of foreign letters,
patent or copyright registrations (or any document transferring ownership
thereof) covering inventions or original works or authorship assigned to
Employer under this Agreement, Employee hereby irrevocably designates and
appoints Employer and its duly authorized officers and agents as Employee's
agent and attorney-in-fact to act for and in his behalf and stead to execute and
file any such applications and documents and to do all other lawfully permitted
acts to further the prosecution and issuance of letters patent or copyright
registrations or transfers thereof with the same legal force and effect as if
executed by Employee. This appointment is coupled with an interest in and to the
inventions and works of authorship and shall survive Employee's death or
disability. Employee hereby waives and quitclaims to Employer any and all claims
of any nature whatsoever which Employee now or may hereafter have against third
parties for infringement of any patents or copyrights resulting from or relating
to any such application for letters, patent or copyright registrations assigned
hereunder to Employer.

                                    ARTICLE 3

                            COMPENSATION OF EMPLOYEE

SECTION 3.1 ANNUAL SALARY. As compensation for his services hereunder, Employee
shall be paid a salary at the rate of One Hundred Twenty Thousand and 00/100
Dollars ($120,000.00) per year from the Commencement Date. Salary shall be paid
in equal installments not less frequently than twice each month.

SECTION 3.2 VARIABLE COMPENSATION. The Employee shall be eligible to be paid
additional compensation earned in accordance with the terms set forth on Exhibit
4.2.

SECTION 3.3 TAX WITHHOLDING. Employer shall have the right to deduct or withhold
from the compensation due to Employee hereunder any and all sums required for
federal income and social security taxes and all state or local taxes now
applicable or that may be enacted and become applicable in the future, for which
withholding is required by law.

SECTION 3.4 INCENTIVE STOCK OPTIONS. The Employer may, at the Employer's sole
discretion, issue Incentive Stock Options to the Employee. All stock options
granted the Employee shall be subject to a stock option agreement, a stock
option plan and such other restrictions as are generally applicable to stock
options issued to employees of the Employer, as each may be amended from time to
time.

                                    ARTICLE 4

                                EMPLOYEE BENEFITS

SECTION 4.1 ANNUAL VACATION. Employee shall be entitled to fifteen (15) business
days of paid vacation during each year of this Agreement. Employee may be absent
from his employment for vacation at such times as are approved by the Employer's
President and CEO. Unused vacation shall not be carried over into the next year,
and will not be paid in the form of cash.

                                        6
<PAGE>

SECTION 4.2 BENEFITS. Employee shall be eligible to participate in any and all
benefit plans provided by Employer, including health, disability and life
insurance coverage should Employer elect to participate in any such plans.

SECTION 4.3 BUSINESS EXPENSES. Employer shall reimburse Employee for all
appropriate expenses for travel and entertainment by Employee for legitimate
business purposes, provided that they are approved in writing by the person to
whom the Employee reports, and provided that Employee furnishes to Employer
adequate records and documentary evidence for the substantiation of each such
expenditure, as required by the Internal Revenue Code of 1986, as amended.

                                    ARTICLE 5

                            TERMINATION OF EMPLOYMENT

SECTION 5.1 TERMINATION. Employee's employment hereunder may be terminated by
Employee or Employer as herein provided, without further obligation or
liability, except as expressly provided in this Agreement.

SECTION 5.2 RESIGNATION, RETIREMENT, DEATH OR DISABILITY. Employee's employment
hereunder shall be terminated at any time by Employee's resignation, or by
Employee's retirement, death, or his inability to perform the essential
functions of his position under this Agreement, with or without reasonable
accommodation, for a total of ninety (90) days or more in any continuous two
hundred (200) day period because of a substantial physical or mental impairment
("Disability"). Employer shall not be liable for payment of base or bonus
compensation during any period of disability, though benefits shall continue to
accrue.

SECTION 5.3 TERMINATION FOR CAUSE. Employee's employment hereunder may be
terminated for Cause. "Cause" is conduct, as determined by the Chief Executive
Officer, or his designee, involving one or more of the following: (i) gross
misconduct by the Employee; or (ii) the willful disregard of the rules or
policies of the Company; or (iii) the material violation of any noncompetition
or nonsolicitation covenant with, or assignment of inventions obligation to, the
Company; or (iv) the conviction of the Employee of a felony; or (v) the
commission of an act of embezzlement, fraud or breach of fiduciary duty which
results in loss, damage or injury to the Company; or (vi) engaging in an act,
omission or pattern of behavior which, in the reasonable opinion of the Company,
impugns the reputation of the Company or which creates an environment materially
non-conducive to the growth and development of the Company, provided the Company
provides written notice to the Employee that such act, omission or pattern of
behavior may be the basis for termination and the Employee engages in similar
acts, omissions or behavior after receipt of such notice, or (vii) the failure
of the Employee to perform in a material respect his employment obligations as
set forth in this Agreement without proper cause and the continuation thereof
after delivery to Employee of written notice from the Employer specifying in
reasonable detail the nature of such failure. In making such determination, the
Chief Executive Officer (or his designee) shall act in good faith. For purposes
of this Section, no act, or failure to act, on the Employee's part shall be
considered "willful" unless done, or omitted to be done, by him not in good
faith and without reasonable belief that his action or omission was in the best
interest of the Employer.

                                        7
<PAGE>

SECTION 5.4 TERMINATION WITHOUT CAUSE; TERMINATION FOR GOOD REASON. Employee's
employment hereunder may be terminated without Cause upon ten (10) business
days' notice for any reason. Employee's employment may be terminated by Employee
at any time for Good Reason. For purposes of this Agreement, "Good Reason" shall
mean:

                  (a) failure of the Employer to continue Employee in the
position of Senior Vice President of Business Development for the New York
region of the Employer; (b) material diminution in the nature or scope of the
Employee's responsibilities, duties or authority (provided, however, any general
diminution of the business of the Employer, shall not constitute "Good Reason");
or (c) material failure of the Employer to provide the Employee the compensation
and benefits in accordance with the terms of Articles 3 and 4 hereof.

SECTION 5.5 EXPIRATION. Employee's employment hereunder shall be terminated upon
expiration of the Term of Employment as provided in Sections 1.1 and 1.2, unless
the parties agree that the Employee's employment shall become "at will."

SECTION 5.6 NOTICE OF TERMINATION. Any termination of the Employee's employment
by the Employer or by the Employee (other than termination by reason of
resignation, retirement, or death), shall be communicated by written Notice of
Termination to the other party hereto. For purposes of this Agreement, a "Notice
of Termination" shall mean a notice which shall include the specific termination
provision in this Agreement relied upon, and shall set forth in reasonable
detail the facts and circumstances claimed to provide a basis for termination of
the Employee's employment under the provision so indicated.

SECTION 5.7 DATE OF TERMINATION. The "Date of Termination" shall be: (a) if the
Employee's employment is terminated by his death, the date of his death; (b) if
the Employee's employment is terminated by reason of Employee's disability,
thirty (30) days after Notice of Termination is given; (c) if the Employee's
employment is terminated for Cause, the date the Notice of Termination is given
or after if so specified in such Notice of Termination; (d) if the Employee's
employment is terminated for any other reason, the date on which a Notice of
Termination is given.

                                    ARTICLE 6

                      PAYMENTS TO EMPLOYEE UPON TERMINATION

SECTION 6.1 DEATH, DISABILITY OR RETIREMENT. In the event of Employee's
Retirement, Death or Disability, all benefits generally available to Employer's
employees as of the date of such an event shall be payable to Employee or
Employee's estate, in accordance with the terms of any plan, contract,
understanding or arrangement forming the basis for such payment. Employee shall
be entitled to such other payments as might arise from any other plan, contract,
understanding or arrangement between Employee or Employer at the time of any
such event.

SECTION 6.2 TERMINATION FOR CAUSE OR RESIGNATION. In the event Employee is
terminated by Employer for Cause or Employee resigns (other than a Termination
by Employee for Good Reason), neither Employer nor any affiliate shall have any
further obligation to Employee under

                                        8
<PAGE>

this Agreement or otherwise, except for payment to Employee of any and all
accrued salary and bonuses, provision of COBRA health care continuation and
otherwise as may be expressly required by law.

SECTION 6.3 TERMINATION WITHOUT CAUSE; TERMINATION FOR GOOD REASON. Subject to
other provisions in this Article 6 to the contrary and during the Initial Term
and any Succeeding Annual Terms only, upon the occurrence of a termination
without Cause by Employer or a Termination for Good Reason by Employee, Employer
shall:

         (a) Pay to Employee any and all accrued salary, vacation and bonuses;

         (b) Pay to Employee, or in the event of Employee's subsequent death, to
Employee's surviving spouse, or if none, to Employee's estate, as severance pay
or liquidated damages, or both, during each calendar month for a period
extending over the number of months during which this Agreement would have
remained in effect, without renewal, but for such termination, a sum equal to
(i) the monthly rate of Salary payable under this Agreement for a period of six
(6) months, and (ii) an amount equal to the quarterly bonus paid or payable to
Employee over the two (2) quarters immediately prior to Employee's termination;

         (c) Cause any stock options issued to Employee which have not lapsed
and which are not otherwise exercisable to be accelerated so as to immediately
be exercisable by Employee;

         (d) Pay the Employer's portion of the COBRA health insurance
continuation premium in the same amount Employer contributed for Employee's
health insurance as of the date of Employee's termination through the remaining
period of months of the Initial Term or Succeeding Term and thereafter provide
COBRA health care continuation at Employee's cost (provided that the Employee
makes the required premium contributions); provided, however, that Employer's
obligation to contribute its portion of the COBRA insurance premium will cease
immediately in the event Employee becomes employed following termination.
Employee agrees to notify Employer immediately regarding such new employment;
and

         (e) Provide to Employee such other payments or benefits as may be
expressly required by law.

                                    ARTICLE 7

                               GENERAL PROVISIONS

SECTION 7.1 NOTICES. Any notices to be given hereunder by either party to the
other shall be in writing and may be transmitted by personal delivery or by
mail, first class, postage prepaid, or by electronic facsimile or email
transmission (with verification of receipt). Mailed notices shall be addressed
to the parties at their respective addresses set forth herein. Each party may
change that address by written notice in accordance with this section. Notices
delivered personally shall be deemed communicated as of the date of actual
receipt. Mailed notices shall be deemed communicated as of one day after the
date of mailing.

                                        9
<PAGE>

SECTION 7.2 GOVERNING LAW; JURISDICTION. This Agreement shall be governed by,
construed and interpreted in accordance with the laws of the Commonwealth of
Massachusetts, without regard to its principles of conflicts of laws. Any action
or proceeding seeking to enforce any provision of, or based on any right arising
out of, this Agreement or any of the transactions contemplated hereby, shall be
brought against any of the parties in the courts of the Commonwealth of
Massachusetts, and each of the parties irrevocably submits to the exclusive
jurisdiction of such courts (and of the appropriate appellate courts) in any
such action or proceeding, waives any objection to venue laid therein, agrees
that all claims in respect of any action or proceeding shall be heard and
determined only in any such court and agrees not to bring any action or
proceeding arising out of or relating to this Agreement or any transaction
contemplated hereby in any other court. Process in any action or proceeding
referred to in the preceding sentence may be served on any party anywhere in the
world.

SECTION 7.3 ATTORNEY'S FEES AND COSTS. If Employer commences any action at law
or in equity against Employee to enforce the terms of this Agreement and
prevails in such action, Employee shall reimburse Employer its reasonable
attorneys' fees, costs and necessary disbursements in addition to any other
relief to which Employer may be entitled. This provision shall be construed as
applicable to the entire contract.

SECTION 7.4 ENTIRE AGREEMENT. This Agreement supersedes any and all other
agreements, either oral or in writing, between the parties hereto with respect
to the subject matter contained herein and contains all of the covenants and
agreements between the parties with respect to that subject matter. Each party
to this Agreement acknowledges that no representations, inducements, promises or
agreements, orally or otherwise, have been made by any party, or anyone acting
on behalf of any party, which are not embodied herein, and that no other
agreement, statement or promise not contained in this Agreement shall be valid
or binding on either party.

SECTION 7.5 MODIFICATION. Any modification of this Agreement will be effective
only if it is in writing and signed by the Employee and properly authorized by
Employer's Board of Directors and signed by an officer of Employer.

SECTION 7.6 EFFECT OF WAIVER. The failure of either party to insist on strict
compliance with any of the terms, covenants or conditions of this Agreement by
the other party shall not be deemed a waiver of that term, covenant or
condition, nor shall any waiver or relinquishment of any right or power at any
one time or times be deemed a waiver or relinquishment of that right or power
for all or any other times.

SECTION 7.7 PARTIAL INVALIDITY. If any provision in this Agreement is held by a
court of competent jurisdiction to be invalid, void or unenforceable, the
remaining provisions shall nevertheless continue in full force without being
impaired or invalidated in any way.

SECTION 7.8 ASSIGNMENT. The rights and obligations of the parties hereto shall
inure to the benefit of, and shall be binding upon, the successors and assigns
of each of them; provided, however, that the Employee shall not, during the
continuance of this Agreement, assign this Agreement without the previous
written consent of the Employer, and provided, further, that

                                       10
<PAGE>

nothing contained in this Agreement shall restrict or limit the Employer in any
manner whatsoever from assigning any or all of its rights, benefits or
obligations under this Agreement to any successor corporation or entity or to
any affiliate of the Employer without the necessity of obtaining the consent of
the Employee. "Affiliate" as used throughout this Agreement means any person or
entity which directly or indirectly controls, or is controlled by, or is under
common control with, the Employer.

SECTION 7.9 SPECIFIC PERFORMANCE. If there is any violation of the Employee's
obligations herein contained, the Employer, or any of its Affiliates, shall have
the right to specific performance in addition to any other remedy which may be
available at law or at equity.

SECTION 7.10 SURVIVAL OF SECTIONS. The provisions of Sections 2.3, 2.4, 2.5 and
2.6 shall continue in force so long as the Employee remains employed by the
Employer or any Affiliate of the Employer, whether under this Agreement or not,
and whether as a consultant or not, and shall survive any termination of
employment under this Agreement for the periods specified therein.
Notwithstanding the foregoing, the provision of Sections 2.5 shall survive for
only three years following any termination of employment under this Agreement.

SECTION 7.11 INJUNCTIVE RELIEF/ACKNOWLEDGEMENT. Employee understands and
acknowledges that the Employer's Proprietary Information, Inventions and good
will are of a special, unique, unusual, extraordinary character which gives them
a peculiar value, the loss of which cannot be reasonably compensated by damages
in an action at law. Employee understands and acknowledges that, in addition to
any and all other rights or remedies that the Employer may possess, Employer
shall be entitled to injunctive and other equitable relief, without posting a
bond, to prevent a breach or threatened breach of this Agreement (and/or any
provision thereof) by Employee . In the event that a court of appropriate
jurisdiction awards the Company injunctive or other equitable relief due to
Employee's breach of the terms of this Agreement, Employee agrees that the time
periods provided in Article 2.3 of this Agreement shall be tolled for the period
during which Employee is in breach of the Agreement, and shall resume once
Employee complies with such injunctive or other equitable relief.

         IN WITNESS WHEREOF, the parties have executed this Agreement by their
duly authorized officers as an instrument under seal at Woburn, Massachusetts on
this ___ day of March, 2006.

EMPLOYER:                                              EMPLOYEE:

BRIDGELINE SOFTWARE, INC.

By: /S/ THOMAS L. MASSIE                               /S/ ROBERT SEEGER
    -------------------------                          -------------------------
    Thomas L. Massie                                   Robert Seeger
    President & CEO

                                       11
<PAGE>

                                 EXHIBIT 2.4(B)

                    Employee's Personal Intellectual Property


































                                       12
<PAGE>

                                   EXHIBIT 4.2

     ROBERT SEEGER, VARIABLE COMPENSATION COMPUTATION

     JANUARY 1, 2006 TO DECEMBER 31, 2006

     Within our 2006 business plan, the Company has forecasted the following
     revenue projections to be minimally generated by your efforts within your
     territory:

                  Q106             $  580,500
                  Q206                622,250
                  Q306                652,250
                  Q406                662,250

                  2006 Goal:       $2,517,250

     Your base compensation that is outlined in section 3.1 of this agreement is
     compensation provided for the executive management of all of the New York
     region business developments efforts. This includes but not limited to the
     management of other New York region business development executives,
     identifying, qualifying, selling to, and closing target customers,
     developing proposals, developing reports, and updating New York
     projections.

     In addition to your base salary you will be entitled to earn a commission
     based on the three additional achievements:

     1.)  The maximization of the gross profit margin of custom web application
          sales from an existing customer base that is assigned to you within
          our New York territory (see Table "A").

     2.)  The maximization of the gross profit margin of custom web application
          sales from newly developed customers that you establish in 2006 within
          your New York territory (see Table "B").

     3.)  As a third incentive, you will be entitled to earn an incremental
          commission based on the gross sales of any BRIDGELINE Software product
          license such as netEDITOR, or netEDITOR-pro, (see Table "C").

     In addition, you shall earn a commission override equal to two percent (2%)
     of the revenue generated by the other business development personnel in the
     New York region. This activity is defined as revenue for which you are not
     subject to a commission as computed in Tables "A", "B" and "C" below.

     TABLE A    COMMISSION ON EXISTING CUSTOMER(S) CUSTOM WEB DEVELOPMENT AND
                SERVICES GROSS MARGINS:

     You will be entitled to earn commissions based on the actual monthly gross
     profit margin derived from any custom application engagements, custom web
     development engagements, and other web services such as hosting from
     assigned existing customers that re-order in your territory. For Hosting
     arrangements, the "actual" gross margin shall be calculated using a fixed
     60% rate as depreciation of hardware and infrastructure costs are not
     accounted for in cost of sales per generally accepted accounting
     principles. Also, product license revenues are excluded from gross margin
     computations for commission purposes here as a separate commission is
     provided for such revenues under Table C.

                                       13
<PAGE>

                             EXHIBIT 4.2 (CONTINUED)

     TABLE A    COMMISSION ON EXISTING CUSTOMER(S) CUSTOM WEB DEVELOPMENT AND
                SERVICES GROSS MARGINS:

     You will be entitled to earn commissions based on the actual monthly gross
     profit margin derived from any custom application engagements, custom web
     development engagements, and other web services such as hosting from
     assigned existing customers that re-order in your territory. For Hosting
     arrangements, the "actual" gross margin shall be calculated using a fixed
     60% rate as depreciation of hardware and infrastructure costs are not
     accounted for in cost of sales per generally accepted accounting
     principles. Also, product license revenues are excluded from gross margin
     computations for commission purposes here as a separate commission is
     provided for such revenues under Table C.

     Commission Table for Custom Web Services of Existing Customer(s)

     MONTHLY GROSS
     MARGIN DOLLARS           % OF GROSS MARGIN
                           ------------------------
     Up to $69,999                    4%
     Per Month
                           ------------------------
     $70,000 and Greater              6%
     Per Month or $840,000
     annually
                           ------------------------

          EXAMPLE: IF YOUR MONTHLY REVENUE IS $150,000, AND THE BLENDED AVERAGE
          OF THE DELIVERED CUSTOM APPLICATION PROJECT WERE AT 60% GROSS PROFIT
          MARGIN ($90,000 GPM DOLLARS), YOU WOULD BE ENTITLED TO RECEIVE A
          COMMISSION OF 6% OF THE $90,000 GROSS PROFIT. THE COMMISSION THAT
          WOULD BE PAID UNDER THIS SCENARIO WOULD BE $5,400.

     An existing customer is defined as any entity that was invoiced by
     Bridgeline during the prior twelve months from the date of the most current
     project invoice. A customer is defined as a company or division, department
     or subsidiary of a company where the same decision maker or contracting
     person or purchasing group is responsible for executing a services contract
     or statement of work.

     TABLE B    COMMISSION ON CUSTOM WEB DEVELOPMENT, CUSTOM APPLICATION
                DEVELOPMENT, AND SERVICES GROSS MARGINS FOR NEWLY ESTABLISHED
                CUSTOMERS:

     You will be entitled to earn commissions based on the actual monthly gross
     profit margin derived from any custom application engagements, custom web
     development engagements, and other web services such as hosting from newly
     established customers that you cultivate and close in 2006. For Hosting
     arrangements, the "actual" gross margin shall be calculated using a fixed
     60% rate as depreciation of hardware and infrastructure costs are not
     accounted for in cost of sales per generally accepted accounting
     principles. Also, product license revenues are excluded from gross margin
     computations for commission purposes here as a separate commission is
     provided for such revenues under Table C.

                                       14
<PAGE>

                             EXHIBIT 4.2 (CONTINUED)

       By definition, a new customer established in 2006 will remain "new" for
       future business closed for that customer during the initial twelve months
       from the date of the initial invoice to that customer.

       Commission Table for Custom Web Services of New Customer(s)

     MONTHLY GROSS
     MARGIN DOLLARS           % OF GROSS MARGIN
                           ------------------------
     Up to $69,999                    10%
     Per Month
                           ------------------------
     $70,000 and Greater              12%
     Per Month or $840,000
     annually
                           ------------------------

          EXAMPLE: IF YOUR MONTHLY REVENUE WERE $150,000, AND THE BLENDED
          AVERAGE OF THE DELIVERED CUSTOM APPLICATION PROJECT WERE AT 60% GROSS
          PROFIT MARGIN ($90,000 GPM DOLLARS), YOU WOULD BE ENTITLED TO RECEIVE
          A COMMISSION OF 12% OF THE $90,000 GROSS PROFIT. THE COMMISSION THAT
          WOULD BE PAID UNDER THIS SCENARIO WOULD BE $10,800.

     TABLE C.   COMMISSION ON PRODUCT LICENSING REVENUE

     You will be entitled to earn an additional commission based on sales of
     BRIDGELINE Software Product Licenses such as netEDITOR and netEDITOR-pro.
     The commission shall be 10% of the value of the BRIDGELINE Software Product
     License sold that exceeds the minimum revenue per licenses listed on the
     following page:

     -    The published market price of netEDITOR is $25,000, and to receive a
          10% commission from the sale of netEDITOR the minimum sales price is
          $15,000 per license.

     -    The published market price of netEDITOR-pro is $35,000, and to receive
          a 10% commission of the sale of netEDITOR-pro the minimum sales price
          is $25,000 per license.

          EXAMPLE: IF YOU SELL NETEDITOR-PRO FOR $30,000 YOU WILL RECEIVE A
          $3,000 COMMISSION ONCE THE CUSTOMER HAS PAID FOR THE PRODUCT. IF YOU
          SELL NETEDITOR-PRO FOR $34,000 YOU WILL RECEIVE A $3,400 COMMISSION
          ONCE THE CUSTOMER HAS PAID FOR THE PRODUCT. IF YOU SELL NETEDITOR-PRO
          FOR $24,999 YOU WILL RECEIVE $0 COMMISSION.

     In addition to your potential of earning commissions on all service sales
     and product license sales, and commission over ride, BRIDGELINE Software
     will pay you a single one-time bonus of $20,000 when your total direct
     sales exceed $2,517,250 within calendar 2006.

     All Commissions and bonuses shall be paid on the second (30th/31st) payroll
     of each month, for the previous month end.

                                       15
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10.12
<SEQUENCE>26
<FILENAME>ex10-12_14663.txt
<DESCRIPTION>BUSINESS COMBINATION SERVICES AGREEMENT 10-01-2005
<TEXT>
                                                                   EXHIBIT 10.12
                                                                   -------------

                     BUSINESS COMBINATION SERVICES AGREEMENT

This Agreement has been entered into and is effective October 1, 2005 by and
between BRIDGELINE Software, Inc., located at Sixth Road, Woburn, MA 01801
("BRIDGELINE") and Joseph Gunnar & Co., LLC, located at Thirty Broad Street, New
York, NY 10004 ("JGUN").

By execution of this document (the "M &A Agreement"), BRIDGELINE agrees to
retain JGUN and JGUN agrees to be retained by BRIDGELINE, pursuant to the
following terms and conditions:

1.       SERVICES.

         JGUN shall devote general advisory/consultative time and attention to
         any presently ongoing and potentially upcoming BRIDGELINE transactional
         business combination matters (the "Services") about which BRIDGELINE
         shall request its services, pursuant to the direction of Thomas L.
         Massie, BRIDGELINE'S Chief Executive Officer, or others designated by
         Thomas L. Massie, as shall be determined reasonable, in scope and time
         required, by JGUN. It is acknowledged by BRIDGELINE and JGUN that
         BRIDGELINE shall not be required to accept nor use any Services
         provided by JGUN. It is further acknowledged by BRIDGELINE and JGUN
         that financial advisory services and capital raising Services are not
         services contemplated by this M & A Agreement.

2.       TERM.

         JGUN's retention shall be for twelve (12) months commencing October 1,
         2005 (the "Term"); automatically renewed yearly ("Renewed Term") unless
         either BRIDGELINE or JGUN notifies the other of its intention to not
         renew at least ninety (90) calendar days prior to the expiration of the
         then applicable term; or if, during any initial or Renewed Term, two
         (2) or more business combinations involving BRIDGELINE (or one of its
         affiliates) is consummated. Notwithstanding anything to the contrary
         contained herein, in the event JGUN fails to exercise good faith in
         processing a bridge acquisition financing or initial public offering
         ("IPO") on behalf of Bridgeline and BRIDGELINE elects not to proceed
         with the bridge acquisition financing or IPO as a result of such
         failure, BRIDGELINE may terminate this M & A Agreement. Notwithstanding
         anything to the contrary contained herein, in the event that during the
         processing of the Bridge Acquisition Financing JGUN and BRIDGELINE are
         unable to agree on the satisfaction of any or all of the Miscellaneous
         Conditions to Financing set forth in the Bridge Acquisition Letter of
         Intent, BRIDGELINE may immediately terminate this M&A Agreement.

3.       COMPENSATION.

               (a)  For BUSINESS COMBINATION TRANSACTIONS (MERGER, ACQUISITION,
                    SALE AND JOINT VENTURE): JGUN shall be entitled to receive,
                    at closing, cash compensation equal to six percent (6%) of
                    the Total Consideration (as hereinafter defined; see Exhibit
                    A) relating to (i) any acquisition of 20% or more of the
                    stock or assets of any company consummated during the Term
                    or, if applicable, any Renewed Term (or agreed to pursuant
                    to term sheet, letter of intent or similar during the Term
                    or, if applicable, any Renewed Term, and thereafter
                    consummated) (ii) any sale of 20% or more of the stock or
                    assets of BRIDGELINE (exclusive of an IPO of its common
                    stock) consummated during the Term or, if applicable, any
                    Renewed Term (or agreed to pursuant to term sheet, letter of
                    intent or similar during the Term or, if applicable, any
                    Renewed Term, and thereafter consummated) and/or (iii) any
                    merger or other business combination, including joint
                    ventures, involving BRIDGELINE, consummated during the Term
                    or, if applicable, any Renewed Term (or agreed to pursuant
                    to term sheet, letter of intent or similar during the Term
                    or, if applicable, any Renewed Term, and thereafter
                    consummated) (compensation for any such transaction set
                    forth in (i) - (iii) during the Term

<PAGE>

                    or Renewed Term(s), if applicable, the "Success Fee"). In no
                    event shall the Success Fee payable be less than $125k or
                    more than $375k for any one Business Combination
                    Transaction, net of any Advance Credits (as will be
                    described in Section 3 (b) following).

               (b)  ADVANCES: During the Term and, if applicable, Renewed
                    Term(s), BRIDGELINE shall remit to JGUN non-refundable cash
                    advances (the "Advance Credits") to be credited against
                    Success Fees earnable, as follows: $7500 monthly commencing
                    October 1, 2005, increasing to $10,000 monthly if and when
                    BRIDGELINE consummates a capital raise of at least
                    $1,000,000, increasing to $15,000 monthly if and when
                    BRIDGELINE consummates an initial public offering of its
                    common stock.

               (c)  EXPENSES: BRIDGELINE shall reimburse JGUN, as and when
                    billed, for out-of-pocket expenses reasonably incurred by
                    JGUN in connection with Services provided or to be provided.
                    Such expenses contemplated may include, but are not limited
                    to, printing, postage, travel, and lodging. It is
                    acknowledged by JGUN that no single such expense in excess
                    of $1000 or monthly aggregate expense in excess of $5000
                    shall be incurred without prior approval by BRIDGELINE.

4.       EXCLUSIVITY.

         BRIDGELINE agrees that JGUN shall have a preferential right during the
         Term and any Renewed Term(s), if applicable, to provide Services to
         BRIDGELINE, and that so long as JGUN stands ready to provide Services
         on a good faith basis, it shall be entitled to the Success Fee
         compensation described in Section 3 (a) above, for any Business
         Combination Transaction described in Section 3 (a) (i) - (iii)
         consummated during the Term or, if applicable, any Renewed Term (or
         agreed to pursuant to term sheet, letter of intent or similar during
         the Term or, if applicable, any Renewed Term, and thereafter
         consummated).

5.       LIABILITY AND INDEMNIFICATION.

               (a)  It is acknowledged by BRIDGELINE that JGUN shall not be
                    subject to liability to BRIDGELINE or to any affiliate,
                    officer, director, employee, shareholder or creditor of
                    BRIDGELINE by virtue of any act or omission in the course of
                    or connected with the rendering or providing Services,
                    except for JGUN acts of bad faith or gross negligence.

               (b)  BRIDGELINE agrees to defend, indemnify and hold harmless
                    JGUN from and against any and all costs, expenses, and
                    liabilities (including reasonable attorney's fees) which may
                    in any way result from Services rendered by JGUN pursuant to
                    or in connection with this Agreement, except for JGUN acts
                    of bad faith or gross negligence.

6.       NOTICES.

         Notices must be sent to BRIDGELINE and JGUN at their respective
         addresses set forth above to the attention of Thomas L. Massie at
         BRIDGELINE and Stephan A. Stein at JGUN. Any Notice must be given by
         registered or certified mail, postage prepaid, and shall be deemed to
         have been given when deposited in the placecountry-regionUnited States
         mail. Either party may designate any other address to which Notice
         shall be given by giving written notice to the other of such change of
         address in the manner described in this section.

7.       GOVERNING LAW.

<PAGE>

         This Agreement has been made in the State of New York and shall be
         construed and governed in accordance with its laws. Any action relating
         to this Agreement shall be brought only in Federal and State courts in
         the City, County and State of New York.

8.       ENTIRE AGREEMENT.

         This Agreement contains the entire Agreement between BRIDGELINE and
         JGUN, and may not be altered or modified, except in writing and signed
         by both.

9.       BINDING EFFECT.

         This Agreement shall be binding upon BRIDGELINE and JGUN and their
         respective heirs, administrators, successors and assigns and may only
         be assigned upon written agreement of BRIDGELINE and JGUN.

The terms and conditions described above are understood and acceptable:

Joseph Gunnar & Co., LLC                     Bridgeline Software, Inc.
                                             (with Board of Directors approval)


By: /S/  STEPHAN A. STEIN                             By: /S/  THOMAS L. MASSIE
    ----------------------                                ---------------------
    Stephan A. Stein, Member                              Thomas L. Massie, CEO




<PAGE>

                                    EXHIBIT A

        TO BUSINESS COMBINATION SERVICES AGREEMENT (THE M & A AGREEMENT)
           DATED SEPTEMBER 30, 2005 BETWEEN BRIDGELINE SOFTWARE, INC.
              ("BRIDGELINE") AND JOSEPH GUNNAR & CO., LLC ("JGUN")

     Definition of Total Consideration:  See Section 3 (b) of M & A Agreement

     For purposes of the M & A Agreement, "Total Consideration" shall mean the
     total value of all cash, securities, or other property paid at the closing
     of a Business Combination Transaction (as defined by Section 3a of the M &
     A Agreement), (or to be paid in the future) either to BRIDGELINE or its
     shareholders with respect to such Business Combination Transactions,
     including, without limitation, consideration paid in respect of (i) the
     assets of the acquired company, (ii) the capital stock of the acquired
     company (and any securities convertible into options, warrants or other
     rights to acquire such capital stock) and (iii) the assumption, directly or
     indirectly (by operation of law or otherwise), of any long-term liabilities
     of the acquired company or repayment of indebtedness, including without
     limitation, indebtedness secured by the assets of the acquired company. In
     the event a Business Combination Transaction is consummated in one or more
     steps, including without limitation, any additional consideration paid or
     to be paid in any subsequent step as set forth above, such additional
     consideration shall be included in the definition of "Total Consideration".

     If all or portion of the Total Consideration paid in the Business
     Combination Transaction is other than cash or negotiable securities, then
     the value of such non-cash consideration shall be the fair market value
     thereof on the date the global sale transaction to Business Combination
     Transaction is consummated as mutually agreed upon in good faith by
     BRIDGELINE and JGUN. If such non-cash consideration consists of common
     stock, options, warrants or rights for which a public trading market
     existed prior to consummation of the Business Combination Transaction, then
     the value of such securities shall be determined by the closing or last
     sales price thereof on the date of the consummation of the Business
     Combination Transaction; provided, however, that if any of such non-cash
     consideration consists of newly-issued, publicly traded common stock,
     options, warrants or rights for which no public trading markets existed
     prior to the consummation of the Business Combination Transaction, then the
     value thereof shall be the average of the closing prices for the 20 trading
     days subsequent to the fifth trading day after the consummation of the
     Business Combination Transaction. In such event, the fee payable to JGUN
     with respect to such securities shall be paid on the 30th trading day
     subsequent to consummation of the Business Combination Transaction. If no
     public market exists for the common stock, options, warrants or rights
     issued in the Business Combination Transactions, then the value of such
     securities shall be as mutually agreed upon in good faith by BRIDGELINE'S
     board of directors and JGUN. If such non-cash consideration consists of
     preferred stock or debt securities (regardless of whether a public trading
     market existed for such preferred stock or debt securities prior to the
     consummation of the Business Combination Transaction or exists thereafter),
     the value thereof shall be the fair market value of such non-cash
     consideration. Any amounts payable to or by BRIDGELINE, or any affiliate of
     BRIDGELINE or any shareholder of BRIDGELINE in connection with a
     non-competition agreement or any employment, consulting, licensing, supply
     or other agreement, to the extent that such amounts payable are greater
     than what would customarily be paid on arms-length basis to an employee,
     consultant, licensee or supplier, shall be deemed to be part of the
     consideration paid in the Business Combination Transaction includes future
     payments, then BRIDGELINE shall pay JGUN any additional cash fee,
     determined in accordance with this definition, when, and if, such payments
     are paid.
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10.13
<SEQUENCE>27
<FILENAME>ex10-13_14663.txt
<DESCRIPTION>MEMORANDUM OF UNDERSTANDING DATED 01-05-2004
<TEXT>
                                                                   EXHIBIT 10.13
                                                                   -------------


                                                         Fin+Net
                                         The Boston Financial Network Companies
                                                33 Broad Street, 7th Floor
                                                    Boston, MA 02109
                                                    Ofc: 617-896-3600
                                                    Fax: 617-519-3270

MEMORANDUM OF UNDERSTANDING


To:      Thomas L. Massie
         President & CEO
         Bridgeline Corporation
         130 New Boston Street
         Woburn, MA 01801

From: Peter L. Winslow

Date: January 5, 2004

Bridgeline Software, Inc. (the "Company") will engage FinNet, LLC ("FinNet") as
a consultant to provide strategic advisory and transaction services (the
"Services") with regard to the Company, including, but not limited to:

     Financial Advisory Services

     Financial Advisory Services include helping management refine its business
     and financial plan, capital formation strategy, investor identification,
     introductions, negotiations and preparing materials including, but not
     limited to focused company summaries, business plan and/or private
     placement memorandum, investor presentations, public relations other
     marketing materials.

     Equity Financing

     FinNet will introduce Bridgeline to a combination of affiliates and other
     corporate entities, financial institutions, venture capital and private
     equity funds in order to facilitate a transaction in which the introduced
     party makes an investment in or provides financing to Bridgeline through
     the purchase of Bridgeline's securities.

     Governance Advisory Services

     Effective governance programs must incorporate the varying responsibilities
     of Management, Board Members and Equity Principals. The strength of
     Bridgeline's integrated governance program will have a direct impact on its
     capital formation program.

                                                                               1
<PAGE>

     Compensation
     ------------

     For Strategic Services         A grant of 100,000 warrants pricing and
                                    vesting schedules to be set by management.

     For Transaction Services       In order to accomplish the company's long
                                    and short-term objectives Fin-Net's services
                                    in this regard may include introducing the
                                    Company to appropriate accounting,
                                    brokerage, investment banking and/or legal
                                    resources for the structuring, negotiation
                                    and implementation of Strategic
                                    Transactions. Although most deals will be
                                    negotiated and unique to the particular
                                    transaction, FinNet's compensation will be
                                    charged to the provider of the service,
                                    therefore there should be no increase in
                                    cost to Bridgeline. In fact part of Fin
                                    Net's job is to help negotiate the best fees
                                    for the Company. Other fees, if any, must be
                                    approved by the company in advance.

     This memorandum of understanding represents a summary of the terms of our
     consulting agreement, and FINNET will at all times be bound by its standard
     terms and conditions regarding customary provisions and restrictions usual
     for these types of transactions.

     We look forward to working with you and to our mutual participation in the
     future growth of the Bridgeline.

     Respectfully submitted,
     FinNet, LLC

     By: /S/ PETER L. WINSLOW
         ------------------------
         Peter L. Winslow
         Founding Chairman

                                    Acknowledged and Agreed to: This 5th day of
                                    January, 2004

                                    Bridgeline Software, Inc.

                                    By: /S/ THOMAS L. MASSIE
                                        ----------------------------
                                        Thomas L. Massie


                                                                               2
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10.14
<SEQUENCE>28
<FILENAME>ex10-14_14663.txt
<DESCRIPTION>FINANCING AGREEMENT DATED 03-29-2005
<TEXT>
                                                                   EXHIBIT 10.14
                                                                   -------------
                               FINANCING AGREEMENT

     This Financing Agreement (the "Agreement"), dated as of March 29, 2005, is
entered into by and between Bridgeline Software, Inc. ("Client"), and Sand Hill
Finance, LLC ("SHF").

1.   PURCHASE OF ACCOUNTS.

     1.1 SCHEDULE OF ACCOUNTS. Client may request that SHF purchase Accounts by
delivering to SHF a Schedule of Accounts (the "Schedule of Accounts") in the
form of Exhibit A, and, if requested by SHF, an invoice for each of the listed
Accounts, signed by an authorized representative of Client. SHF is authorized to
act upon the written or oral directions of any person that SHF believes is an
authorized representative. SHF may, in its sole discretion, elect to purchase
any Account included in a Schedule of Accounts, but is under no obligation to
purchase any such Account.

     1.2 PURCHASED ACCOUNT; CREATION OF A BOOK RESERVE. Upon acceptance of any
such Account (a "Purchased Account") SHF shall pay to Client EIGHTY PERCENT
(80%) of the face amount of the Purchased Account (the "Advance"). The aggregate
outstanding Advances under this Agreement shall not exceed FIVE HUNDRED THOUSAND
($500,000) DOLLARS (the "Credit Limit"). Client sells, transfers and assigns to
SHF, all of Client's right, title and interest in and to each Purchased Account,
together with all of the goods represented by each Purchased Account, all of
Client's rights and remedies as an unpaid Client under applicable law, and all
of Client's rights in and to all security for each such Purchased Account and
guaranties thereof, and all rights against third parties with respect thereto.
Any goods recovered or received by Client shall be set aside, marked with SHF's
name, and held for SHF's account as owner. The amount of Purchased Accounts
outstanding at any time shall constitute the "Account Balance". Upon payment of
the Advance to Client, SHF shall also create a reserve on SHF's books and
records with respect to each Purchased Account in an amount equal to the face
amount of the Purchased Account minus the Advance for such Purchased Account
(the "Reserve"). Notwithstanding the foregoing, in no event shall the Reserve
with respect to all Purchased Accounts outstanding at any time be less than
TWENTY PERCENT (20%) of the Account Balance. SHF may, in its discretion, change
the percentage of the Advance and the Reserve at any time upon notice to Client.

     1.3 COLLECTION OF ACCOUNTS. SHF may directly collect each Purchased
Account. At the request of SHF, Client and SHF shall notify each person liable
on a Purchased Account (an "Account Debtor") by letter in a form acceptable to
SHF that Purchased Accounts owed by such Account Debtor have been assigned and
are payable to SHF. Client shall not take or permit any action to change or
revoke any notification without SHF's prior written consent and shall not
request any Account Debtor to pay any Purchased Account to Client. If Client
receives any payments of any Purchased Accounts despite this Agreement, Client
shall (i) immediately notify SHF of such payment, (ii) hold such payment in
trust and safekeeping for SHF, and (iii) immediately turn over to SHF the
identical checks, monies or other forms of payment received, with any necessary
endorsement or assignment. SHF shall have the right to endorse Client's name on
all payments received in connection with each Purchased Account and on any other
proceeds of Collateral. SHF shall apply payments received first to the Purchased
Accounts and, so long as there does not then exist an Event of Default or an
event that with notice or lapse of time would constitute an Event of Default, at
SHF's option, SHF shall credit the Reserve or remit to Seller the excess;
PROVIDED, that if any Event of Default or event that with notice or lapse of
time or otherwise would constitute an Event of Default then exists, SHF shall
have no duty to remit any such collections, which collections constitute
Collateral, and may apply such collections to reduce the Obligations. Client
shall indemnify and hold SHF harmless from any expenses, damages and claims
arising out of SHF's collection of any Accounts.

     1.4 FULL RECOURSE. The purchase by SHF of Purchased Accounts from Client
shall be with full recourse against Client. Client shall be liable for any
deficiency in the event the Obligations exceed the amount of Purchased Accounts
and the other Collateral.

2.   FEES AND CUSTOMER PAYMENTS.

     2.1 FEES. On the date of the first funding under this Agreement, and on
each anniversary of the date of this Agreement, Client shall pay SHF a
commitment fee equal to ONE QUARTER OF ONE PERCENT (0.25%) of the Credit Limit.
In addition, on the first day of the month following the first funding under
this agreement, Client shall

                                       1
<PAGE>

pay SHF a commitment fee equal to ONE QUARTER OF ONE PERCENT (0.25%). Client
shall pay to SHF on the last day of each calendar month (the "Settlement Date"),
a finance fee (the "Finance Fees") in an amount equal to ONE AND SEVEN TENTHS
PERCENT (1.70%) per month of the average daily Obligations outstanding during
the month ending on such Settlement Date (the "Settlement Period"). Such accrued
fees shall be netted against the Reserve as described in Section 3.3. Client
shall pay SHF a fee of $40.00 for each check or item of payment that is returned
to SHF for insufficient funds and $25.00 for each wire, sent or received. In no
event shall any charges that may constitute interest hereunder exceed the
highest rate permitted under applicable law. In the event that a court of
competent jurisdiction makes a final determination that SHF has received
interest hereunder in excess of the maximum lawful rate, then such excess shall
be deemed a payment of principal and the interest payable hereunder deemed
amended to the amount payable under the maximum lawful rate.

     2.2 CREDITING CUSTOMER PAYMENTS. Within one business day after SHF's
receipt of payment of a Purchased Account, SHF shall credit that payment (the
"Customer Payments") to the amount outstanding with respect to the Purchased
Account, provided that if any Customer Payment is subsequently dishonored or SHF
does not receive good funds for any reason, the amount of such uncollected
Customer Payment shall be included in the Account Balance as if such Customer
Payment had not been received, and Finance Fees shall accrue thereon, and the
credit to the specific Purchased Account shall be reversed. Notwithstanding the
foregoing, upon the occurrence of an Event of Default, SHF shall apply all
Customer Payments to Client's Obligations under this Agreement in such order and
manner as SHF shall, in its sole discretion, determine.

     2.3 ACCOUNTING. SHF shall deliver to Client after each Settlement Date, a
statement of Client's account which shall include an accounting of the
transactions for that Settlement Period, including the amount of all Finance
Fees, Administrative Fees, Adjustments, Chargeback Amounts, Customer Payments
and Purchased Accounts. The accounting shall constitute an account stated and
shall be binding on Client and deemed correct unless Client delivers to SHF a
written objection within thirty (30) days after such accounting is mailed to
Client.

3.   ADJUSTMENT, CHARGEBACKS AND REMITTANCES.

     3.1 ADJUSTMENTS. If any Account Debtor asserts any offset, right or claim
with respect to a Purchased Account, or pays less than the face amount of such
Purchased Account (each, an "Adjustment"), SHF may, in its sole discretion,
either (A) deduct the amount of the Adjustment in calculating any amount owed to
Client, or (B) chargeback to Client the Purchased Account with respect to which
the Adjustment is asserted. Client shall advise SHF immediately upon learning of
any Adjustment asserted by any Account Debtor.

     3.2 CHARGEBACKS. SHF shall have the right to chargeback to Client any
Purchased Account:

     (a) that remains unpaid ninety (90) calendar days after the invoice date;

     (b) with respect to which there has been a breach of any warranty,
representation, covenant or agreement set forth in this Agreement;

     (c) with respect to which the Account Debtor asserts any Adjustment, or

     (d) that is owed by an Account Debtor who has filed, or has had filed
against it, any bankruptcy case, insolvency proceeding, assignment for the
benefit of creditors, receivership or insolvency proceeding, or who has become
insolvent (as defined in the United States Bankruptcy Code) or who is generally
not paying its debts as such debts become due.

     Upon demand by SHF, Client shall pay to SHF the full face amount of any
Purchased Account that has been charged back pursuant to this Section, or to the
extent partial payment has been made, the amount by which the face amount of
such Purchased Account exceeds such partial payment, together with any
attorneys' fees and costs incurred by SHF in connection with collecting such
Purchased Account (collectively, the "Chargeback Amount"), SHF shall advise
Client regarding how the Chargeback Amount shall be paid, which may be by any
one or a combination of the following, in SHF's sole discretion: (1) payment in
cash immediately upon demand; (2) deduction from or offset against any
Remittance that would otherwise be payable to Client; (3) payment from

                                       2
<PAGE>

any Advances that may otherwise be made to Client; (4) adjustment to the Reserve
pursuant to Section 1.2 hereof; or (5) delivery of substitute Accounts and a
Schedule of Accounts acceptable to SHF, which Accounts shall constitute
Purchased Accounts.

     3.3 REMITTANCE. SHF shall remit to Client after the Settlement Date, the
amount, if any, that SHF owes to Client at the end of the Settlement Period
based on the following calculations set forth below (the "Remittance");
provided, that if there then exists any Event of Default or any event or
condition that with notice or lapse of time would constitute an Event of
Default, SHF shall not be obligated to remit any payments to Client. If the
amount resulting from the following calculation is a positive number, such
amount is the amount of the Remittance for such Settlement Period. If the
resulting amount is a negative number, such amount is the amount owed by Client
to SHF.

     The calculations to be used are as follows:

         (a) The sum of the following:

                  (1) The Reserve as of the beginning of the subject Settlement
Period, PLUS

                  (2) The Reserve created for each Account purchased during the
subject Settlement Period;

MINUS

         (b) The sum of the following:

                  (1) Finance Fees accrued during the subject Settlement Period;
PLUS

                  (2) Administrative Fees accrued during the subject Settlement
Period; PLUS

                  (3) Adjustments during the subject Settlement Period; PLUS

                  (4) Chargeback Amounts, to the extent SHF has agreed to accept
payment of any such Chargeback Amount by deduction from the Remittance: PLUS

                  (5) All professional fees and expenses as set forth in Section
9 for which oral or written demand has been made by SHF during the subject
Settlement Period; PLUS

                  (6) The Reserve for the Account Balance as of the first day of
the following Settlement Period in the minimum percentage set forth in Section
1.2 hereof.

If the foregoing calculations result in a Remittance payable to Client, SHF
shall make such payment by check, subject to SHF's rights of offset and
recoupment, and its right to deduct any Chargeback Amount as set forth in
Section 3.2. If the foregoing calculations result in an amount due to SHF from
Client, Client shall make such payment by any one or a combination of the
methods set forth in Section 3.2 hereof for chargebacks, as determined by SHF in
its discretion.

4.   REPRESENTATIONS AND WARRANTIES. Client represents to SHF as follows: (a)
Client is not in default under any agreement under which Client owes any money,
or any agreement, the violation or termination of which could have a material
adverse effect on Client; (b) Client has taken all action necessary to authorize
the execution, delivery and performance of this Agreement; (c) except for liens
approved in writing by SHF, there are no liens, security interests or other
encumbrances on the Collateral; (d) the execution and performance of this
Agreement do not conflict with, or constitute a default under, any agreement to
which Client is party or by which Client is bound; (e) the information provided
to SHF on or prior to the date of this Agreement is true and correct in all
material respects; (f) all financial statements and other information provided
to SHF fairly present Client's financial condition, and there has not been a
material adverse change in the financial condition of Client since the date of
the most recent of

                                       3
<PAGE>

the financial statements submitted to SHF; (g) Client is in compliance with all
laws and orders applicable to it; (h) Client is not party to any litigation and
is not the subject of any government investigation, and Client has no knowledge
of any pending litigation or investigation or the existence of circumstances
that reasonably could be expected to give rise to such litigation or
investigation; (i) no representation or other statement made by Client to SHF
contains any untrue statement of a material fact or omits to state a material
fact necessary to make any statements made to SHF not misleading; and (j) each
Account described on each Schedule of Accounts is owned by Client, is correctly
stated therein, is not in dispute, is unconditionally owing at the time stated
in the invoice evidencing such Account as attached to the Schedule of Accounts,
is not past due or subject to any offset or in default, represents a bona fide
indebtedness arising from the actual sale of goods or performance of services to
an Account Debtor in the ordinary course of Client's business which has been
received and finally accepted by the Account Debtor.

5.   COVENANTS.

     (a) Reports. Upon request by SHF, Client will provide to SHF in form and
substance acceptable to SHF (i) monthly unaudited financial statements within
thirty (30) days after the last day of each month (other than the month in which
Client's fiscal year ends), prepared in accordance with GAAP, consistently
applied; (ii) audited fiscal year end financial statements with an unqualified
opinion within thirty (30) days of receipt by Client-; and (iii) such other
information relating to Client's operations and condition, as SHF may reasonably
request from time to time. SHF shall have the right to review and copy Client's
books and records and audit and inspect the Collateral, from time to time, upon
reasonable notice to Client. Client will reimburse SHF for the reasonable costs
it may incur from time to time in such inspections and review.

     (b) Insurance. Client will maintain insurance on the Collateral and
Client's business, in amounts and of a type that are customary to businesses
similar to Client's, and SHF will be named in a lender's loss payable
endorsement in favor of SHF, in form reasonably acceptable to SHF.

     (c) Negative Covenants. Without SHF's prior written consent, Client shall
not do any of the following: (i) except for an Initial Public Offering, or
Private Equity Offering of Securities, permit or suffer a change in control of
Client or a transfer of more than 20 percent of its securities; (ii) acquire any
assets, except in the ordinary course of business or in a transaction involving
the payment of an aggregate amount of $100,000 or less; (iii) sell, lease, or
transfer any property except for sales of Inventory and Equipment in the
ordinary course of business; (iv) transfer, sell or license any intellectual
property, except for non-exclusive licenses thereof entered into in the ordinary
course of business; (v) pay or declare any dividends on Client's stock (except
for dividends payable solely in stock of Client); (vi) redeem, purchase or
otherwise acquire, any of Client's stock, except in connection with a repurchase
of stock from employees or consultants in connection with any termination of a
relationship with the Company, (vii) permit any Account Debtor to make payments
on a Purchased Account other than to SHF; (viii) make any investments in, or
loans or advances to, any person other than in the ordinary course of business
as currently conducted; (ix) directly or indirectly enter into any material
transaction with any affiliate of Client except for transactions that are in the
ordinary course of Client's business, and on fair and reasonable terms that are
no less favorable to Client than would be obtained in an arm's length
transaction with a non-affiliated person; (x) make any payment on any
indebtedness that is subordinate to the Obligations, other than in accordance
with the subordination agreement, if any, in favor of SHF relating thereto; (xi)
except for the capital lease line with Bank of America of $100,000, incur any
indebtedness other than trade credit incurred in the ordinary course of business
or for indebtedness which is subordinate to the Obligations, other than in
accordance with the subordination agreement, if any, in favor of SHF relating
thereto, (xii) permit any lien or security interest to attach to any Collateral
other than in favor of SHF, (xiii) fail to make any tax payment on or before the
due date; or (xiv) agree to do any of the foregoing.

6.   GRANT OF SECURITY INTEREST. To secure the prompt payment and performance of
all fees, amounts and obligations of Client now or hereafter owing to SHF under
this or any other agreement, involving reasonable attorneys fees, collectively,
(the "Obligations"), Client hereby grants to SHF a security interest in all of
Client's property, now owned or hereafter acquired, including all accounts,
inventory, chattel paper, documents, instruments, letters of credit, securities,
general intangibles, deposit accounts, patents, trademarks, copyrights,
goodwill, inventory equipment, investment property, financial assets, and all
proceeds of the foregoing (collectively, the "Collateral").

                                       4
<PAGE>

7.   EVENTS OF DEFAULT; REMEDIES. Any one or more of the following shall
constitute an Event of Default under this Agreement: (a) Client's failure (i) to
pay all or any part of the principal or interest hereunder on the date due and
payable or (ii) to comply with any agreement or covenant set forth in this
Agreement, (iii) to comply with the terms of any material contract to which
Client is a party and any agreement pursuant to which Client has incurred
indebtedness, or (iv) to comply with any law to which Client is subject; (b) Any
of Client's assets are attached or become subject to levy or legal proceeding,
or if Client becomes insolvent, or becomes the subject of any case or proceeding
under the United States Bankruptcy Code or any other law relating to the
reorganization or restructuring of debt (an "Insolvency Event"); or (c) any
representation made to SHF in this Agreement, the Schedule of Accounts, the
Warrant issued of even date herewith, or any information given to SHF by or on
behalf of Client shall be incorrect in any respect; or (d) the occurrence of a
material adverse change in Client's condition or prospects. Upon the occurrence
of an Event of Default, all fees and other amounts owing hereunder shall, at the
option of SHF, be immediately due and payable, and SHF may exercise all of the
rights of a secured party under the Uniform Commercial Code. SHF shall have a
right to dispose of the Collateral in any commercially reasonable manner, and
shall have a royalty-free license to use any name, trademark, advertising matter
or any property of a similar nature to complete production of, advertisement
for, and disposition of any Collateral. SHF shall have a license to enter into,
occupy and use Client's premises and the Collateral without charge to exercise
any of SHF's rights or remedies under this Agreement. All rights are cumulative
and may be exercised in SHF's discretion singularly or together with any other
rights.

8.   POWER OF ATTORNEY. Client appoints SHF and its designees as Client's true
and lawful attorney in fact, to exercise in SHF's discretion, and regardless of
whether an Event of Default is then existing, all of the following powers, such
powers being coupled, with an interest: (A) to notify all Account Debtors to
make payment directly to SHF; (B) to receive, deposit, and endorse Client's name
on all checks, drafts, money orders and other forms of payment relating to the
Accounts; (C) to demand, collect, receive, sue, and give releases to any Account
Debtor for the monies due or which may become due on or in connection with the
Accounts; (D) to compromise, prosecute, or defend any action, claim, case, or
proceeding relating to the Accounts, including the filing of a claim or the
voting of such claims in any bankruptcy case, all in SHF's name or Client's
name, as SHF may elect; (E) to sell, assign, transfer, pledge, compromise, or
discharge any Accounts; (F) to receive, open, redirect and dispose of all mail
addressed to Client for the purpose of collecting the Accounts and to take all
the actions permitted in subsection (B) above with respect to any payment in any
such mail; (G) after the occurrence of an Event of Default, to dispose of any
Collateral, and (H) to do all acts and things necessary or expedient, in
furtherance of any such purposes. Upon the occurrence of an Event of Default,
all of the power of attorney rights granted by Client to SHF hereunder shall be
applicable with respect to all Collateral.

9.   ADMINISTRATIVE EXPENSES AND ATTORNEYS' FEES. Client shall pay to SHF
immediately upon demand, all costs and expenses, including reasonable fees and
expenses of attorneys and other professionals, that SHF incurs in connection
with any and all of the following: (A) preparing, administering and enforcing
this Agreement, or any other agreement executed in connection herewith; (B)
perfecting, protecting or enforcing SHF's interest in the Purchased Accounts and
the other Collateral; (C) collecting the Purchased Accounts and the Obligations;
(D) defending or in any way addressing claims made or litigation initiated by or
against SHF as a result of SHF's relationship with Client or any guarantor; and
(E) representing SHF in connection with any bankruptcy case or insolvency
proceeding involving Client, any Purchased Account, any other Collateral or any
Account Debtor. Any attorneys' fees and expenses may, at SHF's option, be netted
against the reserve as set forth in Section 3.3.

10.  TERM AND TERMINATION. The term of this Agreement shall be for one (1) year
from the date hereof, and from year to year thereafter unless terminated in
writing by SHF or Client. Client and SHF shall each have the right to terminate
this Agreement at any time. Notwithstanding the foregoing, any termination of
this Agreement shall not affect SHF's security interest in the Collateral and
SHF's ownership of the Purchased Accounts, and this Agreement shall continue to
be effective, and SHF's rights and remedies hereunder shall survive such
termination, until all transactions entered into and Obligations incurred
hereunder or in connection herewith have been completed and satisfied in full.

11.  MISCELLANEOUS.

                                       5
<PAGE>

     11.1 SEVERABILITY. In the event that any provision of this Agreement is
held to be invalid or unenforceable, this Agreement will be construed as not
containing such provision and the remainder of the Agreement shall remain in
full force and effect.

     11.2 CHOICE OF LAW. This Agreement shall be governed by and interpreted in
accordance with the laws of the State of California without giving effect to
principles of conflicts of law. Unless otherwise defined, capitalized terms
shall have the meaning assigned in the Uniform Commercial Code.

     11.3 NOTICES. All notices shall be given to SHF and Client at the addresses
set forth in this Agreement and shall be deemed to have been delivered and
received: (A) if mailed, three (3) calendar days after deposited in the United
States mail, first class, postage prepaid; (B) one (1) calendar day after
deposit with an overnight mail or messenger service; or (C) on the same date of
transmission if sent by hand delivery or fax.

     11.4 JURY WAIVER; ARBITRATION; JURISDICTION. SHF AND CLIENT IRREVOCABLY
WAIVE ANY RIGHT TO A JURY TRIAL OF ANY CLAIM OR CAUSE OF ACTION BASED UPON OR
ARISING OUT OF THIS AGREEMENT OR ANY TRANSACTIONS CONTEMPLATED BY THIS
AGREEMENT, INCLUDING CONTRACT CLAIMS, TORT CLAIMS AND ALL OTHER COMMON LAW OR
STATUTORY CLAIMS. IF THIS JURY WAIVER IS FOR ANY REASON NOT ENFORCEABLE, THEN
SHF AND CLIENT AGREE TO RESOLVE AL CLAIMS, CAUSES AND DISPUTES THROUGH FINAL AND
BINDING ARBITRATION TO BE HELD IN SAN MATEO COUNTY, CALIFORNIA IN ACCORDANCE
WITH THE THEN-CURRENT COMMERCIAL ARBITRATION RULES OF THE AMERICAN ARBITRATION
ASSOCIATION. JUDGMENT UPON ANY AWARD RESULTING FROM ARBITRATION MAY BE ENTERED
INTO AND ENFORCED BY ANY STATE OR FEDERAL COURT HAVING JURISDICTION THEREOF. SHF
and Client submit to the jurisdiction of the state and Federal courts located in
San Mateo County,

     11.5 COUNTERPARTS. This Agreement may be executed in two or more
counterparts, each of which shall be deemed an original and all of which shall
constitute one instrument.

     11.6 INTEGRATION. This Agreement and the documents executed in connection
herewith constitute the entire agreement of the parties, and supercedes any
prior discussions or agreements, oral or written. This Agreement may not be
amended except by written instrument signed by both parties. No waiver shall be
effective unless in writing and signed by SHF. Any waiver on one occasion is not
a waiver on any subsequent occasion

     11.7 ASSIGNMENT. Client may not assign any interests or rights, or delegate
any duties, hereunder. SHF may grant participations in, assign its rights, and
grant one or more security interests, in its rights hereunder.

                                       6
<PAGE>

     IN WITNESS WHEREOF, Client and SHF have executed this Agreement on the day
and year written above.

"SHF"                                  "CLIENT"


SAND HILL FINANCE, LLC                 BRIDGELINE SOFTWARE, INC.

By: /S/ RON ERNST                      By: /S/ GARY M. CEBULA
   ----------------------------------     ----------------------------------
Title: CFO                             Title: CFO
      -------------------------------        -------------------------------

                                       ADDRESS OF CLIENT, CHIEF EXECUTIVE OFFICE
                                       AND LOCATION OF COLLATERAL
3000 Sand Hill Road                    130 New Boston Street
Menlo Park, CA  94025                  Woburn, MA  01801
Telephone No:  (650) 926-7019          781-376-5555
Facsimile No:  (650) 926-7018          781-376-5033

OTHER LOCATIONS OF COLLATERAL, IF ANY,
IN ADDITION TO ABOVE:

- -------------------------------------

- -------------------------------------

- -------------------------------------

- -------------------------------------



                                       7
<PAGE>

                                     [LOGO]
                               Sand Hill Finance

Exhibit A                                                             Schedule #


CLIENT:  BRIDGELINE SOFTWARE, INC.                              DATE:___________


<TABLE><CAPTION>
<S>     <C>
- -----------------------------------------------------------------------------------------------------------------------------------
             INVOICE               INVOICE                ACCOUNT DEBTOR INFORMATION              PURCHASE           INVOICE
              DATE                  NUMBER                     (PRINT OR TYPE)                     ORDER #            AMOUNT
- -----------------------------------------------------------------------------------------------------------------------------------
  1
- -----------------------------------------------------------------------------------------------------------------------------------
  2
- -----------------------------------------------------------------------------------------------------------------------------------
  3
- -----------------------------------------------------------------------------------------------------------------------------------
  4
- -----------------------------------------------------------------------------------------------------------------------------------
  5
- -----------------------------------------------------------------------------------------------------------------------------------
  6
- -----------------------------------------------------------------------------------------------------------------------------------
  7
- -----------------------------------------------------------------------------------------------------------------------------------
  8
- -----------------------------------------------------------------------------------------------------------------------------------
  9
- -----------------------------------------------------------------------------------------------------------------------------------
 10
- -----------------------------------------------------------------------------------------------------------------------------------
 11
- -----------------------------------------------------------------------------------------------------------------------------------
 12
- -----------------------------------------------------------------------------------------------------------------------------------
 13
- -----------------------------------------------------------------------------------------------------------------------------------

The Client named above, hereby delivers this Schedule of Accounts to Sand Hill      ------------------------ ----------------------
Finance, LLC, ("SHF") pursuant to a Financing Agreement between SHF and Client.     TOTAL                    $
The undersigned represents that he or she is authorized representative of Client    ------------------------ ----------------------
with full right, power and authority to deliver this Schedule of Accounts to        LESS RESERVE
SHF. The Accounts evidenced by the invoices on this Schedule of Accounts are        ------------------------ ----------------------
submitted for purchase under the terms and conditions of the Financing Agreement    OTHER ADJUSTMENTS:
now in force. THE UNDERSIGNED ATTESTS THAT THESE INVOICES REPRESENT ACTUAL SALES    ------------------------ ----------------------
AND THAT SHIPMENT/DELIVERY OF GOODS AND /OR COMPLETION OF SERVICES HAVE BEEN        NET ADVANCE
MADE. The undersigned further attests that all of the representations and           ------------------------ ----------------------
warranties in Section 4 of the Financing Agreement are true and correct with        CHECK#                   CHECK DATE
respect to each of the Accounts and Account Debtors described on this Schedule
of Accounts.                                                                        ------------------------ ----------------------


DISBURSEMENT INSTRUCTIONS:

Authorized Signature:____________________________________________________

Print Name:______________________________________________________________

                                                                                (a) Please fax to 650-926-7018

</TABLE>

                                       8
<PAGE>

                             RESOLUTIONS TO BORROW


CLIENT: BRIDGELINE SOFTWARE, INC.

     I, the undersigned officer of Bridgeline Software, Inc. ("Client"), HEREBY
CERTIFY that Client is a corporation organized and existing under and by virtue
of the laws of the state of its organization.

     I FURTHER CERTIFY that attached hereto as Attachments 1 and 2 are true and
complete copies of Client's Certificate of Incorporation and Bylaws and other
organizational documents, each of which is in full force and effect on the date
hereof.

     I FURTHER CERTIFY that by unanimous written consent of the directors of
Client, (or by other duly authorized action in lieu of a meeting), the following
resolutions were adopted.

     BE IT RESOLVED, that ANY ONE (1) of the following named officers, partners,
members, employees, or agents, whose actual signatures are shown below:

        NAMES                     POSITIONS                ACTUAL SIGNATURES

- -----------------------     -----------------------     -----------------------

- -----------------------     -----------------------     -----------------------

- -----------------------     -----------------------     -----------------------

acting for and on behalf of this entity and as its act and deed be, and they
hereby are, authorized and empowered:

     OBTAIN CREDIT. To sell accounts to, and obtain credit from time to time
from, Sand Hill Finance, LLC ("SHF") on such terms as may be agreed upon between
the officers, employees, or agents and SHF, as in their judgment should be
obtained, without limitation, including such sums as are specified in one or
more financing or factoring agreements between SHF and Client.

     EXECUTE AGREEMENT. To execute and deliver on behalf of Client one or more
agreements relating to the extension of credit, and also one or more renewals,
extensions, modifications, refinancings, consolidations, or substitutions for
one or more of the notes, or any portion of the notes.

     GRANT SECURITY. To grant a security interest to SHF in the property of
Client to secure all of the Client's obligations to SHF.

     ISSUE WARRANTS. To issue to SHF warrants to purchase Client's equity
securities.

     FURTHER ACTS. To designate additional or alternate individuals as being
authorized to request advances thereunder, and in all cases, to do and perform
such other acts and things, to pay any and all fees and costs, and to execute
and deliver such other documents and agreements as they may in their discretion
deem reasonably necessary or proper in order to carry into effect the provisions
of these Resolutions.

     BE IT FURTHER RESOLVED, that any and all acts authorized pursuant to these
resolutions and performed prior to the passage of these resolutions are hereby
ratified and approved, that

                                       9
<PAGE>

these Resolutions shall remain in full force and effect and SHF may rely on
these Resolutions until written notice of their revocation shall have been
delivered to and received by SHF. Any such notice shall not affect any of the
Client's agreements or commitments in effect at the time notice is given.

     I FURTHER CERTIFY that the officers, employees, and agents named above are
duly elected, appointed, or employed by or for Client, as the case may be, and
occupy the positions set forth opposite their respective names; that the
foregoing Resolutions now stand of record on the books of the Client; and that
the Resolutions are in full force and effect and have not been modified or
revoked in any manner whatsoever.

     IN WITNESS WHEREOF, I have hereunto set my hand on _____________, 2005 and
attest that the signatures set opposite the names listed above are their genuine
signatures.


                                       CERTIFIED TO AND ATTESTED BY:


                                       X
                                         ---------------------------------------


















                                       10
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10.15
<SEQUENCE>29
<FILENAME>ex10-15_14663.txt
<DESCRIPTION>FIRST AMENDMENT TO FINANCING AGREEMENT 09-12-2005
<TEXT>
                                                                   EXHIBIT 10.15
                                                                   -------------

                                 FIRST AMENDMENT

                                       TO

                               FINANCING AGREEMENT

         This First Amendment to Financing Agreement is entered into as of
September 12, 2005 (the "Amendment"), by and between SAND HILL FINANCE, LLC
("SHF") and BRIDGELINE SOFTWARE, INC. ("Client").

                                    RECITALS

         Client and SHF are parties to that certain Financing Agreement dated as
of March 29, 2004, as amended (the "Agreement"). The parties desire to amend the
Agreement in accordance with the terms of this Amendment.

         NOW, THEREFORE, the parties agree as follows:

         1. The reference to "FIVE HUNDRED THOUSAND DOLLARS ($500,000) (the
'Credit Limit')" in Section 1.2 of the Agreement is hereby amended to read
"SEVEN HUNDRED AND FIFTY THOUSAND DOLLARS ($750,000) (the 'Credit Limit')".

         2. Client shall pay to SHF a commitment fee equal to $625.00 on the
date of the next Advance after the date of this Amendment, which fee shall be
fully earned and nonrefundable as of the date hereof. Client authorizes SHF to
deduct such fee from the proceeds of such Advance.

         3. Unless otherwise defined, all initially capitalized terms in this
Amendment shall be as defined in the Agreement. The Agreement, as amended
hereby, shall be and remain in full force and effect in accordance with its
respective terms and hereby is ratified and confirmed in all respects. Except as
expressly set forth herein, the execution, delivery, and performance of this
Amendment shall not operate as a waiver of, or as an amendment of, any right,
power, or remedy of SHF under the Agreement, as in effect prior to the date
hereof. Client ratifies and reaffirms the continuing effectiveness of all
guaranties, security agreements, mortgages, deeds of trust, environmental
agreements, and all other instruments, documents and agreements entered into in
connection with the Agreement.

         4. Client represents and warrants that the representations and
warranties contained in the Agreement are true and correct as of the date of
this Amendment, and that no Event of Default has occurred and is continuing.

         5. This Amendment may be executed in two or more counterparts, each of
which shall be deemed an original, but all of which together shall constitute
one instrument.

         6. As a condition to the effectiveness of this Amendment, SHF shall
have received, in form and substance satisfactory to SHF the following:

<PAGE>

         (a) this Amendment, duly executed by Client:

         (b) such other documents, and completion of such other matters, as SHF
may reasonably deem necessary or appropriate.

         IN WITNESS WHEREOF, the undersigned have executed this Amendment as of
the first date above written.

                                        BRIDGELINE SOFTWARE, INC.

                                        By: /S/ GARY M. CEBULA
                                           -----------------------

                                        Title: CFO
                                               -------------------

                                        SAND HILL FINANCE, LLC

                                        By: /S/ MARK CAMERON
                                            ----------------------

                                        Title: President
                                               -------------------
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10.16
<SEQUENCE>30
<FILENAME>ex10-16_14663.txt
<DESCRIPTION>MASSIE $200,000 CONVERTIBLE TERM NOTE
<TEXT>
                                                                   EXHIBIT 10.16
                                                                   -------------

THIS NOTE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED,
OR ANY STATE SECURITIES LAWS AND THIS NOTE AND ANY INTEREST HEREIN MAY NOT BE
OFFERED, SOLD, TRANSFERRED, PLEDGED OR OTHERWISE DISPOSED OF EXCEPT PURSUANT TO
AN EFFECTIVE REGISTRATION STATEMENT UNDER SUCH ACT OR SUCH LAWS OR AN EXEMPTION
FROM REGISTRATION UNDER SUCH ACT AND SUCH LAWS, WHICH, IN THE OPINION OF COUNSEL
FOR THE HOLDER, WHICH COUNSEL AND OPINION ARE REASONABLY SATISFACTORY TO THE
BORROWER, IS AVAILABLE.

                            BRIDGELINE SOFTWARE, INC.
                              CONVERTIBLE TERM NOTE


***$200,000.00***                                         Woburn, Massachusetts
                                                          September 3, 2002

         For value received, the undersigned, BRIDGELINE Software Inc., a
Delaware corporation (referred to herein as the "Borrower"), the principal
executive offices of which are located at 130 New Boston Street, Woburn,
Massachusetts, hereby unconditionally promises to pay to the order of Thomas
Massie (the "Lender"), at such address as the Lender shall specify in writing
from time to time, the principal sum of ***$200,000.00*** or such lesser amount
as shall have been advanced to the Borrower to the Lender in cash from time to
time and that remains unpaid (the "Loan"), together with interest thereon at
***10%*** per annum payable as set forth herein. This Note will mature and
become due and payable in full on September 7, 2006 (the "Maturity Date").

         This Note is secured by a Security Agreement between the Lender and the
Borrower of even date herewith.

         1.    Terms of Repayment. Principal of and interest upon this Note will
be paid by the Borrower as follows:

               (a)   Principal and Interest. Principal and Interest on the Note,
in the amount of $5,072.52 per month for forty-eight (48) months shall be
payable on the seventh (7th) day of each calendar month, beginning on October 7,
2002 until this Note has been paid in full in accordance with the payment
schedule attached as Exhibit A. If payment of any amount owing on this Note
shall be payable on a day that is not a business day in Boston, Massachusetts,
then payment will be made by the Borrower by the next succeeding business day.

               (b)   Optional Prepayments. The Borrower may prepay this Note at
any time or from time to time, in whole or in part, upon five days' prior
written notice to the Lender.

               (c)   Change in Control. This Note shall be prepaid in full
simultaneously with the occurrence of a Change in Control, as defined below.
<PAGE>

               (d)   Maturity. On the Maturity Date, payment of the entire
unpaid principal of, interest on and all other sums due under this Note will
become due and payable.

               (e)   Order of Payments. Except as specifically set forth
otherwise herein, all payments will be applied first to any late charges due
hereunder, then to accrued interest, and then to principal.

               (f)   Change in Control. For purposes of this Note, "Change in
Control" shall mean (A) any sale, lease, exchange or other transfer (in one
transaction or series of transactions) of all or substantially all of the assets
of the Borrower; (ii) any consolidation or merger of the Borrower with any other
entity (including, without limitation, a triangular merger) where the
stockholders of the Borrower, immediately prior to the consolidation or merger,
would not, immediately after the consolidation or merger, beneficially own,
directly or indirectly, shares representing a majority of the combined voting
power of all of the outstanding securities of the entity issuing cash or
securities in the consolidation or merger (or its ultimate parent corporation,
if any); (iv) a person or entity (other than the Lender) becomes the owner,
directly or indirectly, of securities of the Borrower representing forty percent
(40%) or more of the total voting power represented by the Borrower's then
outstanding voting securities.

         2.    Conversion.

               (a)   The Lender shall have the option, at any time or from time
to time until this Note shall have been paid in full to convert the outstanding
principal and accrued interest of this Note into fully-paid and nonassessable
shares of the Borrower's voting common stock (the "Shares") at the rate of one
(1) Share for every One Dollar ($1.00) of such indebtedness then outstanding.

               (b)   As promptly as practicable after the surrender of this Note
by the Lender, the Borrower shall deliver or cause to be delivered to the
holder, certificates for the full number of Shares issuable upon conversion of
this Note, in accordance with the provisions hereof. Such conversion shall be
deemed to have been made at the time that this Note was surrendered for
conversion and the notice specified herein shall have been received by the
Borrower.

               (c)   The number of Shares issuable upon conversion of this Note
or repayment by the Borrower in Shares shall be proportionately adjusted if the
Borrower shall declare a dividend of capital stock on its capital stock, or
subdivide its outstanding capital stock into a larger number of Shares by
reclassification, stock split or otherwise, which adjustment shall be made
effective immediately after the record date in the case of a dividend, and
immediately after the effective date in the case of a subdivision. The number of
Shares issuable upon conversion of this Note or any part thereof shall be
proportionately adjusted in the amount of securities for which the Shares has
been changed or exchanged in another transaction for other stock or securities,
cash and/or any other property pursuant to a merger, consolidation or other
combination. The Borrower shall promptly provide the holder of this Note with
notice of any events mandating an adjustment to the conversion ratio, or for any
planned merger, consolidation, Share exchange or sale of the Borrower.

                                       2
<PAGE>

         3.    Events of Default. Each and any of the following will constitute
a default and, after expiration of a grace period, if any, will constitute an
"Event of Default" hereunder:

               (a)   failure to pay any amount as herein set forth, which
default is not cured within five (5) days after notice of default is given in
writing;

               (b)   default in the performance of any other obligation of the
Borrower to the Lender under this Note, which default is not cured within thirty
(30) days after notice of default is given in writing;

               (c)   insolvency (however evidenced) or the commission of any act
of insolvency;

               (d)   the making of a general assignment for the benefit of
creditors;

               (e)   the filing of any petition or the commencement of any
proceeding by the Borrower for any relief under any bankruptcy or insolvency
laws, or any laws relating to the relief of debtors, readjustment of
indebtedness, reorganizations, compositions, or extensions; or

               (f)   the filing of any petition or the commencement of any
proceeding against the Borrower for any relief under any bankruptcy or
insolvency laws, or any laws relating to the relief of debtors, readjustment of
indebtedness, reorganizations, compositions, or extensions, which proceeding is
not dismissed within sixty (60) days.

         4.    Lender's Rights Upon Default. Upon the occurrence of any Event of
Default, the Lender may, at its sole and exclusive option, but subject to the
provisions of Section 2, (a) accelerate the maturity of this Note and demand
immediate payment in full, whereupon the outstanding principal amount of this
Note and all obligations of the Borrower to Lender, together with accrued
interest thereon and accrued charges and costs, will become immediately due and
payable without presentment, demand, protest or further notice of any kind, all
of which are hereby expressly waived and (b) exercise all legally available
rights and privileges.

         5.    Default Interest Rate. Upon an Event of Default, without any
further action on the part of the Lender, interest will thereafter accrue on the
unpaid principal balance (and on any accrued but unpaid interest) at a default
rate equal to the stated interest rate hereof plus five percentage points (5%)
per annum (the "Default Rate"), until all outstanding principal, interest and
fees under this Note are repaid in full by the Borrower.

         6.    Usury. In no event will the amount of interest paid or agreed to
be paid hereunder exceed the highest lawful rate permissible under applicable
law. Any excess amount of deemed interest will be null and void and will not
interfere with or affect the Borrower's obligation to repay the principal of and
interest on this Note.

         7.    Covenant. Until payment in full on this Note, the Borrower will
provide to the Lender: (i) as soon as available and, in any event, within
forty-five (45) days after the end of each of the first three quarters of each
fiscal year of the Borrower, a consolidated balance sheet of the Borrower as of
the end of such quarter and the related consolidated statements of income and
stockholders' equity and of cash flows of the Borrower for the period commencing
at the end of the previous fiscal year and ending with the end of such quarter,
setting forth in each case in comparative form the corresponding figures for the
corresponding period of the preceding fiscal year, all in reasonable detail and
prepared in accordance with generally accepted accounting principles
consistently applied, and duly certified (subject to year-end audit adjustments)
by the chief financial officer of the Borrower; and (ii) as soon as available
and, in any event, within sixty (60) days after the end of each fiscal year of
the Borrower, a copy of the annual audit report for such year for the Borrower,
including therein a consolidated balance sheet of the Borrower as of the end of
such fiscal year and consolidated statements of income and stockholders' equity
and of cash flows of the Borrower for such fiscal year, setting forth in each
case in comparative form the corresponding figures for the preceding fiscal
year, all duly certified by independent public accountants of recognized
national standing;

         8.    Costs of Enforcement. The Borrower hereby covenants and
agrees to indemnify, defend and hold the Lender harmless from and against all
costs and expenses, including reasonable attorneys' fees and their costs,
together with interest thereon at the annual prime rate of interest (the "Prime
Rate") (as published in the Wall Street Journal), incurred by the Lender in
enforcing its rights under this Note; or if the Lender is made a party as a
defendant in any action or proceeding arising out of or in connection with its
status as a lender, or if the Lender is requested to respond to any subpoena or
other legal process issued in connection with this Note; or the Lender's
reasonable disbursements arising out of any costs and expenses, including
reasonable attorneys' fees and their costs incurred in any bankruptcy case
involving the Borrower; or for any legal or appraisal reviews, advice or counsel
performed for the Lender following a request by the Borrower for waiver,
modification or amendment of this Note.

         9.    Governing Law. This Note will be governed by and construed in
accordance with the laws of the Commonwealth of Massachusetts without regard to
conflicts of law principles. The Lender and the Borrower consent and agree to
the exclusive jurisdiction of the federal and state courts located in Boston,
Massachusetts in connection with any matter arising hereunder, including the
collection and enforcement hereof. The Borrower hereby waives any and all right
to trial by jury in any civil action arising out of, or based upon, this Note.

         10.   Miscellaneous.

               (a)   The Borrower hereby waives protest, notice of protest,
presentment, dishonor, and demand.

               (b)   Time is of the essence for each of the Borrower's covenants
under this Note.

               (c)   The rights and privileges of the Lender under this Note
will inure to the benefit of its corporate successors. All obligations of the
Borrower in connection with this Note will bind the Borrower's successors and
assigns.

               (d)   If any provision of this Note will for any reason be held
to be invalid or unenforceable, such invalidity or unenforceability will not
affect any other provision hereof, but this Note will be construed as if such
invalid or unenforceable provision had never been contained herein.

                                       4
<PAGE>

               (e)   The waiver of any Event of Default or the failure of the
Lender to exercise any right or remedy to which it may be entitled will not be
deemed a waiver of any subsequent Event of Default or the Lender's right to
exercise that or any other right or remedy to which the Lender is entitled. No
delay or omission by the Lender in exercising, or failure by the Lender to
exercise on any one or more occasions, any rights hereunder will be construed as
a waiver or novation of this Note or prevent the subsequent exercise of any or
all such rights.

               (f)   This Note may not be waived, changed, modified, or
discharged orally, but only in writing.

         IN WITNESS WHEREOF, the undersigned has executed this Note as of the
date first set forth above.



SIGNATURE OF LENDER:                   SIGNATURE OF BORROWER:
- --------------------                   ----------------------

THOMAS L. MASSIE                       BRIDGELINE SOFTWARE INC.


By: /S/ THOMAS L. MASSIE               By: /S/ GARY M. CEBULA
   -------------------------------        -------------------------------
Date: 9-3-02                           Its: Sr. V.P. & CFO
     -----------------------------         ------------------------------
                                       Date: 9-3-02
                                            -----------------------------

                                             *Not Personally Guaranteed













                                       5
<PAGE>

EXHIBIT A

LOAN DATA
- --------------------------------------------------------------------------------
      Loan amount:              |  $200,000.00
      Annual interest rate:     |  10.000%
      Term in years:            |  4
      Payments per year:        |  12
      Principal & Interest Pmt  |  $5,072.52
      First payment due:        |  10/07/2002
TABLE
- --------------------------------------------------------------------------------
<TABLE><CAPTION>
- ---------------------------------------------------------------------------------------------------------------------------
                PAYMENT                BEGINNING                                            ENDING          CUMULATIVE
 NO.              DATE                  BALANCE           INTEREST       PRINCIPAL         BALANCE           INTEREST
- ---------------------------------------------------------------------------------------------------------------------------
<S>             <C>                   <C>                 <C>             <C>             <C>                <C>
  1             10/07/02              200,000.00          1,666.67        3,405.85        196,594.15         1,666.67
  2             11/07/02              196,594.15          1,638.28        3,434.24        193,159.91         3,304.95
  3             12/07/02              193,159.91          1,609.67        3,462.85        189,697.06         4,914.62
- ---------------------------------------------------------------------------------------------------------------------------
  4             01/07/03              189,697.06          1,580.81        3,491.71        186,205.35         6,495.43
  5             02/07/03              186,205.35          1,551.71        3,520.81        182,684.54         8,047.14
  6             03/07/03              182,684.54          1,522.37        3,550.15        179,134.39         9,569.51
- ---------------------------------------------------------------------------------------------------------------------------
  7             04/07/03              179,134.39          1,492.79        3,579.73        175,554.66         11,062.30
  8             05/07/03              175,554.66          1,462.96        3,609.56        171,945.10         12,525.26
  9             06/07/03              171,945.10          1,432.88        3,639.64        168,305.46         13,958.14
- ---------------------------------------------------------------------------------------------------------------------------
  10            07/07/03              168,305.46          1,402.55        3,669.97        164,635.49         15,360.69
  11            08/07/03              164,635.49          1,371.96        3,700.56        160,934.93         16,732.65
  12            09/07/03              160,934.93          1,341.12        3,731.40        157,203.53         18,073.77
- ---------------------------------------------------------------------------------------------------------------------------
  13            10/07/03              157,203.53          1,310.03        3,762.49        153,441.04         19,383.80
  14            11/07/03              153,441.04          1,278.68        3,793.84        149,647.20         20,662.48
  15            12/07/03              149,647.20          1,247.06        3,825.46        145,821.74         21,909.54
- ---------------------------------------------------------------------------------------------------------------------------
  16            01/07/04              145,821.74          1,215.18        3,857.34        141,964.40         23,124.72
  17            02/07/04              141,964.40          1,183.04        3,889.48        138,074.92         24,307.76
  18            03/07/04              138,074.92          1,150.62        3,921.90        134,153.02         25,458.38
- ---------------------------------------------------------------------------------------------------------------------------
  19            04/07/04              134,153.02          1,117.94        3,954.58        130,198.44         26,576.32
  20            05/07/04              130,198.44          1,084.99        3,987.53        126,210.91         27,661.31
  21            06/07/04              126,210.91          1,051.76        4,020.76        122,190.15         28,713.07
- ---------------------------------------------------------------------------------------------------------------------------
  22            07/07/04              122,190.15          1,018.25        4,054.27        118,135.88         29,731.32
  23            08/07/04              118,135.88           984.47         4,088.05        114,047.83         30,715.79
  24            09/07/04              114,047.83           950.40         4,122.12        109,925.71         31,666.19
- ---------------------------------------------------------------------------------------------------------------------------
  25            10/07/04              109,925.71           916.05         4,156.47        105,769.24         32,582.24
  26            11/07/04              105,769.24           881.41         4,191.11        101,578.13         33,463.65
  27            12/07/04              101,578.13           846.48         4,226.04        97,352.09          34,310.13
- ---------------------------------------------------------------------------------------------------------------------------
  28            01/07/05               97,352.09           811.27         4,261.25        93,090.84          35,121.40
  29            02/07/05               93,090.84           775.76         4,296.76        88,794.08          35,897.16
  30            03/07/05               88,794.08           739.95         4,332.57        84,461.51          36,637.11
- ---------------------------------------------------------------------------------------------------------------------------
  31            04/07/05               84,461.51           703.85         4,368.67        80,092.84          37,340.96
  32            05/07/05               80,092.84           667.44         4,405.08        75,687.76          38,008.40
  33            06/07/05               75,687.76           630.73         4,441.79        71,245.97          38,639.13
- ---------------------------------------------------------------------------------------------------------------------------
  34            07/07/05               71,245.97           593.72         4,478.80        66,767.17          39,232.85
</TABLE>
                                       6
<PAGE>
<TABLE><CAPTION>
                                                         EXHIBIT A
                                                        (CONTINUED)

- ---------------------------------------------------------------------------------------------------------------------------
                PAYMENT                BEGINNING                                            ENDING          CUMULATIVE
 NO.              DATE                  BALANCE           INTEREST       PRINCIPAL         BALANCE           INTEREST
- ---------------------------------------------------------------------------------------------------------------------------
<S>             <C>                   <C>                 <C>             <C>             <C>                <C>
  35            08/07/05               66,767.17           556.39         4,516.13        62,251.04          39,789.24
  36            09/07/05               62,251.04           518.76         4,553.76        57,697.28          40,308.00
- ---------------------------------------------------------------------------------------------------------------------------
  37            10/07/05               57,697.28           480.81         4,591.71        53,105.57          40,788.81
  38            11/07/05               53,105.57           442.55         4,629.97        48,475.60          41,231.36
  39            12/07/05               48,475.60           403.96         4,668.56        43,807.04          41,635.32
- ---------------------------------------------------------------------------------------------------------------------------
  40            01/07/06               43,807.04           365.06         4,707.46        39,099.58          42,000.38
  41            02/07/06               39,099.58           325.83         4,746.69        34,352.89          42,326.21
  42            03/07/06               34,352.89           286.27         4,786.25        29,566.64          42,612.48
- ---------------------------------------------------------------------------------------------------------------------------
  43            04/07/06               29,566.64           246.39         4,826.13        24,740.51          42,858.87
  44            05/07/06               24,740.51           206.17         4,866.35        19,874.16          43,065.04
  45            06/07/06               19,874.16           165.62         4,906.90        14,967.26          43,230.66
- ---------------------------------------------------------------------------------------------------------------------------
  46            07/07/06               14,967.26           124.73         4,947.79        10,019.47          43,355.39
  47            08/07/06               10,019.47           83.50          4,989.02         5,030.45          43,438.89
  48            09/07/06               5,030.45            41.92          5,030.45           0.00            43,480.81
- ---------------------------------------------------------------------------------------------------------------------------
</TABLE>










                                       7
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10.17
<SEQUENCE>31
<FILENAME>ex10-17_14663.txt
<DESCRIPTION>MASSIE $112,000 CONVERTIBLE TERM NOTE
<TEXT>
                                                                   EXHIBIT 10.17
                                                                   -------------

THIS NOTE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED,
OR ANY STATE SECURITIES LAWS AND THIS NOTE AND ANY INTEREST HEREIN MAY NOT BE
OFFERED, SOLD, TRANSFERRED, PLEDGED OR OTHERWISE DISPOSED OF EXCEPT PURSUANT TO
AN EFFECTIVE REGISTRATION STATEMENT UNDER SUCH ACT OR SUCH LAWS OR AN EXEMPTION
FROM REGISTRATION UNDER SUCH ACT AND SUCH LAWS, WHICH, IN THE OPINION OF COUNSEL
FOR THE HOLDER, WHICH COUNSEL AND OPINION ARE REASONABLY SATISFACTORY TO THE
BORROWER, IS AVAILABLE.

                            BRIDGELINE SOFTWARE, INC.
                              CONVERTIBLE TERM NOTE


***$112,000.00***                                        Woburn, Massachusetts
                                                         September 3, 2002

         For value received, the undersigned, BRIDGELINE Software Inc., a
Delaware corporation (referred to herein as the "Borrower"), the principal
executive offices of which are located at 130 New Boston Street, Woburn,
Massachusetts, hereby unconditionally promises to pay to the order of Thomas
Massie (the "Lender"), at such address as the Lender shall specify in writing
from time to time, the principal sum of ***$112,000.00*** (the "Loan"), together
with interest thereon at ***10%*** per annum payable as set forth herein. This
Note will mature and become due and payable in full on September 7, 2006 (the
"Maturity Date").

         1.    Terms of Repayment. Principal of and interest upon this Note will
be paid by the Borrower as follows:

               (a)   Principal and Interest. . Principal and Interest on the
Note, in the amount of $2,840.61 per month for forty-eight (48) months shall be
payable on the seventh (7th) day of each calendar month, beginning on October 7,
2002 until this Note has been paid in full in accordance with the payment
schedule attached as Exhibit A. If payment of any amount owing on this Note
shall be payable on a day that is not a business day in Boston, Massachusetts,
then payment will be made by the Borrower by the next succeeding business day.

               (b)   Optional Prepayments. The Borrower may prepay this Note at
any time or from time to time, in whole or in part, upon five days' prior
written notice to the Lender.

               (c)   Change in Control. This Note shall be prepaid in full
simultaneously with the occurrence of a Change in Control, as defined below.

               (d)   Maturity. On the Maturity Date, payment of the entire
unpaid principal of, interest on and all other sums due under this Note will
become due and payable.
<PAGE>

               (e)   Order of Payments. Except as specifically set forth
otherwise herein, all payments will be applied first to any late charges due
hereunder, then to accrued interest, and then to principal.

               (f)   Change in Control. For purposes of this Note, "Change in
Control" shall mean (A) any sale, lease, exchange or other transfer (in one
transaction or series of transactions) of all or substantially all of the assets
of the Borrower; (ii) any consolidation or merger of the Borrower with any other
entity (including, without limitation, a triangular merger) where the
stockholders of the Borrower, immediately prior to the consolidation or merger,
would not, immediately after the consolidation or merger, beneficially own,
directly or indirectly, shares representing a majority of the combined voting
power of all of the outstanding securities of the entity issuing cash or
securities in the consolidation or merger (or its ultimate parent corporation,
if any); (iv) a person or entity (other than the Lender) becomes the owner,
directly or indirectly, of securities of the Borrower representing forty percent
(40%) or more of the total voting power represented by the Borrower's then
outstanding voting securities.

         2.    Conversion.

               (a)   The Lender shall have the option, at any time or from time
to time until this Note shall have been paid in full to convert the outstanding
principal and accrued interest of this Note into fully-paid and nonassessable
shares of the Borrower's voting common stock (the "Shares") at the rate of one
(1) Share for every One Dollar ($1.00) of such indebtedness then outstanding.

               (b)   As promptly as practicable after the surrender of this Note
by the Lender, the Borrower shall deliver or cause to be delivered to the
holder, certificates for the full number of Shares issuable upon conversion of
this Note, in accordance with the provisions hereof. Such conversion shall be
deemed to have been made at the time that this Note was surrendered for
conversion and the notice specified herein shall have been received by the
Borrower.

               (c)   The number of Shares issuable upon conversion of this Note
or repayment by the Borrower in Shares shall be proportionately adjusted if the
Borrower shall declare a dividend of capital stock on its capital stock, or
subdivide its outstanding capital stock into a larger number of Shares by
reclassification, stock split or otherwise, which adjustment shall be made
effective immediately after the record date in the case of a dividend, and
immediately after the effective date in the case of a subdivision. The number of
Shares issuable upon conversion of this Note or any part thereof shall be
proportionately adjusted in the amount of securities for which the Shares has
been changed or exchanged in another transaction for other stock or securities,
cash and/or any other property pursuant to a merger, consolidation or other
combination. The Borrower shall promptly provide the holder of this Note with
notice of any events mandating an adjustment to the conversion ratio, or for any
planned merger, consolidation, Share exchange or sale of the Borrower.

         3.    Events of Default. Each and any of the following will constitute
a default and, after expiration of a grace period, if any, will constitute an
"Event of Default" hereunder:

                                       2
<PAGE>

               (a)   failure to pay any amount as herein set forth, which
default is not cured within five (5) days after notice of default is given in
writing;

               (b)   default in the performance of any other obligation of the
Borrower to the Lender under this Note, which default is not cured within thirty
(30) days after notice of default is given in writing;

               (c)   insolvency (however evidenced) or the commission of any act
of insolvency;

               (d)   the making of a general assignment for the benefit of
creditors;

               (e)   the filing of any petition or the commencement of any
proceeding by the Borrower for any relief under any bankruptcy or insolvency
laws, or any laws relating to the relief of debtors, readjustment of
indebtedness, reorganizations, compositions, or extensions; or

               (f)   the filing of any petition or the commencement of any
proceeding against the Borrower for any relief under any bankruptcy or
insolvency laws, or any laws relating to the relief of debtors, readjustment of
indebtedness, reorganizations, compositions, or extensions, which proceeding is
not dismissed within sixty (60) days.

         4.    Lender's Rights Upon Default. Upon the occurrence of any Event of
Default, the Lender may, at its sole and exclusive option, but subject to the
provisions of Section 2, (a) accelerate the maturity of this Note and demand
immediate payment in full, whereupon the outstanding principal amount of this
Note and all obligations of the Borrower to Lender, together with accrued
interest thereon and accrued charges and costs, will become immediately due and
payable without presentment, demand, protest or further notice of any kind, all
of which are hereby expressly waived and (b) exercise all legally available
rights and privileges.

         5.    Default Interest Rate. Upon an Event of Default, without any
further action on the part of the Lender, interest will thereafter accrue on the
unpaid principal balance (and on any accrued but unpaid interest) at a default
rate equal to the stated interest rate hereof plus five percentage points (5%)
per annum (the "Default Rate"), until all outstanding principal, interest and
fees under this Note are repaid in full by the Borrower.

         6.    Usury. In no event will the amount of interest paid or agreed to
be paid hereunder exceed the highest lawful rate permissible under applicable
law. Any excess amount of deemed interest will be null and void and will not
interfere with or affect the Borrower's obligation to repay the principal of and
interest on this Note.

         7.    Covenant. Until payment in full on this Note, the Borrower will
provide to the Lender: (i) as soon as available and, in any event, within
forty-five (45) days after the end of each of the first three quarters of each
fiscal year of the Borrower, a consolidated balance sheet of the Borrower as of
the end of such quarter and the related consolidated statements of income and
stockholders' equity and of cash flows of the Borrower for the period commencing
at the end of the previous fiscal year and ending with the end of such quarter,
setting forth in each case in comparative form the corresponding figures for the
corresponding period of the preceding fiscal

                                       3
<PAGE>

year, all in reasonable detail and prepared in accordance with generally
accepted accounting principles consistently applied, and duly certified (subject
to year-end audit adjustments) by the chief financial officer of the Borrower;
and (ii) as soon as available and, in any event, within sixty (60) days after
the end of each fiscal year of the Borrower, a copy of the annual audit report
for such year for the Borrower, including therein a consolidated balance sheet
of the Borrower as of the end of such fiscal year and consolidated statements of
income and stockholders' equity and of cash flows of the Borrower for such
fiscal year, setting forth in each case in comparative form the corresponding
figures for the preceding fiscal year, all duly certified by independent public
accountants of recognized national standing;

         8.    Costs of Enforcement. The Borrower hereby covenants and agrees to
indemnify, defend and hold the Lender harmless from and against all costs and
expenses, including reasonable attorneys' fees and their costs, together with
interest thereon at the annual prime rate of interest (the "Prime Rate") (as
published in the Wall Street Journal), incurred by the Lender in enforcing its
rights under this Note; or if the Lender is made a party as a defendant in any
action or proceeding arising out of or in connection with its status as a
lender, or if the Lender is requested to respond to any subpoena or other legal
process issued in connection with this Note; or the Lender's reasonable
disbursements arising out of any costs and expenses, including reasonable
attorneys' fees and their costs incurred in any bankruptcy case involving the
Borrower; or for any legal or appraisal reviews, advice or counsel performed for
the Lender following a request by the Borrower for waiver, modification or
amendment of this Note.

         9.    Governing Law. This Note will be governed by and
construed in accordance with the laws of the Commonwealth of Massachusetts
without regard to conflicts of law principles. The Lender and the Borrower
consent and agree to the exclusive jurisdiction of the federal and state courts
located in Boston, Massachusetts in connection with any matter arising
hereunder, including the collection and enforcement hereof. The Borrower hereby
waives any and all right to trial by jury in any civil action arising out of, or
based upon, this Note.

         10.   Miscellaneous.

               (a)   The Borrower hereby waives protest, notice of protest,
presentment, dishonor, and demand.

               (b)   Time is of the essence for each of the Borrower's covenants
under this Note.

               (c)   The rights and privileges of the Lender under this Note
will inure to the benefit of its corporate successors. All obligations of the
Borrower in connection with this Note will bind the Borrower's successors and
assigns.

               (d)   If any provision of this Note will for any reason be held
to be invalid or unenforceable, such invalidity or unenforceability will not
affect any other provision hereof, but this Note will be construed as if such
invalid or unenforceable provision had never been contained herein.

               (e)   The waiver of any Event of Default or the failure of the
Lender to exercise any right or remedy to which it may be entitled will not be
deemed a waiver of any subsequent Event

                                       4
<PAGE>

of Default or the Lender's right to exercise that or any other right or remedy
to which the Lender is entitled. No delay or omission by the Lender in
exercising, or failure by the Lender to exercise on any one or more occasions,
any rights hereunder will be construed as a waiver or novation of this Note or
prevent the subsequent exercise of any or all such rights.

               (f)   This Note may not be waived, changed, modified, or
discharged orally, but only in writing.

         IN WITNESS WHEREOF, the undersigned has executed this Note as of the
date first set forth above.


SIGNATURE OF LENDER:                   SIGNATURE OF BORROWER:
- --------------------                   ----------------------

THOMAS L. MASSIE                       BRIDGELINE SOFTWARE INC.


By: /S/ THOMAS L. MASSIE               By: /S/ GARY M. CEBULA
   -------------------------------        -------------------------------
Date: 9-3-02                           Its: Sr. V.P. & CFO
     -----------------------------         ------------------------------
                                       Date: 9-3-02
                                            -----------------------------

                                       *Not Personally Guaranteed












                                       5
<PAGE>

                                    EXHIBIT A

LOAN DATA
- --------------------------------------------------------------------------------
     Loan amount:               | $112,000.00
     Annual interest rate:      | 10.000%
     Term in years:             | 4
     Payments per year:         | 12
     Principal & Interest Pmt.  | $2,840.61
     First payment due:         | 10/07/2002
TABLE
- --------------------------------------------------------------------------------
<TABLE><CAPTION>
- -----------------------------------------------------------------------------------------------------------------------
               PAYMENT                BEGINNING                                           ENDING        CUMULATIVE
 NO.             DATE                  BALANCE            INTEREST        PRINCIPAL       BALANCE        INTEREST
- -----------------------------------------------------------------------------------------------------------------------
<S>            <C>                    <C>                  <C>            <C>           <C>               <C>
  1            10/07/02               112,000.00           933.33         1,907.28      110,092.72        933.33
  2            11/07/02               110,092.72           917.44         1,923.17      108,169.55       1,850.77
  3            12/07/02               108,169.55           901.41         1,939.20      106,230.35       2,752.18
- -----------------------------------------------------------------------------------------------------------------------
  4            01/07/03               106,230.35           885.25         1,955.36      104,274.99       3,637.43
  5            03/02/03               104,274.99           868.96         1,971.65      102,303.34       4,506.39
  6            03/07/03               102,303.34           852.53         1,988.08      100,315.26       5,358.92
- -----------------------------------------------------------------------------------------------------------------------
  7            04/07/03               100,315.26           835.96         2,004.65       98,310.61       6,194.88
  8            05/07/03               98,310.61            819.26         2,021.35       96,289.26       7,014.14
  9            06/07/03               96,289.26            802.41         2,038.20       94,251.06       7,816.55
- -----------------------------------------------------------------------------------------------------------------------
 10            07/07/03               94,251.06            785.43         2,055.18       92,195.88       8,601.98
 11            08/07/03               92,195.88            768.30         2,072.31       90,123.57       9,370.28
 12            09/07/03               90,123.57            751.03         2,089.58       88,033.99       10,121.31
- -----------------------------------------------------------------------------------------------------------------------
 13            10/07/03               88,033.99            733.62         2,106.99       85,927.00       10,854.93
 14            11/07/03               85,927.00            716.06         2,124.55       83,802.45       11,570.99
 15            12/07/03               83,802.45            698.35         2,142.26       81,660.19       12,269.34
- -----------------------------------------------------------------------------------------------------------------------
 16            01/07/04               81,660.19            680.50         2,160.11       79,500.08       12,949.84
 17            03/01/04               79,500.08            662.50         2,178.11       77,321.97       13,612.34
 18            03/07/04               77,321.97            644.35         2,196.26       75,125.71       14,256.69
- -----------------------------------------------------------------------------------------------------------------------
 19            04/07/04               75,125.71            626.05         2,214.56       72,911.15       14,882.74
 20            05/07/04               72,911.15            607.59         2,233.02       70,678.13       15,490.33
 21            06/07/04               70,678.13            588.98         2,251.63       68,426.50       16,079.31
- -----------------------------------------------------------------------------------------------------------------------
 22            07/07/04               68,426.50            570.22         2,270.39       66,156.11       16,649.53
 23            08/07/04               66,156.11            551.30         2,289.31       63,866.80       17,200.83
 24            09/07/04               63,866.80            532.22         2,308.39       61,558.41       17,733.05
- -----------------------------------------------------------------------------------------------------------------------
 25            10/07/04               61,558.41            512.99         2,327.62       59,230.79       18,246.04
 26            11/07/04               59,230.79            493.59         2,347.02       56,883.77       18,739.63
 27            12/07/04               56,883.77            474.03         2,366.58       54,517.19       19,213.66
- -----------------------------------------------------------------------------------------------------------------------
 28            01/07/05               54,517.19            454.31         2,386.30       52,130.89       19,667.97
 29            03/02/05               52,130.89            434.42         2,406.19       49,724.70       20,102.39
 30            03/07/05               49,724.70            414.37         2,426.24       47,298.46       20,516.76
- -----------------------------------------------------------------------------------------------------------------------
 31            04/07/05               47,298.46            394.15         2,446.46       44,852.00       20,910.91
 32            05/07/05               44,852.00            373.77         2,466.84       42,385.16       21,284.68
</TABLE>

                                       6
<PAGE>
<TABLE><CAPTION>
                                                         EXHIBIT A
                                                        (CONTINUED)

- -----------------------------------------------------------------------------------------------------------------------
               PAYMENT                BEGINNING                                           ENDING        CUMULATIVE
 NO.             DATE                  BALANCE            INTEREST        PRINCIPAL       BALANCE        INTEREST
- -----------------------------------------------------------------------------------------------------------------------
<S>            <C>                    <C>                  <C>            <C>           <C>               <C>
 33            06/07/05               42,385.16            353.21         2,487.40       39,897.76       21,637.89
- -----------------------------------------------------------------------------------------------------------------------
 34            07/07/05               39,897.76            332.48         2,508.13       37,389.63       21,970.37
 35            08/07/05               37,389.63            311.58         2,529.03       34,860.60       22,281.95
 36            09/07/05               34,860.60            290.51         2,550.10       32,310.50       22,572.46
- -----------------------------------------------------------------------------------------------------------------------
 37            10/07/05               32,310.50            269.25         2,571.36       29,739.14       22,841.71
 38            11/07/05               29,739.14            247.83         2,592.78       27,146.36       23,089.54
 39            12/07/05               27,146.36            226.22         2,614.39       24,531.97       23,315.76
- -----------------------------------------------------------------------------------------------------------------------
 40            01/07/06               24,531.97            204.43         2,636.18       21,895.79       23,520.19
 41            03/02/06               21,895.79            182.46         2,658.15       19,237.64       23,702.65
 42            03/07/06               19,237.64            160.31         2,680.30       16,557.34       23,862.96
- -----------------------------------------------------------------------------------------------------------------------
 43            04/07/06               16,557.34            137.98         2,702.63       13,854.71       24,000.94
 44            05/07/06               13,854.71            115.46         2,725.15       11,129.56       24,116.40
 45            06/07/06               11,129.56            92.75          2,747.86       8,381.70        24,209.15
- -----------------------------------------------------------------------------------------------------------------------
 46            07/07/06                8,381.70            69.85          2,770.76       5,610.94        24,279.00
 47            08/07/06                5,610.94            46.76          2,793.85       2,817.09        24,325.76
 48            09/07/06                2,817.09            23.48          2,817.09         0.00          24,349.24
- -----------------------------------------------------------------------------------------------------------------------
</TABLE>







                                       7

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10.18
<SEQUENCE>32
<FILENAME>ex10-18_14663.txt
<DESCRIPTION>MASSIE SECURITY AGREEMENT DATED 09-03-2002
<TEXT>
                                                                   EXHIBIT 10.18
                                                                   -------------

                               SECURITY AGREEMENT

         SECURITY AGREEMENT, dated as of September 3, 2002 made by BRIDGELINE
Software Inc., a Delaware corporation (the "Borrower"), in favor of Thomas
Massie (the "Lender").

         The parties agree as follows:

         1. Defined Terms. Unless otherwise defined herein, terms which are
defined in the Note (as defined below) or as defined in the Code (as defined
below) are used herein as therein defined, and the following terms shall have
the following meanings:

                  "Code" means the Uniform Commercial Code as from time to time
in effect in the Commonwealth of Massachusetts.

                  "Collateral" shall have the meaning assigned to it in Section
2 of this Security Agreement.

                  "Obligations" means the unpaid principal amount of, and
interest on, the Note, whether direct or indirect, absolute or contingent, due
or to become due, or now existing or hereafter incurred, arising under, out of,
or in connection with the Note or this Security Agreement or otherwise.

                  "Note" means the convertible promissory note of even date
herewith made by the Borrower in favor of the Lender in the original principal
amount of up to $200,000.00 and all instruments issued in exchange or
replacement therefor or which otherwise represent the debt represented by the
original Note.

                  "Security Agreement" means this Security Agreement, as amended
or restated from time to time.

         2. Grant of Security Interest. As collateral security for the prompt
and complete payment and performance when due (whether at the stated maturity,
by acceleration or otherwise) of the Obligations, the Borrower hereby grants to
the Lender a security interest in all right, title and interest of the Borrower
in all of the following property, whether now owned or hereafter acquired: (i)
Accounts; (ii) Notes; (iii) Chattel Paper; (iv) Commercial Tort Claims; (v)
Deposit Accounts; (vi) Documents; (vii) Equipment; (viii) Fixtures; (ix) General
Intangibles (including, but not limited to patents, copyrights, trademarks,
service marks and trade names and any applications therefor or registrations
thereof, including without limitation those set forth on Schedule A hereto,
payment intangibles and all software, library code an tools, (including in both
source code and object code); (x) Goods; (xi) Instruments; (xii) Inventory;
(xiii) Investment Property and Financial Assets; (xiv) Letter-of-Credit Rights
and letters of credit; (xv) Money; (xvi) Supporting Obligations; (xvii)
insurance claims and proceeds; (xviii) books, records, computer programs,
databases and other materials pertaining to any of the foregoing; and (xix)
Proceeds and products of any of the foregoing (collectively, the "Collateral").

<PAGE>

         3. Rights of Lender; Limitations on Lender's Obligations.

                  (a) Borrower Remains Liable under Accounts. Anything herein to
the contrary notwithstanding, the Borrower shall remain liable under each of the
Accounts to observe and perform all the conditions and obligations to be
observed and performed by it thereunder, all in accordance with the terms of any
agreement giving rise to each such Account. The Lender shall not have any
obligation or liability under any Account (or any agreement giving rise thereto)
by reason of or arising out of this Security Agreement or the receipt by the
Lender of any payment relating to such Account pursuant hereto, nor shall the
Lender be obligated in any manner to perform any of the obligations of the
Borrower under or pursuant to any Account (or any agreement giving rise
thereto), to make any payment, to make any inquiry as to the nature or the
sufficiency of any payment received by it or as to the sufficiency of any
performance by any party under any Account (or any agreement giving rise
thereto), to present or file any claim, to take any action to enforce any
performance or to collect the payment of any amounts which may have been
assigned to it or to which it may be entitled at any time or times.

                  (b) Notice to Account Debtors. Upon the request of the Lender
at any time after the occurrence and during the continuance of an Event of
Default, the Borrower shall notify account debtors on the Accounts that the
Accounts have been assigned to the Lender and that payments in respect thereof
shall be made directly to the Lender. The Lender may in its own name or in the
name of others communicate with account debtors on the Accounts to verify with
them to its satisfaction the existence, amount and terms of any Accounts.

                  (c) Collections on Accounts. The Lender hereby authorizes the
Borrower to collect the Accounts, and the Lender may curtail or terminate said
authority at any time after the occurrence and during the continuance of an
Event of Default. If required by the Lender at any time after the occurrence and
during the continuance of an Event of Default, any payments of Accounts, when
collected by the Borrower, shall be forthwith (and, in any event, within two
business days) deposited by the Borrower in the exact form received, duly
endorsed by the Borrower to the Lender if required, in a special collateral
account maintained by the Lender, subject to withdrawal by the Lender only, as
hereinafter provided, and, until so turned over, shall be held by the Borrower
in trust for the Lender, segregated from other funds of the Borrower. All
Proceeds constituting collections of Accounts while held by the Lender (or by
the Borrower in trust for the Lender) shall continue to be collateral security
for all of the Obligations and shall not constitute payment thereof until
applied thereto by the Lender, or by the Borrower with the Lender's consent. If
an Event of Default shall have occurred and be continuing, at any time at the
Lender's election, the Lender shall apply all or any part of the funds on
deposit in said special collateral account on account of the Obligations in such
order as the Lender may elect, and any part of such funds which the Lender
elects not so to apply and deems not required as collateral security for the
Obligations shall be paid over from time to time by the Lender to the Borrower
or to whomsoever may be lawfully entitled to receive the same. At the Lender's
request, the Borrower shall deliver to the Lender all original and other
documents evidencing, and relating to, the agreements and transactions which
gave rise to the accounts, including, without limitation, all original orders,
invoices and shipping receipts.

                                        2
<PAGE>

                  (d) Trust Account. Upon the occurrence and during the
continuance of an Event of Default, the Lender may, in its sole discretion,
elect to require the Borrower to establish with the Lender a trust account and
to deal with all of its Receivables subject to the provisions of this Section.
Following such election, the Borrower will collect its Receivables as the
Lender's collection agent, hold such collections in trust for the Lender without
commingling the same with other funds of the Borrower and will promptly, on the
day of receipt thereof, transmit such collections to the Lender in the identical
form in which they were received by the Borrower, with such endorsements as may
be appropriate, accompanied by a report, in form approved by the Lender, showing
the amount of such collections and the cash discounts applicable thereto.

                  (e) Title to Collateral. The Borrower represents and warrants
to the Lender that it has good title to all of the Collateral, free and clear of
all liens, security interests and adverse interests, other than the Permitted
Liens, in favor of any person or entity other than the Lender.

         4. Covenants. The Borrower covenants and agrees with the Lender that,
from and after the date of this Security Agreement until the Obligations are
paid in full:

                  (a) Further Documentation; Pledge of Instruments and Chattel
Paper. At any time and from time to time, upon the written request of the
Lender, and at the sole expense of the Borrower, the Borrower will promptly and
duly execute and deliver such further instruments and documents and take such
further action as the Lender may reasonably request for the purpose of obtaining
or preserving the full benefits of this Security Agreement and of the rights and
powers herein granted, including, without limitation, the filing of any
financing or continuation statements under the Uniform Commercial Code in effect
in any jurisdiction with respect to the security interests and liens created
hereby. The Borrower also hereby authorizes the Lender to file any such
financing or continuation statement without the signature of the Borrower to the
extent permitted by applicable law. A carbon, photographic or other reproduction
of this Security Agreement shall be sufficient as a financing statement for
filing in any jurisdiction. If any amount payable under or in connection with
any of the Collateral shall be or become evidenced by any Instrument or Chattel
Paper, such Instrument or Chattel Paper shall be immediately delivered to the
Lender, duly endorsed in a manner satisfactory to the Lender, to be held as
Collateral pursuant to this Security Agreement.

                  (b) Indemnification. The Borrower agrees to pay, and to save
the Lender harmless from, any and all liabilities, reasonable costs and expenses
(including, without limitation, legal fees and expenses) (i) with respect to, or
resulting from, any delay in paying, any and all excise, sales or other taxes
which may be payable or determined to be payable with respect to any of the
Collateral, (ii) with respect to, or resulting from, any delay in complying with
any law, rule, regulation or order of any court, arbitrator or governmental
entity, jurisdiction or authority applicable to any of the Collateral or (iii)
in connection with any of the transactions contemplated by this Security
Agreement. In any suit, proceeding or action brought by the Lender under any
Account for any sum owing thereunder, or to enforce any provisions of any
Account, the Borrower will save, indemnify and keep the Lender harmless from and
against all expense, loss or damage suffered by reason of any defense, setoff,
counterclaim, recoupment or reduction or liability whatsoever of the account
debtor or obligor thereunder, arising out of a

                                        3
<PAGE>
breach by the Borrower of any obligation thereunder or arising out of any other
agreement, indebtedness or liability at any time owing to or in favor of such
account debtor or obligor or its successors from the Borrower. The foregoing
indemnification shall not apply to any liabilities, costs or expenses resulting
directly from the gross negligence, actual willful misconduct or bad faith of
the Lender.

                  (c) Maintenance of Records. The Borrower will keep and
maintain at its own cost and expense satisfactory and complete records of the
Collateral, including without limitation, a record of all payments received and
all credits granted with respect to the Accounts. For the Lender's further
security, the Borrower hereby grants to the Lender a security interest in all of
the Borrower's books and records pertaining to the Collateral, and upon the
occurrence and during the continuance of an Event of Default, the Borrower shall
turn over any such books and records to the Lender or to its representatives
during normal business hours at the request of the Lender.

                  (d) Right of Inspection. The Lender shall at all times have
full and free access during normal business hours, and upon reasonable prior
notice, to all the books of record and account of the Borrower, and the Lender
or its representatives may examine the same, take extracts therefrom and make
photocopies thereof, and the Borrower agrees to render to the Lender, at the
Borrower's cost and expense, such clerical and other assistance as may be
reasonably requested with regard thereto. The Lender and its representatives
shall at all times also have the right during normal business hours, and upon
reasonable prior notice, to enter into and upon any premises where any of the
Inventory or Equipment is located for the purpose of inspecting the same or
otherwise protecting its interests therein.

                  (e) Compliance with Laws, etc. The Borrower will comply in all
material respects with all laws, rules, regulations and orders of any court,
arbitrator or governmental entity, jurisdiction or authority applicable to the
Collateral or any part thereof or to the operation of the Borrower's business;
provided, however, that the Borrower may contest any such law, rule, regulation
or order in any reasonable manner which shall not, in the reasonable opinion of
the Lender, adversely affect the Lender's rights or the priority of its liens on
the Collateral.

                  (f) Payment of Obligations. The Borrower will pay promptly
when due all taxes, assessments and governmental charges or levies imposed upon
the Collateral or in respect of its income or profits therefrom, as well as all
claims of any kind (including, without limitation, claims for labor, materials
and supplies) against or with respect to the Collateral, except that no such
charge need be paid if (i) the validity thereof is being contested in good faith
by appropriate proceedings, (ii) such proceedings do not involve any material
danger of the sale, forfeiture or loss of any of the Collateral or any interest
therein and (iii) such charge is adequately reserved against on the Borrower's
books in accordance with generally accepted accounting principles.

                  (g) Limitation on Liens on Collateral. The Borrower will not
create, incur or permit to exist, will defend the Collateral against, and will
take such other action as is necessary to remove, any lien, security interest,
pledge, mortgage, deed of trust, levy, attachment, claim or other charge or
encumbrance on or to the Collateral, and will defend the right, title and
interest of the Lender in and to any of the Collateral against the claims and
demands of all persons or entities whatsoever.


                                        4
<PAGE>
                  (h) Limitations on Dispositions of Collateral. The Borrower
will not sell, transfer, lease or otherwise dispose of any of the Collateral, or
attempt, offer or contract to do so, except for sales of Collateral for value in
the ordinary course of business.

                  (i) Limitations on Discounts, Compromises, Extensions of
Accounts. Other than in the ordinary course of business as generally conducted
by the Borrower, the Borrower will not grant any extension of the time of
payment of any of the Accounts, compromise, compound or settle the same for less
than the full amount thereof, release, wholly or partially, any person or entity
liable for the payment thereof, or allow any credit or discount whatsoever
thereon.

                  (j) Maintenance of Equipment. The Borrower will maintain each
item of Equipment in good operating condition, ordinary wear and tear and
immaterial impairments of value and damage by the elements excepted, and will
provide all maintenance, service and repairs necessary for such purpose.

                  (k) Maintenance of Insurance. The Borrower will maintain, with
financially sound and reputable companies, insurance policies (i) insuring the
Inventory, Equipment and Vehicles against loss by fire, explosion, theft and
such other casualties as may be reasonably satisfactory to the Lender and (ii)
insuring the Borrower and the Lender against liability for personal injury and
property damage relating to such Inventory, Equipment and Vehicles, such
policies to be in such form and amounts and having such coverage as may be
reasonably satisfactory to the Lender, with losses payable to the Borrower and
the Lender as their respective interests may appear. All such insurance shall
(i) provide that no termination, cancellation, material reduction in amount or
material change in coverage thereof shall be effective until at least 30 days
after receipt by the Lender of written notice thereof, (ii) name the Lender as
an insured and (iii) be reasonably satisfactory in all other respect to the
Lender. From time to time upon the request of the Lender, the Borrower shall
deliver to the Lender insurance policies, certificates or binders as the Lender
may from time to time reasonably request.

                  (l) Further Identification of Collateral. The Borrower will
furnish to the Lender from time to time statements and schedules further
identifying and describing the Collateral and such other reports in connection
with the Collateral as the Lender may reasonably request, all in reasonable
detail.

         5. Lender's Appointment as Attorney-in-Fact.

                  (a) Powers. The Borrower hereby irrevocably constitutes and
appoints the Lender and any officer or agent thereof, with full power of
substitution, as its true and lawful attorney-in-fact with full irrevocable
power and authority in the place and stead of the Borrower and in the name of
the Borrower or in its own name, from time to time in the Lender's discretion,
for the purpose of carrying out the terms of this Security Agreement, to take
any and all appropriate action and to execute any and all instruments which may
be necessary or desirable to accomplish the purposes of this Security Agreement,
and, without limiting the generality of the foregoing, the Borrower hereby gives
the Lender the power and right, on behalf of the Borrower, without notice to or
assent by the Borrower, to do the following:


                                        5
<PAGE>
          (i)  in the case of any Account, at any time when the authority of the
               Borrower to collect the Accounts has been curtailed or terminated
               pursuant to the first sentence of Section 3(c) hereof, or in the
               case of any other Collateral, at any time when any Event of
               Default shall have occurred and is continuing, in the name of the
               Borrower or its own name, or otherwise, to take possession of and
               endorse and collect any checks, drafts, notes, acceptances or
               other instruments for the payment of moneys due under any
               Account, Instrument or with respect to any other action or
               proceeding in any court of law or equity or otherwise deemed
               appropriate by the Lender for the purpose of collecting any and
               all such moneys due under any Account, Instrument or with respect
               to any other collateral whenever payable;

          (ii) to pay or discharge taxes and liens levied or placed on or
               threatened against the Collateral, to effect any repairs or any
               insurance called for the terms of this Security Agreement and to
               pay all or any part of the premiums therefor and the costs
               thereof; and

          (iii) Upon the occurrence and during the continuance of any Event of
               Default, (A) to direct any party liable for any payment under any
               of the Collateral to make payment of any and all moneys due or to
               become due thereunder directly to the Lender or as the Lender
               shall direct; (B) to ask or demand for, collect, receive payment
               of and receipt for, any and all moneys, claims and other amounts
               due or to become due at any time in respect of or arising out of
               any Collateral; (C) to sign and endorse any invoices, freight or
               express bills, bills of lading, storage or warehouse receipts,
               drafts against debtors, assignments, verifications, notices and
               other documents in connection with any of the collateral; (D) to
               commence and prosecute any suits, actions or proceedings at law
               or in equity in any court of competent jurisdiction to collect
               the Collateral or any thereof and to enforce any other right in
               respect of any Collateral; (E) to defend any suit, action or
               proceeding brought against the Borrower with respect to any
               Collateral; (F) to settle, compromise or adjust any suit, action
               or proceeding described in clause (E) above and, in connection
               therewith, to give such discharges or releases as the Lender may
               deem appropriate; and (G) generally, to sell, transfer, pledge
               and make any agreement with respect to or otherwise deal with any
               of the Collateral as fully and completely as though the Lender
               were the absolute owner thereof for all purposes, and to do, at
               the Lender's option and the Borrower's expense, at any time, or
               from time to time, all acts and things which the Lender deems
               necessary to protect, preserve or realize upon the Collateral and
               the Lender's liens thereon and to effect the intent of this
               Security Agreement, all as fully and effectively as the Borrower
               might do.

At the reasonable request of the Lender, the Borrower shall deliver to the
Lender, one or more further documents ratifying any and all actions that said
attorneys shall lawfully take or do or


                                        6
<PAGE>
cause to be taken or done by virtue hereof. This power of attorney is a power
coupled with an interest and shall be irrevocable.

                  (b) Other Powers. The Borrower also authorizes the Lender, at
any time and from time to time, to execute, in connection with the sales
provided for in Section 7 hereof, any endorsements, assignments or other
instruments of conveyance or transfer with respect to the Collateral.

                  (c) No Duty on Lender's Part. The powers conferred on the
Lender hereunder are solely to protect the Lender's interests in the Collateral
and shall not impose any duty upon it to exercise any such powers. The Lender
shall be accountable only for amounts that it actually receives as a result of
the exercise of such powers, and neither it nor any of its officers, directors,
employees or agents shall be responsible to the Borrower for any act or failure
to act hereunder, except for its own gross negligence or willful misconduct.

         6. Performance by Lender of Borrower's Obligations. If the Borrower
fails to perform or comply with any of its agreements contained herein and the
Lender, as provided for by the terms of this Security Agreement, shall itself
perform or comply, or otherwise cause performance or compliance, with such
agreement, the expenses of the Lender incurred in connection with such
performance or compliance, together with interest thereon at a rate per annum
equal to the Prime Rate plus 5%, shall be payable by the Borrower to the Lender
on demand and shall constitute Obligations secured hereby.

         7. Remedies. If an Event of Default shall occur and be continuing, the
Lender may exercise, in addition to all other rights and remedies granted to it
in this Security Agreement and in any other instrument or agreement securing,
evidencing or relating to the Obligations, all rights and remedies of a secured
party under the Code. Without limiting the generality of the foregoing, the
Lender, without demand of performance or other demand, presentment, protest, or
notice of any kind (except any notice required by law referred to below) to or
upon the Borrower or any other person or entity (all and each of which are
hereby waived), may in such circumstances forthwith collect, receive,
appropriate and realize upon the Collateral, or any part thereof, and/or may
forthwith sell, lease, assign, give option or options to purchase, or otherwise
dispose of and deliver the Collateral or any part thereof (or contract to do any
of the foregoing), in one or more parcels at public or private sale or sales, at
any exchange, broker's board or office of the Lender or elsewhere upon such
terms and conditions as it may deem advisable and at such prices as it may deem
best, for cash or on credit or for future delivery without assumption of any
credit risk. The Lender shall have the right upon any such public sale or sales,
and, to the extent permitted by law, upon any such private sale or sales, to
purchase the whole or any part of the Collateral so sold, free of any right or
equity or redemption in the Borrower, which right or equity is hereby waived or
released. The Borrower further agrees, at the Lender's request, to assemble the
Collateral and make it available to the Lender at places which the Lender shall
reasonably select, whether at the Borrower's premises or elsewhere. The Lender
shall apply the net proceeds of any such collection, recovery, receipt,
appropriation, realization or sale, after deducting all reasonable costs and
expenses of every kind incurred therein or incidental to the care or safekeeping
of any of the Collateral or in any way relating to the Collateral or the rights
of the Lender hereunder, including, without limitation, reasonable attorneys'
fees and

                                        7
<PAGE>
disbursements, to the payment in whole or in part of the Obligations, in such
order as the Lender may elect, and only after such application and after the
payment by the Lender of any other amount required by any provision of law,
including, without limitation, Section 9-615 of the Code, need the Lender
account for the surplus, if any, to the Borrower. To the extent permitted by
applicable law, the Borrower waives all claims, damages and demands it may
acquire against the Lender arising out of the exercise by the Lender of any of
its rights hereunder, provided that such release shall not apply to any claim,
damage or demand resulting directly from the gross negligence, actual willful
misconduct or bad faith of the Lender. If any notice of a proposed sale or other
disposition of Collateral shall be required by law, such notice shall be deemed
reasonable and proper if given at least ten days before such sale or other
disposition. The Borrower shall remain liable for any deficiency if the proceeds
of any sale or other disposition of the Collateral are insufficient to pay the
Obligations and the fees and disbursements of any attorneys employed by the
Lender to collect such deficiency.

         8. Limitation on Duties Regarding Preservation of Collateral. The
Lender's sole duty with respect to the custody, safekeeping and physical
preservation of the Collateral in its possession, under Section 9-207 of the
Code or otherwise, shall be to deal with it in the same manner as the Lender
deals with similar property for its own account. Neither the Lender nor any of
its directors, officers, employees or agents shall be liable for failure to
demand, collect or realize upon all or any part of the Collateral or for any
delay in doing so or shall be under any obligation to sell or otherwise dispose
of any Collateral upon the request of the Borrower or otherwise.

         9. Powers Coupled with an Interest. All authorizations and agencies
herein contained with respect to the Collateral are irrevocable and powers
coupled with an interest.

         10. Severability. Any provision of this Security Agreement which is
prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction,
be ineffective to the extent of such prohibition or unenforceability without
invalidating the remaining provisions hereof, and any such prohibition or
unenforceability in any jurisdiction shall not invalidate or render
unenforceable such provision in any other jurisdiction.

         11. Paragraph Headings. The paragraph headings used in this Security
Agreement are for convenience of reference only and are not to affect the
construction hereof or be taken into consideration in the interpretation hereof.

         12. No Waiver; Cumulative Remedies. The Lender shall not by any act
(except by a written instrument pursuant to Section 13 hereof), delay,
indulgence, omission or otherwise be deemed to have waived any right or remedy
hereunder or to have acquiesced in any Default or Event of Default or in any
breach of any of the terms and conditions hereof. No failure to exercise, nor
any delay in exercising, on the part of the Lender, any right, power or
privilege hereunder shall operate as a waiver thereof. No single or partial
exercise of any right, power or privilege hereunder shall preclude any other or
further exercise thereof or the exercise of any other right, power or privilege.
A waiver by the Lender of any right or remedy hereunder on any one occasion
shall not be construed as a bar to any right or remedy which the Lender would
otherwise have on any future occasion. The rights and remedies herein provided
are cumulative,

                                        8
<PAGE>
may be exercised singly or concurrently and are not exclusive of any rights or
remedies provided by law.

         13. Waivers and Amendments; Successors and Assigns. None of the terms
or provisions of this Security Agreement may be waived, amended, supplemented or
otherwise modified except by a written instrument executed by the Borrower and
the Lender, provided that any provision of this Security Agreement may be waived
by the Lender in a written letter or agreement executed by the Lender or by
telex or facsimile transmission from the Lender. This Security Agreement shall
be binding upon the successors and assigns of the Borrower and shall inure to
the benefit of the Lender and its successors and assigns.

         14. Governing Law. This Security Agreement shall be governed by, and
construed and interpreted in accordance with, the laws of the Commonwealth of
Massachusetts.

         15. Counterparts. This Security Agreement may be executed in several
counterparts, each of which shall constitute an original, but all of which, when
taken together, shall constitute but one agreement.

         16. Notices. All notices, requests, demands and other communications
required or permitted to be given hereunder by any party hereto shall be in
writing and shall be deemed to have been duly given (i) when received if
delivered personally, or (ii) on the business day following the business day
sent if sent by prepaid domestically recognized overnight receipted courier if
sent domestically, or (iii) on the third business day following the day sent if
sent by prepaid internationally recognized overnight receipted courier if sent
internationally, or (iv) when receipt is telephonically acknowledged if sent by
telecopier transmission on a business day or, if not a business day, on the next
following business day, or to the parties at the following addresses (or at such
other addresses as shall be specified by the parties):

         If to the Borrower, to:

         BRIDGELINE  Software, Inc.
         130 New Boston Street
         Woburn, MA 01801

         If to the Lender, to:

         Mr. Thomas Massie

and in any case at such other address as the addressee shall have specified by
written notice. All periods of notice shall be measured from the date of
delivery thereof.

                                        9
<PAGE>

        IN WITNESS WHEREOF, the Borrower has caused this Security Agreement to
be duly executed and delivered in favor of the Lender as of the date first above
written.

BORROWER:                                           LENDER:
BRIDGELINE Software Inc.

By: /S/ GARY M. CEBULA                              /S/ THOMAS L. MASSIE
    ---------------------------                     ----------------------------
Name: Gary M. Cebula                                Thomas Massie
      -------------------------
Title: Sr. V.P. & CFO
       ------------------------




























                                       10
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10.19
<SEQUENCE>33
<FILENAME>ex10-19_14663.txt
<DESCRIPTION>PLACEMENT AGENT AGREEMENT DATED 04-10-2006
<TEXT>
                                                                   EXHIBIT 10.19
                                                                   -------------

                            PLACEMENT AGENT AGREEMENT

                                                           Dated: April 10, 2006

Joseph Gunnar & Co., LLC
30 Broad Street
New York, NY 10004

Gentlemen:

1. Offering.

         A. Bridgeline Software, Inc., a Delaware corporation (the "Company"),
hereby engages Joseph Gunnar & Co., LLC ("JGUN") (the "Placement Agent") to act
as its exclusive placement agent in connection with the issuance and sale by the
Company (the "Offering") of up to $2,300,000, or 23 Units ("Maximum
Offering")/$1,100,000, or 11 Units ("Minimum Offering"), with a "best-efforts"
over-allotment contingency of an additional $500,000, or 5 Units
("Overallotment"), which Units shall consist of senior secured notes (the
"Notes") and a five-year warrant to purchase 10,000 shares of the Company's
common stock ("Common Stock") at an exercise price of $.001 per share for each
$100,000 subscribed for (the "Warrant," and the shares issuable upon exercise of
the Warrant referred to herein as the "Warrant Shares"). The Placement Agent is
hereby authorized to engage, at its option, the services of other broker-dealers
who are members of the National Association of Securities Dealers, Inc. ("NASD")
to assist it in soliciting subscribers and to remit to such broker-dealers the
commissions payable to the Placement Agent hereunder as it shall determine.

         The Offering is subject to (i) the terms and conditions set forth in
the Company's Confidential Private Offering Memorandum dated April 7, 2006 (such
memorandum with all amendments and exhibits thereto (the "Memorandum")). The
Offering is also subject to a subscription agreement and questionnaire and
noteholder agency appointment agreement to be executed by each purchaser of the
Notes and the Company (collectively, the "Subscription Agreements") (The
Subscription Agreement and the Memorandum are collectively referred to as the
"Offering Documents"). The Company shall issue and sell to Placement Agent or
its designee(s), for nominal consideration, five-year warrants to purchase 4,000
shares of Common Stock for each Unit sold (the "Placement Agent Warrants"), and
the Placement Agent agrees to enter into a six-month post-IPO lock-up on the
Placement Agent Warrant and the shares of Common Stock issuable upon exercise
thereof.

         The Notes, the Warrants, the Warrant Shares, the Placement Agent
Warrants, and the Common Stock underlying the Placement Agent Warrants
("Placement Agent Shares") are hereinafter sometimes collectively referred to as
the "Securities."

         The Notes and Warrants will be offered without registration under the
Securities Act of 1933, as amended (the "Securities Act"). Purchasers of the
Notes and Warrants will be granted certain registration rights with respect to
the Warrant Shares as more fully set forth in the

<PAGE>

Warrants. The Placement Agent will be granted certain registration rights with
respect to the Placement Agent Warrants, as more fully set forth in the
Placement Agent Warrants.

         B. The Notes and Warrants (collectively the "Units") will be offered by
the Company on a "best efforts, all or none" basis with respect to the "Minimum
Offering", and a "best efforts" basis with respect to the Maximum Offering, plus
a "best efforts" basis over allotment contingency with respect to the
Overalloment. The Company will issue the certificates representing the Notes and
Warrants at one or more closings (the "Closing") after subscriptions have been
received for the Minimum Offering and accepted by the Company and when funds
from investors have cleared the banking system in the normal course of business.

         C. The Offering shall terminate on the earliest of: (a) the sale of the
Maximum Offering, or (b) May 31, 2006, unless extended without notice to the
Investors by the Company and the Placement Agent for no more than two (2) thirty
(30) day periods (the "Offering Period"). If the Minimum Offering is not sold
prior to the end of the Offering Period, the Offering will be terminated and all
funds received from Investors will be returned thereto, without interest thereon
or deduction therefrom. With respect to any subscriptions that are received by
the Placement Agent or accepted by the Company subsequent to the Offering
Period, all funds received by Investors will be returned thereto, without
interest thereon or deduction therefrom. The Company and Placement Agent reserve
the right to reject any and all subscription agreements in excess of the Minimum
Offering.

2. Information.

         A. The Notes and Warrants shall have the terms set forth in and shall
be offered by the Company by means of the Offering Documents. Payment for the
Notes shall be made by check, money order or wire transfer as more fully
described in the Subscription Agreement. The minimum purchase by any purchaser
shall be $100,000, unless subscriptions for lesser amounts are accepted at the
discretion of the Company and the Placement Agent. The Placement Agent and the
Company agree that the Notes and Warrants will be offered solely to "accredited
investors" within the meaning of Rule 501 of Regulation D ("Accredited
Investors") promulgated by the Securities and Exchange Commission (the
"Commission") under the Securities Act and Rule 506 of Regulation D under the
Securities Act.

         B. All funds received from subscriptions arranged will be promptly
transmitted to the escrow account maintained at U.S. Bank and designated as
"U.S. Bank/Bridgeline Software, Inc. - Escrow Account." In the event that a
Closing occurs, the funds received in respect of the Notes and Warrants closed
on will be forwarded to the Company, against delivery of the appropriate amount
of the Notes and Warrants, net of (i) the placement agent commission equal to
cash in an amount equal to ten percent (10%) of the gross proceeds of the Notes
sold in the Offering, (ii) the Placement Agent Warrants, and (iii) any
out-of-pocket costs and expenses paid or to be paid by the Placement Agent
including, but not limited to, travel, due diligence, printing, mailing, plus
legal expenses except that the Company shall not be responsible for any non-Blue
Sky law compliance related fees of the Placement Agent's legal counsel in excess
of $35,000 without the Company's approval.

                                        2
<PAGE>

         C. The Company and the Placement Agent reserve the right to reject any
subscriber, in whole or in part, in their sole reasonable discretion. Funds
received by the Company from any subscriber whose subscription is rejected will
be returned to such subscriber, without deduction therefrom or interest thereon,
but no sooner than such funds have cleared the banking system in the normal
course of business.

3. Representations, Warranties and Covenants of Placement Agent.

         The Placement Agent represents, warrants and covenants as follows:

                  (i) It has the necessary power to enter into this Agreement
and to consummate the transactions contemplated hereby.

                  (ii) The execution and delivery by the Placement Agent of this
Agreement and the consummation of the transactions contemplated herein will not
result in any violation of, or be in conflict with, or constitute a default
under, any agreement or instrument to which a Placement Agent is a party or by
which a Placement Agent or its properties are bound, or any judgment, decree,
order or, to a Placement Agent's knowledge, any statute, rule or regulation
applicable to a Placement Agent. This Agreement constitutes the legal, valid and
binding obligation of the Placement Agent, enforceable against the Placement
Agent in accordance with its terms, except to the extent that (a) the
enforceability hereof may be limited by bankruptcy, insolvency, reorganization,
moratorium or similar laws from time to time in effect and affecting the rights
of creditors generally, (b) the enforceability hereof is subject to general
principles of equity, or (c) the indemnification provisions hereof may be held
to be violative of public policy.

                  (iii) The Placement Agent will deliver to each Investor, prior
to any submission by such person of a written offer relating to the purchase of
the Notes and Warrants, a copy of the Offering Documents, as they may have been
most recently amended or supplemented by the Company.

                  (iv) Upon receipt of an executed Subscription Agreement, the
Placement Agent will promptly forward copies of the subscription documents to
the Company.

                  (v) The Placement Agent will not deliver the Offering
Documents to any person they do not reasonably believe to be an Accredited
Investor or to any person in a state where it does not reasonably believe that
the Offering is exempt from the applicable state "Blue Sky" laws.

                  (vi) The Placement Agent will not intentionally take any
action which it reasonably believes would cause the Offering to violate the
provisions of the Securities Act, the Securities Exchange Act of 1934, as
amended (the "Exchange Act") or the respective rules and regulations promulgated
thereunder (the "Rules and Regulations").

                  (vii) The Placement Agent shall have no obligation to insure
that (a) any check, note, draft or other means of payment for the Notes will be
honored, paid or enforceable against the subscriber in accordance with its
terms; or (b) subject to the performance of the Placement Agent's obligations
and the accuracy of its representations and warranties hereunder, (i) the
Offering is exempt from the registration requirements of the Securities Act or
any applicable

                                        3
<PAGE>

state "Blue Sky" law; or (ii) any prospective purchaser is an Accredited
Investor; provided that Placement Agent will not deliver the Offering Documents
to any person they do not reasonably believe to be an Accredited Investor.

                  (viii) The Placement Agent is a member of the NASD and is a
broker-dealer registered as such under the Exchange Act and under the securities
laws of the states in which the Securities will be offered or sold by the
Placement Agent, unless an exemption for such state registration is available to
the Placement Agent. The Placement Agent is in compliance with all material
rules and regulations applicable to the Placement Agent generally and to the
Placement Agent's participation in the Offering.

4. Representations and Warranties of the Company.

         The Company represents and warrants as follows:

                  (i) The execution, delivery and performance of each of this
Agreement, the Subscription Agreements and the Escrow Agreement has been duly
and validly authorized by the Company and is, or with respect to the
Subscription Agreements, will be, a valid and binding obligation of the Company,
enforceable in accordance with its respective terms, except to the extent that
(a) the enforceability hereof or thereof may be limited by bankruptcy,
insolvency, reorganization, moratorium or similar laws from time to time in
effect and affecting the rights of creditors generally, (b) the enforceability
hereof or thereof is subject to general principles of equity; or (c) the
indemnification provisions hereof or thereof may be held to be violative of
public policy.

                  (ii) The issuance, sale and delivery by the Company of the
Securities have been or will be prior to the Closing duly authorized by all
requisite corporate action of the Company. The Warrant Shares and the Placement
Agent Shares will, prior to the Closing, be duly reserved for issuance upon
exercise of the Warrants and exercise of the Placement Agent Warrants,
respectively.

                  (iii) Except as set forth in the Offering Documents or on
Schedule 4(iii), all issued and outstanding securities of the Company and its
subsidiaries have been duly authorized and validly issued, fully paid and
non-assessable and were issued in compliance with all applicable federal and
state securities laws; the holders thereof have no rights of rescission or
preemptive rights with respect thereto and are not subject to personal liability
solely by reason of being security holders; and none of such securities was
issued in violation of the preemptive rights of any holders of any security of
the Company. The Company has 15,000,000 shares of authorized Common Stock,
11,711,498 shares (calculated on a pre-1-for-3 reverse stock split anticipated
to take place on or about April 7, 2006) of which are issued and outstanding as
of the date hereof and no shares of authorized Preferred Stock.

                  (iv) Except as set forth in the Offering Documents or on
Schedule 4(iv) there are: (i) no outstanding options, warrants, rights
(including conversion or preemptive rights) or agreements pursuant to which the
Company is or may become obligated to issue, sell or repurchase any securities
of the Company; (ii) no restrictions on the transfer of the Company's capital
stock imposed by the Company's Certificate of Incorporation or Bylaws or any

                                        4
<PAGE>

agreement to which the Company is a party, any order of any court or any
governmental agency to which the Company is subject or any statute other than
those imposed by relevant state and federal securities laws; (iii) no cumulative
voting or preemptive rights for any of the Company's capital stock; (iv) no
registration rights under the Securities Act with respect to the Company's
capital stock; (v) no antidilution adjustment provisions or similar rights with
respect to the outstanding securities of the Company will be triggered by the
issuance of the Securities; (vi) no voting trusts or agreements, shareholders
agreements, pledge agreements, buy-sell, rights of first offer, negotiation or
refusal or proxies or similar arrangements relating to any securities of the
Company to which the Company is a party; and (vii) no options or other rights to
purchase securities from its shareholders granted by such shareholders.

                  (v) The Warrant Shares and Placement Agent Shares, when issued
in accordance with the terms of the Subscription Agreement, Warrants, and the
Placement Agent Warrants and the terms of this Agreement as the case may be,
will be validly issued, fully-paid and non-assessable. The holders of the
Securities will not be subject to personal liability under the Company's
Certificate of Incorporation or Bylaws or, any state law, solely by reason of
being such holders; the Securities are not and will not be subject to the
preemptive rights of any holder of any security of the Company.

                  (vi) Each of the Company and its subsidiaries which are set
forth on Schedule 4(vi) has good and marketable title to, or valid and
enforceable leasehold estates in, all items of real and personal property
necessary to conduct its business (including, without limitation, any real or
personal property stated in the Offering Documents to be owned or leased by the
Company and its subsidiaries), free and clear of all liens, encumbrances,
claims, security interests and defects of any nature whatsoever, other than
those set forth in the Offering Documents or on Schedule 4(vi) and liens for
taxes not yet due and payable. All of the leases and subleases under which the
Company is the lessor or sublessor of properties or assets or under which the
Company holds properties or assets as lessee or sublessee are in full force and
effect, and the Company is not in default with respect to any of the terms or
provisions of any of such leases or subleases, and no claim has been asserted by
anyone adverse to rights of the Company as lessor, sublessor, lessee or
sublessee under any of the leases or subleases mentioned above, or affecting or
questioning the right of the Company to continued possession of the leased or
subleased premises or assets under any such lease or sublease.

                  (vii) There is no litigation or governmental proceeding
pending or, to the best of the Company's knowledge, threatened against, or
involving the Company or its subsidiaries or their properties or business,
except as set forth in the Offering Documents or on Schedule 4(vii). The Company
is not a party to any order, writ, injunction, judgment or decree of any court.

                  (viii) Each of the Company and its subsidiaries has been duly
organized and is validly existing as a corporation in good standing under its
respective jurisdiction of incorporation. Except as set forth in the Offering
Documents or on Schedule 4(viii), the Company does not own or control, directly
or indirectly, an interest in any other corporation, partnership, trust, joint
venture or other business entity. The Company owns 100% of the outstanding
capital stock of each of its subsidiaries. Each of the Company and its
subsidiaries is duly qualified or licensed and in good standing as a foreign
corporation in each jurisdiction in which the character of its operations
requires such qualification or licensing and where failure to

                                        5
<PAGE>

so qualify would have a material adverse effect on the Company and its
subsidiaries taken as a whole ("MAE"). Each of the Company and its subsidiaries
has all requisite corporate power and authority, and all material and necessary
authorizations, approvals, orders, licenses, certificates and permits of and
from all governmental regulatory officials and bodies (domestic and foreign) to
conduct its businesses (and proposed business), and each of the Company and its
subsidiaries is doing business in compliance with all such authorizations,
approvals, orders, licenses, certificates and permits and all foreign, federal,
state and local laws, rules and regulations concerning the business in which it
is engaged, except where failure to so comply would not have a MAE. The Company
has all corporate power and authority to enter into this Agreement, the
Subscription Agreements, the Notes, the Warrants, the Placement Agent Warrants,
and Escrow Agreement and to carry out the provisions and conditions hereof and
thereof and to issue, sell and deliver the Securities. No consents,
authorizations, approvals, or orders of, or registration, qualification,
declaration or filing with, any federal, state or local governmental authority
on the part of the Company is required in connection herewith and therewith or
to issue, sell and deliver the Securities, other than registration or
qualification, or taking such action to secure exemption from such registration
or qualification of the Securities under applicable state, federal or foreign
securities laws, which actions have been taken or will be taken prior to the
Closing.

                  (ix) Except as set forth in the Offering Documents or on
Schedule 4(ix), each of the Company and its subsidiaries is not in breach of, or
in default under, any term or provision of any indenture, mortgage, deed of
trust, lease, note, loan or credit agreement or any other agreement or
instrument evidencing an obligation for borrowed money, or any other agreement
or instrument to which it is a party or by which it or any of its properties may
be bound, excluding trade payables and purchase orders as generally described in
the Offering Documents. Each of the Company and its subsidiaries is not in
violation of any provision of its charter or Bylaws or in violation of any
franchise, license, permit, judgment, decree or order, or in violation of any
statute, rule or regulation, except for the violation of statutes, rules or
regulations would not have a MAE. Neither the execution and delivery of this
Agreement and the Subscription Agreements, nor the issuance and sale or delivery
of the Securities, nor the consummation of any of the transactions contemplated
herein or in the Subscription Agreements, nor the compliance by each of the
Company and its subsidiaries with the terms and provisions hereof or thereof,
has conflicted with or will conflict with, or has resulted in or will result in
a breach of, any of the terms and provisions of, or has constituted or will
constitute a default under, or has resulted in or will result in the creation or
imposition of any lien, charge or encumbrance upon any property or assets of the
Company and its subsidiaries, if any, pursuant to the terms of any indenture,
mortgage, deed of trust, note, loan or credit agreement or any other agreement
or instrument evidencing an obligation for borrowed money, or any other
agreement or instrument to which the Company or its subsidiaries may be bound or
to which any of the property or assets of the Company or its subsidiaries is
subject except where such default, lien, charge or encumbrance would not have a
MAE; nor will such action result in any violation of the provisions of the
charter or the Bylaws of each of the Company and its subsidiaries or, assuming
the due performance by the Placement Agent of its obligations hereunder, any
statute, order, rule or regulation applicable to the Company or its subsidiaries
of any court or of any foreign, federal, state or other regulatory authority or
other government body having jurisdiction over each of the Company and its
subsidiaries, if any.

                                        6
<PAGE>

                  (x) Neither the Company nor any of its officers, directors,
employees or stockholders has employed any broker or finder in connection with
the transactions contemplated by this Agreement other than Placement Agent and
there are no claims for services in the nature of a finder's or origination fee
with respect to the sale of the Securities.

                  (xi) Each of the Company and its subsidiaries owns or
possesses, free and clear of all liens or encumbrances and rights thereto or
therein by third parties, the requisite licenses or other rights to use all
trademarks, service marks, copyrights, service names, trade names, patents,
patent applications and licenses necessary to conduct its business (including,
without limitation, any such license, patent or rights described in the Offering
Documents as being owned or possessed by each of the Company and its
subsidiaries) and there is no claim or action by any person pertaining to, or
proceeding, pending or to the Company's knowledge, threatened, which challenges
the rights of each of the Company and its subsidiaries with respect to any
trademarks, service marks, copyrights, service names, trade names, patents,
patent applications and licenses used in the conduct of each of the Company's
and its subsidiaries' businesses (including, without limitation, any such
licenses or rights described in the Offering Documents as being owned or
possessed by each of the Company and its subsidiaries); each of the Company's
and its subsidiaries' current products, services or processes do not infringe or
will not infringe on the patents currently held by any third party.

                  (xii) Each of the Company and its subsidiaries is not under
any obligation to pay royalties or fees of any kind whatsoever to any third
party with respect to any trademarks, service marks, copyrights, service names,
trade names, patents, patent applications, licenses or technology it has
developed, uses, employs or intends to use or employ, other than to their
respective licensors.

                  (xiii) Subject to the performance by the Placement Agent of
its obligations hereunder, and the accuracy of the representations and
warranties made by the respective investors in the Subscription Agreements, the
Offering Documents and the offer and sale of the Securities comply, and will
continue to comply, through the Offering Period with the requirements of Rule
506 of Regulation D promulgated by the Commission pursuant to the Securities Act
and any other applicable federal and state laws, rules, regulations and
executive orders. Neither the Offering Documents nor any amendment or supplement
thereto, nor any other documents prepared by the Company in connection with the
Offering contain any untrue statement of a material fact or omit to state any
material fact required to be stated therein or necessary to make the statements
therein, in light of the circumstances under which they were made, not
misleading. All statements of material facts in the Offering Documents are true
and correct as of the date of the Offering Documents and will be true and
correct in all material respects on the date of each Closing except with respect
to the number of shares of Common Stock outstanding, which may change between
the date hereof and the date of each Closing due to the conversion of
outstanding securities as described in the Offering Documents. If at any time
prior to the completion of the Offering or other termination of this Agreement
any event shall occur as a result of which it might, in the Company's opinion,
become necessary to amend or supplement the Offering Documents so that they do
not include any untrue statement of any material fact or omit to state any
material fact necessary in order to make the statements therein, in light of the
circumstances then existing, not misleading, the Company will promptly notify

                                        7
<PAGE>

Placement Agent and will supply Placement Agent with amendments or supplements
correcting such statement or omission.

                  (xiv) All taxes which are due and payable from each of the
Company and its subsidiaries have been paid in full or appropriate extensions of
such payment have been obtained and each of the Company and its subsidiaries
does not have any tax deficiency or claim outstanding assessed or proposed
against it (except for such amounts set forth in the Offering Documents or on
Schedule 4(xiv), which amounts will be paid at Closing).

                  (xv) The financial statements of the Company included in the
Offering Documents or on Schedule 4(xv) fairly present the financial position,
results of operations, stockholders equity and cash flows, in all material
respects, of the Company at the respective dates thereof and for the periods
referred to therein.

                  (xvi) Neither the Company nor its subsidiaries, if any, nor
any of their respective officers, directors, employees or agents, nor any other
person acting on behalf of the Company or its subsidiaries, if any, has,
directly or indirectly, given or agreed to give any money, gift or similar
benefit (other than legal price concessions to customers in the ordinary course
of business) to any customer, supplier, employee or agent of a customer or
supplier, or official or employee of any governmental agency or instrumentality
of any government (domestic or foreign) or any political party or candidate for
office (domestic or foreign) or other person who is or may be in a position to
help or hinder the business of each of the Company or its subsidiaries (or
assist it in connection with any actual or proposed transaction) which (A) might
subject the Company and its subsidiaries, if any, to any material damage or
penalty in any civil, criminal or governmental litigation or proceeding, or (B)
if not given in the past, might have had a MAE on the assets, business or
operations of the Company or its subsidiaries as reflected in any of the
financial statements contained in the Offering Documents or on Schedule 4(xvi),
or (C) if not continued in the future, might adversely affect the assets,
business or operations of the Company or its subsidiaries in the future.

                  (xvii) Assuming (i) the accuracy of the information provided
by the respective investors in the Subscription Agreements and (ii) that
Placement Agent have complied in all material respects with their obligations
under this Agreement, the offer and sale of the Notes and Warrants pursuant to
the terms of the Offering Documents are exempt from the registration
requirements of the Securities Act and the rules and regulations promulgated
thereunder.

                  (xviii) When the Warrant Shares and the Placement Agent Shares
shall have been duly delivered to the purchasers and payment shall have been
made therefor, the purchasers shall have good and marketable title to the
Warrant Shares and Placement Agent Shares, as the case may be, free and clear of
all liens, encumbrances and claims whatsoever and the Company shall have paid
all taxes, if any, in respect of the original issuance thereof.

                  (xix) The Company understands that the foregoing
representations and warranties shall be deemed material and to have been relied
upon by Placement Agent. No representation or warranty by the Company in this
Agreement, and no written statement contained in any document, certificate or
other writing delivered by the Company to Placement Agent contains any untrue
statement of material fact or omits to state any material fact necessary

                                        8
<PAGE>

to make the statements herein or therein, in light of the circumstances under
which they were made, not misleading.

                  (xx) Upon receipt of an executed Subscription Agreement,
Company will promptly forward copies of the subscription documents to Placement
Agent.

                  (xxi) The Company will not deliver the Offering Documents to
any person it does not reasonably believe to be an Accredited Investor.

                  (xxii) The Company will not intentionally take any action
which it reasonably believes would cause the Offering to violate the provisions
of the Securities Act, Exchange Act or the Rules and Regulations.

                  (xxiii) The Company shall use all reasonable efforts to
determine (a) whether any prospective purchaser is an Accredited Investor and
(b) that any information furnished by a prospective investor is true and
accurate.

                  (xxiv) Except as set forth in the Offering Documents or on
Schedule 4(xxiv), as of the date hereof, the Company has no contractual
liability or any other liability, whether accrued, contingent, absolute,
determined, indeterminable or otherwise, which was not (i) reflected or reserved
against in the financial statements or (ii) incurred in the ordinary course of
business, consistent with past practice since its inception.

                  (xxv) To the best of Company's knowledge, since December 31,
2005, except as disclosed in the Offering Documents, the Company has not
incurred any liabilities or obligations, direct or contingent, not consistent
with its past practices, or entered into any transaction not consistent with its
past practices, which is material to the business of the Company, and, since the
date of the Memorandum, there has not been any change in the capital stock of,
or any incurrence of funded debt by, the Company, or any issuance of options,
warrants or other rights to purchase the capital stock of the Company, or any
adverse change or any development involving, so far as the Company can now
reasonably foresee, a prospective adverse change in the condition (financial or
otherwise), net worth, results of operations, business, key personnel or
properties which would be material to the business or financial condition of the
Company, and the Company has not become a party to, and neither the business nor
the property of the Company has become the subject of, any material litigation
whether or not in the ordinary course of business.

                  (xxvi) Except as set forth in the Offering Documents or on
Schedule 4(xxvi), the Company filed all Federal, State, local and foreign tax
returns, if any, which are required to be filed by it to the relevant agencies
and all such returns are true and correct in all material respects except as the
Company has paid all taxes pursuant to such returns or pursuant to any
assessments received by it or which it is obligated to withhold from amounts
owing to any employee, creditor or third party. The Company has properly accrued
all taxes required to be accrued by generally accepted accounting principals
consistently applied. To the best of current management's knowledge, the tax
returns of the Company have never been audited by any state, local or Federal
authorities. The Company has not waived any statute of limitations with respect
to taxes or agreed to any extension of time with respect to any tax assessment
or deficiency.

                                        9
<PAGE>

                  (xxvii) Except with respect to holders of the Units, no person
has any right to cause the Company to effect the registration under the
Securities Act of any securities of the Company. The Company shall grant
registration rights under the Securities Act to the Investors in the Offering
and/or their transferees as more fully described in the Subscription Agreement
between the Company and the Investors.

                  (xxviii) No person, firm or other business entity is a party
to any agreement, contract or understanding, written or oral entitling such
party to a right of first refusal with respect to offerings by the Company.

5. Certain Covenants and Agreements of the Company.

                  The Company covenants and agrees at its expense and without
any expense to Placement Agent as follows:

         A. To advise Placement Agent of any adverse change in the Company's
financial condition, prospects or business or of any development materially
affecting the Company or rendering untrue or misleading any material statement
in the Offering Documents occurring at any time prior to a Closing as soon as
reasonably practicable after the Company is either informed or becomes aware
thereof.

         B. To use its best efforts to cause the Securities to be qualified or
registered for sale, or to obtain exemptions from such qualification or
registration requirements, on terms consistent with those stated in the Offering
Documents, the Notes, the Warrants and the Placement Agent Warrants under the
securities laws of such jurisdictions as Placement Agent shall reasonably
request, provided that such states and jurisdictions do not require the Company
to qualify as a foreign corporation. Qualification, registration and exemption
charges and fees shall be at the sole cost and expense of the Company. Company's
counsel shall perform the required "Blue Sky" services, and all reasonable
expenses and disbursements of Company's counsel relating to such "Blue Sky"
matters and relating to the Offering shall be paid by the Company.

         C. To apply the net proceeds of the Offering as described in the
Offering Documents or as set forth on Schedule 5(C).

         D. To provide Placement Agent with as many copies of the Offering
Documents as the Placement Agent may reasonably request.

         E. To comply with the terms of the Subscription Agreements, Notes,
Warrants and Placement Agent Warrants including, without limitation, the
registration rights provisions thereof.

         F. To issue to Placement Agent or its designees, at the Closing, the
Placement Agent Warrants and provide for registration by the Company of the
Placement Agent Shares issuable upon the exercise thereof.

         G. To keep available out of its authorized and designated Common Stock,
solely for the purpose of issuance upon the exercise of the Warrants and
Placement Agent Warrants, such number of Warrant Shares and Placement Agent
Shares.

                                       10
<PAGE>

         H. Within three (3) days from the date hereof, Placement Agent shall
receive a copy of a duly executed escrow agreement in the form previously
delivered to you regarding the deposit of funds pending the Closing(s) of the
Offering with a bank or trust company acceptable to the Placement Agent (the
"Fund Escrow Agreement").

         I. Employment agreements with key management reasonably acceptable to
the Placement Agent and its counsel shall have been executed and delivered.

         J. A Board of Directors composition reasonably acceptable to the
Placement Agent, which shall include at least a majority of "independent"
directors, shall
be in place within 180 days of the first Closing. In the event this covenant is
not satisfied, the Placement Agent shall have the authority to nominate and the
Company shall appoint two directors selected by the Placement Agent. In the
event this covenant is satisfied, the Placement Agent's right to nominate such
directors will terminate.

         K. There shall be reasonable satisfaction by the Placement Agent, in
its reasonable discretion, with their ongoing due diligence of the Company and
any subsidiaries.

         L. The appointment of an observer designated by the Placement Agent, to
the Board of Directors of the Company and any subsidiary, shall have been
adopted at the time of the initial Closing. Such observer shall remain in place
so long as the Notes remain outstanding.

         M. There shall be approval by the Board of Directors of the Company of
the contemplated public offering of the Company's securities as soon as possible
following the Offering on the terms outlined on Exhibit II to the Letter of
Intent (as defined below) and another Board of Directors resolution that if the
public offering of the Company's securities is not pursued in good faith and
absent the Placement Agent's failure to process the public offering in good
faith, the Company shall pay to the Placement Agent liquidated damages in the
amount of $100,000 for its failure to do so as set forth therein.

         N. Pending completion of the Offering contemplated herein and the IPO
contemplated hereinafter, the Company agrees that it shall not negotiate with
any other broker-dealer or other person relating to a possible private and/or
public offering of its securities without the written consent of the Placement
Agent. In the event the Company enters into a letter of intent or effectuates a
private and/or a public offering of its securities with another broker-dealer or
any other person without the written permission of the Placement Agent after the
execution of this Agreement and prior to ______, 2006, the Company, in
compliance with the NASD Conduct Rules, shall be liable to the Placement Agent
for the out-of-pocket accountable expenses of the Placement Agent due and
payable immediately upon such engagement with another broker-dealer. The Company
further agrees that any communications with any other broker-dealer, solicited
or unsolicited, shall be conducted exclusively through the Placement Agent. The
preparations for the Offering may not be terminated prior to April 1, 2006 by
the Company other than for the Placement Agent's failure to proceed in good
faith. Thereafter, in the event marketing of the Offering has not commenced,
either party may terminate the Offering upon three days prior written notice,
without liability or continuing obligation to the other; provided, however, that
if the Company elects not to proceed with the Offering for any reason other than
the Placement Agent's bad faith in processing the transaction or if the
Placement Agent elects

                                       11
<PAGE>

not to proceed due to a material breach by the Company of any representation,
warranty or covenant contained in the Placement Agent Agreement to be entered
into, or as a result of the Company's failure to meet any of the conditions set
forth in Section 4 hereof, then the Company shall be obligated to pay the
Placement Agent, exclusive of any payments otherwise made, a "break-up" fee of
$100,000 plus 40,000 Placement Agent Warrants or, if the Offering Documents have
been distributed to potential investors, $150,000 plus 60,000 Placement Agent
Warrants.

6. Indemnification.

         The Company agrees to indemnify and hold harmless the Placement Agent,
its affiliates, the directors, officers and employees of the Placement Agent and
its affiliates and subagents and selected dealers, and each other person or
entity, if any, controlling the Placement Agent or any of its affiliates
(collectively, "Indemnified Persons"), from and against, and the Company agrees
that no Indemnified Person shall have any liability to the Company or its
owners, parents, affiliates, securityholders or creditors for, any losses,
claims, damages, liabilities or expenses (including actions, claims or
proceedings in respect thereof (collectively, "Actions") brought by or against
any person, including stockholders of the Company, and the cost of any
investigation and preparation therefore and defense thereof) (collectively,
"Losses") (A) related to or arising out of any statements or omissions made in
the Offering Documents or any exhibit thereto or the services, commitment or
other obligations undertaken or being considered by the Placement Agent in this
Agreement in connection with the sale of the Securities in the Offering
(collectively, "Placement Agent's Role"), and claims relating to any finders or
origination fees, except that the indemnification shall not apply to the Losses
of an Indemnified Person that are determined by a court of competent
jurisdiction in a final judgment not subject to appeal to have resulted from the
bad faith or gross negligence of such Indemnified Person or to Losses arising
out of a claim under subsection (A) under this section as to an alleged omission
from or misstatement in, the Offering Documents or any exhibit thereto if either
(i) at or prior to the execution of a Subscription Agreement the copy of the
Memorandum and exhibits were not sent or delivered to the subscriber or (ii) the
alleged untrue statement was corrected or the omission of a material fact
alleged was contained in a supplement or amendment to the Memorandum was
delivered to the subscriber prior to the written acceptance of the subscriber's
Subscription Agreement by the Company. In addition, the indemnification
referenced above shall not apply to the Losses of an Indemnified Person that are
determined by a court of competent jurisdiction in a final judgment not subject
to appeal to have resulted from the bad faith or gross negligence of the
Placement Agent.

         Promptly after receipt by an Indemnified Person (each an "indemnified
party") under this Section 6 of notice of the commencement of any action, such
indemnified party will, if a claim in respect thereof is to be made against any
indemnifying party under this Section 6, notify in writing the indemnifying
party of the commencement thereof, however, that no delay on the part of the
indemnified party in notifying the indemnifying party shall relieve the
indemnifying party from any obligation hereunder unless the indemnifying party
is prejudiced by such delay. In case any such action is brought against any
indemnified party, and it notifies an indemnifying party of the commencement
thereof, the indemnifying party will be entitled to participate therein, and to
the extent that it may wish, jointly with any other indemnifying party,
similarly notified, to assume the defense thereof, with counsel who shall be to
the reasonable satisfaction of such

                                       12
<PAGE>

indemnified party, and after notice from the indemnifying party to such
indemnified party of its election so to assume the defense thereof, the
indemnifying party will not be liable to such indemnified party under this
Section 6 for any legal or other expenses subsequently incurred by such
indemnified party in connection with the defense thereof other than reasonable
costs of investigation; provided, however, that if, in the reasonable judgment
of the indemnified party, it is advisable for the indemnified party to be
represented by separate counsel, the indemnified party shall have the right to
employ a single counsel only to represent the indemnified parties who may be
subject to liability arising out of any claim in respect of which indemnity may
be sought by the indemnified parties thereof against the indemnifying party, in
which event the fees and expenses of such separate counsel shall be borne by the
indemnifying party. Any such indemnifying party shall not be liable to any such
indemnified party on account of any settlement of any claim or action effected
without the consent of such indemnifying party.

         If such an indemnity provided for in this Agreement is unavailable or
insufficient for any Indemnified Person with respect to any Losses (other than
by reason of the gross negligence or bad faith of such indemnifying party), then
the indemnifying party, in lieu of indemnifying such Indemnified Person, will
contribute to the amount paid or payable by such Indemnified Person as a result
of such Losses (i) in such proportion as it is appropriate to reflect the
relative benefits received by the Company on the one hand, and the Placement
Agent, on the other hand, from the transactions contemplated hereunder, or (ii)
if the allocation provided by (i) above is not permitted by applicable law in
such proportion as is appropriate to reflect not only the relative benefits
referred to in (i) above, but also the relative fault on the Company, on the one
hand, and of the Placement Agent on the other hand in connection with statements
or omissions that resulted in Losses as well as any other relevant equitable
considerations. The relative benefits received by the Company on the one hand,
and the Placement Agent, on the other hand shall be deemed to be in the same
proportion as the total proceeds from the Transactions (net of sales
commissions, but before deducting other expenses) received by the Company bear
to the commissions received by the Placement Agent. The relative fault of the
Company, on the one hand, and the Placement Agent, on the other hand, will be
determined with reference to, among other things, whether the untrue or alleged
untrue statement of material fact or the omission to state a material fact
relates to the information supplied by the Company, on the one hand, and the
Placement Agent, on the other hand, and their relative intent, knowledge, access
to information and opportunity to correct or prevent such statement or omission.

         The Company and the Placement Agent agree that it would not be just and
equitable if contribution pursuant to this section were determined by pro rata
allocation or by any other method of allocation that does not take into account
the equitable considerations referred to in the immediately preceding paragraph.

         THE PLACEMENT AGENT HEREBY AGREES AND THE COMPANY HEREBY AGREES, ON ITS
OWN BEHALF AND ON BEHALF OF ITS SECURITYHOLDERS, TO WAIVE ANY RIGHT TO TRIAL BY
JURY WITH RESPECT TO ANY CLAIM, COUNTER-CLAIM OR ACTION ARISING OUT OF PLACEMENT
AGENT'S ROLE OR THIS PLACEMENT AGENT AGREEMENT.

                                       13
<PAGE>

7. Payment of Expenses.

         Whether or not the Offering is successfully completed, the Company
hereby agrees to bear all of the customary reasonable expenses in connection
with the Offering, including, but not limited to the following: due diligence,
travel, lodging, filing fees, printing and duplicating costs, advertisements,
postage and mailing expenses with respect to the transmission of offering
material, registrar and transfer agent fees, escrow agent fees and expenses,
fees of the Company's counsel and accountants, issue and transfer taxes, if any,
"Blue Sky" counsel fees and expenses of Company's counsel and the legal fees and
expenses of Placement Agent's counsel in an amount not to exceed $35,000. It is
agreed that the Company's counsel shall perform the required Blue Sky legal
services.

8. Conditions of the Closing

         Provided the Offering shall have been subscribed for and funds
representing such amount thereof shall have cleared, each Closing shall be held
at the offices of the Placement Agent's counsel or such other place as mutually
agreed upon by the parties. The obligations of the Placement Agent hereunder
shall be subject to the continuing accuracy of the representations and
warranties, in all material respects, of the Company herein as of the date
hereof and as of the date of the Closing as if such representations and
warranties had been made on and as of such Closing; the accuracy on and as of
the date of each Closing of the statements of the officers of the Company made
pursuant to the provisions hereof; and the performance by the Company on and as
of each Closing of its covenants and obligations hereunder and to the following
further conditions:

         A. At each Closing, the Placement Agent shall receive the opinion of
Morse, Barnes-Brown & Pendleton, P.C., counsel to the Company, dated as of the
date of the Closing, which opinion shall be acceptable to the Placement Agent.

         B. At or prior to each Closing, counsel for Placement Agent shall have
been furnished such documents, certificates and opinions as it may reasonably
require for the purpose of enabling it to review or pass upon the matters
referred to in this Agreement and the Offering Documents, or in order to
evidence the accuracy, completeness or satisfaction of any of the
representations, warranties or conditions herein contained.

         C. At and prior to each Closing, (i) there shall have been no material
adverse change nor development involving a prospective change in the financial
condition or operations except where such change would not have a material
adverse effect or the business activities, financial or otherwise, of the
Company and its subsidiaries from the latest dates as of which such condition is
set forth in the Offering Documents; (ii) there shall have been no material
transaction, not in the ordinary course of business, entered into by the Company
and its subsidiaries which has not been disclosed as having taken place or being
contemplated in the Offering Documents or to the Placement Agent in writing;
(iii) the Company shall not be in default under any provision of any instrument
relating to any outstanding indebtedness, excluding trade payables, for which a
waiver or extension has not been otherwise received except where such default
would not have a material adverse effect; (iv) except as set forth in the
Offering Documents or in the Schedules to this Agreement, the Company shall not
have issued

                                       14
<PAGE>

any securities (other than those set forth in the Offering Documents or pursuant
to the exercise of outstanding warrants or options) or declared or paid any
dividend or made any distribution of its capital stock of any class and there
shall not have been any material adverse change in the indebtedness (long or
short term) or liabilities or obligations of the Company and its subsidiaries
(contingent or otherwise); (v) no material amount of the assets of the Company
and its subsidiaries shall have been pledged or mortgaged, except with respect
to assets in the normal course of business and as indicated in the Offering
Documents or in the Schedules to this Agreement; and (v) no action, suit or
proceeding, at law or in equity, against the Company or its subsidiaries or
affecting any of its properties or businesses shall be pending or threatened
before or by any court or federal or state commission, board or other
administrative agency, domestic or foreign, wherein an unfavorable decision,
ruling or finding could have a material adverse effect, except as set forth in
the Offering Documents or in the Schedules of this Agreement.

         D. Subject to the filing of any necessary state "Blue Sky" filings, the
Offering will become qualified or be exempt from qualification under the
securities laws of the several states as contemplated by Section 5(B) no later
than the date of the Closing and no stop order suspending the sale of the Notes
shall have been issued, and no proceedings for that purpose shall have been
initiated or threatened.

         E. At each Closing, the Placement Agent shall have received a
certificate of the Company signed by its chief executive officer and chief
financial officer, dated as of the date of such Closing, to the effect that the
conditions set forth in subparagraph (C) above have been satisfied and that, as
of the date of such Closing, the representations and warranties of the Company
set forth herein are true and correct.

         F. At Closing, the Company, the acquisition target and the Placement
Agent shall have executed a non-binding term sheet including all material terms
and provisions acceptable to the Placement Agent providing for an acquisition by
the Company to be consummated no later than thirty (30) days following the
Closing of the Offering.

         G. At each Closing, the Company shall have duly executed and delivered
the appropriate amount of Notes to the respective holders thereof.

         H. At each Closing, the Company shall duly and validly issue the
Warrants and the Placement Agent Warrants in accordance with the terms hereof.

         I. The Company and the Placement Agent shall have executed the
Placement Agent Agreement and the Placement Agent shall have been delivered the
Company's counsel's opinion in accordance therewith.

         J. Employment agreements with key management on the terms and
provisions reasonably acceptable to the Placement Agent shall have been executed
and delivered.

         K. The Company engagement of an independent accounting firm and a legal
firm reasonably acceptable to the Placement Agent.

         L. The Placement Agent shall have received comfort representation from
the Company's bank creditors.

                                       15
<PAGE>

         M. There shall be satisfaction by the Placement Agent, in its sole
discretion, with its ongoing due diligence of the Company and any subsidiaries,
including, but not limited to, the Company's financial condition, business
prospects, acquisition targets, management and Board of Directors. This also
includes satisfactory background examinations of the Company's officers,
directors, controlling persons and key employees.

         N. The appointment of a non-voting observer designated by the Placement
Agent to the Board of Directors of the Company and any Subsidiary shall have
been adopted. Such observer shall be entitled to receive reimbursement for
reasonably incurred expenses and all information as and when received by the
voting Board members so as to enable such observer to discharge his duties and
responsibilities on the Board. Such observer shall remain in place so long as
the Notes remain outstanding.

         O. The Company shall have delivered to the Placement Agent at Closing
an annual projection of its operations, financial position and cash flow of the
Company and any Subsidiary, as approved by the Board of Directors and executive
officers of the Company.

         P. The Company, immediately prior to the Closing of the Minimum
Offering, will furnish Placement Agent with agreements to the effect that for a
period of 12 months after the effective date of the registration statement of
the Company's initial public offering, the persons who are officers, directors
and stockholders who own any outstanding common stock of the Company or warrants
or options to purchase common stock or securities convertible into common stock
will refrain from making any public sale or distribution of their common stock
or such warrants, options or convertible securities (pursuant to Rule 144 or
otherwise) without the prior written consent of the Placement Agent. In
addition, there will be no private transaction involving such securities unless
the proposed transferee agrees to be bound by all the provisions of such
agreement prior to any such private transaction.

9. Termination.

         This Agreement shall terminate if a Closing does not take place on or
before seven (7) business days following the Offering Period. In the event that
the Offering is not successfully completed, then the Company shall immediately
pay to Placement Agent the amount of its out-of-pocket expenses incurred in
connection with the offer of the Securities and pay all non-Blue Sky related
fees of counsel to Placement Agent, up to $35,000. Upon any termination of the
Offering, all subscription documents and payments for the Securities not
previously delivered to the purchasers thereof, shall be returned to the
respective subscribers, without interest thereon or deduction therefrom, and
neither party hereto shall have any further obligation to each other, except as
specifically provided herein.

                                       16
<PAGE>

10. Miscellaneous.

         A. This Agreement may be executed in any number of counterparts, each
of which shall be deemed to be an original, but all which shall be deemed to be
one and the same instrument.

         B. Any notice required or permitted to be given hereunder shall be
given in writing and shall be deemed effective when deposited in the United
States mail, postage prepaid, or when received if personally delivered, sent by
overnight courier or faxed, addressed as follows:

         To JGUN:

                     Joseph Gunnar & Co., LLC
                     30 Broad Street
                     New York, New York 10004
                     Fax:  (212) 440-9668
                     Attention:  Stephan A. Stein

         with a copy to:

                     Cozen O'Connor
                     1667 K Street, NW, Suite 500
                     Washington, DC 20006
                     Fax (202) 912-4830
                     Attention: Ralph V. De Martino, Esq.

         to the Company:

                     Bridgeline Software, Inc.
                     10 Sixth Road
                     Woburn, MA 01801
                     Fax: (781) 497-3033
                     Attention: Thomas Massie

         with a copy to:

                     Morse, Barnes-Brown & Pendleton, P.C.
                     Reservoir Place, 1601 Trapelo Road
                     Waltham, MA 02451
                     Fax: (781) 622-5933
                     Attention: Joseph C. Marrow, Esq.

or to such other address of which written notice is given to the others.

         C. This Agreement shall be governed by and construed in all respects
under the laws of the State of New York, without reference to its conflict of
laws rules or principles. Any suit, action, proceeding or litigation arising out
of or relating to this Agreement shall be brought and prosecuted only in federal
and state courts in the City, County and State of New York. The

                                       17
<PAGE>

parties hereby irrevocably and unconditionally consent to the jurisdiction of
each such court or courts located within the State of New York and to service of
process by registered or certified mail, return receipt requested, or by any
other manner provided by applicable law, and hereby irrevocably and
unconditionally waive any right to claim that any suit, action, proceeding or
litigation so commenced has been commenced in an inconvenient forum.

         D. This Agreement and the other agreements referenced herein contain
the entire understanding between the parties hereto with respect to the subject
Offering and may not be modified or amended except by a writing duly signed by
the party against whom enforcement of the modification or amendment is sought.
The terms and conditions of any other agreement between the Company and
Placement Agent are hereby terminated, and specifically, the October 1, 2005
Letter of Intent between JGUN and the Company (the "Letter of Intent"), as well
as any other any other prior agreement or understanding not set forth herein
between the Company and the Placement Agent are hereby terminated, voided and
made null.

         E. If any provision of this Agreement shall be held to be invalid or
unenforceable, such invalidity or unenforceability shall not affect any other
provision of this Agreement.














                                       18
<PAGE>

         IN WITNESS WHEREOF, the parties hereto have executed this Agreement as
of the date first written above.

                                                BRIDGELINE SOFTWARE, INC.

                                                By: /S/ THOMAS L. MASSIE
                                                    --------------------------
                                                    Name: Thomas Massie
                                                    Title: President and CEO

JOSEPH GUNNAR & CO., LLC

By: /S/ STEPHAN A. STEIN
    -------------------------------
    Name: Stephan A. Stein
    Title: Chief Operating Officer



























                                       19
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10.20
<SEQUENCE>34
<FILENAME>ex10-20_14663.txt
<DESCRIPTION>GENERAL SECURITY AGREEMENT DATED 04-21-2006
<TEXT>
                                                                   EXHIBIT 10.20
                                                                   -------------

                           GENERAL SECURITY AGREEMENT

     SECURITY AGREEMENT, dated as of April 21, 2006, between Bridgeline
Software, Inc., a Delaware corporation with offices at 10 Sixth Road, Woburn, MA
01801 (the "Debtor") and the undersigned Individual Investor (or his, her or its
duly authorized agent) (the "Purchaser") .

                              W I T N E S S E T H :
                              ---------------------

     WHEREAS, the Debtor and certain investors (individually, a "Note Holder",
and, collectively, the "Note Holders") are parties to secured promissory notes
issued by the Debtor in the aggregate principal amount of up to $2,250,000 with
an option to issue an additional $550,000 in secured promissory notes (herein,
as at any time amended, extended, restated, renewed or modified, the "Notes");

     WHEREAS, it is a condition to the willingness of the Note Holder to accept
the Notes and make the loan evidenced thereby that the Debtor enter into this
Agreement and grant to each individual Purchaser the security interest provided
for herein; and

     WHEREAS, the Debtor has a certain existing credit line with Sand Hill
Finance, LLC under a Financing Agreement dated, March 29, 2005, as amended (the
"Senior Agreement"), pursuant to which Sand Hill Finance, LLC has a first
priority lien on all of Debtor's assets so long as any obligations are
outstanding under the Senior Agreement.

     NOW, THEREFORE, FOR VALUE RECEIVED, IT IS AGREED:

     Section 1. Terms. Unless otherwise defined herein, capitalized terms used
in this Agreement shall have the meaning specified therefor in the Note. As used
herein the following terms shall have the meanings specified and shall include
in the singular number the plural and in the plural number the singular:

     "Assigned Agreements" shall mean all contracts and agreements of the
Debtor.

     "Collateral" means all of the Debtor's right, title and interest in and
under or arising out of each and all of the following:

          All personal property and fixtures of the Debtor of any type or
     description, wherever located and now existing or hereafter arising or
     acquired, including but not limited to the following:

          (i)     all of the Debtor's goods including, without limitation:

                  (a) all inventory, including without limitation, equipment
                  held for lease, whether raw materials, in process or finished,
                  all material or equipment usable in processing the same and
                  all documents of title
<PAGE>

                  covering any inventory (all of the foregoing, "Inventory"),
                  including without limitation that located at the locations
                  listed on Schedule 1 annexed hereto;

                  (b) all equipment (the "Equipment") employed in connection
                  with the Debtor's business, together with all present and
                  future additions, attachments and accessions thereto and all
                  substitutions therefor and replacements thereof, including
                  without limitation that located at the locations listed on
                  Schedule 1 annexed hereto;

          (ii)    all of the Debtor's present and future accounts, accounts
                  receivable, general intangibles, contracts and contract rights
                  (herein sometimes referred to as "Receivables"), including but
                  not limited to the Debtor's rights (including rights to
                  payment) under all Assigned Agreements, together with

                  (a) all claims, rights, powers or privileges and remedies of
                  the Debtor relating thereto or arising in connection therewith
                  including, without limitation, all rights of the Debtor to
                  make determinations, to exercise any election (including, but
                  not limited to, election of remedies) or option or to give or
                  receive any notice, consent, waiver or approval, together with
                  full power and authority to demand, receive, enforce, collect
                  or receipt for any of the foregoing or any property which is
                  the subject of the Assigned Agreements, to enforce or execute
                  any checks, or other instruments or orders, to file any claims
                  and to take any action which (in the opinion of the Secured
                  Party Representative, as defined herein) may be necessary or
                  advisable in connection with any of the foregoing,

                  (b) all liens, security, guaranties, endorsements, warranties
                  and indemnities and all insurance and claims for insurance
                  relating thereto or arising in connection therewith,

                  (c) all rights to property forming the subject matter of the
                  Receivables including, without limitation, rights to stoppage
                  in transit and rights to returned or repossessed property,

                  (d) all writings relating thereto or arising in connection
                  therewith including without limitation, all notes, contracts,
                  security agreements, guaranties, chattel paper and other
                  evidence of indebtedness or security, all powers-of-attorney,
                  all books, records, ledger cards and invoices, all credit
                  information, reports or memoranda and all evidence of filings
                  or registrations relating thereto,

                                       2
<PAGE>


                  (e) all catalogs, computer and automatic machinery software
                  and programs, and the like pertaining to operations by the
                  Debtor in, on or about any of its plants or warehouses, all
                  sales data and other information relating to sales or service
                  of products now or hereafter manufactured on or about any of
                  its plants, and all accounting information pertaining to
                  operations in, on or about any of its plants, and all media in
                  which or on which any of the information or knowledge or data
                  is stored or contained, and all computer programs used for the
                  compilation or printout of such information, knowledge,
                  records or data, and

                  (f) all accounts, contract rights, general intangibles and
                  other property rights of any nature whatsoever arising out of
                  or in connection with the foregoing, including without
                  limitation, payments due and to become due, whether as
                  repayments, reimbursements, contractual obligations,
                  indemnities, damages or otherwise;

          (iii)   patents, patent applications, copyrights and intellectual
                  property of all description;

          (iv)    all other personal property of the Debtor of any nature
                  whatsoever, including, without limitation, all accounts, bank
                  accounts, deposits, credit balances, contract rights,
                  inventory, general intangibles, goods, equipment, instruments,
                  chattel paper, machinery, furniture, furnishings, fixtures,
                  tools, supplies, appliances, plans and drawings, together with
                  all customer and supplier lists and records of the business,
                  and all property from time to time described in any financing
                  statement (UCC-1) signed by the Debtor naming the Secured
                  Party Representative as secured party; and

          (v)     all additions, accessions, replacements, substitutions or
                  improvements and all products and proceeds including, without
                  limitation, proceeds of insurance, of any and all of the
                  Collateral described in clauses (i) through (iii) above.

     "Instrument" shall have the meaning specified in Article 3 of the Uniform
Commercial Code, as in effect from time to time in the State of New York and
shall also include any other writing which evidences a right to the payment of
money and is not itself a security agreement or lease and is of a type which is
in the ordinary course of business transferred by delivery with any necessary
endorsement or assignment.

     "Lien" means any mortgage, pledge, hypothecation, assignment, security
interest, deposit arrangement, encumbrance (including any easement, right of
way, zoning restriction and the like), lien (statutory or other) or preference,
priority or other security agreement or preferential

                                       3
<PAGE>

arrangement of any kind or nature whatsoever (including any conditional sale or
other title retention agreement, any financing lease involving substantially the
same economic effect as any of the foregoing and the filing of any financing
statement under the Uniform Commercial Code or comparable law of any
jurisdiction).

     "Permitted Liens" means:

          (a) Liens for taxes, assessments or other governmental charges or
     levies not at the time delinquent or thereafter payable without penalty or
     being contested in good faith by appropriate proceedings and for which
     adequate reserves in accordance with generally accepted accounting
     principles shall have been set aside on its books;

          (b) Liens of carriers, warehousemen, mechanics, materialmen and
     landlords incurred in the ordinary course of business for sums not overdue
     or being contested in good faith by appropriate proceedings and for which
     adequate reserves shall have been set aside on its books;

          (c) Liens (other than Liens arising under the Employee Retirement
     Income Security Act of 1974, as amended, or Section 412(n) of the Internal
     Revenue Code of 1986, as amended) incurred in the ordinary course of
     business in connection with workers' compensation, unemployment insurance
     or other forms of governmental insurance or benefits, or to secure
     performance of tenders, statutory obligations, leases and contracts (other
     than for borrowed money) entered into in the ordinary course of business or
     to secure obligations on surety or appeal bonds;

          (d) judgment Liens in existence less than 30 days after the entry
     thereof or with respect to which execution has been stayed;

          (e) ground leases in respect of real property on which facilities
     owned or leased by the Debtor or any of its subsidiaries are located;

          (f) easements, rights-of-way, restrictions, minor defects or
     irregularities in title and other similar charges or encumbrances not
     interfering in any material respect with the business of the Debtor and its
     subsidiaries taken as a whole;

          (g) any interest or title of a lessor secured by a lessor's interest
     under any lease of real property on which facilities owned or leased by the
     Debtor or any of its subsidiaries are located;

          (h) leases or subleases granted to others not interfering in any
     material respect with the business of the Debtor and its subsidiaries taken
     as a whole;

                                       4
<PAGE>


          (i) a Lien on any asset securing indebtedness (including capitalized
     lease obligations) incurred or assumed for the purpose of financing the
     purchase price (including capitalized lease payments in the nature thereof)
     of such asset, provided that such Lien attaches only to the asset acquired
     with the proceeds of such indebtedness and attaches concurrently with or
     within ten (10) days following the acquisition thereof;

          (j) any liens set forth on Schedule 2; and

          (k) any liens securing indebtedness or obligations, which liens,
     indebtedness or obligations are approved by the Note Holder in writing.

     "Person" means any natural person, corporation, firm, association,
partnership, joint venture, limited liability company, joint-stock company,
trust, unincorporated organization, government, governmental agency or
subdivision, or any other entity, whether acting in an individual, fiduciary or
other capacity.

     "Receivables" has the meaning specified therefor in clause (ii) of the
definition of Collateral.

     "Secured Obligations" means all obligations of the Debtor, whether for
fees, expenses or otherwise, now existing or hereafter arising under this
Agreement and the Notes.

     Section 2. Security Interests. As security for the payment and performance
of all Secured Obligations the Debtor does hereby grant and assign to each Note
Holder, a continuing security interest in all of the Collateral, whether now
existing or hereafter arising or acquired and wherever located, subject to the
priority, if any, of Permitted Liens.

     Section 3. General Representations, Warranties and Covenants. The Debtor
represents, warrants and covenants, which representations, warranties and
covenants shall survive execution and delivery of this Agreement, as follows:

     (a) This Agreement is made with full recourse to the Debtor and pursuant to
and upon all the warranties, representations, covenants, and agreements on the
part of the Debtor contained herein, in the Note and otherwise made in writing
in connection herewith or therewith.

     (b) Except for the security interest of the Note Holder therein, the Debtor
is, and as to Collateral acquired from time to time after the date hereof the
Debtor will be, the owner of all the Collateral free from any lien, security
interest, encumbrance or other right, title or interest of any Person (other
than Permitted Liens) and the Debtor shall defend the Collateral against all
claims and demands of all Persons at any time claiming the same or any interest
therein adverse to the Note Holder.

                                       5
<PAGE>


     (c) There is no financing statement (or similar statement or instrument of
registration under the law of any jurisdiction) now on file or registered in any
public office covering any interest of any kind in the Collateral, or intended
to cover any such interest, which has not been terminated or released by the
secured party named therein and so long as the Notes remain outstanding or any
of the Secured Obligations of the Debtor remain unpaid, the Debtor will not
execute and there will not be on file in any public office any financing
statement (or similar statement or instrument of registration under the law of
any jurisdiction) or statements relating to the Collateral, except (i) financing
statements filed or to be filed in respect of and covering the security interest
of the Note Holders hereby granted and provided for and (ii) with respect to
Permitted Liens.

     (d) The chief executive office and chief place of business of the Debtor is
located at the address of the Debtor listed on the signature page hereof, and
the Debtor will not move its chief executive office and chief place of business
except to such new location as the Debtor may establish in accordance with the
last sentence of this Section 3(d). The originals of all Assigned Agreements and
all documents (as well as all duplicates thereof) evidencing all Receivables and
all other contract rights or accounts and other property of the Debtor and the
only original books of account and records of the Debtor relating thereto are,
and will continue to be, kept at such chief executive office, or at such new
location as the Debtor may establish in accordance with the last sentence of
this Section 3(d). The Debtor shall establish no such new location until (i) it
shall have given to the Note Holders not less than 30 days' prior written notice
of its intention to do so, clearly describing such new location and providing
such other information in connection therewith as the Note Holders may
reasonably request, and (ii) with respect to such new location, it shall have
taken such action, satisfactory to the Note Holders (including, without
limitation, all action required by Section 7 hereof), to maintain the security
interest of the Note Holders in the Receivables intended to be granted at all
times fully perfected and in full force and effect.

     (e) The Debtor has no Collateral located outside of locations set forth on
Schedule 1 annexed hereto.

     (f) The name of the Debtor is as set forth on the signature page hereto and
the Debtor shall not change such name, conduct its business in any other name or
take title to the Collateral in any other name while this Agreement remains in
effect, without providing the Note Holders no less than 20 days' notice and
making such filings as the Note Holders shall reasonably request. The Debtor has
never had any name, or conducted business under any name in any jurisdiction,
other than its name set forth on the signature page hereto, during the past six
years other than as set forth in Schedule 2 annexed hereto.

     (g) At the Debtor's own expense, the Debtor will: (i) without limiting the
provisions of the Notes, keep the Collateral fully insured at all times with
financially sound and responsible insurance carriers against loss or damage by
fire and other risks, casualties and contingencies and in such manner and to the
same extent that like properties are customarily so insured by other entities
engaged in the same or similar businesses similarly situated and keep

                                       6
<PAGE>

adequate insurance at all times against liability on account of damage to
persons and properties and under all applicable workers' compensation laws, by
insurers and in amounts approved by the Note Holders, for the benefit of the
Debtor and the Note Holders, (ii) upon request by the Note Holders, promptly
deliver the insurance policies or certificates thereof to the Note Holders, and
(iii) keep the Collateral in good condition at all times (normal wear and tear
excepted) and maintain same in accordance with all manufacturer's specifications
and requirements. Upon any failure of the Debtor to comply with its obligations
pursuant to this Section 3(g), each Note Holder may at its option, and without
affecting any of its other rights or remedies provided herein or as a secured
party under the Uniform Commercial Code, procure the insurance protection it
deems necessary and/or cause repairs or modifications to be made to the
Collateral and the cost of either or both of which shall be a lien against the
Collateral added to the amount of the indebtedness secured hereby and payable on
demand with interest at a rate per annum equal to 18%.

     (h) The Debtor hereby assigns to the Note Holders all of Debtor's right,
title and interest in and to any and all moneys which may become due and payable
with respect to the Collateral under any policy insuring the Collateral (except
proceeds relating to tangible personal property which are applied to restoration
or replacement), including return of unearned premium, and shall cause any such
insurance company to make payment directly to the Note Holder for application to
amounts outstanding under the Notes in accordance with the terms of the Notes
and, to the extent not provided therein, in such order as the Note Holders shall
determine.

     (i) The Debtor will not use the Collateral in violation of any statute or
ordinance or applicable insurance policy and will promptly pay all taxes and
assessments levied against the Collateral.

     (j) The Debtor will not sell, transfer, change the registration, if any,
dispose of, attempt to dispose of, substantially modify or abandon the
Collateral or any part thereof other than sales of Inventory in the ordinary
course of business and the disposition of obsolete or worn-out Equipment in the
ordinary course of business.

     (k) The Debtor will not assert against the Note Holders or any Note Holder
any claim or defense which the Debtor may have against any seller of the
Collateral or any part thereof or against any other Person with respect to the
Collateral or any part thereof.

     (l) The Debtor will indemnify and hold the Note Holders and any Note Holder
harmless from and against any loss, liability, damage, costs and expenses
whatsoever arising from the Debtor's use, operation, ownership or possession of
the Collateral or any part thereof.

     (m) The Debtor will maintain the confidentiality of all customer lists and
not sell or otherwise dispose of such lists except that the Debtor shall deliver
copies thereof to each Note Holder upon its request, which may be made at any
time and from time to time after an Event of Default.

                                       7
<PAGE>

     (n) The Debtor will not enter into any agreement that is inconsistent with
the Debtor's obligations under this Agreement, without the prior written consent
of the Note Holders.

     (o) If the Debtor transfer any assets to any subsidiary or affiliate now
existing or hereafter formed, before so doing, it shall cause such person to
sign a guaranty and security agreement covering the secured obligations.

     Section 4. Special Provisions Concerning Assigned Agreements. The Debtor
represents, warrants and agrees as follows:

     (a) The Assigned Agreements constitute the legal, valid and binding
obligations of the Debtor and, to the best of its knowledge, the other parties
thereto, enforceable in accordance with their respective terms.

     (b) The Debtor will use its best efforts to faithfully abide by, perform
and discharge each and every material obligation, covenant and agreement to be
performed by the Debtor under the Assigned Agreements.

     (c) At the request of the Note Holders, and at the sole cost and expense of
the Debtor, the Debtor will enforce or secure the performance of each and every
material obligation, covenant, condition and agreement contained in the Assigned
Agreements to be performed by the other parties thereto.

     (d) The Debtor will not modify, amend or agree to vary any of the Assigned
Agreements in any material respect other than in the ordinary course of
business, or otherwise act or fail to act in a manner likely (directly or
indirectly) to entitle any party thereto to claim that the Debtor is in default
under the terms thereof.

     (e) The Debtor will not terminate or permit the termination of any Assigned
Agreement, except in accordance with its terms, other than in the ordinary
course of business.

     (f) Without the prior written consent of the Note Holders, the Debtor will
not, other than in the ordinary course of business, waive or in any manner
release or discharge any party to any Assigned Agreement from any of the
material obligations, covenants, conditions and agreements to be performed by it
under such Assigned Agreement including, without limitation, the obligation to
make all payments in the manner and at the time and places specified.

     (g) If a Note Holder so requests after the occurrence of an Event of
Default, the Debtor will hold any payments received by it which are assigned and
set over to the Note Holder by this Agreement for and on behalf of such Note
Holder and turn them promptly over to such Note Holder forthwith in the same
form in which they are received (together with any necessary endorsement) for
application to amounts outstanding under the Notes in accordance with the terms

                                       8
<PAGE>

of the Notes and, to the extent not provided therein, in such order as such Note
Holder shall determine.

     (h) The Debtor will appear in and defend every action or proceeding arising
under, growing out of or in any manner connected with the Assigned Agreements or
the obligations, duties or liabilities of the Debtor and any assignee
thereunder.

     (i) Should the Debtor fail to make any payment or to do any act as herein
provided after 15 days' notice by the Note Holders, the Note Holders may (but
without obligation on the Note Holders' part to do so and without notice to or
demand on the Debtor and without releasing the Debtor from any obligation
hereunder) make or do the same in such manner and to such extent as the Note
Holders may deem necessary to protect the security interests provided hereby,
including specifically, without limiting the general powers, the right to appear
in and defend any action or proceeding purporting to affect the security
interests provided hereby and the Debtor, and the Note Holders may also perform
and discharge each and every obligation, covenant and agreement of the Debtor
contained in any Assigned Agreement and, in exercising any such powers, pay
necessary costs and expenses, employ counsel and incur and pay reasonable
attorneys' fees.

     (j) Upon the request of the Note Holders, the Debtor will send to the Note
Holders copies of all notices, documents and other papers furnished or received
by it with respect to any of the Assigned Agreements.

     Section 5. Special Provisions Concerning Receivables. (a) As of the time
when each Receivable arises, the Debtor shall be deemed to have warranted as to
each such Receivable that such Receivable and all papers and documents relating
thereto are genuine and in all respects what they purport to be, and that all
papers and documents relating thereto:

          (i) will be signed by the account debtor named therein (or such
     account debtor's duly authorized agent) or otherwise be binding on the
     account debtor;

          (ii) will represent the genuine, legal, valid and binding obligation
     of the account debtor evidencing indebtedness unpaid and owed by such
     account debtor arising out of the performance of labor or services or the
     sale and delivery of merchandise or both;

          (iii) to the extent evidenced by writings, will be the only original
     writings evidencing and embodying such obligation of the account debtor
     named therein; and

          (iv) will be in compliance and will conform with all applicable
     federal, state and local laws (including applicable usury laws) and
     applicable laws of any relevant foreign jurisdiction.

                                       9
<PAGE>

     (b) The Debtor will keep and maintain at the Debtor's own cost and expense
satisfactory and complete records of the Receivables, including, but not limited
to, records of all payments received, all credits granted thereon, all
merchandise returned and all other dealings therewith, and the Debtor will make
the same available to the Note Holders, at the Debtor's own cost and expense, at
any and all reasonable times upon demand of the Note Holders. The Debtor shall,
at the Debtor's own cost and expense, deliver the Receivables (including,
without limitation, all documents evidencing the Receivables) and such books and
records to each Note Holder or to its representatives upon its demand at any
time after the occurrence of an Event of Default and, if prior to the Maturity
Date, Acceleration shall exist. If the Note Holder shall so request, the Debtor
shall legend, in form and manner satisfactory to the Note Holder, the
Receivables and other books, records and documents of the Debtor evidencing or
pertaining to the Receivables with an appropriate reference to the fact that the
Receivables have been assigned to the Note Holders and that the Note Holders
have a security interest therein.

     (c) Except in the ordinary course of business prior to an Event of Default
and, if prior to the Maturity Date, Acceleration shall exist, the Debtor will
not rescind or cancel any indebtedness evidenced by any Receivable or modify any
term thereof or make any adjustment with respect thereto, or extend or renew the
same, or compromise or settle any dispute, claim, suit or legal proceeding
relating thereto, or sell any Receivable or interest therein, without the prior
written consent of the Note Holders, except that the Debtor may grant discounts
in connection with the prepayment of any Receivable in an amount which is
customary in the line of business in which the Debtor is engaged and consistent
with the Debtor's past practices.

     (d) The Debtor will duly fulfill all obligations on its part to be
fulfilled under or in connection with the Receivables and will do nothing to
impair the rights of the Note Holders in the Receivables.

     (e) The Debtor shall endeavor to collect or cause to be collected from the
account debtor named in each Receivable, as and when due (including, without
limitation, Receivables which are delinquent, such Receivables to be collected
in accordance with generally accepted lawful collection procedures) any and all
amounts owing under or on account of such Receivable, and credit forthwith (on a
daily basis) upon receipt thereof all such amounts as are so collected to the
outstanding balance of such Receivable. The costs and expenses (including
attorney's fees) of collection, whether incurred by the Debtor or the Note
Holders, shall be borne by the Debtor.

     (f) If any of the Receivables becomes evidenced by an Instrument (other
than a check received in payment of a Receivable and deposited in the ordinary
course of business), the Debtor will notify the Note Holders thereof, and, upon
request by the Note Holders, promptly deliver such Instrument to the Note
Holders appropriately endorsed to the order of the Note Holders as further
security for the satisfaction in full of the Secured Obligations.

                                       10
<PAGE>

     (g) Upon request of the Note Holders, at any time when an Event of Default
and, if prior to the Maturity Date, Acceleration shall exist, the Debtor shall
promptly notify (in manner, form and substance satisfactory to the Note Holders)
all Persons who are at any time obligated under any Receivable that the Note
Holders possess a security interest in such Receivable and that all payments in
respect thereof are to be made to such account as the Note Holders direct.

     Section 6. Special Provisions Concerning Equipment. The Debtor will do
nothing to impair the rights of the Note Holders in the Equipment. The Debtor
shall cause the Equipment to at all times constitute and remain personal
property. The Debtor will at all times keep all Equipment insured with
financially responsible insurance companies in favor of the Note Holders, at the
expense of the Debtor, against such perils and in such amounts as are customary
for Persons in the same general line of business as the Debtor and operating in
similar geographic locations and markets. If the Debtor shall fail to insure the
Equipment to the Note Holders' reasonable satisfaction, or if the Debtor shall
fail so to endorse and deposit all policies or certificates with respect
thereto, the Note Holders shall have the right (but shall be under no
obligation) for and on behalf of the Note Holders to procure such insurance and
the Debtor agrees to reimburse the Note Holders for all costs and expenses of
procuring such insurance, together with interest at a rate per annum equal to
18%. The Note Holders may apply any proceeds of such insurance when received by
it pursuant to the terms of this Section 6 or Section 3(h) hereof toward the
payment of any of the Secured Obligations, whether or not the same shall then be
due. The Debtor retains all liability and responsibility in connection with the
Equipment and the liability of the Debtor to pay the Secured Obligations shall
in no way be affected or diminished by reason of the fact that such Equipment
may be lost, destroyed, stolen, damaged or for any reason whatsoever unavailable
to the Debtor.

     Section 7. Financing Statements; Documentary Stamp Taxes. (a) The Debtor
will, at its own expense, make, execute, endorse, acknowledge, file and/or
deliver to the Note Holders from time to time such lists, descriptions and
designations of Inventory, warehouse receipts, bills of lading, documents of
title, vouchers, invoices, schedules, confirmatory assignments, conveyances,
financing statements, transfer endorsements, powers of attorney, certificates,
reports and other assurances or instruments and take such further steps relating
to the Collateral and other property or rights covered by the security interest
hereby granted, which the Note Holders deem appropriate or advisable to perfect,
preserve or protect its security interest in the Collateral. The Debtor hereby
constitutes the Note Holders as its attorney-in-fact to execute and file in the
name and on behalf of the Debtor such additional financing statements and other
documents as the Note Holders may reasonably request, such acts of such attorney
being hereby ratified and confirmed; such power, being coupled with an interest,
is irrevocable until the Secured Obligations are paid in full. Further, to the
extent permitted by applicable law, the Debtor authorizes the Note Holders to
file any such financing statements and other documents without the signature of
the Debtor or to execute the same on behalf of the Debtor. The Debtor will pay
all applicable filing fees and related expenses in connection with any such
financing statements.

     (b) The Debtor agrees to procure, pay for, affix to any and all documents
and cancel any documentary tax stamps required by and in accordance with,
applicable law and the

                                       11
<PAGE>

Debtor will indemnify and hold the Note Holders and any Note Holders harmless
against any liability (including interest and penalties) in respect of such
documentary stamp taxes.

     Section 8. Special Provisions Concerning Remedies and Sale. In addition to
any rights and remedies now or hereafter granted under applicable law and not by
way of limitation of any such rights and remedies, upon the occurrence of an
Event of Default the Note Holders shall have all of the rights and remedies of a
secured party under the Uniform Commercial Code as enacted in any applicable
jurisdiction in addition to the rights and remedies provided herein, in the Note
and in any other agreement executed in connection with the Note whereby the
Debtor has granted any Lien to the Note Holders. Without in any way limiting the
foregoing, upon the giving of notice to the Debtor of the Note Holders' intent
to pursue any one or all of the following or any other remedies (it being
understood that the Note Holders will take the same actions under this Security
Agreement):

     (a) Upon the occurrence of an Event of Default, the Note Holders shall have
all of the rights and remedies of a secured party under the Uniform Commercial
Code as enacted in any applicable jurisdiction in addition to the rights and
remedies provided herein, in the Note and any other document whereby the Debtor
has granted any Lien to the Note Holders. The Note Holders shall have the right,
without further notice to, or assent by, the Debtor, in the name of the Debtor
or in the name of the Note Holders or otherwise:

          (i) to ask for, demand, collect, receive, compound and give
     acquittance for the Receivables or any part thereof;

          (ii) to extend the time of payment of, compromise or settle for cash,
     credit or otherwise, and upon any terms and conditions, any of the
     Receivables;

          (iii) to endorse the name of the Debtor on any checks, drafts or other
     orders or instruments for the payment of moneys payable to the Debtor which
     shall be issued in respect of any Receivable;

          (iv) to file any claims, commence, maintain or discontinue any
     actions, suits or other proceedings deemed by the Note Holders necessary or
     advisable for the purpose of collecting or enforcing payment of any
     Receivable;

          (v) to make test verifications of the Receivables or any portion
     thereof;

          (vi) to notify any or all account debtors under any or all of the
     Receivables to make payment thereof directly to the Note Holders for the
     account of the Note Holders and to require the Debtor to forthwith give
     similar notice to the account debtors;

                                       12
<PAGE>

          (vii) to require the Debtor forthwith to account for and transmit to
     the Note Holders in the same form as received all proceeds (other than
     physical property) of collection of Receivables received by the Debtor and,
     until so transmitted, to hold the same in trust for the Note Holders and
     not commingle such proceeds with any other funds of the Debtor;

          (viii) to take possession of any or all of the Collateral and, for
     that purpose, to enter, upon reasonable notice, with the aid and assistance
     of any Person or Persons and with or without legal process, any premises
     where the Collateral, or any part thereof, are, or may be, placed or
     assembled, and to remove any of such Collateral;

          (ix) to execute any instrument and do all other things necessary and
     proper to protect and preserve and realize upon the Collateral and the
     other rights contemplated hereby;

          (x) upon reasonable notice to such effect, to require the Debtor to
     deliver, at the Debtor's expense, any or all Collateral to the Note Holders
     at a place designated by the Note Holders; and

          (xi) without obligation to resort to other security, at any time and
     from time to time, to sell, re-sell, assign and deliver all or any of the
     Collateral, in one or more parcels at the same or different times, and all
     right, title and interest, claim and demand therein and right of redemption
     thereof, at public or private sale, for cash, upon credit or for future
     delivery, and at such price or prices and on such terms as the Note Holders
     may determine, with the amounts realized from any such sale to be applied
     to the Secured Obligations in the manner determined by the Note Holders.

The Debtor hereby agrees that all of the foregoing may be effected without
demand, advertisement or notice (except as otherwise provided herein or as may
be required by law), all of which (except as otherwise provided) are hereby
expressly waived, to the extent permitted by law. The Note Holders shall not be
obligated to do any of the acts hereinabove authorized, but in the event that
the Note Holder elects to do any such act, the Note Holder shall not be
responsible to the Debtor except for their gross negligence or willful
misconduct.

     (b) the Note Holders may take legal proceedings for the appointment of a
receiver or receivers (to which the Note Holders shall be entitled as a matter
of right) to take possession of the Collateral pending the sale thereof pursuant
either to the powers of sale granted by this Agreement or to a judgment, order
or decree made in any judicial proceeding for the foreclosure or involving the
enforcement of this Agreement. If, after the exercise of any or all of such
rights and remedies, any of the Secured Obligations shall remain unpaid, the
Debtor shall remain liable for any deficiency. After the indefeasible payment in
full of the Secured Obligations, any proceeds of the Collateral received or held
by the Note Holders shall be turned over to the

                                       13
<PAGE>

Debtor and the Collateral shall be reassigned to the Debtor by the Note Holders
without recourse to the Note Holders and without any representations, warranties
or agreements of any kind.

     (c) Upon any sale of any of the Collateral, whether made under the power of
sale hereby given or under judgment, order or decree in any judicial proceeding
for the foreclosure or involving the enforcement of this Agreement:

          (i) the Note Holders may, to the extent permitted by law, bid for and
     purchase the property being sold, and upon compliance with the terms of
     sale may hold, retain and possess and dispose of such property in its own
     absolute right without further accountability, and may, in paying the
     purchase money therefor, deliver any Note or claims for interest thereon
     and any other instruments evidencing the Secured Obligations or agree to
     the satisfaction of all or a portion of the Secured Obligations in lieu of
     cash in payment of the amount which shall be payable thereon, and the Note
     and such instruments, in case the amounts so payable thereon shall be less
     than the amount due thereon, shall be returned to the Note Holders after
     being appropriately stamped to show partial payment;

          (ii) the Note Holders may make and deliver to the purchaser or
     purchasers a good and sufficient deed, bill of sale and instrument of
     assignment and transfer of the property sold;

          (iii) the Note Holders are hereby irrevocably appointed the true and
     lawful attorney-in-fact of the Debtor in its name and stead, to make all
     necessary deeds, bills of sale and instruments of assignment and transfer
     of the property thus sold and for such other purposes as are necessary or
     desirable to effectuate the provisions (including, without limitation, this
     Section 8) of this Agreement, and for that purpose they may execute and
     deliver all necessary deeds, bills of sale and instruments of assignment
     and transfer, and may substitute one or more Persons with like power, the
     Debtor hereby ratifying and confirming all that its said attorney, or such
     substitute or substitutes, shall lawfully do by virtue hereof; but if so
     requested by the Note Holderss or by any purchaser, the Debtor shall ratify
     and confirm any such sale or transfer by executing and delivering to the
     Note Holderss or to such purchaser all property, deeds, bills of sale,
     instruments or assignment and transfer and releases as may be designated in
     any such request;

          (iv) all right, title, interest, claim and demand whatsoever, either
     at law or in equity or otherwise, of the Debtor of, in and to the property
     so sold shall be divested; such sale shall be a perpetual bar both at law
     and in equity against the Debtor, its successors and assigns, and against
     any and all Persons claiming or who may claim the property sold or any part
     thereof from, through or under the Debtor, its successors or assigns;

                                       14
<PAGE>

          (v) the receipt of the Note Holders or of the officer thereof making
     such sale shall be a sufficient discharge to the purchaser or purchasers at
     such sale for his or their purchase money, and such purchaser or
     purchasers, and his or their assigns or personal representatives, shall
     not, after paying such purchase money and receiving such receipt of the
     Note Holders or of such officer therefor, be obliged to see to the
     application of such purchase money or be in any way answerable for any
     loss, misapplication or non-application thereof; and

          (vi) to the extent that it may lawfully do so, and subject to any
     legal requirement that the Note Holders act in a commercially reasonable
     manner, the Debtor agrees that it will not at any time insist upon, or
     plead, or in any manner whatsoever claim or take the benefit or advantage
     of, any appraisement, valuation, stay, extension or redemption laws, or any
     law permitting it to direct the order in which the Collateral or any part
     thereof shall be sold, now or at any time hereafter in force, which may
     delay, prevent or otherwise affect the performance or enforcement of this
     Agreement, the Note or any other agreement executed in connection with the
     Note whereby the Debtor has granted any Lien to the Note Holders, and the
     Debtor hereby expressly waives all benefit or advantage of any such laws
     and covenants that it will not hinder, delay or impede the execution of any
     power granted or delegated to the Note Holders in this Agreement, but will
     suffer and permit the execution of every such power as though no such laws
     were in force. In the event of any sale of Collateral pursuant to this
     Section, the Note Holders shall, at least 10 days before such sale, give
     the Debtor written, telecopied or telex notice of its intention to sell.

     Section 9. Application of Moneys. (a) Except as otherwise provided herein
or in the Note, all moneys which the Note Holders shall receive, in accordance
with the provisions hereof, shall be applied (to the extent thereof) in the
following manner: First, to the payment of all costs and expenses reasonably
incurred in connection with the administration and enforcement of, or the
preservation of any rights under, this Agreement or any of the reasonable
expenses and disbursements of the Note Holders (including, without limitation,
the reasonable fees and disbursements of its counsel and agents); Second, to the
payment of all Secured Obligations arising out of the Notes and, if not therein
provided, in such order as the Note Holders may determine; and Third, to the
payment of all other Secured Obligations in such order as the Note Holders may
determine.

     (b) If after applying any amounts which the Note Holders have received in
respect of the Collateral any of the Secured Obligations remain unpaid, the
Debtor shall continue to be liable for any deficiency, together with interest.

     Section 10. Fees and Expenses, etc. Any and all fees, costs and expenses of
whatever kind or nature, including but not limited to the reasonable attorneys'
fees and legal expenses incurred by the Note Holders in connection with the
enforcement of this Agreement, the filing or recording of any documents
(including all taxes in connection therewith) in public offices,

                                       15
<PAGE>

the payment or discharge of any taxes, counsel fees, maintenance fees, fees and
other costs relating to the encumbrances or otherwise protecting, maintaining,
preserving the Collateral, or in defending or prosecuting any actions or
proceedings arising out of or related to the Collateral, shall be borne and paid
by the Debtor on written demand by the Note Holders setting forth in reasonable
detail the nature of such expenses and until so paid shall be added to the
principal amount of the Secured Obligations and shall bear interest at a rate
per annum equal to 18%. In addition, the Debtor will pay, and indemnify and hold
the Note Holders and any Note Holder harmless from and against, any and all
liabilities, obligations, losses, damages penalties, actions, judgments, suits,
costs, expenses or disbursements of any kind or nature whatsoever with respect
to the Collateral, including (without limitation) claims of patent or trademark
infringement and any claim of unfair competition or anti-trust violation.

     Section 11. Subordination to Senior Agreement. The Debtor and the Purchaser
hereby understand and agree that the obligations of the Debtor to pay the
principal and accrued interest on the Notes are expressly made subordinate and
junior in right of payment to the obligations of the Debtor owing to Sand Hill
Finance, LLC under the Senior Agreement. Debtor will not make, and Purchaser
will not accept, any payment on account of the Notes, at any time that an Event
of Default has occurred and is continuing. The Security Interest granted under
this Agreement is junior to the security interest granted under the Senior
Agreement so long as any obligations are outstanding under the Senior Agreement.
This paragraph may not be amended or waived as long as any obligations are
outstanding under the Senior Agreement.

     Section 12. Miscellaneous. All notices, communications and distributions
hereunder shall be in writing (including telecopied communication) and mailed by
certified mail, telecopied, personally delivered or delivered by Federal Express
or other reputable overnight courier service, if to the Debtor addressed to it
at its address set forth opposite its signature below, if to the Note Holders,
addressed to it at its address set forth opposite its signature below, or as to
either party at such other address as shall be designated by such party in a
written notice to such other party complying as to delivery with the terms of
this Section. All such notices and other communications shall be effective (i)
if mailed by certified mail, three days after the date of deposit thereof with
the U.S. Postal Service, properly addressed with postage prepaid, (ii) if
telecopied, upon receipt by the addressee, (iii) if personally delivered, upon
such delivery and (iv) if delivered by overnight courier service, on the
business day following delivery thereof to such courier service in time for
next-business-day delivery.

     (b) No delay on the part of the Note Holders in exercising any of its
rights, remedies, powers and privileges hereunder or partial or single exercise
thereof, shall constitute a waiver thereof, except if, and in such case only to
the extent which, such failure prejudices or damages the Debtor. None of the
terms and conditions of this Agreement may be changed, waived, modified or
varied in any manner whatsoever unless in writing duly signed by the Debtor and
the Note Holders. No notice to or demand on the Debtor in any case shall entitle
the Debtor to any other or further notice or demand in similar or other
circumstances or constitute a waiver of any of

                                       16
<PAGE>

the rights of the Note Holders to any other or further action in any
circumstances without notice or demand.

     (c) The obligations of the Debtor hereunder shall remain in full force and
effect without regard to, and shall not be impaired by, (i) any bankruptcy,
insolvency, reorganization, arrangement, readjustment, composition, liquidation
or the like of the Debtor; (ii) any exercise or non-exercise, or any waiver of,
any right, remedy, power or privilege under or in respect of the Note, this
Agreement or any other agreement executed in connection with the Note whereby
the Debtor has granted any Lien to the Note Holders or any other agreement
executed in connection with any of the foregoing, the Secured Obligations or any
security for any of the Secured Obligations; or (iii) any amendment to or
modification of any of the foregoing; whether or not the Debtor shall have
notice or knowledge of any of the foregoing. The rights and remedies of the Note
Holders herein provided are cumulative and not exclusive of any rights or
remedies which the Note Holders would otherwise have.

     (d) This Agreement shall be binding upon the Debtor and its successors and
assigns and shall inure to the benefit of the Note Holders and their successors
and assigns, except that the Debtor may not transfer or assign any of its
obligations, rights or interest hereunder without the prior written consent of
the Note Holders, and any such purported assignment by the Debtor shall be void.
All agreements, representations and warranties made herein shall survive the
execution and delivery of this Agreement.

     (e) The descriptive headings of the several sections of this Agreement are
inserted for convenience only and shall not in any way affect the meaning or
construction of any provision of this Agreement.

     (f) Any provision of this Agreement which is prohibited or unenforceable in
any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of
such prohibition or unenforceability without invalidating the remaining
provisions hereof, and any such prohibition or unenforceability in any
jurisdiction shall not invalidate or render unenforceable such provision in any
other jurisdiction.

     (g) All rights, remedies and powers provided by this Agreement may be
exercised only to the extent that the exercise thereof does not violate any
applicable provision of law, and the provisions hereof are intended to be
subject to all applicable mandatory provisions of law that may be controlling
and to be limited to the extent necessary so that they will not render this
Agreement invalid, unenforceable in whole or in part or not entitled to be
recorded, registered or filed under the provisions of any applicable law.

     (h) Except to the extent that matters of title, or creation, perfection and
priority of the security interests created hereby, or procedural issues of
foreclosure are required to be governed by the laws of the state in which the
Collateral, or part thereof, is located, this Agreement shall be governed by and
construed in all respects under the laws of the State of New York, without

                                       17
<PAGE>

reference to its conflict of laws rules or principles. Any suit, action,
proceeding or litigation arising out of or relating to this Agreement shall be
brought and prosecuted only in federal and state courts in the City, County and
State of New York. The parties hereby irrevocably and unconditionally consent to
the jurisdiction of each such court or courts located within the State of New
York and to service of process by registered or certified mail, return receipt
requested, or by any other manner provided by applicable law, and hereby
irrevocably and unconditionally waive any right to claim that any suit, action,
proceeding or litigation so commenced has been commenced in an inconvenient
forum. EACH PARTY HERETO KNOWINGLY, VOLUNTARILY AND INTENTIONALLY WAIVES ANY AND
ALL RIGHTS IT MAY HAVE TO A TRIAL BY JURY IN ANY ACTION, PROCEEDING,
COUNTERCLAIM OR OTHER LITIGATION BASED ON, OR ARISING OUT OF, UNDER, OR IN
CONNECTION WITH, THIS AGREEMENT, THE NOTES OR ANY FINANCING DOCUMENT, OR ANY
COURSE OF CONDUCT, COURSE OF DEALING, STATEMENTS (WHETHER ORAL OR WRITTEN) OR
ACTIONS OF ANY SUCH PARTY. THIS PROVISION IS A MATERIAL INDUCEMENT FOR THE
SECURED PARTIES' ENTERING INTO THIS AGREEMENT.

     (i) It is expressly agreed, anything herein, in the Note or in any other
agreement or instrument executed in connection with the Note to the contrary
notwithstanding, that the Debtor shall remain liable to perform all of the
obligations, if any, assumed by it with respect to the Collateral and the Note
Holders shall not have any obligations or liabilities with respect to any
Collateral by reason of or arising out of this Agreement, nor shall the Note
Holder be required or obligated in any manner to perform or fulfill any of the
obligations of the Debtor under or pursuant to any or in respect of any
Collateral.

     (j) This Agreement may be executed in any number of counterparts and by the
different parties hereto on separate counterparts, each of which when so
executed and delivered shall be an original, but all of which counterparts taken
together shall be deemed to constitute one and the same instrument.













                                       18
<PAGE>

     IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
executed and delivered by their duly authorized officers as of the date first
above written.

Addresses                              BRIDGELINE SOFTWARE, INC.
- ---------                              as Debtor
10 Sixth Rd.
Woburn, MA 01801                       By: /S/ THOMAS MASSIE
                                          -------------------------------------
                                          Name:  Thomas Massie
                                          Title: President, Chief Executive
                                                 Officer


                                       NOTEHOLDERS


                                       By: /S/ STEPHAN A. STEIN
                                          -------------------------------------
                                          Name: Stephan A. Stein,
                                          Title: Member, Joseph Gunnar & Co.,
                                                 LLC, on behalf of Noteholders
















                                       19
<PAGE>

SCHEDULE 1.
LOCATION OF CERTAIN INVENTORY AND EQUIPMENT COLLATERAL
- ------------------------------------------------------

Bridgeline has two (2) Capital Lease Master Agreements with Bank of America
Leasing and Fidelity Capital Leasing.

The lease lines are both active as of April 6, 2006. The leases are used to
finance computer and telephone equipment as well as some office furniture. The
leasing companies have filed UCC-l's on all equipment financed under the
Agreements. The lease terms are either three (3) or five (5) years with a $1.00
buy out.

A summary of the Lease balances is below:

As of April 6, 2006                Master Lease           Leases Outstanding
- --------------------------------------------------------------------------------

Capital Lease-Bank of America        100,000                   41,385

Capital Lease-Fidelity Capital       250,000                   125,902
- --------------------------------------------------------------------------------

SCHEDULE 2.
EXISTING FINANCING STATEMENTS
- -----------------------------
[LIST ALL FINANCING STATEMENTS
- ------------------------------

Pursuant to the Financing Agreement between the Company and Sand Hill Finance,
Inc., dated March 29, 2005, Sand Hill Finance has a first priority lien on all
of the assets of the Company.





















                                       20
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10.21
<SEQUENCE>35
<FILENAME>ex10-21_14663.txt
<DESCRIPTION>FORM OF SUBSCRIPTION AGREEMENT
<TEXT>
                                                                   EXHIBIT 10.21
                                                                   -------------

                             SUBSCRIPTION AGREEMENT


                                             Name of Subscriber ________________

Bridgeline Software, Inc.
10 Sixth Road
Woburn, MA 01801

Ladies and Gentlemen:

         1. SUBSCRIPTION. I (sometimes referred to herein as the "Investor")
hereby subscribe for and agree to purchase ___ Unit(s) (as defined below) of
Bridgeline Software, Inc., a Delaware corporation (the "Company"), on the terms
and conditions described herein and in the Private Placement Memorandum of the
Company and the Appendixes thereto (collectively, the "Offering Documents"),
each dated April ___, 2006, together with all supplements, if any, relating to
this offering. Terms not defined herein are as defined in the Offering
Documents. The purchase price per Unit is $100,000. The Minimum Offering is
$1,100,000, or 11 Units/the Maximum Offering is $2,300,000, or 23 Units. The
Units are being offered on behalf of the Company by registered broker-dealer
Joseph Gunnar & Co., LLC (the "Placement Agent"). The Company and the Placement
Agent have the option to increase the offering by up to an additional 5 Units,
or $500,000, on a "best efforts" basis. Affiliates of the Placement Agent and of
the Company may purchase securities in this Offering, and any such purchases
will be considered part of the Minimum Offering amount sold.

         THE AGGREGATE AMOUNT SUBSCRIBED FOR HEREBY IS $___________.

         THE UNDERSIGNED WILL PURCHASE THE FOREGOING UNITS FROM THE COMPANY ON
OR BEFORE THE TERMINATION OF THE OFFERING PERIOD (AS THE SAME MAY BE EXTENDED BY
THE COMPANY AND THE PLACEMENT AGENTS); IF AND ONLY IF THE COMPANY NOTIFIES THE
UNDERSIGNED THAT SUBSCRIPTION AGGREGATING $_______ HAVE BEEN RECEIVED AND
ACCEPTED BY THE COMPANY, AND REPRESENT GOOD FUNDS IN THE COMPANY'S ESCROW
ACCOUNT.

         2. DESCRIPTION OF UNITS; LOCK-UP. Each Unit consists of (i) an interest
bearing senior secured note in principal amount of $100,000 (the "Note"), and
(ii) a five-year warrant to purchase 10,000 shares of Company common stock, par
value $.001 per share ("Common Stock") at an exercise price of $.001 per share
(the "Warrant") (collectively, the Note and Warrant are referred to as a
"Unit"). The shares issuable upon exercise of the Warrant are eligible for
certain registration rights as set forth in the Warrant; provided, however, that
the Investor hereby agrees to certain six-month post-IPO lock-ups (as set forth
in the Offering Documents) pursuant to the underwriter's customary lock-up
agreement.

         3. PURCHASE; REGISTRATION RIGHTS.
<PAGE>

                  (a) I hereby tender to the Company cash or a check or wire
transfer (information to be provided to me on my request) made payable to the
order of U.S. Bank, AS ESCROW AGENT, as escrow agent for the Company in the
amount indicated above, an executed copy of this Subscription Agreement and an
executed copy of my Purchaser Investor Questionnaire. The wire information is:

         U.S. Bank
         ABA No.:  091000022
         Corporate Trust Services
         Acct. No.:  173103321050
         Attn:  Betty Hammer
         Ref:  Bridgeline Subscription Escrow, Acct No. 793506000

                  (b) The Offering shall terminate on the earliest of: (a) the
sale of the Maximum Offering, or (b) May 31, 2006, unless extended without
notice to the Investors by the Company and the Placement Agent for no more than
two (2) thirty (30) day periods (the "Termination Date"). Prior to the
Termination Date, payments delivered herewith will be held in an escrow account,
but may be immediately released to the Company upon acceptance of the
subscription. Upon the earlier of a closing for my subscription or completion of
the offering, I will be notified promptly by the Company as to whether my
subscription has been accepted by the Company.

                  (c) The Warrant and Warrant Shares shall have the Registration
Rights set forth in Section (j) of the Warrant.

         4. ACCEPTANCE OR REJECTION OF SUBSCRIPTION.

                  (a) I understand and agree that the Company reserves the right
to reject this subscription for the Units, in whole or in part, for any reason
and at any time prior to the Closing, notwithstanding prior receipt by me of
notice of acceptance of my subscription.

                  (b) In the event of the rejection of this subscription, my
subscription payment will be promptly returned to me without interest or
deduction and this Subscription Agreement shall have no force or effect. In the
event my subscription is accepted and the offering is completed, the funds
specified above shall be released to the Company.

         5. CLOSING. The closing ("Closing") of this offering may occur any time
and from time to time after the Company has received and accepted subscriptions
before the Termination Date. The Units subscribed for herein shall not be deemed
issued to or owned by me until one copy of this Subscription Agreement has been
executed by me and countersigned by the Company and the Closing with respect to
such Units has occurred.

         6. DISCLOSURE. Because this offering is limited to accredited investors
as defined in Section 2(15) of the Act, and Rule 501 promulgated thereunder, in
reliance upon the exemption contained in Section 4(2) of the Act and applicable
state securities laws, the Units are being sold without registration under the
Act. I acknowledge receipt of the Offering Documents and all

                                        2
<PAGE>

related documents and represent that I have carefully reviewed and understand
the Offering Documents and its exhibits. I have received all information and
materials regarding the Company that I have requested.

I fully understand that the Company has a limited financial and operating
history and that the Units are speculative investments which involve a high
degree of risk of the loss of my entire investment. I fully understand the
nature of the risks involved in purchasing the Units and I am qualified by my
knowledge and experience to evaluate investments of this type. I have carefully
considered the potential risks relating to the Company and purchase of its Units
and have, in particular, reviewed each of the risks set forth in the Offering
Documents. Both my advisors and I have had the opportunity to ask questions of
and receive answers from representatives of the Company or persons acting on its
behalf concerning the Company and the terms and conditions of a proposed
investment in the Company and my advisors and I have also had the opportunity to
obtain additional information necessary to verify the accuracy of information
furnished about the Company. Accordingly, I have independently evaluated the
risks of purchasing the Units.

         7. INVESTOR REPRESENTATIONS AND WARRANTIES. I acknowledge, represent
and warrant to, and agree with, the Company as follows:

                  (a) I am aware that my investment involves a high degree of
risk as disclosed in the Offering Documents and have read carefully the Offering
Documents.

                  (b) I acknowledge and am aware that there is no assurance as
to the future performance of the Company.

                  (c) I acknowledge that there may be certain adverse tax
consequences to me in connection with my purchase of Units, and the Company has
advised me to seek the advice of experts in such areas prior to making this
investment.

                  (d) I am purchasing the Units for my own account for
investment purposes and not with a view to or for sale in connection with the
distribution of the Units, the Notes, the Warrants, or the shares of Common
Stock issuable upon exercise of the Warrants, nor with any present intention of
selling or otherwise disposing of all or any part of the foregoing securities. I
agree that I must bear the entire economic risk of my investment for an
indefinite period of time because, among other reasons, the Units have not been
registered under the Act or under the securities laws of any state and,
therefore, cannot be resold, pledged, assigned or otherwise disposed of unless
they are subsequently registered under the Act and under applicable securities
laws of certain states or an exemption from such registration is available.
Furthermore, I hereby acknowledge and agree that I will not sell, transfer,
pledge, encumber, give or otherwise dispose of, either publicly or privately,
the Units, the Notes, or the shares of Common Stock issuable upon exercise of
the Warrants. I hereby authorize the Company to place a legend denoting the
restrictions on the Units that may be issued to me, as well as the Notes,
Warrants, and shares of Common Stock issuable upon exercise of the Warrants.

                  (e) Except as described in my Purchaser Investor
Questionnaire, I am not a member of the National Association of Securities
Dealers, Inc. ("NASD"); I am not and have

                                        3
<PAGE>

not, for a period of twelve (12) months prior to the date of this Subscription
Agreement, been affiliated or associated with any company, firm, or other entity
which is a member of the NASD; and I do not own any stock or other interest in
any member of the NASD (other than interests acquired in open market purchases).

                  (f) I recognize that the Units, as an investment, involve a
high degree of risk including, but not limited to, the risk of economic losses
from operations of the Company and the total loss of my investment. I believe
that the investment in the Units is suitable for me based upon my investment
objectives and financial needs, and I have adequate means for providing for my
current financial needs and contingencies and have no need for liquidity with
respect to my investment in the Company.

                  (g) I have been given access to full and complete information
regarding the Company and have utilized such access to my satisfaction for the
purpose of obtaining information in addition to, or verifying information
included in, the Offering Documents and related documents, and I have either met
with or been given reasonable opportunity to meet with officers of the Company
for the purpose of asking questions of, and receiving answers from, such
officers concerning the terms and conditions of the offering of the Units and
the business and operations of the Company and to obtain any additional
information, to the extent reasonably available.

                  (h) I have such knowledge and experience in financial and
business matters as to be capable of evaluating the merits and risks of an
investment in the Units and have obtained, in my judgment, sufficient
information from the Company to evaluate the merits and risks of an investment
in the Company. I have not utilized any person as my purchaser representative as
defined in Regulation D under the Act in connection with evaluating such merits
and risks.

                  (i) I have relied solely upon my own investigation in making a
decision to invest in the Company.

                  (j) I have received no representation or warranty from the
Company or any of its officers, directors, employees or agents in respect of my
investment in the Company and I have received no information (written or
otherwise) from them relating to the Company or its business other than as set
forth in the Offering Documents. I am not participating in the offer as a result
of or subsequent to: (i) any advertisement, article, notice or other
communication published in any newspaper, magazine or similar media or broadcast
over television or radio or (ii) any seminar or meeting whose attendees have
been invited by any general solicitation or general advertising.

                  (k) I have had full opportunity to ask questions and to
receive satisfactory answers concerning the offering and other matters
pertaining to my investment and all such questions have been answered to my full
satisfaction.

                  (l) I have been provided an opportunity to obtain any
additional information concerning the offering and the Company and all other
information to the extent the Company possesses such information or can acquire
it without unreasonable effort or expense.

                                        4
<PAGE>

                  (m) I am an "accredited investor" as defined in Section 2(15)
of the Act and in Rule 501 promulgated thereunder. I can bear the entire
economic risk of the investment in the Units for an indefinite period of time
and I am knowledgeable about and experienced in investments in the equity
securities of non-publicly traded companies, including early stage companies. I
am acquiring the Units for my own account for investment purposes only and not
with a view to the resale or distribution of such securities within the meaning
of the Act. I am not acting as an underwriter or a conduit for sale to the
public or to others of unregistered securities, directly or indirectly, on
behalf of the Company or any person with respect to such securities.

                  (n) I understand that (i) the Units and the underlying
securities have not been registered under the Act, or the securities laws of
certain states in reliance on specific exemptions from registration, (ii) no
securities administrator of any state or the federal government has recommended
or endorsed this offering or made any finding or determination relating to the
fairness of an investment in the Company and (iii) the Company is relying on my
representations and agreements for the purpose of determining whether this
transaction meets the requirements of the exemptions afforded by the Act and
certain state securities laws.

                  (o) I understand that (i) since neither the offer nor sale of
the Units has been registered under the Act or the securities laws of any state,
the Units may not be sold, assigned, pledged or otherwise disposed of unless
they are so registered or an exemption from such registration is available, and
(ii) it is not anticipated that there will be any market for the resale of the
Units.

                  (p) I have been urged to seek independent advice from my
professional advisors relating to the suitability of an investment in the
Company in view of my overall financial needs and with respect to the legal and
tax implications of such investment.

                  (q) If the Investor is a corporation, company, trust, employee
benefit plan, individual retirement account, Keogh Plan, or other tax-exempt
entity, it is authorized and qualified to become an Investor in the Company and
the person signing this Subscription Agreement on behalf of such entity has been
duly authorized by such entity to do so.

                  (r) The information contained in my Purchaser Investor
Questionnaire, as well as any information which I have furnished to the Company
with respect to my financial position and business experience, is correct and
complete as of the date of this Subscription Agreement and, if there should be
any material change in such information prior to the Closing of the offering, I
will furnish such revised or corrected information to the Company.

         I hereby acknowledge and am aware that except for any rescission rights
that may be provided under applicable laws, I am not entitled to cancel,
terminate or revoke this subscription, and any agreements made in connection
herewith shall survive my death or disability.

         8. INDEMNIFICATION. I hereby agree to indemnify and hold harmless the
Company and its officers, directors, stockholders, employees, agents, and
counsel against any and all

                                        5
<PAGE>
losses, claims, demands, liabilities, and expenses (including reasonable legal
or other expenses, including reasonable attorneys' fees) incurred by each such
person in connection with defending or investigating any such claims or
liabilities, whether or not resulting in any liability to such person, to which
any such indemnified party may become subject under the Act, under any other
statute, at common law or otherwise, insofar as such losses, claims, demands,
liabilities and expenses (a) arise out of or are based upon any untrue statement
or alleged untrue statement of a material fact made by me and contained in this
Subscription Agreement or my Purchaser Investor Questionnaire, or (b) arise out
of or are based upon any breach by me of any representation, warranty, or
agreement made by me contained herein or therein.

         9. SEVERABILITY. In the event any parts of this Subscription Agreement
are found to be void, the remaining provisions of this Subscription Agreement
shall nevertheless be binding with the same effect as though the void parts were
deleted.

         10. CHOICE OF LAW AND JURISDICTION. This Subscription Agreement shall
be governed by and construed in all respects under the laws of the State of New
York, without reference to its conflict of laws rules or principles. Any suit,
action, proceeding or litigation arising out of or relating to this Agreement
shall be brought and prosecuted only in federal and state courts in the City,
County and State of New York. The parties hereby irrevocably and unconditionally
consent to the jurisdiction of each such court or courts located within the
State of New York and to service of process by registered or certified mail,
return receipt requested, or by any other manner provided by applicable law, and
hereby irrevocably and unconditionally waive any right to claim that any suit,
action, proceeding or litigation so commenced has been commenced in an
inconvenient forum.

         11. COUNTERPARTS. This Subscription Agreement may be executed in one or
more counterparts, each of which shall be deemed an original but all of which
together shall constitute one and the same instrument. The execution of this
Subscription Agreement may be by actual or facsimile signature.

         12. BENEFIT. This Subscription Agreement shall be binding upon and
inure to the benefit of the parties hereto.

         13. NOTICES AND ADDRESSES. All notices, offers, acceptance and any
other acts under this Subscription Agreement (except payment) shall be in
writing, and shall be sufficiently given if delivered to the addresses in
person, by Federal Express or similar courier delivery or by facsimile delivery,
as follows:

                  Investor:           At the address designated on the signature
                                      page of this Subscription Agreement.

                  The Company:        Bridgeline Software, Inc.
                                      10 Sixth Road
                                      Woburn, MA 01801
                                      Attn: Thomas Massie, President and CEO
                                      Fax: (781) 376-5033

                                        6
<PAGE>

                  With a copy to:     Morse, Barnes-Brown & Pendleton, P.C.
                                      Reservoir Place, 1601 Trapelo Road
                                      Waltham, MA 02451
                                      Fax: (781) 622-5933
                                      Attention: Joseph C. Marrow, Esq.

         or to such other address as any of them, by notice to the others may
designate from time to time. The transmission confirmation receipt from the
sender's facsimile machine shall be conclusive evidence of successful facsimile
delivery. Time shall be counted to, or from, as the case may be, the delivery in
person or by mailing.

         14. ENTIRE AGREEMENT. This Subscription Agreement constitutes the
entire agreement between the parties with respect to the subject matter hereof
and supersedes all prior oral and written agreements between the parties hereto
with respect to the subject matter hereof. This Subscription Agreement may not
be changed, waived, discharged, or terminated orally but, rather, only by a
statement in writing signed by the party or parties against which enforcement or
the change, waiver, discharge or termination is sought.

         15. SECTION HEADINGS. Section headings herein have been inserted for
reference only and shall not be deemed to limit or otherwise affect, in any
matter, or be deemed to interpret in whole or in part, any of the terms or
provisions of this Subscription Agreement.

         16. SURVIVAL OF REPRESENTATIONS, WARRANTIES AND AGREEMENTS. The
representations, warranties and agreements contained herein shall survive the
delivery of, and the payment for, the Units.

         17. ACCEPTANCE OF SUBSCRIPTION. The Company may accept this
Subscription Agreement at any time for all or any portion of the Units
subscribed for by executing a copy hereof as provided and notifying me within a
reasonable time thereafter.

RESIDENTS OF ALL STATES: THE UNITS OFFERED HEREBY HAVE NOT BEEN REGISTERED UNDER
THE SECURITIES ACT OF 1933, AS AMENDED, OR THE SECURITIES LAWS OF ANY STATE OR
OTHER JURISDICTION AND ARE BEING OFFERED AND SOLD IN RELIANCE ON EXEMPTIONS FROM
THE REGISTRATION REQUIREMENTS OF SAID ACT AND SUCH LAWS. THE UNITS ARE SUBJECT
TO REGISTRATIONS ON TRANSFERABILITY AND RESALE AND MAY NOT BE TRANSFERRED OR
RESOLD EXCEPT AS PERMITTED UNDER SAID ACT AND SUCH LAWS PURSUANT TO REGISTRATION
OR EXEMPTION THEREFROM. INVESTORS SHOULD BE AWARE THAT THEY WILL BE REQUIRED TO
BEAR THE FINANCIAL RISKS OF THIS INVESTMENT FOR AN INDEFINITE PERIOD OF TIME.
THE UNITS HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE SECURITIES AND EXCHANGE
COMMISSION, ANY STATE SECURITIES COMMISSION OR OTHER REGULATORY AUTHORITY, NOR
HAVE ANY OF THE FOREGOING AUTHORITIES PASSED UPON OR ENDORSED THE MERITS OF THIS
OFFERING OR THE ACCURACY

                                        7
<PAGE>

OR ADEQUACY OF THE OFFERING DOCUMENTS. ANY REPRESENTATION TO THE CONTRARY IS
UNLAWFUL.


































                                        8
<PAGE>

Manner in Which Title is to be Held. (check one)

___ Individual Ownership
___ Community Property
___ Joint Tenant with Right of Survivorship (both parties must sign)
___ Partnership
___ Tenants in common
___ Corporation
___ Trust
___ IRA or Keough
___ Other (please indicate)

                                           Dated:
                                                  ------------------------------

INDIVIDUAL INVESTORS                       ENTITY INVESTORS
                                           Name of entity, if any
- ---------------------------------
Signature (Individual)
                                           By:
                                               --------------------------------
                                                *Signature
                                           Its
- ---------------------------------               --------------------------------
Signature (Joint)                               Title
(all record holders must sign)                        --------------------------


- ---------------------------------          -------------------------------------
Name(s) Typed or Printed                   Name Typed or Printed

Address to Which Correspondence            Address to Which Correspondence
Should be Directed                         Should be Directed

- ---------------------------------          -------------------------------------

- ---------------------------------          -------------------------------------
City, State and Zip Code                   City, State and Zip Code

- ---------------------------------          -------------------------------------
Tax Identification or                      Tax Identification or
Social Security Number                     Social Security Number

          * IF UNITS ARE BEING SUBSCRIBED FOR BY ANY ENTITY, THE CERTIFICATE OF
          SIGNATORY ON THE NEXT PAGE MUST ALSO BE COMPLETED

The foregoing subscription is accepted and the Company hereby agrees to be bound
by its terms.

                                           BRIDGELINE SOFTWARE, INC.

Dated:                                     By:
       --------------------------              ---------------------------------
                                               Thomas Massie, President and CEO



<PAGE>

                            CERTIFICATE OF SIGNATORY


        (To be completed if Units are being subscribed for by an entity)



         I, _______________________________, the _______________________________
                 (NAME OF SIGNATORY)                         (TITLE)

                  of______________________________ "Entity"),               a


                  ________________________________________
                               (NAME OF ENTITY)


                  ________________________________________
                               (TYPE OF ENTITY)


hereby certify that I am empowered and duly authorized by the Entity to execute
the Subscription Agreement and to purchase the Units, and certify further that
the Subscription Agreement has been duly and validly executed on behalf of the
Entity and constitutes a legal and binding obligation of the Entity.

         IN WITNESS WHEREOF, I have set my hand this       day of        , 2006.



                                                       -------------------------
                                                              (SIGNATURE)






<PAGE>

                                   SCHEDULE A


Anderson, Neil T.
Auersperg, Paul
Balfour Associates LP
Burg Family Trust
Callahan, Brian
Coldrick, William
Davenport, Edward C.
Davis, James
Dupree, Thomas
Fortune Footwear
Freed, Albert
Herbert Wrabel Living Trust
High Capital Funding, LLC
Jia, Charles
Kotler, Elia
Landy, John
Lefebvre, Scott & Suzanne
Lowrance, Larry
Massie, Thomas & Theresa
McCoy, Robert S.
Panagolpolous, John & Betty
Rizos, George
Troutman, John
Baker, Christopher P.
Davis, James
Dupree, Thomas
Heffernan, Ronald
Kersch, Mitchell & Allison
McLemore, Robert
Mead, Ian D.
Seeger, Robert & Kara
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10.22
<SEQUENCE>36
<FILENAME>ex10-22_14663.txt
<DESCRIPTION>FORM OF SECURED PROMISSORY NOTE
<TEXT>
                                                                   EXHIBIT 10.22
                                                                   -------------


THIS NOTE HAS BEEN ACQUIRED FOR INVESTMENT PURPOSES ONLY AND MAY NOT BE
TRANSFERRED UNTIL (i) A REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933,
AS AMENDED (THE "ACT") SHALL HAVE BECOME EFFECTIVE WITH RESPECT THERETO OR (ii)
RECEIPT BY THE COMPANY OF AN OPINION OF COUNSEL REASONABLY SATISFACTORY TO THE
COMPANY TO THE EFFECT THAT REGISTRATION UNDER THE ACT IS NOT REQUIRED IN
CONNECTION WITH SUCH PROPOSED TRANSFER NOR IS IN VIOLATION OF ANY APPLICABLE
STATE SECURITIES LAWS. THIS LEGEND SHALL BE ENDORSED UPON ANY NOTE OR ANY
SECURITIES ISSUED IN EXCHANGE OR AS REPAYMENT FOR THIS NOTE.

THE INDEBTEDNESS EVIDENCED BY THIS NOTE IS SUBORDINATED AS SET FORTH HEREIN.

                            BRIDGELINE SOFTWARE, INC.

                             SECURED PROMISSORY NOTE

$_____                                                           _________, 2006

                  FOR VALUE RECEIVED, Bridgeline Software, Inc., a Delaware
corporation (the "Company") with its principal executive office at 10 Sixth
Road, Woburn, Massachusetts 01801, promises to pay to the order of ______, at
_____ (the "Payee" or the "Holder") or registered assigns on the earlier of
____, 2007 and the date of a closing of a firm underwriting initial public
offering of securities pursuant to a registration statement filed by the Company
under the Act ("IPO") of the Company's common stock, par value $0.001 per share
(the "Common Stock") (the "Maturity Date") the principal amount of ______
Dollars ($______) (the "Principal Amount"), in such coin or currency of the
United States of America as at the time of payment shall be legal tender for the
payment of public and private debts. Interest on this Note shall accrue on the
Principal Amount outstanding from time to time at a rate per annum computed in
accordance with Section 3 hereof. Interest shall accrue at the rate of 10% per
annum from the date hereof until ________, 2006 [such date to be six months from
the date of the closing of the Minimum Offering (as defined in the Offering,
which definition is set forth below)] and at the rate of 12% per annum from
___________, 2006 [such date to be six months from the date of the closing of
the Minimum Offering (as defined in the Offering, which definition is set forth
below)] to the Maturity Date. Accrued interest will be due and payable quarterly
commencing June 30, 2006. If the Maturity Date coincides with the IPO, 100% of
the principal amount of the Notes hereof shall be paid off and discharged.

THE NOTES WILL BE SECURED BY SUBSTANTIALLY ALL THE ASSETS OF THE COMPANY
PURSUANT TO A CERTAIN SECURITY AGREEMENT DATED AS OF THE DATE HEREOF, BY AND
BETWEEN THE COMPANY, AS DEBTOR, AND THE HOLDER, AS SECURED PARTY, PROVIDED
HOWEVER, THAT, IN ACCORDANCE WITH THE SECURITY AGREEMENT, THE NOTES ARE
SUBORDINATED IN PAYMENT TO THE OBLIGATIONS OWING TO SAND HILL FINANCE, LLC UNDER
A CERTAIN FINANCING AGREEMENT (THE "SENIOR AGREEMENT") BETWEEN THE COMPANY AND
SAND HILL FINANCE, LLC, DATED AS OF MARCH 29, 2005, AS AMENDED, SO LONG AS ANY
OBLIGATIONS ARE OUTSTANDING UNDER THE SENIOR AGREEMENT.

<PAGE>

         Copies of all payments shall be sent to Joseph Gunnar & Co., LLC, 30
Broad Street, New York, NY 10004, Attn: Stephan A. Stein, via facsimile (212)
440-9668 (Joseph Gunnar & Co., LLC is hereinafter referred to as the "Placement
Agent").

         Any payment by the Company pursuant to this Note shall be made without
set-off or counterclaim and in immediately available funds.

         The Company (i) waives presentment, demand, protest or notice of any
kind in connection with this Note and (ii) agrees, in the event of an Event of
Default (as defined in Section 5 below), to pay to the holder of this Note, on
demand, all costs and expenses (including reasonable legal fees) incurred in
connection with the enforcement and collection of this Note.

         In consideration for the loan represented by this Note, the Company
shall issue to the Payee, simultaneously herewith, a warrant to purchase _____
shares of Common Stock, which shares of Common Stock upon proper exercise of the
warrant shall be duly authorized, validly issued, fully paid and non-assessable.

         1. [Reserved.]

         2. Secured Loan. The obligations of the Company hereunder and under
similar notes aggregating the principal amount of up to $_____, with an
over-allotment option of $______, are secured by a General Security Agreement
dated as of ______, 2006 (the "Security Agreement"). This Note is part of a Unit
issue (the "Offering") conducted by the Company pursuant to the Confidential
Private Placement Memorandum dated _______, 2006 (including all Appendices
thereto, the "Offering Documents").

         3. Computation of Interest.

                  A. Base Interest Rate. Subject to subsections 3B, 3C and 5C
below, the outstanding Principal Amount shall bear interest at the rate set
forth above.

                  B. Penalty Interest. In the event the Note is not repaid on
the Maturity Date, the rate of interest applicable to the unpaid Principal
Amount shall be increased to fifteen percent (15%) per annum from and after the
Maturity Date provided, that in no event shall the interest rate exceed the
Maximum Rate provided in Section 3C below.

                  C. Maximum Rate. In the event that it is determined that,
under the laws relating to usury applicable to the Company or the indebtedness
evidenced by this Note ("Applicable Usury Laws"), the interest charges and fees
payable by the Company in connection herewith or in connection with any other
document or instrument executed and delivered in connection herewith cause the
effective interest rate applicable to the indebtedness evidenced by this Note to
exceed the maximum rate allowed by law (the "Maximum Rate"), then such interest
shall be recalculated for the period in question and any excess over the Maximum
Rate paid with respect to such period shall be credited, without further
agreement or notice, to the Principal Amount outstanding hereunder to reduce
said balance by such amount with the same force and effect as though the Company
had specifically designated such extra sums to be so applied to principal and
the Payee had agreed to accept such extra payment(s) as a premium-free
prepayment. All such deemed prepayments shall be applied to the principal
balance payable at maturity. In no

                                        2
<PAGE>

event shall any agreed-to or actual exaction as consideration for this Note
exceed the limits imposed or provided by Applicable Usury Laws in the
jurisdiction in which the Company is resident applicable to the use or detention
of money or to forbearance in seeking its collection in the jurisdiction in
which the Company is resident.

         4.Covenants of Company

                  A. Affirmative Covenants. The Company (for this purpose to
include all subsidiaries of the Company) covenants and agrees that, so long as
this Note shall be outstanding, it will perform the obligations set forth in
this Section 4A:

                           (i) Taxes and Levies. The Company will promptly pay
and discharge all taxes, assessments, and governmental charges or levies imposed
upon the Company or upon its income and profits, or upon any of its property,
before the same shall become delinquent or upon the closing of the offering in
which this Note is issued, as well as all claims for labor, materials and
supplies which, if unpaid, might become a lien or charge upon such properties or
any part thereof; provided, however, that the Company shall not be required to
pay and discharge any such tax, assessment, charge, levy or claim so long as the
validity thereof shall be contested in good faith by appropriate proceedings and
the Company shall set aside on its books adequate reserves in accordance with
generally accepted accounting principles ("GAAP") with respect to any such tax,
assessment, charge, levy or claim so contested;

                           (ii) Maintenance of Existence. The Company will do or
cause to be done all things reasonably necessary to preserve and keep in full
force and effect its corporate existence, rights and franchises and comply with
all laws applicable to the Company, except where the failure to comply would not
have a material adverse effect on the Company;

                           (iii) Maintenance of Property. The Company will at
all times maintain, preserve, protect and keep its property used or useful in
the conduct of its business in good repair, working order and condition, and
from time to time make all needful and proper repairs, renewals, replacements
and improvements thereto as shall be reasonably required in the conduct of its
business;

                           (iv) Insurance. The Company will, to the extent
necessary for the operation of its business, keep adequately insured by
financially sound reputable insurers, all property of a character usually
insured by similar corporations and carry such other insurance as is usually
carried by similar corporations;

                           (v) Books and Records. The Company will at all times
keep true and correct books, records and accounts reflecting all of its business
affairs and transactions in accordance with GAAP. Such books and records shall
be open at reasonable times and upon reasonable notice to the inspection of the
Payee or its agents;

                           (vi) Financial Statements. The Company will provide
the Placement Agent with unaudited quarterly financial statements within 45 days
after the end of each fiscal quarter commencing immediately after the Offering;

                                        3
<PAGE>

                           (vii) Notice of Certain Events. The Company will give
prompt written notice (with a description in reasonable detail) to the Payee of:

                                    (a) the occurrence of any Event of Default
or any event which, with the giving of notice or the lapse of time, would
constitute an Event of Default; and

                                    (b) the delivery of any notice effecting the
acceleration of any indebtedness in excess of $50,000; and

                           (viii) The Company will take all reasonable steps,
from and after the date hereof, to actively pursue effectiveness and closing of
the IPO, including obtaining all necessary audited financial statements,
preparing and filing a registration statement with the Securities and Exchange
Commission and processing the same to effectiveness, and compliance with Federal
and State law; provided that the Company can provide no assurance that it will
be able to close an IPO prior to the Maturity Date, if at all.

                  B. Negative Covenants. The Company (for this purpose to
include all subsidiaries of the Company) covenants and agrees that, so long as
this Note shall be outstanding, it will perform the obligations set forth in
this Section 4B (unless waived by or on behalf of the Holder):

                           (i) Liquidation, Dissolution, etc. The Company will
not liquidate or dissolve, consolidate with, or merge into or with, any other
corporation or other entity, except that any wholly-owned subsidiary may merge
with another wholly-owned subsidiary or with the Company (so long as the Company
is the surviving corporation and no Event of Default shall occur as a result
thereof), and except as provided in Section 4B(ix);

                           (ii) Sales of Assets. The Company will not sell,
transfer, lease or otherwise dispose of any of its properties or assets to any
person or entity, provided that this clause (ii) shall not restrict any
disposition made in the ordinary course of business and consisting of

                           (a) capital goods which are obsolete or have no
remaining useful life; or

                           (b) finished goods inventories;

                           (iii) Redemptions. The Company will not redeem or
repurchase any outstanding equity securities of the Company, except for (a)
repurchases of unvested or restricted shares of Common Stock at cost from
employees, consultants or members of the Board of Directors pursuant to
repurchase options of the Company (1) currently outstanding or (2) hereafter
entered into pursuant to a stock option plan or restricted stock plan approved
by the Company's Board of Directors;

                           (iv) Indebtedness. The Company will hereafter not
create, incur, assume or suffer to exist, contingently or otherwise, any
indebtedness for borrowed money except that outstanding on the date hereof and
indebtedness which have the prior approval of the Holder or its representative;

                                        4
<PAGE>

                           (v) Negative Pledge. Except as set forth in Schedule
4B(v) hereto, the Company will not hereafter create, incur, assume or suffer to
exist any mortgage, pledge, hypothecation, assignment, security interest,
encumbrance, lien (statutory or other), preference, priority or other security
agreement or preferential arrangement of any kind or nature whatsoever
(including any conditional sale or other title retention agreement and any
financing lease) (each, a "Lien") upon any of its property, revenues or assets,
whether now owned or hereafter acquired except that, subject to the approval of
the Holders, the Company may grant a senior Lien in its accounts receivable and
inventory to a commercial bank that in the future may agree to provide the
Company financing.

                           (vi) Investments. Except as set forth in the Offering
Documents, the Company will not hereafter purchase, own, invest in or otherwise
acquire, directly or indirectly, any stock or other securities or make or permit
to exist any investment or capital contribution or acquire any interest
whatsoever in any other person or entity or permit to exist any loans or
advances for such purposes except for investments in direct obligations of the
United States of America or any agency thereof, obligations guaranteed by the
United States of America and certificates of deposit or other obligations of any
bank or trust company organized under the laws of the United States or any state
thereof and having capital and surplus of at least $500,000,000; provided,
however, that nothing contained in this clause (vi) shall preclude the Company
from organizing subsidiaries.

                           (vii) Transactions with Affiliates. Except as set
forth in the Offering Documents, the Company will not hereafter enter into any
transaction, including, without limitation, the purchase, sale, lease or
exchange of property, real or personal, the purchase or sale of any security,
the borrowing or lending of any money, or the rendering of any service, with any
person or entity affiliated directly or indirectly with the Company (including
officers, directors and shareholders owning 5% or more of the Company's
outstanding capital stock), except in the ordinary course of and pursuant to the
reasonable requirements of its business and upon fair and reasonable terms not
less favorable than would be obtained in a comparable arms-length transaction
with any other person or entity not affiliated with the Company and, where the
transaction is valued at in excess of $50,000, with the prior consent of the
Holder or its representative, not to be unreasonably withheld or delayed.

                           (viii) Dividends. The Company will not declare or pay
any cash dividends or distributions on its outstanding capital stock.

                           (ix) No Merger, etc. The Company will not engage in a
merger, consolidation, share exchange, acquisition, reorganization, declaration
of bankruptcy, change in voting control, sale of voting control, or sale of
substantially all of its assets or business in which its current shareholders do
not own at least 51% of the outstanding shares of the surviving corporation or
entity.

         5. Events of Default

                  A. The term "Event of Default" shall mean any of the events
set forth in this Section 5A (the term "Company" for this purpose shall include
all subsidiaries of the Company):

                                        5
<PAGE>

                           (i) Non-Payment of Obligations. The Company shall
default in the payment of the principal or accrued interest of this Note as and
when the same shall become due and payable, whether by acceleration or otherwise
for ten (10) days.

                           (ii) Non-Performance of Affirmative Covenants. The
Company shall default in the due observance or performance of any covenant set
forth in Section 4A, which default shall continue uncured for thirty (30) days
after notice thereof.

                           (iii) Non-Performance of Negative Covenants. The
Company shall default in the due observance or performance of any covenant set
forth in Section 4B, which default shall continue uncured for thirty (30) days
after notice thereof.

                           (iv) Bankruptcy, Insolvency, etc. The Company shall:

                                    (a) admit in writing its inability to pay
its debts as they become due, excluding such debts in existence on the date of
the closing of the Offering;

                                    (b) apply for, consent to, or acquiesce in,
the appointment of a trustee, receiver, sequestrator or other custodian for the
Company or any of its property, or make a general assignment for the benefit of
creditors;

                                    (c) in the absence of such application,
consent or acquiesce in, permit or suffer to exist the appointment of a trustee,
receiver, sequestrator or other custodian for the Company or for any part of its
property;

                                    (d) permit or suffer to exist the
commencement of any bankruptcy, reorganization, debt arrangement or other case
or proceeding under any bankruptcy or insolvency law, or any dissolution,
winding up or liquidation proceeding, in respect of the Company, and, if such
case or proceeding is not commenced by the Company or converted to a voluntary
case, such case or proceeding shall be consented to or acquiesced in by the
Company or shall result in the entry of an order for relief; or

                                    (e) take any corporate or other action
authorizing, or in furtherance of, any of the foregoing.

                           (v) Cross-Default. The Company shall default in the
payment when due of any amount payable under any other obligation of the Company
for money borrowed in excess of $100,000.

                  B. Action if Bankruptcy. If any Event of Default described in
clauses (iv)(a) through (d) of Section 5A shall occur, the outstanding principal
amount of this Note and all other obligations hereunder shall automatically be
and become immediately due and payable, without notice or demand.

                  C. Action if Other Event of Default. If any Event of Default
(other than any Event of Default described in clauses (iv)(a) through (d) of
Section 5A) shall occur for any reason, whether voluntary or involuntary, and be
continuing, for 30 days after notice, the Holder may, upon

                                        6
<PAGE>

notice to the Company, declare all or any portion of the outstanding principal
amount of the Note, together with interest accrued thereon, to be due and
payable and any or all other obligations hereunder to be due and payable,
whereupon the full unpaid principal amount hereof, such accrued interest and any
and all other such obligations which shall be so declared due and payable shall
be and become immediately due and payable, without further notice, demand, or
presentment ("Acceleration").

                  In addition, during an Event of Default specifically described
in clause (i) of Section 5A, the Holder shall be entitled to (a) an increase in
the interest on the Notes at the rate of 15% per annum and (b) payment of 25% of
principal plus accrued interest on the Maturity Date, then the balance of
outstanding principal and interest due in eight (8) consecutive equal monthly
installments thereafter (the "Default Period Payments") with any balance of
payments outstanding due accelerated by the consummation of the IPO during such
period. In the event the Company is in default on any of the Default Period
Payments, the Holder shall be entitled to (a) an increase in the interest on the
Notes at the rate of 18% per annum, (b) any contract or other remedies
prescribed by law and equity, and (c) election of such number of the Company's
Board of Directors as shall equal 50% of the resulting number of Board members
for so long as the default continues and remains uncured by the Company with
respect to the Default Period Payments. In the event the Company is in
compliance with the Default Period Payments as scheduled, the Noteholders shall,
in their sole discretion, forbear from exercising any remedies other than the
interest increase to 15% per annum.

         6. Miscellaneous.

                  A. Parties in Interest. All covenants, agreements and
undertakings in this Note binding upon the Company or the Payee shall bind and
inure to the benefit of the successors and permitted assigns of the Company and
the Payee, respectively, whether so expressed or not.

                  B. Governing Law. This Note shall be governed by and construed
in all respects under the laws of the State of New York, without reference to
its conflict of laws rules or principles. Any suit, action, proceeding or
litigation arising out of or relating to this Note shall be brought and
prosecuted only in federal and state courts in the City, County and State of New
York. The parties hereby irrevocably and unconditionally consent to the
jurisdiction of each such court or courts located within the State of New York
and to service of process by registered or certified mail, return receipt
requested, or by any other manner provided by applicable law, and hereby
irrevocably and unconditionally waive any right to claim that any suit, action,
proceeding or litigation so commenced has been commenced in an inconvenient
forum.

                  C. Waiver of Jury Trial. THE PARTIES HEREBY KNOWINGLY,
VOLUNTARILY AND INTENTIONALLY WAIVE ANY RIGHTS THEY MAY HAVE TO A TRIAL BY JURY
IN RESPECT OF ANY LITIGATION BASED HEREON, OR ARISING OUT OF, UNDER, OR IN
CONNECTION WITH, THIS NOTE OR ANY OTHER DOCUMENT OR INSTRUMENT EXECUTED AND
DELIVERED IN CONNECTION HEREWITH, OR ANY COURSE OF CONDUCT, COURSE OF DEALING,
STATEMENTS (WHETHER VERBAL OR WRITTEN), OR ACTIONS OF THE PAYEE OR THE COMPANY.
THIS PROVISION IS A MATERIAL INDUCEMENT FOR THE PAYEE'S PURCHASING THIS NOTE.

                  D. Notice. All notices shall be in writing, and shall be
deemed given when actually delivered to a party at its address set forth herein
personally, by a reputable overnight

                                        7
<PAGE>

messenger, or by receipted facsimile transmission, if to the Company at
facsimile (781) 497-3033 and if to the Payee at facsimile (___) ________, unless
the Note holder has not executed an Noteholder Agency Agreement as set forth in
the Offering Documents, in which case the address for notice shall be as set
forth in the books and records of the Company.

                  E. The Placement Agent. The Placement Agent is the placement
agent for certain promissory notes, including the enclosed. Certain holders of
these Notes have signed a Noteholder Agency Agreement with the Placement Agent
that will affect the exercise of the rights set forth herein.

                  F. No Waiver. No delay in exercising any right hereunder shall
be deemed a waiver thereof, and no waiver shall be deemed to have any
application to any future default or exercise of rights hereunder.

                  G. Most Favored. If, subsequent to the date hereof and except
as provided in the Offering Documents with respect to the issuance or
_________(as defined in the Offering Documents), the Company completes a
financing involving notes similar hereto on any terms more favorable to the
holders thereof then the holders hereof, this Note, without any action on the
part of any person, shall be deemed to include such more favorable terms.

                  IN WITNESS WHEREOF, this Note has been executed and delivered
on the date specified above by the duly authorized representative of the
Company.

                                           BRIDGELINE SOFTWARE, INC.


                                           By: ________________________________
                                               Thomas Massie, President and CEO





                                        8
<PAGE>

                                 ACKNOWLEDGEMENT

State of New York      )
                       ss.:
County of _____        )

         On the _____ day of _________, in the year 2006, before me, the
undersigned, a Notary Public in and for said state, personally appeared Thomas
Massie, President and Chief Executive Officer, personally known to me or proved
to me on the basis of satisfactory evidence to be the person whose name is
subscribed to the within instrument and acknowledged to me that he executed the
same in his capacity and that by his signature on the instrument, the person or
the entity upon behalf of which the person acted, executed the instrument.


                                                    ----------------------------
                                                            Notary Public




























                                        9
<PAGE>

                         SCHEDULE 4B(v)--EXISTING LIENS

The Company maintains a $750,000 credit line under which it can borrow up to 80%
of its eligible outstanding accounts receivable. In connection with this credit
line, the lender obtained a first priority security interest in all assets of
the Company.


































                                       10
<PAGE>
                                   SCHEDULE A


    Investor Name                                    Amount of Note

Anderson, Neil T.                                      $300,000.00

Auersperg, Paul                                        $ 50,000.00

Balfour Associates LP                                  $200,000.00

Burg Family Trust                                      $ 50,000.00

Callahan, Brian                                        $100,000.00

Coldrick, William                                      $100,000.00

Davenport, Edward C.                                   $ 50,000.00

Davis, James                                           $200,000.00

Dupree, Thomas                                         $ 50,000.00

Fortune Footwear                                       $ 50,000.00

Freed, Albert                                          $ 50,000.00

Herbert Wrabel Living Trust                            $ 50,000.00

High Capital Funding, LLC                              $100,000.00

Jia, Charles                                           $ 50,000.00

Kotler, Elia                                           $ 50,000.00

Landy, John                                            $300,000.00

Lefebvre, Scott  & Suzanne                             $ 50,000.00

Lowrance, Larry                                        $100,000.00

Massie, Thomas & Theresa                               $100,000.00

McCoy, Robert S.                                       $ 50,000.00

Panagolpolous, John & Betty                            $100,000.00

Rizos, George                                          $ 50,000.00

Troutman, John                                         $ 50,000.00

Baker, Christopher P.                                  $100,000.00

Davis, James                                           $ 50,000.00

Dupree, Thomas                                         $ 50,000.00

Heffernan, Ronald                                      $100,000.00

Kersch, Mitchell & Allison                             $ 50,000.00

McLemore, Robert                                       $ 50,000.00

Mead, Ian D.                                           $100,000.00

Seeger, Robert & Kara                                  $ 50,000.00
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10.23
<SEQUENCE>37
<FILENAME>ex10-23_14663.txt
<DESCRIPTION>FORM OF WARRANT TO PURCHASE COMMON STOCK
<TEXT>
                                                                   EXHIBIT 10.23
                                                                   -------------

                        WARRANT TO PURCHASE COMMON STOCK
                                       OF
                            BRIDGELINE SOFTWARE, INC.

THIS WARRANT AND THE SHARES OF COMMON STOCK ISSUABLE UPON EXERCISE OF THIS
WARRANT HAVE BEEN ACQUIRED FOR INVESTMENT PURPOSES ONLY AND MAY NOT BE
TRANSFERRED UNTIL (i) A REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933,
AS AMENDED (THE "SECURITIES ACT") SHALL HAVE BECOME EFFECTIVE WITH RESPECT
THERETO OR (ii) RECEIPT BY THE COMPANY OF AN OPINION OF COUNSEL REASONABLY
SATISFACTORY TO THE COMPANY TO THE EFFECT THAT REGISTRATION UNDER THE SECURITIES
ACT IS NOT REQUIRED IN CONNECTION WITH SUCH PROPOSED TRANSFER NOR IS SUCH
TRANSFER IN VIOLATION OF ANY APPLICABLE STATE SECURITIES LAWS. THIS LEGEND SHALL
BE ENDORSED UPON ANY WARRANT ISSUED IN EXCHANGE FOR THIS WARRANT OR ANY SHARES
OF COMMON STOCK ISSUABLE UPON EXERCISE OF THIS WARRANT.

                   ------------------------------------------

         This is to Certify That, FOR VALUE RECEIVED, ____________, or assigns
("Holder"), is entitled to purchase, subject to the provisions of this Warrant,
from Bridgeline Software, Inc., a Delaware corporation (the "Company"),
____________ fully paid, validly issued and nonassessable shares of common
stock, par value $.001 per share, of the Company ("Common Stock") at a price per
share equal to $.001 (the "Initial Exercise Price"), which exercise may take
place at any time or from time to time during the period of five (5) years from
the day hereof (the "Exercise Period"). This Warrant comprises a portion of a
Unit being sold by the Company pursuant to the Confidential Private Placement
Memorandum dated April 7, 2006 (the "Memorandum"). Unless otherwise defined
herein, terms defined in this Warrant shall have the meaning as set forth in the
Memorandum. The Initial Exercise Price is subject to adjustment as set forth
herein. The number of shares of Common Stock to be received upon the exercise of
this Warrant and the price to be paid for each share of Common Stock may be
adjusted from time to time as hereinafter set forth. The shares of Common Stock
deliverable upon such exercise, and as adjusted from time to time, are
hereinafter sometimes referred to as "Warrant Shares" and the exercise price of
a share of Common Stock in effect at any time and as adjusted from time to time
is hereinafter sometimes referred to as the "Exercise Price".

         (a) EXERCISE OF WARRANT; CANCELLATION OF WARRANT.

                  (1) This Warrant may be exercised in whole or in part at any
time or from time to time during the Exercise Period; provided, however, that
(i) if either such day is a day on which banking institutions in the State of
New York are authorized by law to close, then on the next succeeding day which
shall not be such a day, and (ii) in the event of any merger, consolidation or
sale of substantially all the assets of the Company as an entirety, which is
anticipated to result in any distribution to the Company's stockholders (A)
prior to an IPO (as defined in the Memorandum), or (B) if an IPO has occurred in
any distribution to the Company's stockholders, prior to termination of the
Exercise Period, the Holder shall have the right to

<PAGE>

exercise this Warrant in conjunction with such transaction, into the kind and
amount of shares of stock and other securities and property (including cash)
receivable by a holder of the number of shares of Common Stock into which this
Warrant might have been exercisable immediately prior thereto. This Warrant may
be exercised by presentation and surrender hereof to the Company at its
principal office with the Purchase Form annexed hereto duly executed and
accompanied by payment of the Exercise Price for the number of Warrant Shares
specified in such form. As soon as practicable after each such exercise of the
Warrant, but not later than three (3) business days following the receipt of
good and available funds, the Company shall issue and deliver to the Holder a
certificate or certificate for the Warrant Shares issuable upon such exercise,
registered in the name of the Holder or its designee. If this Warrant should be
exercised in part only, the Company shall, upon surrender of this Warrant for
cancellation, execute and deliver a new Warrant evidencing the rights of the
Holder thereof to purchase the balance of the Warrant Shares purchasable
thereunder. Upon receipt by the Company of this Warrant at its office in proper
form for exercise accompanied by payment of the Exercise Price for the number of
Warrant Shares specified in such form, the Holder shall be deemed to be the
holder of record of the shares of Common Stock issuable upon such exercise,
notwithstanding that the stock transfer books of the Company shall then be
closed or that certificates representing such shares of Common Stock shall not
then be physically delivered to the Holder.

                  (2) At any time during the Exercise Period, the Holder may, at
its option, exercise this Warrant on a cashless basis by exchanging this
Warrant, in whole or in part (a "Warrant Exchange"), into the number of Warrant
Shares determined in accordance with this Section (a)(2), by surrendering this
Warrant at the principal office of the Company or at the office of its stock
transfer agent, accompanied by a notice stating such Holder's intent to effect
such exchange, the number of Warrant Shares to be exchanged and the date on
which the Holder requests that such Warrant Exchange occur (the "Notice of
Exchange"). The Warrant Exchange shall take place on the date specified in the
Notice of Exchange or, if later, the date the Notice of Exchange is received by
the Company (the "Exchange Date"). Certificates for the shares issuable upon
such Warrant Exchange and, if applicable, a new warrant of like tenor evidencing
the balance of the shares remaining subject to this Warrant, shall be issued as
of the Exchange Date and delivered to the Holder within seven (7) days following
the Exchange Date. In connection with any Warrant Exchange, this Warrant shall
represent the right to subscribe for and acquire the number of Warrant Shares
equal to (i) the number of Warrant Shares specified by the Holder in its Notice
of Exchange (the "Total Number") less (ii) the number of Warrant Shares equal to
the quotient obtained by dividing (A) the product of the Total Number and the
existing Exercise Price by (B) the current market value of a share of Common
Stock. Current market value shall have the meaning set forth Section (c) below,
except that for purposes hereof, the date of exercise, as used in such Section
(c), shall mean the Exchange Date.

         (b) RESERVATION OF SHARES. The Company shall at all times reserve for
issuance and/or delivery upon exercise of this Warrant such number of shares of
its Common Stock as shall be required for issuance and delivery upon exercise of
the Warrant.

         (c) FRACTIONAL SHARES. No fractional shares or script representing
fractional shares shall be issued upon the exercise of this Warrant. With
respect to any fraction of a share called for upon any exercise hereof, the
Company shall pay to the Holder an amount in cash equal to such fraction
multiplied by the current market value of a share, determined as follows:

                                        2
<PAGE>

                  (1) If the Common Stock is listed on a national securities
exchange or admitted to unlisted trading privileges on such exchange or listed
for trading on the Nasdaq National Market, the current market value shall be the
last reported sale price of the Common Stock on such exchange or market on the
last business day prior to the date of exercise of this Warrant or if no such
sale is made on such day, the average of the closing bid and asked prices for
such day on such exchange or market; or

                  (2) If the Common Stock is not so listed or admitted to
unlisted trading privileges, but is traded on the Nasdaq SmallCap Market, the
current market value shall be the average of the closing bid and asked prices
for such day on such market and if the Common Stock is not so traded, the
current market value shall be the mean of the last reported bid and asked prices
reported by the NASD Electronic Bulletin Board on the last business day prior to
the date of the exercise of this Warrant; or

                  (3) If the Common Stock is not so listed or admitted to
unlisted trading privileges and bid and asked prices are not so reported, the
current market value shall be an amount, not less than book value thereof as at
the end of the most recent fiscal year of the Company ending prior to the date
of the exercise of the Warrant, determined in such reasonable manner as may be
prescribed by the Board of Directors of the Company.

         (d) EXCHANGE, TRANSFER, ASSIGNMENT OR LOSS OF WARRANT. This Warrant is
exchangeable, without expense, at the option of the Holder, upon presentation
and surrender hereof to the Company or at the office of its stock transfer
agent, if any, for other warrants of different denominations entitling the
holder thereof to purchase in the aggregate the same number of shares of Common
Stock purchasable hereunder. Upon surrender of this Warrant to the Company at
its principal office or at the office of its stock transfer agent, if any, with
the Assignment Form annexed hereto duly executed and funds sufficient to pay any
transfer tax, the Company shall, without charge, execute and deliver a new
Warrant in the name of the assignee named in such instrument of assignment and
this Warrant shall promptly be cancelled. This Warrant may be divided or
combined with other warrants which carry the same rights upon presentation
hereof at the principal office of the Company or at the office of its stock
transfer agent, if any, together with a written notice specifying the names and
denominations in which new Warrants are to be issued and signed by the Holder
hereof. The term "Warrant" as used herein includes any Warrants into which this
Warrant may be divided or exchanged. Upon receipt by the Company of evidence
satisfactory to it of the loss, theft, destruction or mutilation of this
Warrant, and (in the case of loss, theft or destruction) of reasonably
satisfactory indemnification, and upon surrender and cancellation of this
Warrant, if mutilated, the Company will execute and deliver a new Warrant of
like tenor and date. Any such new Warrant executed and delivered shall
constitute an additional contractual obligation on the part of the Company,
whether or not this Warrant so lost, stolen, destroyed, or mutilated shall be at
any time enforceable by anyone.

         (e) RIGHTS OF THE HOLDER. The Holder shall not, by virtue hereof, be
entitled to any rights of a shareholder in the Company, either at law or equity,
and the rights of the Holder are limited to those expressed in the Warrant and
are not enforceable against the Company except to the extent set forth herein.

                                        3
<PAGE>

         (f) ANTI-DILUTION PROVISIONS. Subject to the provisions of Section l
hereof, the Exercise Price in effect at any time and the number and kind of
securities purchasable upon the exercise of the Warrant shall be subject to
adjustment from time to time upon the happening of certain events as follows:

                  (1) In case the Company shall hereafter (i) declare a dividend
or make a distribution on its outstanding shares of Common Stock in shares of
Common Stock, (ii) subdivide or reclassify its outstanding shares of Common
Stock into a greater number of shares, or (iii) combine or reclassify its
outstanding shares of Common Stock into a smaller number of shares, the Exercise
Price in effect at the time of the record date for such dividend or distribution
or of the effective date of such subdivision, combination or reclassification
shall be adjusted so that it shall equal the price determined by multiplying the
Exercise Price by a fraction, the denominator of which shall be the number of
shares of Common Stock outstanding after giving effect to such action, and the
numerator of which shall be the number of shares of Common Stock outstanding
immediately prior to such action with an appropriate adjustment in the number of
shares purchasable hereunder. Such adjustment shall be made successively
whenever any event listed above shall occur. Notwithstanding anything to the
contrary herein, no adjustments shall be made to the Exercise Price or the
number of Shares purchasable upon exercise of this Warrant, upon the occurrence
of an event described in Section (f)(1)(iii) that occurs prior to the IPO.

                  (2) Subject to the provisions of Subsection (6) below, in case
the Company shall fix a record date for the issuance of rights or warrants to
all holders of its Common Stock entitling them to subscribe for or purchase
shares of Common Stock (or securities convertible into Common Stock) at a price
(the "Subscription Price") (or having a conversion price per share) less than
the current market price of the Common Stock (as defined in Subsection (8)
below) on the record date mentioned below, or less than the Exercise Price on
such record date, the Exercise Price shall be adjusted so that the same shall
equal the lower of (i) the price determined by multiplying the Exercise Price in
effect immediately prior to the date of such issuance by a fraction, the
numerator of which shall be the sum of the number of shares of Common Stock
outstanding on the record date mentioned below and the number of additional
shares of Common Stock which the aggregate offering price of the total number of
shares of Common Stock so offered (or the aggregate conversion price of the
convertible securities so offered) would purchase at such current market price
per share of the Common Stock (as defined in Subsection (8) below), and the
denominator of which shall be the sum of the number of shares of Common Stock
outstanding on such record date and the number of additional shares of Common
Stock offered for subscription or purchase (or into which the convertible
securities so offered are convertible) or (ii) in the event the Subscription
Price is equal to or higher than the current market price but is less than the
Exercise Price, the price determined by multiplying the Exercise Price in effect
immediately prior to the date of issuance by a fraction, the numerator of which
shall be the sum of the number of shares outstanding on the record date
mentioned below and the number of additional shares of Common Stock which the
aggregate offering price of the total number of shares of Common Stock so
offered (or the aggregate conversion price of the convertible securities so
offered) would purchase at the Exercise Price in effect immediately prior to the
date of such issuance, and the denominator of which shall be the sum of the
number of shares of Common Stock outstanding on the record date mentioned below
and the number of

                                        4
<PAGE>

additional shares of Common Stock offered for subscription or purchase (or into
which the convertible securities so offered are convertible). Such adjustment
shall be made successively whenever such rights or warrants are issued and shall
become effective immediately after the record date for the determination of
shareholders entitled to receive such rights or warrants; and to the extent that
shares of Common Stock are not delivered (or securities convertible into Common
Stock are not delivered) after the expiration of such rights or warrants the
Exercise Price shall be readjusted to the Exercise Price which would then be in
effect had the adjustments made upon the issuance of such rights or warrants
been made upon the basis of delivery of only the number of shares of Common
Stock (or securities convertible into Common Stock) actually delivered.

                  (3) In case the Company shall hereafter distribute to the
holders of its Common Stock evidences of its indebtedness or assets (excluding
cash dividends or distributions and dividends or distributions referred to in
Subsection (1) above) or subscription rights or warrants (excluding those
referred to in Subsection (2) above), then in each such case the Exercise Price
in effect thereafter shall be determined by multiplying the Exercise Price in
effect immediately prior thereto by a fraction, the numerator of which shall be
the total number of shares of Common Stock outstanding multiplied by the current
market price per share of Common Stock (as defined in Subsection (8) below),
less the fair market value (as determined by the Company's Board of Directors)
of said assets or evidences of indebtedness so distributed or of such rights or
warrants, and the denominator of which shall be the total number of shares of
Common Stock outstanding multiplied by such current market price per share of
Common Stock. Such adjustment shall be made successively whenever such a record
date is fixed. Such adjustment shall be made whenever any such distribution is
made and shall become effective immediately after the record date for the
determination of shareholders entitled to receive such distribution.

                  (4) Subject to the provisions of Subsection (6) below, in case
the Company shall hereafter issue shares of its Common Stock (excluding shares
issued (a) in any of the transactions described in Subsection (1) above, (b)
upon exercise of options granted to the Company's officers, directors,
consultants and employees under its current stock option which provides for the
issuance of up to 3,600,000 (prior to the effectiveness of the "Reverse Stock
Split" described in the Private Placement Memorandum, but subject to appropriate
adjustment in the event of any stock dividend, stock split, combination or other
similar recapitalization affecting such shares) shares of Common Stock, if such
shares would otherwise be included in this Subsection (4), (c) upon exercise of
options, warrants and convertible debentures outstanding as of the date hereof
or upon the issuance or exercise of warrants or convertible debentures issued
pursuant to the offering set forth in the Memorandum (subject to appropriate
adjustment in the event of any stock dividend, stock split, combination or other
similar recapitalization affecting such shares), (d) to shareholders of any
corporation which merges into the Company in proportion to their stock holdings
of such corporation immediately prior to such merger, upon such merger, (e)
issued in a bona fide public offering pursuant to a firm commitment
underwriting, but only if no adjustment is required pursuant to any other
specific subsection of this Section (f) (without regard to Subsection (8) below)
with respect to the transaction giving rise to such rights) for a consideration
per share (the "Offering Price") less than the current market price per share
(as defined in Subsection (8) below on the date the Company fixes the offering
price of such additional shares or less than the Exercise Price, the

                                        5
<PAGE>

Exercise Price shall be adjusted immediately thereafter so that it shall equal
the lower of (i) the price determined by multiplying the Exercise Price in
effect immediately prior thereto by a fraction, the numerator of which shall be
the sum of the number of shares of Common Stock outstanding immediately prior to
the issuance of such additional shares and the number of shares of Common Stock
which the aggregate consideration received (determined as provided in Subsection
(8) below) for the issuance of such additional shares would purchase at such
current market price per share of Common Stock (as defined in Subsection (8)
below), and the denominator of which shall be the number of shares of Common
Stock outstanding immediately after the issuance of such additional shares or
(ii) in the event the Offering Price is equal to or higher than the current
market price per share but less than the Exercise Price, the price determined by
multiplying the Exercise Price in effect immediately prior to the date of
issuance by a fraction, the numerator of which shall be the number of shares of
Common Stock outstanding immediately prior to the issuance of such additional
shares and the number of shares of Common Stock which the aggregate
consideration received (determined as provided in subsection (7) below) for the
issuance of such additional shares would purchase at the Exercise Price in
effect immediately prior to the date of such issuance, and the denominator of
which shall be the number of shares of Common Stock outstanding immediately
after the issuance of such additional shares. Such adjustment shall be made
successively whenever such an issuance is made.

                  (5) Subject to the provisions of Subsection (6) below, in case
the Company shall hereafter issue any securities convertible into or
exchangeable for its Common Stock (excluding securities issued in transactions
described in Subsections (2) or (3) above or which are convertible or
exchangeable into securities described Subsections (4)(a)-(e) above) for a
consideration per share of Common Stock (the "Conversion Price") initially
deliverable upon conversion or exchange of such securities (determined as
provided in Subsection (7) below) less than the current market price per share
(as defined in Subsection (8) below) in effect immediately prior to the issuance
of such securities, or less than the Exercise Price, the Exercise Price shall be
adjusted immediately thereafter so that it shall equal the lower of (i) the
price determined by multiplying the Exercise Price in effect immediately prior
thereto by a fraction, the numerator of which shall be the sum of the number of
shares of Common Stock outstanding immediately prior to the issuance of such
securities and the number of shares of Common Stock which the aggregate
consideration received (determined as provided in Subsection (7) below) for such
securities would purchase at such current market price per share of Common Stock
(as defined in Subsection (8) below), and the denominator of which shall be the
sum of the number of shares of Common Stock outstanding immediately prior to
such issuance and the maximum number of shares of Common Stock of the Company
deliverable upon conversion of or in exchange for such securities at the initial
conversion or exchange price or rate or (ii) in the event the Conversion Price
is equal to or higher than the current market price per share but less than the
Exercise Price, the price determined by multiplying the Exercise Price in effect
immediately prior to the date of issuance by a fraction, the numerator of which
shall be the sum of the number of shares outstanding immediately prior to the
issuance of such securities and the number of shares of Common Stock which the
aggregate consideration received (determined as provided in subsection (8)
below) for such securities would purchase at the Exercise Price in effect
immediately prior to the date of such issuance, and the denominator of which
shall be the sum of the number of shares of Common Stock outstanding immediately
prior to the issuance of such securities and the maximum number of shares of
Common Stock of the Company deliverable

                                        6
<PAGE>

upon conversion of or in exchange for
such securities at the initial conversion or exchange price or rate. Such
adjustment shall be made successively whenever such an issuance is made.

                  (6) Whenever the Exercise Price payable upon exercise of each
Warrant is adjusted pursuant to Subsections (1), (2), (3), (4) and (5) above,
the number of Shares purchasable upon exercise of this Warrant shall
simultaneously be adjusted by multiplying the number of Shares initially
issuable upon exercise of this Warrant by the Exercise Price in effect on the
date hereof and dividing the product so obtained by the Exercise Price, as
adjusted.

                  (7) For purposes of any computation respecting consideration
received pursuant to Subsections (4) and (5) above, the following shall apply:

                           (A) in the case of the issuance of shares of Common
                  Stock for cash, the consideration shall be the amount of such
                  cash, provided that in no case shall any deduction be made for
                  any commissions, discounts or other expenses incurred by the
                  Company for any underwriting of the issue or otherwise in
                  connection therewith;

                           (B) in the case of the issuance of shares of Common
                  Stock for a consideration in whole or in part other than cash,
                  the consideration other than cash shall be deemed to be the
                  fair market value thereof as determined in good faith by the
                  Board of Directors of the Company (irrespective of the
                  accounting treatment thereof), whose determination shall be
                  conclusive; and

                           (C) in the case of the issuance of securities
                  convertible into or exchangeable for shares of Common Stock,
                  the aggregate consideration received therefor shall be deemed
                  to be the consideration received by the Company for the
                  issuance of such securities plus the additional minimum
                  consideration, if any, to be received by the Company upon the
                  conversion or exchange thereof (the consideration in each case
                  to be determined in the same manner as provided in clauses (A)
                  and (B) of this Subsection (7)).

                  (8) For the purpose of any computation under Subsections (2),
(3), (4) and (5) above, the current market price per share of Common Stock at
any date shall be determined in the manner set forth in Section (c) hereof
except that the current market price per share shall be deemed to be the higher
of (i) the average of the prices for 30 consecutive business days before such
date or (ii) the price on the business day immediately preceding such date.

                  (9) No adjustment in the Exercise Price shall be required
unless such adjustment would require an increase or decrease of at least five
cents ($0.05) in such price; provided, however, that any adjustments which by
reason of this Subsection (9) are not required to be made shall be carried
forward and taken into account in any subsequent adjustment required to be made
hereunder. All calculations under this Section (f) shall be made to the nearest
cent or to the nearest one-hundredth of a share, as the case may be. Anything in
this Section (f) to the contrary notwithstanding, the Company shall be entitled,
but shall not be required, to make such changes in the Exercise Price, in
addition to those required by this Section (f), as it shall determine, in its
sole discretion, to be advisable in order that any dividend

                                        7
<PAGE>

or distribution in shares of Common Stock, or any subdivision, reclassification
or combination of Common Stock, hereafter made by the Company shall not result
in any Federal Income tax liability to the holders of Common Stock or securities
convertible into Common Stock (including Warrants).

                  (10) Whenever the Exercise Price is adjusted, as herein
provided, the Company shall promptly but no later than 10 days after any request
for such an adjustment by the Holder, cause a notice setting forth the adjusted
Exercise Price and adjusted number of Shares issuable upon exercise of each
Warrant, and, if requested, information describing the transactions giving rise
to such adjustments, to be mailed to the Holders at their last addresses
appearing in the Warrant Register, and shall cause a certified copy thereof to
be mailed to its transfer agent, if any. In the event the Company does not
provide the Holder with such notice and information within 10 days of a request
by the Holder, the failure of which causes the Holder material damage, then
notwithstanding the provisions of this Section (f), the Exercise Price shall be
immediately adjusted to equal the lowest Offering Price, Subscription Price or
Conversion Price, as applicable, since the date of this Warrant, and the number
of shares issuable upon exercise of this Warrant shall be adjusted accordingly.
The Company may retain a firm of independent certified public accountants
selected by the Board of Directors (who may be the regular accountants employed
by the Company) to make any computation required by this Section (f), and a
certificate signed by such firm shall be conclusive evidence of the correctness
of such adjustment.

                  (11) In the event that at any time, as a result of an
adjustment made pursuant to Subsection (1) above, the Holder of this Warrant
thereafter shall become entitled to receive any shares of the Company, other
than Common Stock, thereafter the number of such other shares so receivable upon
exercise of this Warrant shall be subject to adjustment from time to time in a
manner and on terms as nearly equivalent as practicable to the provisions with
respect to the Common Stock contained in Subsections (1) to (10), inclusive
above.

                  (12) Irrespective of any adjustments in the Exercise Price or
the number or kind of shares purchasable upon exercise of this Warrant, Warrants
theretofore or thereafter issued may continue to express the same price and
number and kind of shares as are stated in the similar Warrants initially
issuable pursuant to this Agreement.

         (g) OFFICER'S CERTIFICATE. Whenever the Exercise Price shall be
adjusted as required by the provisions of the foregoing Section, the Company
shall forthwith file in the custody of its Secretary or an Assistant Secretary
at its principal office and with its stock transfer agent, if any, an officer's
certificate showing the adjusted Exercise Price determined as herein provided,
setting forth in reasonable detail the facts requiring such adjustment,
including a statement of the number of additional shares of Common Stock, if
any, and such other facts as shall be necessary to show the reason for and the
manner of computing such adjustment. Each such officer's certificate shall be
made available at all reasonable times for inspection by the holder or any
holder of a Warrant executed and delivered pursuant to Section (a) and the
Company shall, forthwith after each such adjustment, mail a copy by certified
mail of such certificate to the Holder or any such holder.

                                        8
<PAGE>

         (h) NOTICES TO WARRANT HOLDERS. So long as this Warrant shall be
outstanding, (i) if the Company shall pay any dividend or make any distribution
upon the Common Stock or (ii) if the Company shall offer to the holders of
Common Stock for subscription or purchase by them any share of any class or any
other rights or (iii) if any capital reorganization of the Company,
reclassification of the capital stock of the Company, consolidation or merger of
the Company with or into another corporation, sale, lease or transfer of all or
substantially all of the property and assets of the Company to another
corporation, or voluntary or involuntary dissolution, liquidation or winding up
of the Company shall be effected, then in any such case, the Company shall cause
to be mailed by certified mail to the Holder, at least fifteen days prior the
date specified in (x) or (y) below, as the case may be, a notice containing a
brief description of the proposed action and stating the date on which (x) a
record is to be taken for the purpose of such dividend, distribution or rights,
or (y) such reclassification, reorganization, consolidation, merger, conveyance,
lease, dissolution, liquidation or winding up is to take place and the date, if
any is to be fixed, as of which the holders of Common Stock or other securities
shall receive cash or other property deliverable upon such reclassification,
reorganization, consolidation, merger, conveyance, dissolution, liquidation or
winding up.

         (i) RECLASSIFICATION, REORGANIZATION OR MERGER. In case of any
reclassification, capital reorganization or other change of outstanding shares
of Common Stock of the Company, or in case of any consolidation or merger of the
Company with or into another corporation (other than a merger with a subsidiary
in which merger the Company is the continuing corporation and which does not
result in any reclassification, capital reorganization or other change of
outstanding shares of Common Stock of the class issuable upon exercise of this
Warrant) or in case of any sale, lease or conveyance to another corporation of
the property of the Company as an entirety, the Company shall, as a condition
precedent to such transaction, cause effective provisions to be made so that the
Holder shall have the right thereafter by exercising this Warrant at any time
prior to the expiration of the Warrant, to purchase the kind and amount of
shares of stock and other securities and property receivable upon such
reclassification, capital reorganization and other change, consolidation,
merger, sale or conveyance by a holder of the number of shares of Common Stock
which might have been purchased upon exercise of this Warrant immediately prior
to such reclassification, change, consolidation, merger, sale or conveyance. Any
such provision shall include provision for adjustments which shall be as nearly
equivalent as may be practicable to the adjustments provided for in this
Warrant. The foregoing provisions of this Section (i) shall similarly apply to
successive reclassifications, capital reorganizations and changes of shares of
Common Stock and to successive consolidations, mergers, sales or conveyances. In
the event that in connection with any such capital reorganization or
reclassification, consolidation, merger, sale or conveyance, additional shares
of Common Stock shall be issued in exchange, conversion, substitution or
payment, in whole or in part, for a security of the Company other than Common
Stock, any such issue shall be treated as an issue of Common Stock covered by
the provisions of Subsection (1) of Section (f) hereof.

         (j) REGISTRATION RIGHTS.

                  (1) The Warrant Shares will be registered in an initial public
offering of the Company's securities pursuant to a registration statement filed
on a appropriate form (the "Registration Statement") with the SEC and the
Company covenants and agrees to maintain the effectiveness of the Registration
Statement until all Warrant Shares have been sold (the

                                        9
<PAGE>

"Expiration Date"). Notwithstanding the foregoing, in the event that, prior to
the Expiration Date, the Warrant Shares cease to be eligible for inclusion in
such Registration Statement to the extent necessary to permit the Holder to
exercise the Warrant and sell the Warrant Shares without restriction under the
Act, the Company will promptly (and in any event within thirty (30) days of the
date that any Warrant Shares cease to be so eligible), amend or file a new
Registration Statement under the Act on a form eligible for use by the Company
for the registration of such securities and use its best efforts to have such
Registration Statement declared effective by the SEC as soon as practicable
after such filing, which Registration Statement shall include such information
as may be required to permit the exercise of the Warrant and the sale of the
Warrant Shares without restriction under the Act. The Holder acknowledges and
agrees that the Warrant shall be exercisable pursuant to any such Registration
Statement only at such times as the Registration Statement is effective or in
accordance with any applicable exemption from the registration requirements of
the Act. Upon such Registration Statement's being declared effective by the SEC,
the Company shall use its best efforts to cause the Registration Statement to
remain effective for a period of at least six (6) consecutive months from the
date that the Holders of the Warrants and Warrant Shares covered by such
Registration Statement are first given the opportunity to sell all of such
securities. In the event that ninety (90) days prior to the Expiration Date, the
Registration Statement registering the Warrant Shares is not effective or is
withdrawn or the SEC issues a stop order suspending the effectiveness of such
Registration Statement, the Company hereby agrees to extend the Expiration Date
for (x) an additional ninety (90) days or (y) until the Registration Statement
is declared effective by the SEC, whichever period is longer. During such time
as the Warrant Shares are registered pursuant to any Registration Statement
under the Act, the Company further covenants and agrees to make timely filings
of all documents required to be filed under the Act or the Exchange Act in order
to ensure that the Registration Statement, including the documents incorporated
by reference therein, if any, do not contain an untrue statement of a material
fact or omit to state any material fact required to be stated therein or
necessary in order to make the statements therein not misleading.

                  (2) The Company will, until such time as the Warrant Shares
may be sold under Rule 144 without volume limitation:

                           (A) prepare and file with the SEC such amendments to
                  such Registration Statement and supplements to the prospectus
                  contained therein as may be necessary to keep such
                  Registration Statement effective;

                           (B) furnish to the Holders participating in such
                  registration and to the underwriters of the securities being
                  registered such reasonable number of copies of the
                  Registration Statement, preliminary prospectus, final
                  prospectus and such other documents as such underwriters may
                  reasonably request in order to facilitate the public offering
                  of such securities;

                           (C) use its best efforts to register or qualify the
                  securities covered by such Registration Statement under such
                  state securities or blue sky laws of such jurisdictions as the
                  Holders may reasonably request in writing within twenty (20)
                  days following the original filing of such Registration
                  Statement, except that the Company shall not for any purpose
                  be required to execute a general consent to

                                       10
<PAGE>

                  service of process or to qualify to do business as a foreign
                  corporation in any jurisdiction wherein it is not so qualified
                  or subject itself to taxation in any such jurisdiction;

                           (D) notify the Holders, promptly after it shall
                  receive notice thereof, of the time when such Registration
                  Statement has become effective or a supplement to any
                  prospectus forming a part of such Registration Statement has
                  been filed;

                           (E) notify the Holders promptly of any request by the
                  SEC for the amending or supplementing of such Registration
                  Statement or prospectus or for additional information;

                           (F) prepare and file with the SEC, promptly upon the
                  request of any Holders, any amendments or supplements to such
                  Registration Statement or prospectus which, in the opinion of
                  counsel for such Holders (and concurred in by counsel for the
                  Company), is required under the Act or the rules and
                  regulations thereunder in connection with the distribution of
                  Common Stock by such Holders;

                           (G) prepare and promptly file with the SEC and
                  promptly notify such Holders of the filing of such amendment
                  or supplement to such Registration Statement or prospectus as
                  may be necessary to correct any statements or omissions if, at
                  the time when a prospectus relating to such securities is
                  required to be delivered under the Act, any event shall have
                  occurred as the result of which any such prospectus or any
                  other prospectus as then in effect would include an untrue
                  statement of a material fact or omit to state any material
                  fact necessary to make the statements therein, in the light of
                  the circumstances in which they were made, not misleading; and

                           (H) advise the Holders, promptly after it shall
                  receive notice or obtain knowledge thereof, of the issuance of
                  any stop order by the SEC suspending the effectiveness of such
                  Registration Statement or the initiation or threatening of any
                  proceeding for that purpose and promptly use its best efforts
                  to prevent the issuance of any stop order or to obtain its
                  withdrawal if such stop order should be issued.

         The Company may require each Holder of Warrant Shares as to which any
registration is being effected to furnish to the Company such information
regarding the distribution of such Warrant Shares as the Company may from time
to time reasonably request in writing.

                  (3) All fees, costs and expenses of and incidental to such
registration, inclusion and public offering in connection therewith shall be
borne by the Company, provided, however, that the Holders shall bear their pro
rata share of the underwriting discount and commissions and transfer taxes. The
fees, costs and expenses of registration to be borne by the Company as provided
above shall include, without limitation, all registration, filing, and NASD
fees, printing expenses, fees and disbursements of counsel and accountants for
the Company, and all legal fees and disbursements and other expenses of
complying with state securities or blue sky laws of any jurisdictions in which
the securities to be offered are to be registered and

                                       11
<PAGE>

qualified (except as provided above), and, in the case of a registration, other
than such registration set forth in Section (c)(8), fees of one (1) counsel for
the Holders of the Warrant Shares. Fees and disbursements of counsel and
accountants for the Holders and any other expenses incurred by the Holders not
expressly included above shall be borne by the Holders.

                  (4) The Company will indemnify and hold harmless each Holder
of Warrant Shares which are included in a Registration Statement pursuant to the
provisions of Section (j)(1) hereof, its directors and officers, and any
underwriter (as defined in the Act) for such Holder and each person, if any, who
controls such Holder or such underwriter within the meaning of the Act, from and
against, and will reimburse such Holder and each such underwriter and
controlling person with respect to, any and all loss, damage, liability, cost
and expense to which such Holder or any such underwriter or controlling person
may become subject under the Act or otherwise, insofar as such losses, damages,
liabilities, costs or expenses are caused by any untrue statement or alleged
untrue statement of any material fact contained in such Registration Statement,
any prospectus contained therein or any amendment or supplement thereto, or
arise out of or are based upon the omission or alleged omission to state therein
a material fact required to be stated therein or necessary to make the
statements therein, in light of the circumstances in which they were made, not
misleading; provided, however, that the Company will not be liable in any such
case to the extent that any such loss, damage, liability, cost or expenses
arises out of or is based upon an untrue statement or alleged untrue statement
or omission or alleged omission so made in conformity with information furnished
by such Holder, such underwriter or such controlling person in writing
specifically for use in the preparation thereof.

                  (5) Each Holder of Warrant Shares included in a registration
pursuant to the provisions of Section (j)(1) hereof will indemnify and hold
harmless the Company, its directors and officers, any controlling person and any
underwriter from and against, and will reimburse the Company, its directors and
officers, any controlling person and any underwriter with respect to, any and
all loss, damage, liability, cost or expense to which the Company or any
controlling person and/or any underwriter may become subject under the Act or
otherwise, insofar as such losses, damages, liabilities, costs or expenses are
caused by any untrue statement or alleged untrue statement of any material fact
contained in such Registration Statement, any prospectus contained therein or
any amendment or supplement thereto, or arise out of or are based upon the
omission or alleged omission to state therein a material fact required to be
stated therein or necessary to make the statements therein, in light of the
circumstances in which they were made, not misleading, in each case to the
extent, but only to the extent, that such untrue statement or alleged untrue
statement or omission or alleged omission was so made in reliance upon and in
strict conformity with written information furnished by or on behalf of such
Holder specifically for use in the preparation thereof.

                  (6) Promptly after receipt by an indemnified party pursuant to
the provisions of Sections (j)(4) or (5) of notice of the commencement of any
action involving the subject matter of the foregoing indemnity provisions such
indemnified party will, if a claim thereof is to be made against the
indemnifying party pursuant to the provisions of said Sections (j)(4) or (5),
promptly notify the indemnifying party of the commencement thereof; but the
omission to so notify the indemnifying party will not relieve it from any
liability which it may have to any indemnified party otherwise than hereunder.
In case such action is brought against any indemnified party and it notifies the
indemnifying party of the commencement thereof, the

                                       12
<PAGE>

indemnifying party shall have the right to participate in, and, to the extent
that it may wish, jointly with any other indemnifying party similarly notified,
to assume the defense thereof, with counsel satisfactory to such indemnified
party, provided, however, if counsel for the indemnifying party concludes that a
single counsel cannot under applicable legal and ethical considerations,
represent both the indemnifying party and the indemnified party, the indemnified
party or parties have the right to select separate counsel to participate in the
defense of such action on behalf of such indemnified party or parties. After
notice from the indemnifying party to such indemnified party of its election so
to assume the defense thereof, the indemnifying party will not be liable to such
indemnified party pursuant to the provisions of said Sections (j)(4) or (5) for
any legal or other expense subsequently incurred by such indemnified party in
connection with the defense thereof other than reasonable costs of
investigation, unless (i) the indemnified party shall have employed counsel in
accordance with the provisions of the preceding sentence, (ii) the indemnifying
party shall not have employed counsel satisfactory to the indemnified party to
represent the indemnified party within a reasonable time after the notice of the
commencement of the action or (iii) the indemnifying party has authorized the
employment of counsel for the indemnified party at the expense of the
indemnifying party.

                  (7) If the Company fails to carry out its obligations under
this Section (j), the Holder shall be entitled to tender this Warrant for a sum
equal to the number of Warrant Shares multiplied by the current market thereof
less the Exercise Price thereof and a person who has exercised this Warrant
shall be entitled to tender the Common Stock thereby purchased for the current
market value, and in each case to be paid therefor in 10 business days
thereafter.

                  (8) If the Warrant Shares have been included in a Registration
Statement filed with the SEC in connection with the IPO and if such Registration
Statement is declared effective, and for so long as it remains effective, the
Holder shall have no rights to demand a registration under Section (j)(1)
hereof.

                                   BRIDGELINE SOFTWARE, INC.

                                   By: ______________________________
                                       Name: Thomas Massie
Dated: _______, 2006                   Title: President, Chief Executive Officer


                                       13
<PAGE>

                                  PURCHASE FORM


                                                       Dated

                  The undersigned hereby irrevocably elects to exercise the
within Warrant to the extent of purchasing shares of Common Stock and hereby
makes payment of in payment of the actual exercise price thereof _____ (check)
or elects a cashless exercise with respect thereto ______ (check) as to a total
of ___________ shares.

                       __________________________________

                     INSTRUCTIONS FOR REGISTRATION OF STOCK

Name
(Please typewrite or print in block letters)


Address


Signature


                                 ASSIGNMENT FORM

                  FOR VALUE RECEIVED, _______________________ hereby sells,
assigns and transfers unto


Name
(Please typewrite or print in block letters)


Address

the right to purchase Common Stock represented by this Warrant to the extent of
shares as to which such right is exercisable and does hereby irrevocably
constitute and appoint Attorney, to transfer the same on the books of the
Company with full power of substitution in the premises.

Date

Signature



                                       14
<PAGE>
                                   SCHEDULE A

  Investor Name                                         Warrants

Anderson, Neil T.                                        30,000

Auersperg, Paul                                           5,000

Balfour Associates LP                                    20,000

Burg Family Trust                                         5,000

Callahan, Brian                                          10,000

Coldrick, William                                        10,000

Davenport, Edward C.                                      5,000

Davis, James                                             20,000

Dupree, Thomas                                            5,000

Fortune Footwear                                          5,000

Freed, Albert                                             5,000

Herbert Wrabel Living Trust                               5,000

High Capital Funding, LLC                                10,000

Jia, Charles                                              5,000

Kotler, Elia                                              5,000

Landy, John                                              30,000

Lefebvre, Scott  & Suzanne                                5,000

Lowrance, Larry                                          10,000

Massie, Thomas & Theresa                                 10,000

McCoy, Robert S.                                          5,000

Panagolpolous, John & Betty                              10,000

Rizos, George                                             5,000

Troutman, John                                            5,000

Baker, Christopher P.                                    10,000

Davis, James                                              5,000

Dupree, Thomas                                            5,000

Heffernan, Ronald                                        10,000

Kersch, Mitchell & Allison                                5,000

McLemore, Robert                                          5,000

Mead, Ian D.                                             10,000

Seeger, Robert & Kara                                     5,000

<PAGE>

                                    AMENDMENT
                                       TO
                        WARRANT TO PURCHASE COMMON STOCK
                                       OF
                            BRIDGELINE SOFTWARE, INC.

         This AMENDMENT (the "Amendment") to Warrant to Purchase Common Stock of
Bridgeline Software, Inc. dated as of ___, 2006, (the "Warrant") is made and
entered into as of ________, 2006, the date of the grant of the Warrant, by and
between ________, (the "Holder"), on the one hand, and Bridgeline Software,
Inc., a Delaware corporation (the "Company"), on the other hand.

                                    RECITALS

         WHEREAS, in April 2006, the Company sold a certain number of units of
its securities, each unit consisting of: (a) a senior secured note in principal
amount of $100,000, and (b) a five-year warrant to purchase 10,000 shares of the
Company's common stock, par value $.001 per share (the "Warrant"), at a purchase
price of $100,000 per unit, in a private placement transaction without
registration and in reliance on the private offering exemptions contained in
Sections 4(2), 4(6) and/or 3(b) of the Securities Act of 1933, as amended, and
on Regulation D promulgated thereunder, and in reliance on similar exemptions
under applicable state laws as a transaction not involving a public offering
(the "Private Placement"); and,

         WHEREAS, Joseph Gunnar & Co., LLC acted as the placement agent in
connection with the Private Placement; and,

         WHEREAS, under the terms of Section (j)(7) the Warrant, in the event
the Company fails to carry out its obligations under Section (j) (Registration
Rights) of the Warrant, the Holder will be entitled to tender his Warrant for a
sum certain which sum is calculated as set forth in Section (j)(7) (the "Put
Right"); and,

         WHEREAS, the Company and Joseph Gunnar & Co., LLC have come to the
conclusion that the Put Right may adversely affect the ability of the Company to
conclude other equity financings or may impair the valuation of the Company due
to the accounting implications of the Put Right, and the Company and Joseph
Gunnar & Co., LLC have requested that the Holders of the Warrants execute an
amendment to delete the Put Right in its entirety; and,

         WHEREAS, the Holder, in good faith, wishes to execute such amendment to
delete the Put Right in its entirety; and,

         WHEREAS, both the Company and the Holder deem it in the best interests
of the Company for the Holder to delete the Put Right in its entirety in
connection with the Private Placement.

         NOW, THEREFORE, in consideration of good and valuable consideration,
the receipt and sufficiency of which is hereby acknowledged by both parties
hereto, the parties agree as follows:

         Section (j)(7) of the Warrant is hereby amended and restated to read in
its entirety as follows:

         "(7) INTENTIONALLY DELETED."

                           [SIGNATURE PAGE TO FOLLOW]

<PAGE>

         IN WITNESS WHEREOF, this Amendment is entered into as of the date first
set forth above.


                                     HOLDER


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

AGREED AND ACCEPTED BY:
BRIDGELINE SOFTWARE, INC.

By:
    -------------------------------------
    Thomas Massie, CEO and President


</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10.24
<SEQUENCE>38
<FILENAME>ex10-24_14663.txt
<DESCRIPTION>FORM OF WARRANT TO PURCHASE COMMON STOCK
<TEXT>
                                                                   EXHIBIT 10.24
                                                                   -------------


                        WARRANT TO PURCHASE COMMON STOCK

                                       OF

                            BRIDGELINE SOFTWARE, INC.

THIS WARRANT AND THE SHARES OF COMMON STOCK ISSUABLE UPON EXERCISE OF THIS
WARRANT HAVE BEEN ACQUIRED FOR INVESTMENT PURPOSES ONLY AND MAY NOT BE
TRANSFERRED UNTIL (i) A REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933,
AS AMENDED (THE "SECURITIES ACT") SHALL HAVE BECOME EFFECTIVE WITH RESPECT
THERETO OR (ii) RECEIPT BY THE COMPANY OF AN OPINION OF COUNSEL REASONABLY
SATISFACTORY TO THE COMPANY TO THE EFFECT THAT REGISTRATION UNDER THE SECURITIES
ACT IS NOT REQUIRED IN CONNECTION WITH SUCH PROPOSED TRANSFER NOR IS SUCH
TRANSFER IN VIOLATION OF ANY APPLICABLE STATE SECURITIES LAWS. THIS LEGEND SHALL
BE ENDORSED UPON ANY WARRANT ISSUED IN EXCHANGE FOR THIS WARRANT OR ANY SHARES
OF COMMON STOCK ISSUABLE UPON EXERCISE OF THIS WARRANT.

                   ------------------------------------------

         This is to Certify That, FOR VALUE RECEIVED, _____________, or assigns
("Holder"), is entitled to purchase, subject to the provisions of this Warrant,
from Bridgeline Software, Inc., a Delaware corporation (the "Company"), ________
fully paid, validly issued and nonassessable shares of common stock, par value
$.001 per share, of the Company ("Common Stock") at an exercise price equal to
the IPO (as defined in the Memorandum (as defined below)) price or, in the event
there is no IPO as contemplated under the Memorandum, $4.68 per share (which
price reflects the reverse stock split effected on April 7, 2006) (the "Exercise
Price"), which exercise may take place at any time or from time to time during
the period of five (5) years from the day hereof, provided, however, that no
such exercise may take place prior to the earlier of (i) the IPO and (ii) April
21, 2008 (the "Exercise Period"). This Warrant comprises a portion of the fee
being paid to the Placement Agent (as defined in the Memorandum) pursuant to the
Confidential Private Placement Memorandum dated April 7, 2006 (the
"Memorandum"). Unless otherwise defined herein, terms defined in this Warrant
shall have the meaning as set forth in the Memorandum. The Exercise Price is
subject to adjustment as set forth herein. The number of shares of Common Stock
to be received upon the exercise of this Warrant and the price to be paid for
each share of Common Stock may be adjusted from time to time as hereinafter set
forth. The shares of Common Stock deliverable upon such exercise, and as
adjusted from time to time, are hereinafter sometimes referred to as "Warrant
Shares" and the exercise price of a share of Common Stock in effect at any time
and as adjusted from time to time is hereinafter sometimes referred to as the
"Exercise Price".

         (a) EXERCISE OF WARRANT; CANCELLATION OF WARRANT.

                  (1) This Warrant may be exercised in whole or in part at any
time or from time to time during the Exercise Period; provided, however, that
(i) if either such day is a day on which banking institutions in the State of
New York are authorized by law to close, then on the next succeeding day which
shall not be such a day, and (ii) in the event of any merger, consolidation or
sale of substantially all the assets of the Company as an entirety, which is
anticipated to result in any distribution to the Company's stockholders (A)
prior to an IPO, or

                                        2
<PAGE>

(B) if an IPO has occurred in any distribution to the Company's stockholders,
prior to termination of the Exercise Period, the Holder shall have the right to
exercise this Warrant in conjunction with such transaction, into the kind and
amount of shares of stock and other securities and property (including cash)
receivable by a holder of the number of shares of Common Stock into which this
Warrant might have been exercisable immediately prior thereto. This Warrant may
be exercised by presentation and surrender hereof to the Company at its
principal office with the Purchase Form annexed hereto duly executed and
accompanied by payment of the Exercise Price for the number of Warrant Shares
specified in such form. As soon as practicable after each such exercise of the
Warrant, but not later than three (3) business days following the receipt of
good and available funds, the Company shall issue and deliver to the Holder a
certificate or certificate for the Warrant Shares issuable upon such exercise,
registered in the name of the Holder or its designee. If this Warrant should be
exercised in part only, the Company shall, upon surrender of this Warrant for
cancellation, execute and deliver a new Warrant evidencing the rights of the
Holder thereof to purchase the balance of the Warrant Shares purchasable
thereunder. Upon receipt by the Company of this Warrant at its office in proper
form for exercise accompanied by payment of the Exercise Price for the number of
Warrant Shares specified in such form, the Holder shall be deemed to be the
holder of record of the shares of Common Stock issuable upon such exercise,
notwithstanding that the stock transfer books of the Company shall then be
closed or that certificates representing such shares of Common Stock shall not
then be physically delivered to the Holder.

                  (2) At any time during the Exercise Period, the Holder may, at
its option, exercise this Warrant on a cashless basis by exchanging this
Warrant, in whole or in part (a "Warrant Exchange"), into the number of Warrant
Shares determined in accordance with this Section (a)(2), by surrendering this
Warrant at the principal office of the Company or at the office of its stock
transfer agent, accompanied by a notice stating such Holder's intent to effect
such exchange, the number of Warrant Shares to be exchanged and the date on
which the Holder requests that such Warrant Exchange occur (the "Notice of
Exchange"). The Warrant Exchange shall take place on the date specified in the
Notice of Exchange or, if later, the date the Notice of Exchange is received by
the Company (the "Exchange Date"). Certificates for the shares issuable upon
such Warrant Exchange and, if applicable, a new warrant of like tenor evidencing
the balance of the shares remaining subject to this Warrant, shall be issued as
of the Exchange Date and delivered to the Holder within seven (7) days following
the Exchange Date. In connection with any Warrant Exchange, this Warrant shall
represent the right to subscribe for and acquire the number of Warrant Shares
equal to (i) the number of Warrant Shares specified by the Holder in its Notice
of Exchange (the "Total Number") less (ii) the number of Warrant Shares equal to
the quotient obtained by dividing (A) the product of the Total Number and the
existing Exercise Price by (B) the current market value of a share of Common
Stock. Current market value shall have the meaning set forth Section (c) below,
except that for purposes hereof, the date of exercise, as used in such Section
(c), shall mean the Exchange Date.

         (b) RESERVATION OF SHARES. The Company shall at all times reserve for
issuance and/or delivery upon exercise of this Warrant such number of shares of
its Common Stock as shall be required for issuance and delivery upon exercise of
the Warrant.

         (c) FRACTIONAL SHARES. No fractional shares or script representing
fractional shares shall be issued upon the exercise of this Warrant. With
respect to any fraction of a share

                                        2
<PAGE>

called for upon any exercise hereof, the Company shall pay to the Holder an
amount in cash equal to such fraction multiplied by the current market value of
a share, determined as follows:

                  (1) If the Common Stock is listed on a national securities
exchange or admitted to unlisted trading privileges on such exchange or listed
for trading on the Nasdaq National Market, the current market value shall be the
last reported sale price of the Common Stock on such exchange or market on the
last business day prior to the date of exercise of this Warrant or if no such
sale is made on such day, the average of the closing bid and asked prices for
such day on such exchange or market; or

                  (2) If the Common Stock is not so listed or admitted to
unlisted trading privileges, but is traded on the Nasdaq SmallCap Market, the
current market value shall be the average of the closing bid and asked prices
for such day on such market and if the Common Stock is not so traded, the
current market value shall be the mean of the last reported bid and asked prices
reported by the NASD Electronic Bulletin Board on the last business day prior to
the date of the exercise of this Warrant; or

                  (3) If the Common Stock is not so listed or admitted to
unlisted trading privileges and bid and asked prices are not so reported, the
current market value shall be an amount, not less than book value thereof as at
the end of the most recent fiscal year of the Company ending prior to the date
of the exercise of the Warrant, determined in such reasonable manner as may be
prescribed by the Board of Directors of the Company.

         (d) EXCHANGE, TRANSFER, ASSIGNMENT OR LOSS OF WARRANT. This Warrant is
exchangeable, without expense, at the option of the Holder, upon presentation
and surrender hereof to the Company or at the office of its stock transfer
agent, if any, for other warrants of different denominations entitling the
holder thereof to purchase in the aggregate the same number of shares of Common
Stock purchasable hereunder. Upon surrender of this Warrant to the Company at
its principal office or at the office of its stock transfer agent, if any, with
the Assignment Form annexed hereto duly executed and funds sufficient to pay any
transfer tax, the Company shall, without charge, execute and deliver a new
Warrant in the name of the assignee named in such instrument of assignment and
this Warrant shall promptly be cancelled. This Warrant may be divided or
combined with other warrants which carry the same rights upon presentation
hereof at the principal office of the Company or at the office of its stock
transfer agent, if any, together with a written notice specifying the names and
denominations in which new Warrants are to be issued and signed by the Holder
hereof. The term "Warrant" as used herein includes any Warrants into which this
Warrant may be divided or exchanged. Upon receipt by the Company of evidence
satisfactory to it of the loss, theft, destruction or mutilation of this
Warrant, and (in the case of loss, theft or destruction) of reasonably
satisfactory indemnification, and upon surrender and cancellation of this
Warrant, if mutilated, the Company will execute and deliver a new Warrant of
like tenor and date. Any such new Warrant executed and delivered shall
constitute an additional contractual obligation on the part of the Company,
whether or not this Warrant so lost, stolen, destroyed, or mutilated shall be at
any time enforceable by anyone.

         (e) RIGHTS OF THE HOLDER. The Holder shall not, by virtue hereof, be
entitled to any rights of a shareholder in the Company, either at law or equity,
and the rights of the

                                        3
<PAGE>

Holder are limited to those expressed in the Warrant and are not enforceable
against the Company except to the extent set forth herein.

         (f) ANTI-DILUTION PROVISIONS. Subject to the provisions of Section l
hereof, the Exercise Price in effect at any time and the number and kind of
securities purchasable upon the exercise of the Warrant shall be subject to
adjustment from time to time upon the happening of certain events as follows:

                  (1) In case the Company shall hereafter (i) declare a dividend
or make a distribution on its outstanding shares of Common Stock in shares of
Common Stock, (ii) subdivide or reclassify its outstanding shares of Common
Stock into a greater number of shares, or (iii) combine or reclassify its
outstanding shares of Common Stock into a smaller number of shares, the Exercise
Price in effect at the time of the record date for such dividend or distribution
or of the effective date of such subdivision, combination or reclassification
shall be adjusted so that it shall equal the price determined by multiplying the
Exercise Price by a fraction, the denominator of which shall be the number of
shares of Common Stock outstanding after giving effect to such action, and the
numerator of which shall be the number of shares of Common Stock outstanding
immediately prior to such action with an appropriate adjustment in the number of
shares purchasable hereunder. Such adjustment shall be made successively
whenever any event listed above shall occur. Notwithstanding anything to the
contrary herein, no adjustments shall be made to the Exercise Price or the
number of Shares purchasable upon exercise of this Warrant, upon the occurrence
of an event described in Section (f)(1)(iii) that occurs prior to the IPO.

                  (2) Subject to the provisions of Subsection (6) below, in case
the Company shall fix a record date for the issuance of rights or warrants to
all holders of its Common Stock entitling them to subscribe for or purchase
shares of Common Stock (or securities convertible into Common Stock) at a price
(the "Subscription Price") (or having a conversion price per share) less than
the current market price of the Common Stock (as defined in Subsection (8)
below) on the record date mentioned below, or less than the Exercise Price on
such record date, the Exercise Price shall be adjusted so that the same shall
equal the lower of (i) the price determined by multiplying the Exercise Price in
effect immediately prior to the date of such issuance by a fraction, the
numerator of which shall be the sum of the number of shares of Common Stock
outstanding on the record date mentioned below and the number of additional
shares of Common Stock which the aggregate offering price of the total number of
shares of Common Stock so offered (or the aggregate conversion price of the
convertible securities so offered) would purchase at such current market price
per share of the Common Stock (as defined in Subsection (8) below), and the
denominator of which shall be the sum of the number of shares of Common Stock
outstanding on such record date and the number of additional shares of Common
Stock offered for subscription or purchase (or into which the convertible
securities so offered are convertible) or (ii) in the event the Subscription
Price is equal to or higher than the current market price but is less than the
Exercise Price, the price determined by multiplying the Exercise Price in effect
immediately

                                        4
<PAGE>

prior to the date of issuance by a fraction, the numerator of which shall be the
sum of the number of shares outstanding on the record date mentioned below and
the number of additional shares of Common Stock which the aggregate offering
price of the total number of shares of Common Stock so offered (or the aggregate
conversion price of the convertible securities so offered) would purchase at the
Exercise Price in effect immediately prior to the date of such issuance, and the
denominator of which shall be the sum of the number of shares of Common Stock
outstanding on the record date mentioned below and the number of additional
shares of Common Stock offered for subscription or purchase (or into which the
convertible securities so offered are convertible). Such adjustment shall be
made successively whenever such rights or warrants are issued and shall become
effective immediately after the record date for the determination of
shareholders entitled to receive such rights or warrants; and to the extent that
shares of Common Stock are not delivered (or securities convertible into Common
Stock are not delivered) after the expiration of such rights or warrants the
Exercise Price shall be readjusted to the Exercise Price which would then be in
effect had the adjustments made upon the issuance of such rights or warrants
been made upon the basis of delivery of only the number of shares of Common
Stock (or securities convertible into Common Stock) actually delivered.

                  (3) In case the Company shall hereafter distribute to the
holders of its Common Stock evidences of its indebtedness or assets (excluding
cash dividends or distributions and dividends or distributions referred to in
Subsection (1) above) or subscription rights or warrants (excluding those
referred to in Subsection (2) above), then in each such case the Exercise Price
in effect thereafter shall be determined by multiplying the Exercise Price in
effect immediately prior thereto by a fraction, the numerator of which shall be
the total number of shares of Common Stock outstanding multiplied by the current
market price per share of Common Stock (as defined in Subsection (8) below),
less the fair market value (as determined by the Company's Board of Directors)
of said assets or evidences of indebtedness so distributed or of such rights or
warrants, and the denominator of which shall be the total number of shares of
Common Stock outstanding multiplied by such current market price per share of
Common Stock. Such adjustment shall be made successively whenever such a record
date is fixed. Such adjustment shall be made whenever any such distribution is
made and shall become effective immediately after the record date for the
determination of shareholders entitled to receive such distribution.

                  (4) Subject to the provisions of Subsection (6) below, in case
the Company shall hereafter issue shares of its Common Stock (excluding shares
issued (a) in any of the transactions described in Subsection (1) above, (b)
upon exercise of options granted to the Company's officers, directors,
consultants and employees under its current stock option which provides for the
issuance of up to 3,600,000 (prior to the effectiveness of the "Reverse Stock
Split" described in the Private Placement Memorandum, but subject to appropriate
adjustment in the event of any stock dividend, stock split, combination or other
similar recapitalization affecting such shares) shares of Common Stock, if such
shares would otherwise be included in this Subsection (4), (c) upon exercise of
options, warrants and convertible debentures outstanding as of the date hereof
or upon the issuance or exercise of warrants or convertible debentures issued
pursuant to the offering set forth in the Memorandum (subject to appropriate
adjustment in the event of any stock dividend, stock split, combination or other
similar recapitalization affecting such shares), (d) to shareholders of any
corporation which merges into the Company in proportion to their stock holdings
of such corporation immediately prior to such merger, upon such merger, (e)
issued in a bona fide public offering pursuant to a firm commitment
underwriting, but only if no adjustment is required pursuant to any other
specific subsection of this Section (f) (without regard to Subsection (8) below)
with respect to the transaction giving rise to such rights) for a consideration
per share (the "Offering Price") less

                                        5
<PAGE>

than the current market price per share (as defined in Subsection (8) below on
the date the Company fixes the offering price of such additional shares or less
than the Exercise Price, the Exercise Price shall be adjusted immediately
thereafter so that it shall equal the lower of (i) the price determined by
multiplying the Exercise Price in effect immediately prior thereto by a
fraction, the numerator of which shall be the sum of the number of shares of
Common Stock outstanding immediately prior to the issuance of such additional
shares and the number of shares of Common Stock which the aggregate
consideration received (determined as provided in Subsection (8) below) for the
issuance of such additional shares would purchase at such current market price
per share of Common Stock (as defined in Subsection (8) below), and the
denominator of which shall be the number of shares of Common Stock outstanding
immediately after the issuance of such additional shares or (ii) in the event
the Offering Price is equal to or higher than the current market price per share
but less than the Exercise Price, the price determined by multiplying the
Exercise Price in effect immediately prior to the date of issuance by a
fraction, the numerator of which shall be the number of shares of Common Stock
outstanding immediately prior to the issuance of such additional shares and the
number of shares of Common Stock which the aggregate consideration received
(determined as provided in subsection (7) below) for the issuance of such
additional shares would purchase at the Exercise Price in effect immediately
prior to the date of such issuance, and the denominator of which shall be the
number of shares of Common Stock outstanding immediately after the issuance of
such additional shares. Such adjustment shall be made successively whenever such
an issuance is made.

                  (5) Subject to the provisions of Subsection (6) below, in case
the Company shall hereafter issue any securities convertible into or
exchangeable for its Common Stock (excluding securities issued in transactions
described in Subsections (2) or (3) above or which are convertible or
exchangeable into securities described Subsections (4)(a)-(e) above) for a
consideration per share of Common Stock (the "Conversion Price") initially
deliverable upon conversion or exchange of such securities (determined as
provided in Subsection (7) below) less than the current market price per share
(as defined in Subsection (8) below) in effect immediately prior to the issuance
of such securities, or less than the Exercise Price, the Exercise Price shall be
adjusted immediately thereafter so that it shall equal the lower of (i) the
price determined by multiplying the Exercise Price in effect immediately prior
thereto by a fraction, the numerator of which shall be the sum of the number of
shares of Common Stock outstanding immediately prior to the issuance of such
securities and the number of shares of Common Stock which the aggregate
consideration received (determined as provided in Subsection (7) below) for such
securities would purchase at such current market price per share of Common Stock
(as defined in Subsection (8) below), and the denominator of which shall be the
sum of the number of shares of Common Stock outstanding immediately prior to
such issuance and the maximum number of shares of Common Stock of the Company
deliverable upon conversion of or in exchange for such securities at the initial
conversion or exchange price or rate or (ii) in the event the Conversion Price
is equal to or higher than the current market price per share but less than the
Exercise Price, the price determined by multiplying the Exercise Price in effect
immediately prior to the date of issuance by a fraction, the numerator of which
shall be the sum of the number of shares outstanding immediately prior to the
issuance of such securities and the number of shares of Common Stock which the
aggregate consideration received (determined as provided in subsection (8)
below) for such securities would purchase at the Exercise Price in effect
immediately prior to the date of such issuance, and the denominator of which
shall be the sum of

                                        6
<PAGE>

the number of shares of Common Stock outstanding immediately prior to the
issuance of such securities and the maximum number of shares of Common Stock of
the Company deliverable upon conversion of or in exchange for such securities at
the initial conversion or exchange price or rate. Such adjustment shall be made
successively whenever such an issuance is made.

                  (6) Whenever the Exercise Price payable upon exercise of each
Warrant is adjusted pursuant to Subsections (1), (2), (3), (4) and (5) above,
the number of Shares purchasable upon exercise of this Warrant shall
simultaneously be adjusted by multiplying the number of Shares initially
issuable upon exercise of this Warrant by the Exercise Price in effect on the
date hereof and dividing the product so obtained by the Exercise Price, as
adjusted.

                  (7) For purposes of any computation respecting consideration
received pursuant to Subsections (4) and (5) above, the following shall apply:

                           (A) in the case of the issuance of shares of Common
                  Stock for cash, the consideration shall be the amount of such
                  cash, provided that in no case shall any deduction be made for
                  any commissions, discounts or other expenses incurred by the
                  Company for any underwriting of the issue or otherwise in
                  connection therewith;

                           (B) in the case of the issuance of shares of Common
                  Stock for a consideration in whole or in part other than cash,
                  the consideration other than cash shall be deemed to be the
                  fair market value thereof as determined in good faith by the
                  Board of Directors of the Company (irrespective of the
                  accounting treatment thereof), whose determination shall be
                  conclusive; and

                           (C) in the case of the issuance of securities
                  convertible into or exchangeable for shares of Common Stock,
                  the aggregate consideration received therefor shall be deemed
                  to be the consideration received by the Company for the
                  issuance of such securities plus the additional minimum
                  consideration, if any, to be received by the Company upon the
                  conversion or exchange thereof (the consideration in each case
                  to be determined in the same manner as provided in clauses (A)
                  and (B) of this Subsection (7)).

                  (8) For the purpose of any computation under Subsections (2),
(3), (4) and (5) above, the current market price per share of Common Stock at
any date shall be determined in the manner set forth in Section (c) hereof
except that the current market price per share shall be deemed to be the higher
of (i) the average of the prices for 30 consecutive business days before such
date or (ii) the price on the business day immediately preceding such date.

                  (9) No adjustment in the Exercise Price shall be required
unless such adjustment would require an increase or decrease of at least five
cents ($0.05) in such price; provided, however, that any adjustments which by
reason of this Subsection (9) are not required to be made shall be carried
forward and taken into account in any subsequent adjustment required to be made
hereunder. All calculations under this Section (f) shall be made to the nearest
cent or to the nearest one-hundredth of a share, as the case may be. Anything in
this Section (f) to the contrary notwithstanding, the Company shall be entitled,
but shall not be

                                        7
<PAGE>

required, to make such changes in the Exercise Price, in addition to those
required by this Section (f), as it shall determine, in its sole discretion, to
be advisable in order that any dividend or distribution in shares of Common
Stock, or any subdivision, reclassification or combination of Common Stock,
hereafter made by the Company shall not result in any Federal Income tax
liability to the holders of Common Stock or securities convertible into Common
Stock (including Warrants).

                  (10) Whenever the Exercise Price is adjusted, as herein
provided, the Company shall promptly but no later than 10 days after any request
for such an adjustment by the Holder, cause a notice setting forth the adjusted
Exercise Price and adjusted number of Shares issuable upon exercise of each
Warrant, and, if requested, information describing the transactions giving rise
to such adjustments, to be mailed to the Holders at their last addresses
appearing in the Warrant Register, and shall cause a certified copy thereof to
be mailed to its transfer agent, if any. In the event the Company does not
provide the Holder with such notice and information within 10 days of a request
by the Holder, the failure of which causes the Holder material damage, then
notwithstanding the provisions of this Section (f), the Exercise Price shall be
immediately adjusted to equal the lowest Offering Price, Subscription Price or
Conversion Price, as applicable, since the date of this Warrant, and the number
of shares issuable upon exercise of this Warrant shall be adjusted accordingly.
The Company may retain a firm of independent certified public accountants
selected by the Board of Directors (who may be the regular accountants employed
by the Company) to make any computation required by this Section (f), and a
certificate signed by such firm shall be conclusive evidence of the correctness
of such adjustment.

                  (11) In the event that at any time, as a result of an
adjustment made pursuant to Subsection (1) above, the Holder of this Warrant
thereafter shall become entitled to receive any shares of the Company, other
than Common Stock, thereafter the number of such other shares so receivable upon
exercise of this Warrant shall be subject to adjustment from time to time in a
manner and on terms as nearly equivalent as practicable to the provisions with
respect to the Common Stock contained in Subsections (1) to (10), inclusive
above.

                  (12) Irrespective of any adjustments in the Exercise Price or
the number or kind of shares purchasable upon exercise of this Warrant, Warrants
theretofore or thereafter issued may continue to express the same price and
number and kind of shares as are stated in the similar Warrants initially
issuable pursuant to this Agreement.

         (g) OFFICER'S CERTIFICATE. Whenever the Exercise Price shall be
adjusted as required by the provisions of the foregoing Section, the Company
shall forthwith file in the custody of its Secretary or an Assistant Secretary
at its principal office and with its stock transfer agent, if any, an officer's
certificate showing the adjusted Exercise Price determined as herein provided,
setting forth in reasonable detail the facts requiring such adjustment,
including a statement of the number of additional shares of Common Stock, if
any, and such other facts as shall be necessary to show the reason for and the
manner of computing such adjustment. Each such officer's certificate shall be
made available at all reasonable times for inspection by the holder or any
holder of a Warrant executed and delivered pursuant to Section (a) and the
Company shall, forthwith after each such adjustment, mail a copy by certified
mail of such certificate to the Holder or any such holder.

                                        8
<PAGE>

         (h) NOTICES TO WARRANT HOLDERS. So long as this Warrant shall be
outstanding, (i) if the Company shall pay any dividend or make any distribution
upon the Common Stock or (ii) if the Company shall offer to the holders of
Common Stock for subscription or purchase by them any share of any class or any
other rights or (iii) if any capital reorganization of the Company,
reclassification of the capital stock of the Company, consolidation or merger of
the Company with or into another corporation, sale, lease or transfer of all or
substantially all of the property and assets of the Company to another
corporation, or voluntary or involuntary dissolution, liquidation or winding up
of the Company shall be effected, then in any such case, the Company shall cause
to be mailed by certified mail to the Holder, at least fifteen days prior the
date specified in (x) or (y) below, as the case may be, a notice containing a
brief description of the proposed action and stating the date on which (x) a
record is to be taken for the purpose of such dividend, distribution or rights,
or (y) such reclassification, reorganization, consolidation, merger, conveyance,
lease, dissolution, liquidation or winding up is to take place and the date, if
any is to be fixed, as of which the holders of Common Stock or other securities
shall receive cash or other property deliverable upon such reclassification,
reorganization, consolidation, merger, conveyance, dissolution, liquidation or
winding up.

         (i) RECLASSIFICATION, REORGANIZATION OR MERGER. In case of any
reclassification, capital reorganization or other change of outstanding shares
of Common Stock of the Company, or in case of any consolidation or merger of the
Company with or into another corporation (other than a merger with a subsidiary
in which merger the Company is the continuing corporation and which does not
result in any reclassification, capital reorganization or other change of
outstanding shares of Common Stock of the class issuable upon exercise of this
Warrant) or in case of any sale, lease or conveyance to another corporation of
the property of the Company as an entirety, the Company shall, as a condition
precedent to such transaction, cause effective provisions to be made so that the
Holder shall have the right thereafter by exercising this Warrant at any time
prior to the expiration of the Warrant, to purchase the kind and amount of
shares of stock and other securities and property receivable upon such
reclassification, capital reorganization and other change, consolidation,
merger, sale or conveyance by a holder of the number of shares of Common Stock
which might have been purchased upon exercise of this Warrant immediately prior
to such reclassification, change, consolidation, merger, sale or conveyance. Any
such provision shall include provision for adjustments which shall be as nearly
equivalent as may be practicable to the adjustments provided for in this
Warrant. The foregoing provisions of this Section (i) shall similarly apply to
successive reclassifications, capital reorganizations and changes of shares of
Common Stock and to successive consolidations, mergers, sales or conveyances. In
the event that in connection with any such capital reorganization or
reclassification, consolidation, merger, sale or conveyance, additional shares
of Common Stock shall be issued in exchange, conversion, substitution or
payment, in whole or in part, for a security of the Company other than Common
Stock, any such issue shall be treated as an issue of Common Stock covered by
the provisions of Subsection (1) of Section (f) hereof.

         (j) REGISTRATION RIGHTS.

                  (1) The Warrant Shares will be registered in an initial public
offering of the Company's securities pursuant to a registration statement filed
on a appropriate form (the "Registration Statement") with the SEC and the
Company covenants and agrees to maintain the

                                        9
<PAGE>

effectiveness of the Registration Statement until all Warrant Shares have been
sold (the "Expiration Date"). Notwithstanding the foregoing, in the event that,
prior to the Expiration Date, the Warrant Shares cease to be eligible for
inclusion in such Registration Statement to the extent necessary to permit the
Holder to exercise the Warrant and sell the Warrant Shares without restriction
under the Act, the Company will promptly (and in any event within thirty (30)
days of the date that any Warrant Shares cease to be so eligible), amend or file
a new Registration Statement under the Act on a form eligible for use by the
Company for the registration of such securities and use its best efforts to have
such Registration Statement declared effective by the SEC as soon as practicable
after such filing, which Registration Statement shall include such information
as may be required to permit the exercise of the Warrant and the sale of the
Warrant Shares without restriction under the Act. The Holder acknowledges and
agrees that the Warrant shall be exercisable pursuant to any such Registration
Statement only at such times as the Registration Statement is effective or in
accordance with any applicable exemption from the registration requirements of
the Act. Upon such Registration Statement's being declared effective by the SEC,
the Company shall use its best efforts to cause the Registration Statement to
remain effective for a period of at least six (6) consecutive months from the
date that the Holders of the Warrants and Warrant Shares covered by such
Registration Statement are first given the opportunity to sell all of such
securities. In the event that ninety (90) days prior to the Expiration Date, the
Registration Statement registering the Warrant Shares is not effective or is
withdrawn or the SEC issues a stop order suspending the effectiveness of such
Registration Statement, the Company hereby agrees to extend the Expiration Date
for (x) an additional ninety (90) days or (y) until the Registration Statement
is declared effective by the SEC, whichever period is longer. During such time
as the Warrant Shares are registered pursuant to any Registration Statement
under the Act, the Company further covenants and agrees to make timely filings
of all documents required to be filed under the Act or the Exchange Act in order
to ensure that the Registration Statement, including the documents incorporated
by reference therein, if any, do not contain an untrue statement of a material
fact or omit to state any material fact required to be stated therein or
necessary in order to make the statements therein not misleading.

                  (2) The Company will, until such time as the Warrant Shares
may be sold under Rule 144 without volume limitation:

                           (A) prepare and file with the SEC such amendments to
                  such Registration Statement and supplements to the prospectus
                  contained therein as may be necessary to keep such
                  Registration Statement effective;

                           (B) furnish to the Holders participating in such
                  registration and to the underwriters of the securities being
                  registered such reasonable number of copies of the
                  Registration Statement, preliminary prospectus, final
                  prospectus and such other documents as such underwriters may
                  reasonably request in order to facilitate the public offering
                  of such securities;

                           (C) use its best efforts to register or qualify the
                  securities covered by such Registration Statement under such
                  state securities or blue sky laws of such jurisdictions as the
                  Holders may reasonably request in writing within twenty (20)
                  days following the original filing of such Registration
                  Statement, except that the

                                       10
<PAGE>

                  Company shall not for any purpose be required to execute a
                  general consent to service of process or to qualify to do
                  business as a foreign corporation in any jurisdiction wherein
                  it is not so qualified or subject itself to taxation in any
                  such jurisdiction;

                           (D) notify the Holders, promptly after it shall
                  receive notice thereof, of the time when such Registration
                  Statement has become effective or a supplement to any
                  prospectus forming a part of such Registration Statement has
                  been filed;

                           (E) notify the Holders promptly of any request by the
                  SEC for the amending or supplementing of such Registration
                  Statement or prospectus or for additional information;

                           (F) prepare and file with the SEC, promptly upon the
                  request of any Holders, any amendments or supplements to such
                  Registration Statement or prospectus which, in the opinion of
                  counsel for such Holders (and concurred in by counsel for the
                  Company), is required under the Act or the rules and
                  regulations thereunder in connection with the distribution of
                  Common Stock by such Holders;

                           (G) prepare and promptly file with the SEC and
                  promptly notify such Holders of the filing of such amendment
                  or supplement to such Registration Statement or prospectus as
                  may be necessary to correct any statements or omissions if, at
                  the time when a prospectus relating to such securities is
                  required to be delivered under the Act, any event shall have
                  occurred as the result of which any such prospectus or any
                  other prospectus as then in effect would include an untrue
                  statement of a material fact or omit to state any material
                  fact necessary to make the statements therein, in the light of
                  the circumstances in which they were made, not misleading; and

                           (H) advise the Holders, promptly after it shall
                  receive notice or obtain knowledge thereof, of the issuance of
                  any stop order by the SEC suspending the effectiveness of such
                  Registration Statement or the initiation or threatening of any
                  proceeding for that purpose and promptly use its best efforts
                  to prevent the issuance of any stop order or to obtain its
                  withdrawal if such stop order should be issued.

         The Company may require each Holder of Warrant Shares as to which any
registration is being effected to furnish to the Company such information
regarding the distribution of such Warrant Shares as the Company may from time
to time reasonably request in writing.

                  (3) All fees, costs and expenses of and incidental to such
registration, inclusion and public offering in connection therewith shall be
borne by the Company, provided, however, that the Holders shall bear their pro
rata share of the underwriting discount and commissions and transfer taxes. The
fees, costs and expenses of registration to be borne by the Company as provided
above shall include, without limitation, all registration, filing, and NASD
fees, printing expenses, fees and disbursements of counsel and accountants for
the Company, and all legal fees and disbursements and other expenses of
complying with state securities or blue

                                       11
<PAGE>

sky laws of any jurisdictions in which the securities to be offered are to be
registered and qualified (except as provided above), and, in the case of a
registration, other than such registration set forth in Section (c)(8), fees of
one (1) counsel for the Holders of the Warrant Shares. Fees and disbursements of
counsel and accountants for the Holders and any other expenses incurred by the
Holders not expressly included above shall be borne by the Holders.

                  (4) The Company will indemnify and hold harmless each Holder
of Warrant Shares which are included in a Registration Statement pursuant to the
provisions of Section (j)(1) hereof, its directors and officers, and any
underwriter (as defined in the Act) for such Holder and each person, if any, who
controls such Holder or such underwriter within the meaning of the Act, from and
against, and will reimburse such Holder and each such underwriter and
controlling person with respect to, any and all loss, damage, liability, cost
and expense to which such Holder or any such underwriter or controlling person
may become subject under the Act or otherwise, insofar as such losses, damages,
liabilities, costs or expenses are caused by any untrue statement or alleged
untrue statement of any material fact contained in such Registration Statement,
any prospectus contained therein or any amendment or supplement thereto, or
arise out of or are based upon the omission or alleged omission to state therein
a material fact required to be stated therein or necessary to make the
statements therein, in light of the circumstances in which they were made, not
misleading; provided, however, that the Company will not be liable in any such
case to the extent that any such loss, damage, liability, cost or expenses
arises out of or is based upon an untrue statement or alleged untrue statement
or omission or alleged omission so made in conformity with information furnished
by such Holder, such underwriter or such controlling person in writing
specifically for use in the preparation thereof.

                  (5) Each Holder of Warrant Shares included in a registration
pursuant to the provisions of Section (j)(1) hereof will indemnify and hold
harmless the Company, its directors and officers, any controlling person and any
underwriter from and against, and will reimburse the Company, its directors and
officers, any controlling person and any underwriter with respect to, any and
all loss, damage, liability, cost or expense to which the Company or any
controlling person and/or any underwriter may become subject under the Act or
otherwise, insofar as such losses, damages, liabilities, costs or expenses are
caused by any untrue statement or alleged untrue statement of any material fact
contained in such Registration Statement, any prospectus contained therein or
any amendment or supplement thereto, or arise out of or are based upon the
omission or alleged omission to state therein a material fact required to be
stated therein or necessary to make the statements therein, in light of the
circumstances in which they were made, not misleading, in each case to the
extent, but only to the extent, that such untrue statement or alleged untrue
statement or omission or alleged omission was so made in reliance upon and in
strict conformity with written information furnished by or on behalf of such
Holder specifically for use in the preparation thereof.

                  (6) Promptly after receipt by an indemnified party pursuant to
the provisions of Sections (j)(4) or (5) of notice of the commencement of any
action involving the subject matter of the foregoing indemnity provisions such
indemnified party will, if a claim thereof is to be made against the
indemnifying party pursuant to the provisions of said Sections (j)(4) or (5),
promptly notify the indemnifying party of the commencement thereof; but the
omission to so notify the indemnifying party will not relieve it from any
liability which it may have to any indemnified party otherwise than hereunder.
In case such action is brought against any

                                       12
<PAGE>

indemnified party and it notifies the indemnifying party of the commencement
thereof, the indemnifying party shall have the right to participate in, and, to
the extent that it may wish, jointly with any other indemnifying party similarly
notified, to assume the defense thereof, with counsel satisfactory to such
indemnified party, provided, however, if counsel for the indemnifying party
concludes that a single counsel cannot under applicable legal and ethical
considerations, represent both the indemnifying party and the indemnified party,
the indemnified party or parties have the right to select separate counsel to
participate in the defense of such action on behalf of such indemnified party or
parties. After notice from the indemnifying party to such indemnified party of
its election so to assume the defense thereof, the indemnifying party will not
be liable to such indemnified party pursuant to the provisions of said Sections
(j)(4) or (5) for any legal or other expense subsequently incurred by such
indemnified party in connection with the defense thereof other than reasonable
costs of investigation, unless (i) the indemnified party shall have employed
counsel in accordance with the provisions of the preceding sentence, (ii) the
indemnifying party shall not have employed counsel satisfactory to the
indemnified party to represent the indemnified party within a reasonable time
after the notice of the commencement of the action or (iii) the indemnifying
party has authorized the employment of counsel for the indemnified party at the
expense of the indemnifying party.

                  (7) If the Company fails to carry out its obligations under
this Section (j), the Holder shall be entitled to tender this Warrant for a sum
equal to the number of Warrant Shares multiplied by the current market thereof
less the Exercise Price thereof and a person who has exercised this Warrant
shall be entitled to tender the Common Stock thereby purchased for the current
market value, and in each case to be paid therefor in 10 business days
thereafter.

                  (8) If the Warrant Shares have been included in a Registration
Statement filed with the SEC in connection with the IPO and if such Registration
Statement is declared effective, and for so long as it remains effective, the
Holder shall have no rights to demand a registration under Section (j)(1)
hereof.

                                  BRIDGELINE SOFTWARE, INC.

                                  By:
                                       ----------------------------
                                       Name: Thomas Massie
                                       Title: President, Chief Executive Officer
Dated:  ______, 2006





                                       13
<PAGE>

                                  PURCHASE FORM
                                  -------------

                                                         Dated


         The undersigned hereby irrevocably elects to exercise the within
Warrant to the extent of purchasing shares of Common Stock and hereby makes
payment of in payment of the actual exercise price thereof _____ (check) or
elects a cashless exercise with respect thereto ______ (check) as to a total of
___________ shares.

                       ___________________________________


                     INSTRUCTIONS FOR REGISTRATION OF STOCK

Name
     -----------------------------------------------------------
             (Please typewrite or print in block letters)


Address
        --------------------------------------------------------


Signature
          ------------------------------------------------------


                                 ASSIGNMENT FORM

         FOR VALUE RECEIVED, __________________________ hereby sells, assigns
and transfers unto


Name ____________________________________________
     (Please typewrite or print in block letters)


Address _________________________________________

the right to purchase Common Stock represented by this Warrant to the extent of
shares as to which such right is exercisable and does hereby irrevocably
constitute and appoint Attorney, to transfer the same on the books of the
Company with full power of substitution in the premises.

Date ____________________________________________

Signature _______________________________________



                                       14
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10.25
<SEQUENCE>39
<FILENAME>ex10-25_14663.txt
<DESCRIPTION>FORM OF COMMON STOCK PURCHASE WARRANT
<TEXT>
                                                                   EXHIBIT 10.25
                                                                   -------------


THE RIGHTS TO PURCHASE COMMON STOCK OF BRIDGELINE SOFTWARE, INC. REPRESENTED BY
THIS WARRANT AND ANY COMMON STOCK ISSUED UPON EXERCISE HEREOF HAVE NOT BEEN
REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "ACT"), OR
APPLICABLE STATE SECURITIES LAWS AND MAY NOT BE SOLD, PLEDGED OR OTHERWISE
TRANSFERRED WITHOUT AN EFFECTIVE REGISTRATION STATEMENT WITH RESPECT TO SUCH
TRANSFER OR DISPOSITION OF SUCH RIGHTS OR STOCK UNDER THE ACT AND APPLICABLE
STATE SECURITIES LAWS, OR AN OPINION OF COUNSEL SATISFACTORY TO THE CORPORATION
TO THE EFFECT THAT SUCH REGISTRATION IS NOT REQUIRED.

                                [BRIDGELINE LOGO]

                          COMMON STOCK PURCHASE WARRANT

          THIS IS TO CERTIFY that, for value received, [Winslow, Evans &
Crocker, Inc.] or any subsequent registered holder hereof (the "Holder"), is
entitled to purchase from BRIDGELINE SOFTWARE, INC., a Delaware corporation (the
"Company"), at any time after the date hereof (subject to the restrictions
contained herein) and until 5:00 p.m., Eastern time, on the Expiration Date (as
defined), up to an aggregate of ___________ fully paid and nonassessable shares
of Common Stock (as defined) of the Company at a purchase price per share equal
to the Exercise Price (as defined).

          1. Certain Definitions. As used herein the following terms, unless the
context otherwise requires, have the following respective meanings:

          1.1 "Company" shall mean Bridgeline Software, Inc., and any
corporation that shall succeed to or assume the obligations of Bridgeline
Software, Inc. hereunder.

          1.2 "Common Stock" shall mean and include (i) the Company's Common
Stock, par value $.001 per share, as authorized on the date hereof, (ii) any
other capital stock of any class or series (however designated) of the Company,
other than preferred stock authorized on or after the date hereof, the holders
of which shall have the right, without limitation as to amount, either to all or
to a share of the balance of current dividends and liquidating dividends after
the payment of dividends and distributions on any shares entitled to preference,
and the holders of which shall ordinarily, in the absence of contingencies, be
entitled to vote for the election of a majority of the directors of the Company
(even though the right so to vote has been suspended by the happening of such a
contingency), and (iii) any other securities into which or for which any of the
securities described in (i) or (ii) may be converted or exchanged pursuant to a
plan of recapitalization, reorganization, merger, sale of assets or otherwise.

          1.3 "Exercise Price" shall mean $1.25 per share, as adjusted herein
upon the happening of certain events.

          1.4 "Expiration Date" shall mean the fifth year anniversary of the
date of original issuance of this Warrant (and not the issuance date of a
substitute or replacement Warrant), or, if earlier, the consummation of a
Liquidity Event.

                                     1 of 7
<PAGE>

          1.5 "Liquidity Event" shall mean the effective time of (i) the
dissolution or liquidation of the Company; (ii) the sale by the Company or
existing stockholders of any stock of the Company of any class by means of a
public offering pursuant to the registration provisions of the Act (a "Public
Offering"); or (iii) the Acquisition of the Company in a transaction that is not
a Private Transaction. For this purpose, "Acquisition" shall mean (i) the sale
of the Company by merger in which the shareholders of the Company in their
capacity as such no longer own a majority of the outstanding equity securities
of the Company (or its successor); or (ii) any sale of all or substantially all
of the assets or capital stock of the Company or (iii) any other acquisition of
the business of the Company, as determined by the Board of Directors of the
Company; and "Private Transaction" shall mean any Acquisition where the
consideration received or retained by the holders of the then outstanding
capital stock of the Company does not consist of (i) cash or cash equivalent
consideration, (ii) securities which are registered under the Act and/or (iii)
securities for which the Company or any other issuer thereof has agreed,
including pursuant to a demand, to file a registration statement within ninety
(90) days of completion of the transaction for resale to the public pursuant to
the Act.

          2. Transfer and Replacement.

          2.1 Registered Holders. The Company shall maintain a register
containing the names and addresses of the registered holders of the Warrants.
The "registered holder" of any Warrant shall be the person in whose name such
Warrant is registered in said warrant register. Any registered holder of this
Warrant may change its address as shown on the warrant register by written
notice to the Company requesting such change. Any notice or written
communication required or permitted to be given to the registered holder of this
Warrant shall be mailed, by certified or registered mail, return receipt
requested, postage prepaid, or delivered to such registered holder at its
address as shown on the warrant register.

          2.2 Securities Act. The registered holder of this Warrant (by
acceptance hereof) represents that said holder is acquiring this Warrant for the
holder's own account for investment purposes and has no present intention of
offering, distributing or otherwise disposing of this Warrant.

          2.3 Transfer. This Warrant, and the rights evidenced hereby, have not
been registered under the Act or under any applicable state securities laws and
may not be transferred unless subsequently registered under the Act and any
applicable state securities laws or unless an exemption from such registration
requirements is then available. Subject to the forgoing, this Warrant, and any
portion hereof, may be transferred by the Holder by execution and delivery of an
assignment to the Company.

          2.4 Substitution. In case this Warrant shall be mutilated, lost,
stolen, or destroyed, the Company shall issue a new Warrant of like tenor and
denomination and deliver the same (a) in exchange and substitution for and upon
surrender and cancellation of any mutilated Warrant, or (b) in lieu of any
Warrant lost, stolen or destroyed, upon receipt of evidence satisfactory to the
Company of the loss, theft or destruction of such Warrant (including a
reasonably detailed affidavit with respect to the circumstances of any loss,
theft or destruction), and of indemnity satisfactory to the Company.

                                     2 of 7
<PAGE>

          3. Exercise.

          Subject to the conditions and limitations herein set forth, from and
after the date hereof, this Warrant may be exercised in whole or in part at any
time or from time to time after the date hereof and until 5:00 p.m., Eastern
time, on the Expiration Date by the registered holder hereof by the surrender of
this Warrant (with the subscription form annexed hereto duly completed and
executed) to the Company at its principal office, together with payment to the
Company of the Exercise Price for the shares of Warrant Stock to be purchased
hereunder. If this Warrant shall be exercised in part, the registered holder
shall be entitled to receive a new Warrant covering the number of shares in
respect of which this Warrant shall not have been exercised. All Warrants
surrendered for exercise shall be canceled. The person or persons in whose name
or names any certificate or certificates representing shares of Warrant Stock
shall be issuable upon exercise of this Warrant shall be deemed to have become
the holder or holders of record of the shares represented thereby at the close
of business on the date upon which this Warrant is exercised, whether or not the
stock transfer books of the Company shall then be closed.

          In lieu of or in addition to the foregoing, and only if the Common
Stock is then publicly traded on the Nasdaq National Market (or equivalent) or a
national securities exchange, the registered holder of this Warrant may elect to
receive without the payment by such holder of any additional consideration,
shares equal to the value of this Warrant or any portion hereof by the surrender
of this Warrant or such portion to the Company (with the subscription form
annexed hereto duly completed and executed), at the principal office of the
Company. Thereupon, the Company shall issue to the registered holder such number
of fully paid and nonassessable shares of Common Stock as is computed using the
following formula:

                                     Y (A-B)
                                     -------
                                        A

where                Y = the number of shares  covered by this Warrant in
                     respect of which the net issue  election is made  pursuant
                     to this paragraph.

                     A = the fair market value of one share of Common Stock at
                     the time the net issue election is made pursuant to this
                     paragraph.

                     B = the Warrant Price per share in effect under this
                     Warrant at the time the net issue election is made pursuant
                     to this paragraph.

For purposes hereof, the fair market value of one share of Common Stock shall be
the closing sale price on the principal public market on which it is traded on
the preceding trading day.

          4. Anti-dilution Adjustments. The number of shares of Common Stock
purchasable upon exercise of the Warrants shall be subject to adjustment from
time to time upon the happening of the events hereinafter specified.

          If the Company (i) declares a dividend on the Common Stock in shares
of its capital stock or makes a distribution in shares of Common Stock; (ii)
subdivides its outstanding Common Stock into a smaller number of shares of
Common Stock; (iii) combines its outstanding Common Stock into a smaller number
of shares of Common Stock; (iv) issues any shares of its capital

                                     3 of 7
<PAGE>

stock in a reclassification of its Common Stock (including any such
reclassification in connection with a consolidation or merger), the number of
shares of Common Stock for which the Warrant is exercisable at the time of the
record date for such dividend or of the effective date of such subdivision,
combination, or reclassification shall be proportionately adjusted so that the
Holder of any Warrant exercised after such date shall be entitled to receive the
aggregate number and kind of shares which, if such Warrant had been exercised
immediately prior to such time, it would have owned upon such exercise and been
entitled to receive upon such dividend, subdivision, combination or
reclassification. Such adjustment shall be made successively whenever any event
listed above shall occur, but no duplicative adjustment shall be made hereunder.

          In case the Company shall at any time subdivide its outstanding shares
of Warrant Stock into a greater number of shares, the Exercise Price in effect
immediately prior to such subdivision shall be proportionately reduced (but not
below the par value of the Common Stock), and conversely, in case the
outstanding shares of Warrant Stock shall be combined into a smaller number of
shares, the Exercise Price in effect immediately prior to such combination shall
be proportionately increased.

          Whenever an adjustment is made pursuant to this Section 4, the Company
shall promptly cause a notice setting forth the adjusted Exercise Price and
adjusted number of Warrant Stock issuable upon exercise of each Warrant to be
mailed to each Holder at such Holder's last known address.

          5. Reorganization, Reclassification, Consolidation, Merger or Sale.

          If any capital reorganization or reclassification of the capital stock
of the Company, or any consolidation or merger of the Company with another
corporation, or the sale of all or substantially all of its assets to another
corporation, shall be effected in such a way that holders of Common Stock shall
be entitled to receive stock, securities or assets with respect to or in
exchange for Common Stock, then each registered holder shall thereafter have the
right to receive upon the basis and upon the terms and conditions specified
herein and in lieu of the shares of Common Stock immediately theretofore
receivable upon the exercise of this Warrant, such shares of stock, securities
or assets as may be issued or payable with respect to or in exchange for a
number of outstanding shares of Common Stock equal to the number of shares of
such stock immediately theretofore so receivable had such reorganization,
reclassification, consolidation, merger or sale not taken place, and in any such
case appropriate provision shall be made with respect to the rights and
interests of such holder to the end that the provisions hereof shall thereafter
be applicable, as nearly as may be, in relation to any shares of stock,
securities or assets thereafter deliverable upon the exercise of such conversion
rights.

          6. Liquidity Events. The Company covenants and agrees to give (a)
notice of any Liquidity Event to the registered holder of the Warrant at least
fifteen (15) business days in advance of the record date for determining
stockholders' rights with respect to such Liquidity Event, and (b) that any
agreements, resolutions, offers or other documents with respect to any Liquidity
Event shall contain terms consistent with the provisions of this Section 6. In
the event of a Liquidity Event, the registered holder of this Warrant shall have
the right, in lieu of exercising the Warrant in advance of such Liquidity Event
and receiving the consideration which the holder of the Common Stock issuable
upon exercise of the Warrant would receive in

                                     4 of 7
<PAGE>

connection with such Liquidity Event (the "Event Consideration"), upon surrender
and cancellation of the Warrant to receive the Event Consideration with respect
to the Common Stock for which the Warrant is exercisable reduced by the
aggregate Exercise Price of the Warrant. The Event Consideration in the case of
a Public Offering shall be the Common Stock valued at the "price to public" in
such Public Offering. If the Warrant is not exercised prior to such a Liquidity
Event, the registered holder shall be deemed to have elected to have surrendered
the Warrant for cancellation, and shall be entitled to receive the Event
Consideration with respect to the Common Stock for which the Warrant is
exercisable reduced by the aggregate Exercise Price of this Warrant, and this
Warrant shall be terminated and of no further force and effect after the
Liquidity Event other than as evidence of the consideration the registered
holder is entitled to under this Section 6.

          7. Discretionary Adjustments.

          If any event occurs as to which in the opinion of the Board of
Directors of the Company the provisions of Sections 4 and 5 are not strictly
applicable or if strictly applicable would not fairly protect the exercise
rights of the holders of the Warrants in accordance with the essential intent
and principles of such provisions, then the Board of Directors shall make an
adjustment in the application of such provisions, in accordance with such
essential intent and principles, so as to protect such exercise rights as
aforesaid, but in no event shall any such adjustment have the effect of
increasing the Exercise Price as otherwise determined under Section 4 and 5,
except in the event of a combination of shares of the type contemplated in
Section 4.

          8. Stock to be Reserved.

          The Company shall at all times reserve and keep available out of its
authorized but unissued Common Stock, solely for the purpose of issue upon the
exercise of the Warrant as herein provided, such number of shares of Common
Stock as shall then be issuable upon the exercise of all outstanding Warrants.
The Company covenants that all shares of Common Stock which shall be so issuable
shall be duly and validly issued and fully paid and nonassessable and free from
all taxes, liens and charges with respect to the issue thereof.

          9. Rights as Stockholder.

          The registered holder of this Warrant, as such, shall not be entitled
to vote or receive dividends or be deemed the holder of shares of Common Stock
for any purpose, nor shall anything contained in this Warrant be construed to
confer upon the registered holder of this Warrant, as such, any of the rights of
a stockholder of the Company or any right to vote, give or withhold consent to
any action by the Company (whether upon any recapitalization, issue of shares,
reclassification of shares, consolidation, merger, conveyance or otherwise),
receive notice of meetings or other action affecting stockholders (except for
notices provided for in this Warrant), receive dividends or subscription rights,
or otherwise until this Warrant shall have been exercised and the shares of
Common Stock purchasable upon the exercise hereof shall have become deliverable
as provided in Section 3, at which time the person or persons in whose name or
names the certificate or certificates for the shares of Common Stock being
purchased are to be issued shall be deemed the holder or holders of record of
shares of Common Stock for all purposes.

                                     5 of 7
<PAGE>

          10. Issue Tax.

          The issuance of certificates for shares of Common Stock upon the
exercise of the Warrants shall be made without charge to the holders of such
Warrants for any issuance tax in respect thereto, provided that the Company
shall not be required to pay any tax which may be payable in respect of any
transfer involved in the issuance and delivery of any certificate in a name
other than that of the registered holder of the Warrant exercised.

          11. Fractional Shares.

          No fractional shares or scrip representing fractional shares shall be
issued upon the exercise of this Warrant. If, upon exercise of this Warrant as
an entirety, the registered holder would, except for the provisions of this
Section 11, be entitled to receive a fractional share of Common Stock, then an
amount equal to such fractional share multiplied by the fair value (as
determined from time to time by the Board of Directors of the Company) of shares
of the Company's Common Stock, as applicable, shall be paid by the Company in
cash to such registered holder.

          12. Lock-up Agreement. The registered holder of this Warrant (by
acceptance hereof) agrees that in the event that the Company effects an initial
Public Offering, the Warrant Shares issued or issuable upon exercise of this
Warrant may not be sold, offered for sale or otherwise disposed of, directly or
indirectly, without the prior written consent of the managing underwriter(s) of
the offering, for such period of time after the execution of an underwriting
agreement in connection with such offering that all of the Company's then
directors and executive officers agree to be similarly bound.

          13. Miscellaneous.

          The validity, interpretation, and performance of this Warrant shall be
governed by the laws of the State of Delaware. This Warrant and the rights
evidenced hereby shall inure to the benefit of and be binding upon the
successors and assigns of the Company and the Holder hereof, to the extent
provided herein, and shall be enforceable by any such Holder. This Warrant
replaces all prior agreements, supersedes all prior negotiations and constitutes
the entire agreement of the parties with respect to the transactions
contemplated herein.

          IN WITNESS WHEREOF, Bridgeline Software, Inc. has caused this Warrant
to be executed by its officer thereunto duly authorized.


                                     BRIDGELINE SOFTWARE, INC.

                                     By: ____________________________

                                     Title: _________________________

Dated:  May __, 2002

                                     6 of 7
<PAGE>

                              FORM OF SUBSCRIPTION

                   (To be signed only on exercise of Warrant)

TO: BRIDGELINE SOFTWARE, INC.

          1. The undersigned registered holder of the attached original,
executed Warrant hereby elects to exercise its purchase right under such Warrant
with respect to shares of Common Stock, as defined in the Warrant, of BRIDGELINE
SOFTWARE, INC., a Delaware corporation (the "Company").

          2. The undersigned Holder (check one):

          (a) elects to pay the aggregate purchase price for such shares of
          Common Stock (the "Exercise Shares") (i) by the enclosed certified or
          official bank check payable in United States dollars to the order of
          the Company in the amount of $_________, or (ii) by wire transfer of
          United States funds to the account of the Company in the amount of
          $_________, which transfer has been made before or simultaneously with
          the delivery of this Form of Subscription pursuant to the instructions
          of the Company;

          (b) elects to receive shares of Common Stock, in lieu of the exercise
          of this Warrant pursuant to paragraph (a) for ___________ shares of
          Common Stock, pursuant to the net issue feature in Section 3 of the
          Warrant.

          3. Please issue a stock certificate or certificates representing the
appropriate number of shares of Common Stock in the name of the undersigned or
in such other names as is specified below:

          Name:    _____________________________________

          Address: _____________________________________

                   _____________________________________

          Dated:   _____________________________________

                   (Signature below must conform to name of registered holder
                    as specified on the face of the Warrant)


          Sign here: ___________________________________

          Address:   ___________________________________

                     ___________________________________


                                     7 of 7




</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10.26
<SEQUENCE>40
<FILENAME>ex10-26_14663.txt
<DESCRIPTION>FORM OF COMMON STOCK PURCHASE WARRANT
<TEXT>
                                                                   EXHIBIT 10.26
                                                                   -------------

    THE RIGHTS TO PURCHASE COMMON STOCK OF BRIDGELINE SOFTWARE, INC. REPRESENTED
    BY THIS WARRANT AND ANY COMMON STOCK ISSUED UPON EXERCISE HEREOF HAVE NOT
    BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "ACT"), OR
    APPLICABLE STATE SECURITIES LAWS AND MAY NOT BE SOLD, PLEDGED OR OTHERWISE
    TRANSFERRED WITHOUT AN EFFECTIVE REGISTRATION STATEMENT WITH RESPECT TO SUCH
    TRANSFER OR DISPOSITION OF SUCH RIGHTS OR STOCK UNDER THE ACT AND APPLICABLE
    STATE SECURITIES LAWS, OR AN OPINION OF COUNSEL SATISFACTORY TO THE
    CORPORATION TO THE EFFECT THAT SUCH REGISTRATION IS NOT REQUIRED.


                                   BRIDGELINE
                                    SOFTWARE
                                     [LOGO]


                          COMMON STOCK PURCHASE WARRANT


         THIS IS TO CERTIFY that, for value received, Fin Net, c/o Peter
Winslow, 33 Broad Street, Boston, MA 02109 or any subsequent registered holder
hereof (the "Holder"), is entitled to purchase from BRIDGELINE SOFTWARE, INC., a
Delaware corporation (the "Company"), at any time after the date hereof (subject
to the restrictions contained herein) and until 5:00 p.m., Eastern time, on the
Expiration Date (as defined), up to an aggregate of _______ fully paid and
nonassessable shares of Common Stock (as defined) of the Company at a purchase
price per share equal to the Exercise Price (as defined).

         1.    Certain Definitions. As used herein the following terms, unless
the context otherwise requires, have the following respective meanings:

         1.1   "Company" shall mean  Bridgeline  Software,  Inc., and any
corporation that shall succeed to or assume the obligations of Bridgeline
Software, Inc. hereunder.

         1.2   "Common Stock" shall mean and include (i) the Company's Common
Stock, par value $.001 per share, as authorized on the date hereof, (ii) any
other capital stock of any class or series (however designated) of the Company,
other than preferred stock authorized on or after the date hereof, the holders
of which shall have the right, without limitation as to amount, either to all or
to a share of the balance of current dividends and liquidating dividends after
the payment of dividends and distributions on any shares entitled to preference,
and the holders of which shall ordinarily, in the absence of contingencies, be
entitled to vote for the election of a majority of the directors of the Company
(even though the right so to vote has been suspended by the happening of such a
contingency), and (iii) any other securities into which or for which any of the
securities described in (i) or (ii) may be converted or exchanged pursuant to a
plan of recapitalization, reorganization, merger, sale of assets or otherwise.

         1.3   "Exercise  Price" shall mean $_____ per share, as adjusted herein
upon the happening of certain events.

                                     1 of 7
<PAGE>

         1.4   "Expiration Date" shall mean the fifth year anniversary of the
date of original issuance of this Warrant (and not the issuance date of a
substitute or replacement Warrant), or, if earlier, the consummation of a
Liquidity Event. The date of the issuance of this Warrant is August 1, 2005.

         1.5   "Liquidity Event" shall mean the effective time of (i) the
dissolution or liquidation of the Company; (ii) the sale by the Company or
existing stockholders of any stock of the Company of any class by means of a
public offering pursuant to the registration provisions of the Act (a "Public
Offering"); or (iii) the Acquisition of the Company in a transaction that is not
a Private Transaction. For this purpose, "Acquisition" shall mean (i) the sale
of the Company by merger in which the shareholders of the Company in their
capacity as such no longer own a majority of the outstanding equity securities
of the Company (or its successor); or (ii) any sale of all or substantially all
of the assets or capital stock of the Company or (iii) any other acquisition of
the business of the Company, as determined by the Board of Directors of the
Company; and "Private Transaction" shall mean any Acquisition where the
consideration received or retained by the holders of the then outstanding
capital stock of the Company does not consist of (i) cash or cash equivalent
consideration, (ii) securities which are registered under the Act and/or (iii)
securities for which the Company or any other issuer thereof has agreed,
including pursuant to a demand, to file a registration statement within ninety
(90) days of completion of the transaction for resale to the public pursuant to
the Act.

         2.    Transfer and Replacement.

         2.1   Registered Holders. The Company shall maintain a register
containing the names and addresses of the registered holders of the Warrants.
The "registered holder" of any Warrant shall be the person in whose name such
Warrant is registered in said warrant register. Any registered holder of this
Warrant may change its address as shown on the warrant register by written
notice to the Company requesting such change. Any notice or written
communication required or permitted to be given to the registered holder of this
Warrant shall be mailed, by certified or registered mail, return receipt
requested, postage prepaid, or delivered to such registered holder at its
address as shown on the warrant register.

         2.2   Securities Act. The registered holder of this Warrant (by
acceptance hereof) represents that said holder is acquiring this Warrant for the
holder's own account for investment purposes and has no present intention of
offering, distributing or otherwise disposing of this Warrant.

         2.3   Transfer. This Warrant, and the rights evidenced hereby, have not
been registered under the Act or under any applicable state securities laws and
may not be transferred unless subsequently registered under the Act and any
applicable state securities laws or unless an exemption from such registration
requirements is then available. Subject to the forgoing, this Warrant, and any
portion hereof, may be transferred by the Holder by execution and delivery of an
assignment to the Company.

         2.4   Substitution. In case this Warrant shall be mutilated, lost,
stolen, or destroyed, the Company shall issue a new Warrant of like tenor and
denomination and deliver the same (a) in exchange and substitution for and upon
surrender and cancellation of any mutilated Warrant, or (b) in lieu of any
Warrant lost, stolen or destroyed, upon receipt of evidence satisfactory to the

                                     2 of 7
<PAGE>

Company of the loss, theft or destruction of such Warrant (including a
reasonably detailed affidavit with respect to the circumstances of any loss,
theft or destruction), and of indemnity satisfactory to the Company.

         3.    Exercise.

         Subject to the conditions and limitations herein set forth, from and
after the date hereof, this Warrant may be exercised in whole or in part at any
time or from time to time after the date hereof and until 5:00 p.m., Eastern
time, on the Expiration Date by the registered holder hereof by the surrender of
this Warrant (with the subscription form annexed hereto duly completed and
executed) to the Company at its principal office, together with payment to the
Company of the Exercise Price for the shares of Warrant Stock to be purchased
hereunder. If this Warrant shall be exercised in part, the registered holder
shall be entitled to receive a new Warrant covering the number of shares in
respect of which this Warrant shall not have been exercised. All Warrants
surrendered for exercise shall be canceled. The person or persons in whose name
or names any certificate or certificates representing shares of Warrant Stock
shall be issuable upon exercise of this Warrant shall be deemed to have become
the holder or holders of record of the shares represented thereby at the close
of business on the date upon which this Warrant is exercised, whether or not the
stock transfer books of the Company shall then be closed.

         In lieu of or in addition to the foregoing, and only if the Common
Stock is then publicly traded on the Nasdaq National Market (or equivalent) or a
national securities exchange, the registered holder of this Warrant may elect to
receive without the payment by such holder of any additional consideration,
shares equal to the value of this Warrant or any portion hereof by the surrender
of this Warrant or such portion to the Company (with the subscription form
annexed hereto duly completed and executed), at the principal office of the
Company. Thereupon, the Company shall issue to the registered holder such number
of fully paid and nonassessable shares of Common Stock as is computed using the
following formula:

                                     Y (A-B)
                                     -------
                                        A

where                Y = the number of shares covered by this Warrant in respect
                     of which the net issue election is made pursuant to this
                     paragraph.

                     A = the fair market value of one share of Common Stock at
                     the time the net issue election is made pursuant to this
                     paragraph.

                     B = the Warrant Price per share in effect under this
                     Warrant at the time the net issue election is made pursuant
                     to this paragraph.

For purposes hereof, the fair market value of one share of Common Stock shall be
the closing sale price on the principal public market on which it is traded on
the preceding trading day.

         4.    Anti-dilution Adjustments. The number of shares of Common Stock
purchasable upon exercise of the Warrants shall be subject to adjustment from
time to time upon the happening of the events hereinafter specified.

                                     3 of 7
<PAGE>

         If the Company (i) declares a dividend on the Common Stock in shares of
its capital stock or makes a distribution in shares of Common Stock; (ii)
subdivides its outstanding Common Stock into a smaller number of shares of
Common Stock; (iii) combines its outstanding Common Stock into a smaller number
of shares of Common Stock; (iv) issues any shares of its capital stock in a
reclassification of its Common Stock (including any such reclassification in
connection with a consolidation or merger), the number of shares of Common Stock
for which the Warrant is exercisable at the time of the record date for such
dividend or of the effective date of such subdivision, combination, or
reclassification shall be proportionately adjusted so that the Holder of any
Warrant exercised after such date shall be entitled to receive the aggregate
number and kind of shares which, if such Warrant had been exercised immediately
prior to such time, it would have owned upon such exercise and been entitled to
receive upon such dividend, subdivision, combination or reclassification. Such
adjustment shall be made successively whenever any event listed above shall
occur, but no duplicative adjustment shall be made hereunder.

         In case the Company shall at any time subdivide its outstanding shares
of Warrant Stock into a greater number of shares, the Exercise Price in effect
immediately prior to such subdivision shall be proportionately reduced (but not
below the par value of the Common Stock), and conversely, in case the
outstanding shares of Warrant Stock shall be combined into a smaller number of
shares, the Exercise Price in effect immediately prior to such combination shall
be proportionately increased.

         Whenever an adjustment is made pursuant to this Section 4, the Company
shall promptly cause a notice setting forth the adjusted Exercise Price and
adjusted number of Warrant Stock issuable upon exercise of each Warrant to be
mailed to each Holder at such Holder's last known address.

         5.    Reorganization, Reclassification, Consolidation, Merger or Sale.

         If any capital reorganization or reclassification of the capital stock
of the Company, or any consolidation or merger of the Company with another
corporation, or the sale of all or substantially all of its assets to another
corporation, shall be effected in such a way that holders of Common Stock shall
be entitled to receive stock, securities or assets with respect to or in
exchange for Common Stock, then each registered holder shall thereafter have the
right to receive upon the basis and upon the terms and conditions specified
herein and in lieu of the shares of Common Stock immediately theretofore
receivable upon the exercise of this Warrant, such shares of stock, securities
or assets as may be issued or payable with respect to or in exchange for a
number of outstanding shares of Common Stock equal to the number of shares of
such stock immediately theretofore so receivable had such reorganization,
reclassification, consolidation, merger or sale not taken place, and in any such
case appropriate provision shall be made with respect to the rights and
interests of such holder to the end that the provisions hereof shall thereafter
be applicable, as nearly as may be, in relation to any shares of stock,
securities or assets thereafter deliverable upon the exercise of such conversion
rights.

         6.    Liquidity Events. The Company covenants and agrees to give (a)
notice of any Liquidity Event to the registered holder of the Warrant at least
fifteen (15) business days in advance of the record date for determining
stockholders' rights with respect to such Liquidity Event, and (b) that any
agreements, resolutions, offers or other documents with respect to any

                                     4 of 7
<PAGE>

Liquidity Event shall contain terms consistent with the provisions of this
Section 6. In the event of a Liquidity Event, the registered holder of this
Warrant shall have the right, in lieu of exercising the Warrant in advance of
such Liquidity Event and receiving the consideration which the holder of the
Common Stock issuable upon exercise of the Warrant would receive in connection
with such Liquidity Event (the "Event Consideration"), upon surrender and
cancellation of the Warrant to receive the Event Consideration with respect to
the Common Stock for which the Warrant is exercisable reduced by the aggregate
Exercise Price of the Warrant. The Event Consideration in the case of a Public
Offering shall be the Common Stock valued at the "price to public" in such
Public Offering. If the Warrant is not exercised prior to such a Liquidity
Event, the registered holder shall be deemed to have elected to have surrendered
the Warrant for cancellation, and shall be entitled to receive the Event
Consideration with respect to the Common Stock for which the Warrant is
exercisable reduced by the aggregate Exercise Price of this Warrant, and this
Warrant shall be terminated and of no further force and effect after the
Liquidity Event other than as evidence of the consideration the registered
holder is entitled to under this Section 6.

         7.    Discretionary Adjustments.

         If any event occurs as to which in the opinion of the Board of
Directors of the Company the provisions of Sections 4 and 5 are not strictly
applicable or if strictly applicable would not fairly protect the exercise
rights of the holders of the Warrants in accordance with the essential intent
and principles of such provisions, then the Board of Directors shall make an
adjustment in the application of such provisions, in accordance with such
essential intent and principles, so as to protect such exercise rights as
aforesaid, but in no event shall any such adjustment have the effect of
increasing the Exercise Price as otherwise determined under Section 4 and 5,
except in the event of a combination of shares of the type contemplated in
Section 4.

         8.    Stock to be Reserved.

         The Company shall at all times reserve and keep available out of its
authorized but unissued Common Stock, solely for the purpose of issue upon the
exercise of the Warrant as herein provided, such number of shares of Common
Stock as shall then be issuable upon the exercise of all outstanding Warrants.
The Company covenants that all shares of Common Stock which shall be so issuable
shall be duly and validly issued and fully paid and nonassessable and free from
all taxes, liens and charges with respect to the issue thereof.

         9.    Rights as Stockholder.

         The registered holder of this Warrant, as such, shall not be entitled
to vote or receive dividends or be deemed the holder of shares of Common Stock
for any purpose, nor shall anything contained in this Warrant be construed to
confer upon the registered holder of this Warrant, as such, any of the rights of
a stockholder of the Company or any right to vote, give or withhold consent to
any action by the Company (whether upon any recapitalization, issue of shares,
reclassification of shares, consolidation, merger, conveyance or otherwise),
receive notice of meetings or other action affecting stockholders (except for
notices provided for in this Warrant), receive dividends or subscription rights,
or otherwise until this Warrant shall have been exercised and the shares of
Common Stock purchasable upon the exercise hereof shall have become deliverable
as provided in Section 3, at which time the person or persons in whose name

                                     5 of 7
<PAGE>

or names the certificate or certificates for the shares of Common Stock being
purchased are to be issued shall be deemed the holder or holders of record of
shares of Common Stock for all purposes.

         10.   Issue Tax.

         The issuance of certificates for shares of Common Stock upon the
exercise of the Warrants shall be made without charge to the holders of such
Warrants for any issuance tax in respect thereto, provided that the Company
shall not be required to pay any tax which may be payable in respect of any
transfer involved in the issuance and delivery of any certificate in a name
other than that of the registered holder of the Warrant exercised.

         11.   Fractional Shares.

         No fractional shares or scrip representing fractional shares shall be
issued upon the exercise of this Warrant. If, upon exercise of this Warrant as
an entirety, the registered holder would, except for the provisions of this
Section 11, be entitled to receive a fractional share of Common Stock, then an
amount equal to such fractional share multiplied by the fair value (as
determined from time to time by the Board of Directors of the Company) of shares
of the Company's Common Stock, as applicable, shall be paid by the Company in
cash to such registered holder.

         12.   Lock-up Agreement. The registered holder of this Warrant (by
acceptance hereof) agrees that in the event that the Company effects an initial
Public Offering, the Warrant Shares issued or issuable upon exercise of this
Warrant may not be sold, offered for sale or otherwise disposed of, directly or
indirectly, without the prior written consent of the managing underwriter(s) of
the offering, for such period of time after the execution of an underwriting
agreement in connection with such offering that all of the Company's then
directors and executive officers agree to be similarly bound.

         13.   Miscellaneous.

         The validity, interpretation, and performance of this Warrant shall be
governed by the laws of the State of Delaware. This Warrant and the rights
evidenced hereby shall inure to the benefit of and be binding upon the
successors and assigns of the Company and the Holder hereof, to the extent
provided herein, and shall be enforceable by any such Holder. This Warrant
replaces all prior agreements, supersedes all prior negotiations and constitutes
the entire agreement of the parties with respect to the transactions
contemplated herein.

         IN WITNESS WHEREOF, Bridgeline Software, Inc. has caused this Warrant
to be executed by its officer thereunto duly authorized.

                                       BRIDGELINE SOFTWARE, INC.

                                       By:   /S/ GARY M. CEBULA
                                             -----------------------------------

                                       Title:   CFO
                                                --------------------------------
Dated:  August 1, 2005


                                     6 of 7
<PAGE>

                              FORM OF SUBSCRIPTION

                   (To be signed only on exercise of Warrant)

TO:  BRIDGELINE SOFTWARE, INC.

         1.    The undersigned registered holder of the attached original,
executed Warrant hereby elects to exercise its purchase right under such Warrant
with respect to shares of Common Stock, as defined in the Warrant, of BRIDGELINE
SOFTWARE, INC., a Delaware corporation (the "Company").

         2.    The undersigned Holder (check one):

               (a) elects to pay the aggregate purchase price for such shares of
               Common Stock (the "Exercise Shares") (i) by the enclosed
               certified or official bank check payable in United States dollars
               to the order of the Company in the amount of $_________, or (ii)
               by wire transfer of United States funds to the account of the
               Company in the amount of $_________, which transfer has been made
               before or simultaneously with the delivery of this Form of
               Subscription pursuant to the instructions of the Company;

               (b) elects to receive shares of Common Stock, in lieu of the
               exercise of this Warrant pursuant to paragraph (a) for
               ___________ shares of Common Stock, pursuant to the net issue
               feature in Section 3 of the Warrant.

         3.    Please issue a stock certificate or certificates representing the
appropriate number of shares of Common Stock in the name of the undersigned or
in such other names as is specified below:

         Name:
                           ----------------------------------------
         Tax ID:
                           ----------------------------------------

         Address:
                           ----------------------------------------

                           ----------------------------------------

         Dated:
                           ----------------------------------------
                           (Signature below must conform to name of registered
                           holder as specified on the face of the Warrant)


         Sign here:
                           ----------------------------------------
         Address:
                           ----------------------------------------

                           ----------------------------------------



                                     7 of 7
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10.27
<SEQUENCE>41
<FILENAME>ex10-27_14663.txt
<DESCRIPTION>COMMON STOCK PURCHASE WARRANT
<TEXT>
                                                                   EXHIBIT 10.27
                                                                   -------------


THE RIGHTS TO PURCHASE COMMON STOCK OF BRIDGELINE SOFTWARE, INC. REPRESENTED BY
THIS WARRANT AND ANY COMMON STOCK ISSUED UPON EXERCISE HEREOF HAVE NOT BEEN
REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "ACT"), OR
APPLICABLE STATE SECURITIES LAWS AND MAY NOT BE SOLD, PLEDGED OR OTHERWISE
TRANSFERRED WITHOUT AN EFFECTIVE REGISTRATION STATEMENT WITH RESPECT TO SUCH
TRANSFER OR DISPOSITION OF SUCH RIGHTS OR STOCK UNDER THE ACT AND APPLICABLE
STATE SECURITIES LAWS, OR AN OPINION OF COUNSEL SATISFACTORY TO THE CORPORATION
TO THE EFFECT THAT SUCH REGISTRATION IS NOT REQUIRED.


                          COMMON STOCK PURCHASE WARRANT

         THIS IS TO CERTIFY that, for value received, Sand Hill Finance, LLC,
residing at 3000 Sand Hill Road, Menlo Park, CA 94025 or any subsequent
registered holder hereof (the "Holder"), is entitled to purchase from BRIDGELINE
SOFTWARE, INC., a Delaware corporation (the "Company"), at any time after the
date hereof (subject to the restrictions contained herein) and until 5:00 p.m.,
Eastern time, on the Expiration Date (as defined), up to an aggregate of 9,600
fully paid and nonassessable shares of Common Stock (as defined) of the Company
at a purchase price per share equal to the Exercise Price (as defined).

         1. Certain Definitions. As used herein the following terms, unless the
context otherwise requires, have the following respective meanings:

         1.1 "Company" shall mean Bridgeline Software, Inc., and any corporation
that shall succeed to or assume the obligations of Bridgeline Software, Inc.
hereunder.

         1.2 "Common Stock" shall mean and include (i) the Company's Common
Stock, par value $.001 per share, as authorized on the date hereof, (ii) any
other capital stock of any class or series (however designated) of the Company,
other than preferred stock authorized on or after the date hereof, the holders
of which shall have the right, without limitation as to amount, either to all or
to a share of the balance of current dividends and liquidating dividends after
the payment of dividends and distributions on any shares entitled to preference,
and the holders of which shall ordinarily, in the absence of contingencies, be
entitled to vote for the election of a majority of the directors of the Company
(even though the right so to vote has been suspended by the happening of such a
contingency), and (iii) any other securities into which or for which any of the
securities described in (i) or (ii) may be converted or exchanged pursuant to a
plan of recapitalization, reorganization, merger, sale of assets or otherwise.

         1.3 "Exercise Price" shall mean $1.56 per share, as adjusted herein
upon the happening of certain events.

                                     1 of 7
<PAGE>

         1.4 "Expiration Date" shall mean the fifth year anniversary of the date
of original issuance of this Warrant (and not the issuance date of a substitute
or replacement Warrant), or, if earlier, the consummation of a Liquidity Event.
The date of the issuance of this Warrant is March 28, 2005.

         1.5 "Liquidity Event" shall mean the effective time of (i) the
dissolution or liquidation of the Company; (ii) the sale by the Company or
existing stockholders of any stock of the Company of any class by means of a
public offering pursuant to the registration provisions of the Act (a "Public
Offering"); or (iii) the Acquisition of the Company in a transaction that is not
a Private Transaction. For this purpose, "Acquisition" shall mean (i) the sale
of the Company by merger in which the shareholders of the Company in their
capacity as such no longer own a majority of the outstanding equity securities
of the Company (or its successor); or (ii) any sale of all or substantially all
of the assets or capital stock of the Company or (iii) any other acquisition of
the business of the Company, as determined by the Board of Directors of the
Company; and "Private Transaction" shall mean any Acquisition where the
consideration received or retained by the holders of the then outstanding
capital stock of the Company does not consist of (i) cash or cash equivalent
consideration, (ii) securities which are registered under the Act and/or (iii)
securities for which the Company or any other issuer thereof has agreed,
including pursuant to a demand, to file a registration statement within ninety
(90) days of completion of the transaction for resale to the public pursuant to
the Act.

         2. Transfer and Replacement.

         2.1 Registered Holders. The Company shall maintain a register
containing the names and addresses of the registered holders of the Warrants.
The "registered holder" of any Warrant shall be the person in whose name such
Warrant is registered in said warrant register. Any registered holder of this
Warrant may change its address as shown on the warrant register by written
notice to the Company requesting such change. Any notice or written
communication required or permitted to be given to the registered holder of this
Warrant shall be mailed, by certified or registered mail, return receipt
requested, postage prepaid, or delivered to such registered holder at its
address as shown on the warrant register.

         2.2 Securities Act. The registered holder of this Warrant (by
acceptance hereof) represents that said holder is acquiring this Warrant for the
holder's own account for investment purposes and has no present intention of
offering, distributing or otherwise disposing of this Warrant.

         2.3 Transfer. This Warrant, and the rights evidenced hereby, have not
been registered under the Act or under any applicable state securities laws and
may not be transferred unless subsequently registered under the Act and any
applicable state securities laws or unless an exemption from such registration
requirements is then available. Subject to the forgoing, this Warrant, and any
portion hereof, may be transferred by the Holder by execution and delivery of an
assignment to the Company.

         2.4 Substitution. In case this Warrant shall be mutilated, lost,
stolen, or destroyed, the Company shall issue a new Warrant of like tenor and
denomination and deliver the same (a) in exchange and substitution for and upon
surrender and cancellation of any mutilated Warrant, or (b) in lieu of any
Warrant lost, stolen or destroyed, upon receipt of evidence satisfactory to the

                                     2 of 7
<PAGE>

Company of the loss, theft or destruction of such Warrant (including a
reasonably detailed affidavit with respect to the circumstances of any loss,
theft or destruction), and of indemnity satisfactory to the Company.

         3. Exercise.

         Subject to the conditions and limitations herein set forth, from and
after the date hereof, this Warrant may be exercised in whole or in part at any
time or from time to time after the date hereof and until 5:00 p.m., Eastern
time, on the Expiration Date by the registered holder hereof by the surrender of
this Warrant (with the subscription form annexed hereto duly completed and
executed) to the Company at its principal office, together with payment to the
Company of the Exercise Price for the shares of Warrant Stock to be purchased
hereunder. If this Warrant shall be exercised in part, the registered holder
shall be entitled to receive a new Warrant covering the number of shares in
respect of which this Warrant shall not have been exercised. All Warrants
surrendered for exercise shall be canceled. The person or persons in whose name
or names any certificate or certificates representing shares of Warrant Stock
shall be issuable upon exercise of this Warrant shall be deemed to have become
the holder or holders of record of the shares represented thereby at the close
of business on the date upon which this Warrant is exercised, whether or not the
stock transfer books of the Company shall then be closed.

         In lieu of or in addition to the foregoing, and only if the Common
Stock is then publicly traded on the Nasdaq National Market (or equivalent) or a
national securities exchange, the registered holder of this Warrant may elect to
receive without the payment by such holder of any additional consideration,
shares equal to the value of this Warrant or any portion hereof by the surrender
of this Warrant or such portion to the Company (with the subscription form
annexed hereto duly completed and executed), at the principal office of the
Company. Thereupon, the Company shall issue to the registered holder such number
of fully paid and nonassessable shares of Common Stock as is computed using the
following formula:

                  Y (A-B)
                  -------
                     A

where    Y = the number of shares  covered by this Warrant in respect of which
         the net issue election is made pursuant to this paragraph.

         A = the fair market value of one share of Common Stock at
         the time the net issue election is made pursuant to this
         paragraph.

         B = the Warrant Price per share in effect under this
         Warrant at the time the net issue election is made pursuant
         to this paragraph.

For purposes hereof, the fair market value of one share of Common Stock shall be
the closing sale price on the principal public market on which it is traded on
the preceding trading day.

         4. Anti-dilution Adjustments. The number of shares of Common Stock
purchasable upon exercise of the Warrants shall be subject to adjustment from
time to time upon the happening of the events hereinafter specified.

                                     3 of 7
<PAGE>

         If the Company (i) declares a dividend on the Common Stock in shares of
its capital stock or makes a distribution in shares of Common Stock; (ii)
subdivides its outstanding Common Stock into a smaller number of shares of
Common Stock; (iii) combines its outstanding Common Stock into a smaller number
of shares of Common Stock; (iv) issues any shares of its capital stock in a
reclassification of its Common Stock (including any such reclassification in
connection with a consolidation or merger), the number of shares of Common Stock
for which the Warrant is exercisable at the time of the record date for such
dividend or of the effective date of such subdivision, combination, or
reclassification shall be proportionately adjusted so that the Holder of any
Warrant exercised after such date shall be entitled to receive the aggregate
number and kind of shares which, if such Warrant had been exercised immediately
prior to such time, it would have owned upon such exercise and been entitled to
receive upon such dividend, subdivision, combination or reclassification. Such
adjustment shall be made successively whenever any event listed above shall
occur, but no duplicative adjustment shall be made hereunder.

         In case the Company shall at any time subdivide its outstanding shares
of Warrant Stock into a greater number of shares, the Exercise Price in effect
immediately prior to such subdivision shall be proportionately reduced (but not
below the par value of the Common Stock), and conversely, in case the
outstanding shares of Warrant Stock shall be combined into a smaller number of
shares, the Exercise Price in effect immediately prior to such combination shall
be proportionately increased.

         Whenever an adjustment is made pursuant to this Section 4, the Company
shall promptly cause a notice setting forth the adjusted Exercise Price and
adjusted number of Warrant Stock issuable upon exercise of each Warrant to be
mailed to each Holder at such Holder's last known address.

         5. Reorganization, Reclassification, Consolidation, Merger or Sale.

         If any capital reorganization or reclassification of the capital stock
of the Company, or any consolidation or merger of the Company with another
corporation, or the sale of all or substantially all of its assets to another
corporation, shall be effected in such a way that holders of Common Stock shall
be entitled to receive stock, securities or assets with respect to or in
exchange for Common Stock, then each registered holder shall thereafter have the
right to receive upon the basis and upon the terms and conditions specified
herein and in lieu of the shares of Common Stock immediately theretofore
receivable upon the exercise of this Warrant, such shares of stock, securities
or assets as may be issued or payable with respect to or in exchange for a
number of outstanding shares of Common Stock equal to the number of shares of
such stock immediately theretofore so receivable had such reorganization,
reclassification, consolidation, merger or sale not taken place, and in any such
case appropriate provision shall be made with respect to the rights and
interests of such holder to the end that the provisions hereof shall thereafter
be applicable, as nearly as may be, in relation to any shares of stock,
securities or assets thereafter deliverable upon the exercise of such conversion
rights.

         6. Liquidity Events. The Company covenants and agrees to give (a)
notice of any Liquidity Event to the registered holder of the Warrant at least
fifteen (15) business days in advance of the record date for determining
stockholders' rights with respect to such Liquidity Event, and (b) that any
agreements, resolutions, offers or other documents with respect to any

                                     4 of 7
<PAGE>

Liquidity Event shall contain terms consistent with the provisions of this
Section 6. In the event of a Liquidity Event, the registered holder of this
Warrant shall have the right, in lieu of exercising the Warrant in advance of
such Liquidity Event and receiving the consideration which the holder of the
Common Stock issuable upon exercise of the Warrant would receive in connection
with such Liquidity Event (the "Event Consideration"), upon surrender and
cancellation of the Warrant to receive the Event Consideration with respect to
the Common Stock for which the Warrant is exercisable reduced by the aggregate
Exercise Price of the Warrant. The Event Consideration in the case of a Public
Offering shall be the Common Stock valued at the "price to public" in such
Public Offering. If the Warrant is not exercised prior to such a Liquidity
Event, the registered holder shall be deemed to have elected to have surrendered
the Warrant for cancellation, and shall be entitled to receive the Event
Consideration with respect to the Common Stock for which the Warrant is
exercisable reduced by the aggregate Exercise Price of this Warrant, and this
Warrant shall be terminated and of no further force and effect after the
Liquidity Event other than as evidence of the consideration the registered
holder is entitled to under this Section 6.

         7. Discretionary Adjustments.

         If any event occurs as to which in the opinion of the Board of
Directors of the Company the provisions of Sections 4 and 5 are not strictly
applicable or if strictly applicable would not fairly protect the exercise
rights of the holders of the Warrants in accordance with the essential intent
and principles of such provisions, then the Board of Directors shall make an
adjustment in the application of such provisions, in accordance with such
essential intent and principles, so as to protect such exercise rights as
aforesaid, but in no event shall any such adjustment have the effect of
increasing the Exercise Price as otherwise determined under Section 4 and 5,
except in the event of a combination of shares of the type contemplated in
Section 4.

         8. Stock to be Reserved.

         The Company shall at all times reserve and keep available out of its
authorized but unissued Common Stock, solely for the purpose of issue upon the
exercise of the Warrant as herein provided, such number of shares of Common
Stock as shall then be issuable upon the exercise of all outstanding Warrants.
The Company covenants that all shares of Common Stock which shall be so issuable
shall be duly and validly issued and fully paid and nonassessable and free from
all taxes, liens and charges with respect to the issue thereof.

         9. Rights as Stockholder.

         The registered holder of this Warrant, as such, shall not be entitled
to vote or receive dividends or be deemed the holder of shares of Common Stock
for any purpose, nor shall anything contained in this Warrant be construed to
confer upon the registered holder of this Warrant, as such, any of the rights of
a stockholder of the Company or any right to vote, give or withhold consent to
any action by the Company (whether upon any recapitalization, issue of shares,
reclassification of shares, consolidation, merger, conveyance or otherwise),
receive notice of meetings or other action affecting stockholders (except for
notices provided for in this Warrant), receive dividends or subscription rights,
or otherwise until this Warrant shall have been exercised and the shares of
Common Stock purchasable upon the exercise hereof shall have become deliverable
as provided in Section 3, at which time the person or persons in whose name

                                     5 of 7
<PAGE>

or names the certificate or certificates for the shares of Common Stock being
purchased are to be issued shall be deemed the holder or holders of record of
shares of Common Stock for all purposes.

         10. Issue Tax.

         The issuance of certificates for shares of Common Stock upon the
exercise of the Warrants shall be made without charge to the holders of such
Warrants for any issuance tax in respect thereto, provided that the Company
shall not be required to pay any tax which may be payable in respect of any
transfer involved in the issuance and delivery of any certificate in a name
other than that of the registered holder of the Warrant exercised.

         11. Fractional Shares.

         No fractional shares or scrip representing fractional shares shall be
issued upon the exercise of this Warrant. If, upon exercise of this Warrant as
an entirety, the registered holder would, except for the provisions of this
Section 11, be entitled to receive a fractional share of Common Stock, then an
amount equal to such fractional share multiplied by the fair value (as
determined from time to time by the Board of Directors of the Company) of shares
of the Company's Common Stock, as applicable, shall be paid by the Company in
cash to such registered holder.

         12. Lock-up Agreement. The registered holder of this Warrant (by
acceptance hereof) agrees that in the event that the Company effects an initial
Public Offering, the Warrant Shares issued or issuable upon exercise of this
Warrant may not be sold, offered for sale or otherwise disposed of, directly or
indirectly, without the prior written consent of the managing underwriter(s) of
the offering, for such period of time after the execution of an underwriting
agreement in connection with such offering that all of the Company's then
directors and executive officers agree to be similarly bound.

         13. Miscellaneous.

         The validity, interpretation, and performance of this Warrant shall be
governed by the laws of the State of Delaware. This Warrant and the rights
evidenced hereby shall inure to the benefit of and be binding upon the
successors and assigns of the Company and the Holder hereof, to the extent
provided herein, and shall be enforceable by any such Holder. This Warrant
replaces all prior agreements, supersedes all prior negotiations and constitutes
the entire agreement of the parties with respect to the transactions
contemplated herein.

         IN WITNESS WHEREOF, Bridgeline Software, Inc. has caused this Warrant
to be executed by its officer thereunto duly authorized.


                                         BRIDGELINE SOFTWARE, INC.

                                         By: /S/ GARY M. CEBULA
                                             ---------------------

                                         Title: CFO
                                                ------------------
Dated: March 28, 2005

                                     6 of 7
<PAGE>

                              FORM OF SUBSCRIPTION

                   (To be signed only on exercise of Warrant)

TO:  BRIDGELINE SOFTWARE, INC.

         1. The undersigned registered holder of the attached original, executed
Warrant hereby elects to exercise its purchase right under such Warrant with
respect to shares of Common Stock, as defined in the Warrant, of BRIDGELINE
SOFTWARE, INC., a Delaware corporation (the "Company").

         2. The undersigned Holder (check one):

                  (a) elects to pay the aggregate purchase price for such shares
                  of Common Stock (the "Exercise Shares") (i) by the enclosed
                  certified or official bank check payable in United States
                  dollars to the order of the Company in the amount of
                  $_________, or (ii) by wire transfer of United States funds to
                  the account of the Company in the amount of $_________, which
                  transfer has been made before or simultaneously with the
                  delivery of this Form of Subscription pursuant to the
                  instructions of the Company;

                  (b) elects to receive shares of Common Stock, in lieu of the
                  exercise of this Warrant pursuant to paragraph (a) for
                  ___________ shares of Common Stock, pursuant to the net issue
                  feature in Section 3 of the Warrant.

         3. Please issue a stock certificate or certificates representing the
appropriate number of shares of Common Stock in the name of the undersigned or
in such other names as is specified below:

         Name:      ________________________________________

         Tax ID:    ________________________________________


         Address:   ________________________________________

                    ________________________________________

         Dated:     ________________________________________

                   (Signature below must conform to name of registered
                    holder as specified on the face of the Warrant)


         Sign here: ________________________________________

         Address:   ________________________________________



</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10.28
<SEQUENCE>42
<FILENAME>ex10-28_14663.txt
<DESCRIPTION>DATA PROCESSING AND TECHNICAL SERVICES AGREEMENT
<TEXT>
                                                                   EXHIBIT 10.28
                                                                   -------------

                  DATA PROCESSING TECHNICAL SERVICES AGREEMENT

1.       Introduction.
         -------------

         This data processing technical services agreement dated as of October
25, 2002, by and between The Bank of New York, on behalf of itself and its
affiliates (hereinafter "BNY") and Bridgeline Software, Inc. (hereinafter the
"Company") shall govern the performance of certain consulting services by
Company which may be requested by BNY from time to time.

2.       Scope of Services: Work Statements.
         -----------------------------------

         A.  Subject to the terms and conditions set forth in this Agreement,
Company shall furnish professional computer consulting and programming services
(hereinafter the "Work") pursuant to specific work statements (hereinafter the
"Work Statements") executed by each of the parties to this Agreement. If a Work
Statement involves Work on behalf of an affiliate of BNY, however such affiliate
rather than BNY will execute the Work Statement and all rights and obligations
pursuant to this Agreement and such Work Statement shall inure to the benefit of
such affiliate, rather than BNY. Hereinafter, references to BNY include any
affiliate to the extent such affiliate executes a Work Statement.

         B.  Each Work Statement shall contain the following:

             (i)    The incorporation by reference of this Agreement.

             (ii)   A detailed description of the services to be performed by
                    Company.

             (iii)  A listing and description of deliverables and documentation,
                    if any, to be produced.

             (iv)   Commencement date of the Work and completion date.

             (v)    A fee schedule.

             (vi)   Appropriate project milestones and dates, if required.

             (vii)  Signatures of the authorized representatives of BNY and the
                    Company.

             (viii) Any other information pertinent to the Work covered by the
                    Work Statement.

A form of Work Statement is attached to this Agreement as Exhibit A.
<PAGE>
                  DATA PROCESSING TECHNICAL SERVICES AGREEMENT

3.       Organization.
         -------------

         A.  BNY and Company shall each appoint a qualified staff member to act
as project manager (hereinafter the "Project Managers") for the Work undertaken
pursuant to each Work Statement. Each such Project Manager shall (i) act as the
principal contact between the parties, and (ii) ensure that Company personnel
coordinate with BNY personnel. BNY's Project Manager shall be responsible for
the overall technical direction and approval of the Work. Company shall be
responsible for supervision of the Work by its employees or agents in accordance
with the directions of BNY's Project Manager and, when specified within a Work
Statement, shall provide supervisory personnel on BNY's premises acceptable to
BNY to carry out this responsibility.

         B.  Company agrees to submit written reports on the progress of the
Work performed under each Work Statement as may be requested from time to time
by BNY's Project Manager.

         C.  Company shall be deemed an independent contractor for all purposes
under this Agreement and its personnel shall not be considered BNY's employees
or agents for federal tax purposes or any other purpose whatsoever, and Company
assumes full responsibility for their acts. Company shall be solely responsible
for compensation of its employees assigned to perform Work hereunder, and such
employees shall not be entitled to any BNY employee benefits. Company shall be
solely responsible for payment of worker's compensation, disability and other
similar benefits, unemployment insurance and for all income, social security and
other taxes required to be withheld, collected or paid by an employer.

         D.  Company will take all reasonable measures to ensure the continuity
of personnel in order to achieve the highest standard of quality and timely
completion of the Work. In the case of accident, illness, resignation,
reassignment or other such occurrences, Company will replace the individual
affected with a similarly qualified individual, acceptable to BNY. In addition,
Company will replace any personnel within 10 days of receipt of a reasonable
request by BNY. In the event of replacement of personnel due to any such cause,
Company shall provide 10 days non-billable time for Company's original
consultant to allow BNY sufficient time to orient the replacement. If personnel
are replaced at BNY's request, the schedule provided within the Work Statement
shall also be modified.

4.       Payment and Records.
         --------------------

         A. BNY shall pay Company for services performed pursuant to this
Agreement and any Work Statement issued hereunder, in accordance with the fee
schedule included in the relevant Work Statement. Unless specifically defined
within a Work Statement, payment of invoices, which are in good order, shall be
made within 30 days after receipt of each invoice by BNY. A "Professional Day"
shall mean the period during a working day that BNY expects that professional
performing services for the BNY should devote to his duties and responsibilities
in connection with a Work Statement. Such period (i) shall consist of
substantially all of the
<PAGE>
                  DATA PROCESSING TECHNICAL SERVICES AGREEMENT

professional's business time during such working day (defined as a minimum of 8
hours, excluding lunch hour), (ii) shall include substantially all of BNY's
regular business hours (9:00AM to 5:00PM), unless BNY shall have otherwise
agreed, and (iii) shall include such additional time as the professional's
duties and responsibilities in connection with a Work Statement may reasonably
require. It is BNY's policy not to pay overtime at any time including weekends
and holidays. If less than eight hours is worked, the daily rate will be divided
by eight and that figure will be used to compute payment for actual hours worked
and will be rounded up to the next fifteen minutes.

         B.  Unless specifically defined within a Work Statement, cost of
materials and incidental expenses shall be reimbursed by BNY at Company's actual
cost. Company shall separately itemize such costs and expenses on each invoice
submitted. BNY shall also reimburse Company for reasonable and necessary travel
and living expenses (exclusive of normal commutation) incurred by personnel of
Company in connection with services rendered, provided that BNY has given prior
approval for such travel and living expenses in writing. BNY will not reimburse
for travel within the New York City metropolitan area.

         C.  All computer time, keypunching and clerical services required to be
performed on BNY's premises in connection with the Work will be supplied by BNY.
BNY agrees to provide work space and office facilities for personnel of Company
assigned to perform the Work as BNY in its sole discretion believes to be
reasonable and appropriate.

         D.  Company shall maintain complete and accurate accounting records, in
accordance with generally accepted accounting practices, and shall retain such
records for each Work Statement for a period of one year from the date of final
payment thereunder.

5.       Data and Proprietary Rights.
         ----------------------------

         A.  Company and BNY shall hold the other party's confidential
information at all times in trust and confidence from and after the date of its
acquisition and, except as may be authorized by the disclosing party in writing,
each party shall not disclose to any person or entity any such confidential
information to a third party. Upon termination or expiration of this Agreement,
each party shall deliver to the disclosing party all materials including, but
not limited to, drawings, blueprints, descriptions, tapes, test data, work
papers and documents, which may contain any such confidential information. As
used herein, the term "confidential information" shall mean any and all
information obtained by a party from, or disclosed to a party by the disclosing
party which relates in any way to the disclosing party's past, present and
future research, development and business activities. In addition, Company shall
keep as confidential the results from services performed by Company under this
Agreement, except such information as is previously known to Company, or is
publicly disclosed either prior or subsequent to Company's receipt of such
information by acts other than those of Company.
<PAGE>
                  DATA PROCESSING TECHNICAL SERVICES AGREEMENT

         B.  All content (including without limitation, trademarks, artwork,
logos, graphics, video, text, data, and other materials) provided by BNY to
Company in connection with this Agreement shall remain the sole and exclusive
property of BNY.

         C.  Except as set forth in Section 5.D of this Agreement, Company
hereby assigns to BNY all right, title, and interest in and to any
Deliverable(s) developed under this Agreement, provided, however, that such
assignment shall be subject to BNY completing its payment obligations under this
Agreement.

         D.  "Company Material" - Software or documentation developed by Company
prior to this Agreement or developed outside of this Agreement and used and/or
modified by Company to fulfill its obligations under this Agreement will remain
the sole and exclusive property of Company. In addition, Company shall retain
the sole ownership and rights in its proprietary design techniques (including
without limitation the intermediate design files), its methodologies and its
developmental processes (including without limitation the ownership of
intermediate work product).

         E.  To the extent that any Deliverable(s) embodies or reflects rights
that Company owns pursuant to Section 5.D, Company hereby grants to BNY an
irrevocable, perpetual, non-exclusive, worldwide, fully paid up, royalty-free
license for the use, copy, display, reproduction, and performance of such
Company Material for BNY's internal business use only. BNY agrees not to resell
any Deliverable or portion of a Deliverable that includes such licensed
material.

         F.  BNY shall be responsible for obtaining any necessary licenses for
third party software.

         G.  Company agrees to give BNY, and any person designated by BNY, all
assistance reasonably required to perfect the rights contemplated in this
Section.

6.       Infringement.
         -------------

         A.  Company warrants that all work prepared for BNY hereunder as well
as any and all data processes and information used in preparation thereof, is
original to Company, or is property which Company has the right to use, and that
no portion of it is either derived from nor infringes upon any patent,
copyright, trade secret or other property right of any other person or is
subject to any interest, proprietary or otherwise, or any claim of any third
party. Company hereby agrees to indemnify and save BNY harmless from any loss,
claim, damage, cost or expense of any kind, including reasonable attorney's
fees, to which BNY may be subjected by virtue of a breach or claimed breach or
any of the warranties contained in this Section 6.A and further agrees to defend
BNY against any and all such claims.

         B.  BNY agrees to indemnify and hold Company harmless from and against
any and all claims, actions, demands, losses, and causes of action arising from
patent, trademark, copyright, or similar intellectual property infringement
related to BNY provided material.
<PAGE>
                  DATA PROCESSING TECHNICAL SERVICES AGREEMENT

7.       Indemnity for Injury to Persons and Property.
         ---------------------------------------------

         A.  Company shall indemnify BNY against, and save BNY, its directors,
officers and employees, harmless from, any and all loss, damage, claims,
liabilities, costs, payments and expenses (including but not limited to expenses
of counsel selected by BNY) asserted against BNY or incurred by BNY, (including
payments of workers' compensation and disability benefits to any BNY employee)
arising out of or in connection with any claim for injuries to persons, which
may arise by reason of Company's failure to comply with any of the provisions of
this Agreement and/or negligent action, omission or willful misconduct on the
part of Company, its officers, agents, employees or subcontractors.

         B.  Company shall indemnify BNY against, and save BNY, its directors,
officers and employees, harmless from, any and all loss, damage, claims,
liabilities, costs, payments and expenses (including but not limited to expenses
of counsel selected by BNY) asserted against BNY or incurred by BNY, (including
payments of workers' compensation and disability benefits to any BNY employee)
arising out of or in connection with any claim for damages to property which may
arise by reason of Company's failure to comply with any of the provisions of
this Agreement and/or negligent action, omission or willful misconduct on the
part of Company, its officers, agents, employees or subcontractors. COMPANY'S
INDEMNIFICATION UNDER THIS SECTION 7.B SHALL BE LIMITED TO $500,000.

         C.  BNY shall indemnify Company against, and save Company, its
directors, officers and employees, harmless from, any and all loss, damage,
claims, liabilities, costs, payments and expenses (including but not limited to
expenses of counsel selected by Company) asserted against Company or incurred by
Company, (including payments of workers' compensation and disability benefits to
any Company employee) arising out of or in connection with any claim for
injuries to persons, which may arise by reason of BNY's failure to comply with
any of the provisions of this Agreement and/or any willful misconduct, errors,
omission or actions on the part of BNY, its officers, agents, employees or
subcontractors.

         D.  BNY shall indemnify Company against, and save Company, its
directors, officers and employees, harmless from, any and all loss, damage,
claims, liabilities, costs, payments and expenses (including but not limited to
expenses of counsel selected by Company) asserted against Company or incurred by
Company. (including payments of workers' compensation and disability benefits to
any Company employee) arising out of or in connection with any claim for damages
to property which may arise by reason of BNY's failure to comply with any of the
provisions of this Agreement and/or any willful misconduct, errors, omission or
actions on the part of BNY, its officers, agents, employees or subcontractors.
BNY'S INDEMNIFICATION UNDER THIS SECTION 7.D SHALL BE LIMITED TO $500,000.
<PAGE>
                  DATA PROCESSING TECHNICAL SERVICES AGREEMENT

8.       Insurance.
         ----------

         Company shall take out and maintain during the life of this Agreement a
liability insurance policy insuring Company at all times during the life of this
Agreement against loss by reason of its contractual liability hereunder in
amounts not less than $1,000,000 for bodily injury liability per occurrence, and
not less than $500,000 for property damage liability. Such policy of insurance
shall include coverage for Errors and Omissions. A certificate of the issuance
of such insurance shall be delivered to BNY upon the delivery of a Work
Statement issued hereunder, and such certificate shall contain an agreement by
the insurance company issuing the policy that the policy will not be cancelled,
terminated or modified without 30 days prior notice to BNY.

9.       Term and Termination.
         ---------------------

         A.  This Agreement shall commence as of the date first above written,
and shall continue until terminated by either party upon 30 days written notice
to the other, except that Company may not terminate a Work Statement without
BNY's written consent. Upon termination, Company shall be entitled to payment
for services rendered prior to the effective date of termination and for any
other costs properly reimbursable under this Agreement.

         B.  BNY may at any time terminate the performance of the Work under any
Work Statement, in whole or in part, by providing written notice to Company
specifying the extent to which the performance of the Work is terminated and the
date such termination becomes effective provided, however, that in no event
shall the termination date be earlier than 10 days from the notification of
termination. In the event of any such termination, Company shall be entitled to
payment for services rendered prior to the effective date of termination and for
any other costs properly reimbursable under this Agreement.

         C.  Notwithstanding anything herein to the contrary, this Agreement
shall terminate immediately in the event that Company ceases doing business as a
going concern or makes an assignment for the benefit of creditors or is unable
to pay its debts as they become due or files a voluntary petition in bankruptcy
or is adjudicated a bankrupt or files a petition seeking for itself any
reorganization, arrangement, readjustment, liquidation or dissolution under any
present or future statute or regulation or is the subject of an involuntary
petition in bankruptcy or files an answer admitting the material allegations of
a petition filed against it in any such proceeding or consents to or acquiesces
in the appointment of a receiver or liquidator with respect to all or any
substantial portion of its assets or properties.

10.      Work Statement Changes.
         -----------------------

         Any changes to a Work Statement issued hereunder must be in writing. No
verbal modifications between persons involved in a project will be binding on
either BNY or Company. Changes which represent a departure from the original
scope of a project will be incorporated as
<PAGE>
                  DATA PROCESSING TECHNICAL SERVICES AGREEMENT

a modification to the original Work Statement or will become the basis of a new,
replacement Work Statement.

11.      Taxes.
         ------

         The charges and fees set forth in any Work Statement shall not include
federal, state, county or local sales, property, use and/or other applicable
taxes, however designated, exclusive of any taxes based upon Company's income,
and whether now or hereafter levied and based upon such charges or fees, this
Agreement, the services rendered hereunder, their use, or any end product
resulting therefrom. Any and all such taxes shall be the responsibility of and
shall be paid by BNY.

12.      Survival of Rights and Obligations.
         -----------------------------------

         The rights and obligations of this Agreement shall inure to and be
binding upon the parties hereto, their legal representatives, successors, heirs,
and assignees. The rights, and obligations of the parties hereunder which by
their nature are intended to continue beyond the expiration or termination of
this Agreement, shall survive and continue after any such expiration or
termination.

13.      Assignment.
         -----------

         Neither party may assign this Agreement without the prior written
consent of the other party, which shall not be unreasonably withheld. Any
attempt to assign any right, duty or obligation which arises under this
Agreement without such consent shall be void. Notwithstanding the foregoing, BNY
may assign this Agreement to any company controlled by or under common control
with it without first obtaining Company's prior written consent.

14.      Waiver.
         -------

         No term or provision hereof shall be deemed waived and no breach
excused, unless such waiver and consent shall be in writing and signed by the
party claimed to have waived or consented. Any consent by any party to, or
waiver of, a breach by the other, whether express or implied, shall not
constitute a consent to waiver of, or excuse for any other different or
subsequent breach.

15.      Notices.
         --------

         Except as otherwise specifically provided herein, all notices,
requests, consents, demands and other communications required or permitted
hereunder shall be in writing, shall be effective upon receipt and shall be
delivered by hand against receipt or mailed by certified or registered mail,
return receipt requested, to the respective parties to this Agreement as
follows:
<PAGE>
                  DATA PROCESSING TECHNICAL SERVICES AGREEMENT


                  If to Company:

                  Bridgeline Software, Inc.
                  130 New Boston Street
                  Woburn, MA 01801
                  Attn: Chief Financial Officer

                  If to BNY:

                  The Bank of New York
                  101 Barclay Street, 8E
                  New York, New York 10286
                  Attn: Vice President, Strategic Initiatives,
                        Corporate Trust Department

                  With a copy to:

                  Chief Legal Officer
                  The Bank of New York
                  1 Wall Street
                  New York, NY 10286

16.      Governing Law.
         --------------

         This Agreement shall be governed by and construed in accordance with
the substantive laws, and not the choice of law rules, of the State of New York.

17.      Jurisdiction.
         -------------

         Company agrees that all actions and proceedings relating directly or
indirectly to this Agreement, in the case of any such brought by Company against
BNY, shall be litigated in, and only in, and in the case of any such brought by
BNY against Company, may be litigated in, courts located in the State of New
York, and Company agrees that such courts are convenient forums for it and
irrevocably submits to the personal jurisdiction of such courts.

18.      Authority.
         ----------

         Each party represents that it has the full power and authority to enter
into and perform this Agreement, and each party acknowledges that it has read
this Agreement, understands it, and agrees to be bound by it.

<PAGE>
                  DATA PROCESSING TECHNICAL SERVICES AGREEMENT

19.      Section Headings.
         -----------------

         The headings of the several Sections are inserted for convenience or
reference only and are not intended to be part of or to affect the meaning or
interpretation of this Agreement.

20.      Non-Discrimination.
         -------------------

         Company will not discriminate against any employee or applicant because
of race, creed, color, national origin, physical handicap, sex or age.

21.      Use of Name.
         ------------

         Company shall not use BNY's or any of its affiliates' names or marks in
any advertising, promotional material, press releases, client lists or similar
materials, without first obtaining BNY's written consent.

22.      Counterparts.
         -------------

         This Agreement may be executed in any number of counterparts, all of
which taken together shall constitute one and the same instrument.

23.      Entire Agreement.
         -----------------

         The invalidity, illegality or unenforceability of any provision of this
Agreement shall in no way affect the validity, legality or enforceability of any
other provision. This Agreement and the documents incorporated by reference into
this Agreement, contain the final, complete and exclusive understanding of, and
supersedes all prior or contemporaneous, oral or written, agreements,
understandings, representations and negotiations between, the parties relating
to the subject matter of this Agreement. The parties further agree that this
Agreement may not in any way be explained or supplemented by a prior or existing
course of dealings between the parties, by any usage of trade or custom, or by
any prior performance between the parties pursuant to this Agreement or
otherwise.

24.      Consequential Damages.
         ----------------------

         Neither party hereto shall be liable to the other party for any
indirect, incidental, consequential, special, or exemplary damages arising from
or related to this agreement (even if such party has been advised of the
possibility of such damages) such as, but not limited to, loss of revenue or
anticipated profits or lost business.

25.      Non-Solicitation.
         -----------------

<PAGE>
                  DATA PROCESSING TECHNICAL SERVICES AGREEMENT

         During the term of this Agreement and for a period of one (1) year
thereafter, BNY agrees not to solicit for hire or to offer employment to any
employee or former employee of Company without prior written consent. The
Company may use subcontractors in its performance of services under this
Agreement, and Customer agrees to honor Company's exclusive relationship with
any of its subcontractors and agrees not to use or solicit the services either
directly or indirectly of any subcontractor introduced by the Company during the
course of this project and for a period of one (1) year thereafter, without the
express written consent of the Company.

26.      Force Majeaure.
         ---------------

         Neither party shall be liable for any failure to perform its
obligations under this Agreement if prevented from doing so by a cause or causes
beyond its control. Without limiting the foregoing, such causes include Acts of
God, or the public enemy, fires, floods, storm, earthquakes, riots, strikes,
lockouts, wars or war operations, restraints of government or other cause or
causes which could not with reasonable diligence be controlled or prevented by
the party.

         IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
executed by their respective authorized representatives as of the date first
above written.


THE BANK OF NEW YORK                                 BRIDGELINE SOFTWARE, INC.

Signature:                                           Signature:


/S/ BRIAN SWORDS                                     /S/ MICHAEL MATTEO
- --------------------------                           --------------------------
By:  Brian Swords                                    By:   Michael Matteo

Title: VICE PRESIDENT                                Title:  SVP



<PAGE>
                  DATA PROCESSING TECHNICAL SERVICES AGREEMENT


EXHIBIT A
- ---------



                        WORK STATEMENT NUMBER __________

                                     TO THE

                  DATA PROCESSING TECHNICAL SERVICES AGREEMENT

Date:_______________, 20___


BNY Project Manager:

Company Project Manager:



This is a Work Statement issued pursuant to the Data Processing Technical
Services Agreement between ________________________ (the "Company") and The Bank
of New York ("BNY") dated____________________ 20___ (the "Agreement"). This Work
Statement shall be governed by the terms and conditions of the Agreement and in
the event of any conflict between the terms of this Work Statement and the
Agreement, the Agreement will prevail. Capitalized terms not otherwise defined
herein shall have the meanings ascribed to them pursuant to the Agreement.


1.   Scope of the Work to be Performed.

2.   Implementation of the Work.

3.   Compensation.

4.   Project Milestones.


BNY & CO., INC.                                      ___________________________
                                                             (COMPANY)

By ___________________________                       By ________________________

Title: _________________________                     Title: ____________________
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10.29
<SEQUENCE>43
<FILENAME>ex10-29_14663.txt
<DESCRIPTION>PROFESSIONAL SERVICES AGREEMENT DATED 01-02-2006
<TEXT>
                                                                   EXHIBIT 10.29
                                                                   -------------
                         PROFESSIONAL SERVICES AGREEMENT

         This Agreement is made as of January 2, 2006, by and between The
Depository Trust & Clearing Corporation, with principal offices at 55 Water
Street, New York, New York 10041 ("DTCC") and BRIDGELINE Software, Inc. with
principal offices at 104 West 40th Street, New York, NY 10018 ("Company").

1. Services.
   ---------

         Company shall provide to DTCC the services (the "Services") described
in the Schedule of Work attached hereto as Exhibit A (the "Schedule of Work").


2. Personnel.
   ----------

         Company will provide qualified personnel (the "Personnel") to complete
the Services specified in the Schedule of Work. The Personnel shall perform
their assignments under the direction of Company and the DTCC Project Manager.
DTCC shall have the right, in its sole discretion, to have Company terminate any
Personnel from performing the Services for unsatisfactory performance. All
Personnel shall strictly abide by DTCC's security, safety, and insurance
requirements while on DTCC's premises. Company shall secure the written
authorization of a DTCC Vice President or higher corporate officer to obtain any
access to DTCC's computer systems.


3. Independent Contractor.
   -----------------------

         Notwithstanding anything to the contrary, Company is a contractor
independent of DTCC, not DTCC's agent, and all Personnel performing the Services
shall be considered for all purposes as Company's employees. With respect to all
Personnel, Company shall be solely liable for: (i) the payment of compensation
and the provision of any employee benefits; (ii) the payment of workers'
compensation, disability benefits, and unemployment insurance; (iii) withholding
and payment of all applicable Federal, State, and local income taxes and social
security; and (iv) their negligent or willful acts or omissions.


4. Payments.
   ---------

         Company shall invoice DTCC for the Service Fee(s) specified in the
Schedule of Work. Each invoice submitted by Company to DTCC shall be accompanied
by appropriate supporting documentation with detailed itemization to include a
time sheet and status report for work actually performed. All undisputed
payments are due thirty (30) days after receipt of an invoice.

                                  Page 1 of 13
<PAGE>

5. CONFIDENTIAL INFORMATION: PRIVACY: SECURITY AND DATA PROTECTION.
   ----------------------------------------------------------------

(a) Confidential Information. Company acknowledges that during the term of any
Statement of Work, Company, through its Personnel or otherwise, may acquire or
create confidential or proprietary information related to the business of DTCC
or the Related Companies including, but not limited to: (i) information
concerning DTCC's business, finances, computer systems, software, operations, or
employees or that of any of the Related Companies; (ii) patents, copyrights,
trade secrets, or other intellectual property rights owned by DTCC or any of the
Related Companies or licensed by DTCC or any of the Related Companies from third
parties; (iii) other non-public information concerning third parties, including,
without limitation, customers, prospective customers or suppliers of DTCC or any
of the Related Companies; (iv) Nonpublic Personal Information (as defined in
Section 5(e) hereof); and (v) Proprietary Works (as defined in Section 11(a)
hereof) (collectively, the "CONFIDENTIAL INFORMATION").


(b) Company's Use of Confidential Information. Company agrees: (i) that it will
only use the Confidential Information for the purpose of performing the
Services; (ii) to hold the Confidential Information in confidence, exercising no
less care in maintaining the security thereof as it does with respect to its own
confidential and proprietary information, but in no event will Company exercise
less than reasonable care to maintain the security of such information; (iii)
that only those Personnel having a "need-to-know" solely in connection with
performance of the Services, who are under contractual obligations of
confidentiality consistent with and at least equivalent to those assumed by
Company hereunder, and who will hold such information in strict confidence,
shall have access to the Confidential Information; and (iv) that disclosure of
the Confidential Information does not confer upon Company any license, interest,
or rights of any kind in or to such information.

(c) Exclusions. Notwithstanding the foregoing, the obligation of confidentiality
and nondisclosure shall not apply to information that: (i) was already known to
Company at the time of disclosure without restriction or breach of any
agreement; (ii) is obtained by Company from a third party without restriction or
breach of this Agreement; (iii) is public information or becomes public through
no fault of the party to whom such information has been disclosed; (iv) is
independently developed by Company without the use of DTCC's or any Related
Company's confidential information; or (v) is required to be disclosed by law or
court order (provided that Company shall promptly notify DTCC of any such
requirement prior to disclosure in order to afford DTCC an opportunity to seek a
protective order to prevent or limit disclosure).

(d) Return of Confidential Information. Upon the termination or expiration of
any Statement of Work, Company shall return all Confidential Information
relating to such Statement of Work then in its possession which is in written,
graphic or other tangible form and shall delete all Confidential Information in
electronic form, and shall provide DTCC with a written statement certifying that
this has been accomplished.

(e) Nonpublic Personal Information. Notwithstanding any other provision of this
Agreement, to the extent Nonpublic Personal Information is, either intentionally
or

                                  Page 2 of 13
<PAGE>

unintentionally, disclosed to or obtained by Company in connection with the
matters contemplated by this Agreement, Company covenants to keep such Nonpublic
Personal Information strictly confidential and shall use and process such
Nonpublic Personal Information solely for the purposes of carrying out its
obligations under, and as expressly set forth in, this Agreement or as otherwise
expressly directed in writing by DTCC and not for any other purposes. Company
shall maintain an effective information security program and take appropriate
administrative, technical and physical measures to secure and protect such
Nonpublic Personal Information against unauthorized, unlawful or accidental
access, disclosure, transfer, destruction, loss or alteration as more
particularly described in Section 5(f) hereof. Company shall, upon the
reasonable request of DTCC, (i) provide DTCC with information regarding its
privacy/data protection practices, (ii) provide DTCC with information relating
to those of its business locations from which Services under the Agreement are
performed regarding the results of any audits or tests performed which relate to
the security of Nonpublic Personal Information, and (iii) shall allow DTCC
reasonable access to audit compliance by Company with this provision as more
particularly described in Section 15 hereof. Without limiting the generality of
the foregoing, on or before the date this Agreement is executed and annually
within one (1) month of each anniversary of such date occurring thereafter
during the term of this Agreement, or at more frequent times if required by
DTCC's vendor management program requirements, DTCC shall be entitled to require
Company to provide DTCC with one or more of the following items, which must be
provided in English and at Company's expense:

         (i) a current report by an independent third party audit firm
         acceptable to DTCC (with respect to the scope of the audit performed
         and otherwise) that describes Company's control policies and
         procedures, including, without limitation, its security and compliance
         programs, that have been initiated and are then functioning at all
         locations from which Company shall be performing the Services, which
         report must contain statements on the operating effectiveness of those
         policies and procedures with respect to the Services (unless otherwise
         specified by DTCC, a Type II SAS 70 Report, as described in the then
         current Statement of Auditing Standard 70 of the American Institute of
         Certified Public Accounts and a BS7799 certification shall be
         acceptable types of audit reports),

         (ii) a SysTrust report,

         (iii) a TrueSecure certification,

         (iv) a completed DTCC-provided survey regarding information protection
         practices,

         (v) a review of Company's policies, practices and procedures for access
         controls and information protection controls,

         (vi) a review of Company's control testing results and remediation
         priorities, and

         (vii) a completed information security questionnaire provided by DTCC.

                  For purposes of this Agreement, the term "Nonpublic Personal
         Information" is defined as (i) any "nonpublic personal information" as
         such term is defined under the Title V of the U.S. Gramm-Leach-Bliley
         Act, 15 U.S.C. ss. 6801 et seq., and the rules and regulations issued
         thereunder; (ii) any information that can specifically identify an
         individual, such as name, address, social security

                                  Page 3 of 13
<PAGE>

         number, etc., together with any other information that relates to an
         individual who has been so identified; or (iii) any other information
         classified as the most sensitive information in DTCC's data
         classification standards (such information being currently referred to
         as "DTCC Restricted" information).

                  For the purpose of this Agreement, the term "Related
         Companies" means the direct and indirect subsidiaries of DTCC, and its
         and their affiliates as well as a joint venture of DTCC.

                  Company further agrees that:

         (i) it shall promptly notify DTCC when it becomes aware of any
         unauthorized access of such Nonpublic Personal Information and shall
         promptly implement necessary corrective actions. Such corrective
         actions shall include: (a) performing an analysis to determine the
         cause of the security breach, (b) providing DTCC with a report
         detailing the cause of the security breach and the material disclosed,
         (c) promptly remedying the security breach, (d) assisting DTCC in its
         efforts to retrieve the material and mitigate the effects of the
         unauthorized access, and (e) cooperating fully with DTCC and its
         designees and with any civil or criminal authority in any investigation
         or action relating to such unauthorized access;

         (ii) it shall promptly notify DTCC if it becomes the subject of any
         government, other enforcement or private proceeding relating to its
         data handling practices;

         (iii) it shall use and process such Nonpublic Personal Information in
         accordance with applicable privacy and data protection legislation, and
         in the case of any legal or regulatory obligation to disclose such
         Nonpublic Personal Information, it shall notify and co-operate with
         DTCC, limit any disclosure to the minimum required by law and, to the
         extent possible, request that such information be kept confidential;
         and

         (iv) it shall not, except as explicitly agreed to in writing by DTCC,
         under any arrangement established under this Agreement collect any
         Nonpublic Personal Information on DTCC employees or clients from any
         cookies, applets, Web bug or beacons or similar technologies.

         Nothing in this Section 5 hereof shall affect any data or information
         that Company validly receives from a source apart from (i) this
         Agreement or (ii) the relationship established pursuant to this
         Agreement, nor affect Company's rights to use such data or information,
         provided that if Company receives any such data or information that is
         identical to any Nonpublic Personal Information that is delivered or
         made available to Company under or pursuant to this Agreement, then
         that fact shall in no way diminish Company's obligations to keep the
         Nonpublic Personal Information so provided by DTCC secure. For
         avoidance of doubt, and as an example only, if Company receives a name
         and SSN from DTCC and also receives an identical name and SSN from a
         third party not acting on behalf of DTCC, then this Agreement does not
         affect in any way how Company handles or uses the information received
         from the third party, but Company still must keep the data received
         from DTCC secure under this Agreement.

                                  Page 4 of 13
<PAGE>

         (f) Security and Data Protection. Company agrees that:

         Company shall maintain an effective information security program and
take appropriate administrative, technical and physical measures to secure and
protect information received or created by it pursuant to this Agreement against
unauthorized, unlawful or accidental access, disclosure, transfer, destruction,
loss or alteration, which procedures and measures are in compliance with
commercially reasonable industry standards;

         Company will comply at its expense with all legal and/or regulatory
requirements applicable to it regarding security and data protection;

         Company will comply with DTCC's information security policies,
including, without limitation, DTCC's data classification standards, DTCC's
Standards and Guidelines, and DTCC's Company management program requirements;

         Company shall, upon the reasonable request of DTCC, (i) provide DTCC
with information regarding its privacy/data protection practices, (ii) provide
DTCC with information relating to those of its business locations from which
Services under this Agreement are performed regarding the results of any audits
or tests performed which relate to the security of information, and (iii) shall
allow DTCC reasonable access to audit compliance by Company with this provision
as more particularly described in Section 15 hereof,

         Company shall notify DTCC immediately if it suspects, reasonably
believes or becomes aware of the existence of any Destructive Elements (as
defined in Section 12(d) hereof) in the Services and/or deliverables. Company
shall also notify DTCC immediately if it identifies any elements of the Services
and/or deliverables that would make such Services and/or deliverables
susceptible to known Viruses (as defined in Section 12(d) hereof) or Viruses
Company comes to know of. DTCC will not access, and will not permit unauthorized
persons or entities to access DTCC computing systems and/or networks without
DTCC's express written authorization and any such actual or attempted access
shall be consistent with any such authorization. All Company connectivity to
DTCC computing systems and/or networks and all attempts at same shall be only
through DTCC's security gateways/firewalls and only through DTCC-approved
security procedures. Company will use an anti-Virus program approved by DTCC
[recognized in the financial services industry as being acceptable to detect and
prevent viruses] prior to any attempt to access any of DTCC's computing systems
and/or networks and upon detecting a Virus, all attempts to access DTCC's
computing systems and/or networks shall immediately cease and shall not resume
until any such Virus has been eliminated; and

         Company shall take reasonable steps to avoid the corruption, loss or
mis-transmission of data and to ensure the security of data during transmission
and storage, including the use of data encryption techniques in accordance with
commercially reasonable industry standards subject, however, to Section 12(e)
hereof (Export).

         (g) Equitable Relief. The parties acknowledge that monetary damages may
not be an adequate remedy for breach of the provisions of this Section 5.
Therefore, DTCC shall have the right (in addition to its other rights hereunder)
to a temporary restraining order, injunctive relief, or other equitable relief
to remedy or prevent a breach.

                                  Page 5 of 13
<PAGE>

6. Indemnification.
   ----------------

         Company hereby indemnifies DTCC and holds it harmless from and against
any and all claims, actions, suits, losses, damages, judgments, costs, charges,
payments, expenses, penalties and liabilities whatsoever (including attorneys'
fees and costs) (each, a "LOSS") as the result of: (i) any claim of patent,
copyright, trade secret or other intellectual property right infringement
asserted against DTCC at law or in equity in connection with Company's
performance under this Agreement; (ii) breach by Company of any of its
warranties hereunder; (iii) any claim, ruling, or determination that any
Personnel is an employee of DTCC; and (iv) any claim asserted against DTCC at
law or in equity by any person on account of damage (including, but not limited
to computer viruses and destruction of media) to intangible and tangible
property, including but not limited to the intangible or tangible property of
the party being held harmless, or on account of injuries to or death of any and
all persons, which arise out of or in connection with Company's performance
under this Agreement, but only to the extent that such Loss is caused by a
willful or negligent act or omission of Company.

7. Insurance.
   ----------

         Company shall, at its sole expense, maintain in full force and effect
during its performance under this Agreement the insurance coverages set forth
below. Company shall cause DTCC to be named as an additional insured under the
policy described in (ii) below for damages arising from Company's performance
under this Agreement as their interests may appear, and prior to the arrival of
Company's Personnel on DTCC's premises, Company shall provide to DTCC
certificates of insurance evidencing that the insurance policies described below
are in effect, including an undertaking by the underwriter(s) or insurance
company(s) to provide to DTCC at least ten (10) days prior written notice of any
proposed cancellation or expiration thereof. The required insurance coverages
are: (i) all necessary insurance for the Personnel, including but not limited to
workers' compensation, disability, and unemployment insurance required by
statute; (ii) a comprehensive general liability insurance policy with a minimum
limit of liability of five million dollars ($5,000,000) total loss coverage per
occurrence, including contractual liability coverage and products and completed
operations coverage; and (iii) professional errors and omissions coverage as
respects Company's business in the amount of five million dollars ($5,000,000).

8. Proprietary Rights.
   -------------------

         All data, documentation, materials, products, programs, processes,
inventions, specifications, and other works created or prepared by Company in
connection with the Services (the "PROPRIETARY INFORMATION") shall become the
exclusive and complete property of DTCC, and title to and all interest and
rights therein, including, but not limited to, all copyrights, patents, rights
of reproduction, the right to secure registrations, renewals, reissues and
extensions thereof, shall vest in DTCC. To the extent that this Agreement does
not otherwise vest in DTCC all rights to the Proprietary Information,

                                  Page 6 of 13
<PAGE>

Company hereby irrevocably assigns to DTCC title and all interest and rights
therein throughout the world to the Proprietary Information, including, but not
limited to, all copyrights, patents, and other intellectual property rights.
Company agrees to execute such further documents and to do such further acts as
may be necessary to perfect, register, or enforce DTCC's ownership of such
rights, in whole or in part. If Company fails or refuses to execute any such
documents, Company hereby appoints DTCC as Company's attorney-in-fact (this
appointment to be irrevocable and a power coupled with an interest) to act on
Company's behalf and to execute such documents.

9. Warranties.
   -----------

         Company warrants that: (i) Company shall comply with all applicable
laws and regulations; (ii) Company has all the necessary rights, authorizations,
or licenses to provide the Services hereunder and to provide all related
materials and services required under this Agreement or any agreement entered
into pursuant hereto; (iii) each of the Personnel assigned to perform services
shall have the proper skill, training and background sufficient to perform the
Services in a competent and professional manner, and all work will be performed
in a manner compatible with DTCC's business operations at its premises; and (iv)
each and every deliverable contemplated by the Schedule of Work shall be
provided in a manner consistent with good commercial practice, shall conform to
any specifications mutually agreed to in writing by DTCC and Company, and shall
meet any functional, performance and reliability requirements of DTCC set forth
in the Schedule of Work; and (v) in performing its obligations under this
Agreement, Company shall not install any "timebombs," "worms," "viruses,"
"trojan horses," "protect codes," "data destruct keys," expiring passwords, or
other codes, instructions, programs, or programming devices that might, or might
be used to, access, modify, delete, damage, deactivate, or disable DTCCs
software, firmware, hardware, or data.

10. Term and Termination.
    ---------------------

         This Agreement shall commence on the date hereof and shall remain in
full force and effect until the End Date specified in the Schedule of Work
unless terminated by either party, for nonperformance only, in accordance with
written notice, specifying such nonperformance and granting the party to be
terminated ten business days to cure such default as has been alleged under the
notice of termination. After termination of this Agreement, neither DTCC nor
Company shall have any further obligation hereunder, except as set forth in
Section 15(e) below.

11. Force Majeure.
    --------------

         If either party is delayed in or prevented from performing any of its
obligations hereunder by reason of a governmental law or regulation, court
order, labor disturbance, act of God, fire, flood, national emergency, war,
insurrection, civil disturbance, or other reason of a like nature beyond the
control of and not the fault of or due to the negligence

                                  Page 7 of 13
<PAGE>

of such party, which such party is unable to prevent or overcome by the exercise
of due diligence, then upon such party's giving prompt notice and full
particulars of such cause to the other party the performance of such obligation
shall be excused for the period of the delay and the period for the performance
of such obligation shall be extended for an equivalent period.

12. No Promotion.
    -------------

         Company agrees that it will not, without the prior written consent of
DTCC in each instance: (i) use in advertising, publicity or otherwise the name
of DTCC, or any affiliate of DTCC, or any partner or employee of DTCC or any
trade name, trademark, trade device, service mark, symbol or any abbreviation,
contraction or simulation thereof owned by DTCC or its affiliates, or (ii)
represent, directly or indirectly, that any product or any service provided by
Company has been approved or endorsed by DTCC.

13. Notices.
    --------

         All notices and other communications required under this Agreement
shall be in writing to the address stated below, or to such other address as
shall be given by either party to the other in writing, and shall be effective:
(i) upon actual delivery if presented personally or sent by prepaid telegram,
telex, or telecopy, and (ii) seven days following deposit in the United States
mail if sent by certified or registered mail, postage prepaid, return receipt
requested.

         If to Company:                     BRIDGELINE Software, Inc.
                                            104 West 40th Street
                                            New York, NY 10018
                                            Attention: Rob Seeger, Senior VP
                                            Telephone 212-201-5642
                                            Facsimile 212-564-6886

         If to Customer:                    The Depository Trust & Clearing
                                              Corporation
                                            55 Water Street
                                            New York, New York 10041
                                            Attention: Managing Director
                                            Infrastructure
                                            Telephone 212-855-8815
                                            Facsimile 212-855-8816



                                  Page 8 of 13
<PAGE>

14. Assignment.
    -----------

         Company shall not assign its obligations under this Agreement, in whole
or in part, or any interest therein without Customer's prior written consent. A
successor in interest by merger, operation of law or purchase of the entire or
substantially all of the business of either party shall acquire all interest and
be subject to all obligations of such party hereunder. Notwithstanding anything
to the contrary, Customer may assign this Agreement to its subsidiaries and
affiliates. Any attempted assignment not complying with these provisions shall
be null and void.

15. Business Continuity.
    --------------------

         Company represents that it has taken customary and reasonable steps to
ensure that Company will be able to continue providing its products and/or
services in the event of an unplanned outage at Company's facilities. A summary
of Company's business continuity plan is attached hereto as Exhibit C, which
summary addresses the following elements, as applicable, among other things:
number of backup sites and distance from primary site, type of backup site (hot,
warm, cold, dedicated, shared), anticipated time to recover, potential loss of
data, and backup communications capabilities.

16. General.
    --------

(a)   No Waiver. The failure of either party to insist upon strict performance
of any of the items or conditions of this Agreement will not constitute a waiver
of any of its rights hereunder.

(b)   Successors and Assigns. This Agreement binds, inures to the benefit of,
and is enforceable by the successors and assigns of the parties, and does not
confer any rights on any other persons or entities.

(c)   Governing Law; Severability. This Agreement shall be governed by New York
law, without giving effect to principles of conflicts of law. The parties
expressly agree that the Uniform Computer Information Transactions Act ("UCITA")
applicable in any jurisdiction shall not apply to this Agreement. All suits for
breach of this Agreement maybe maintained in any court of competent jurisdiction
in the County of New York, City of New York, State of New York. If any provision
of this Agreement is held illegal, invalid, or unenforceable, such illegality,
invalidity, or unenforceability will not affect any other provision hereof. Such
provision and the remainder of this Agreement shall, in such circumstances, be
deemed modified to the extent necessary to render enforceable the remaining
provisions hereof.

(d)   Entire Agreement and Headings. This Agreement, including its Exhibits
constitutes the entire understanding between the parties with respect to the
subject matter contained herein and supersedes any prior understandings and
agreements between them

                                  Page 9 of 13
<PAGE>

respecting such subject matter. This Agreement maybe amended and supplemented
only by a written instrument duly executed by both parties. The headings in this
Agreement are for convenience of reference only and shall not affect its
interpretation.

(e)   Survival. The following Sections shall survive termination of this
Agreement: 3, 5, 6, 8, 9, 12, and this Section 16 (e).

         IN WITNESS WHEREOF, the parties hereto, each acting under due and
proper authority, have executed this Agreement as of the date written above.

COMPANY                                THE DEPOSITORY TRUST &
                                       CLEARING CORPORATION

By:     /S/ GARY M. CEBULA             By:     /S/ AVI ZLOOF
        ----------------------------           ----------------------------

Name:   Gary M. Cebula                 Name:   Avi Zloof
        ----------------------------           ----------------------------

Title:  CFO                            Title:  Managing Director
        ----------------------------           ----------------------------

Federal Tax ID number:  52-2263942






                                 Page 10 of 13
<PAGE>

                                                                       EXHIBIT A
                                                                       ---------
<TABLE>
<CAPTION>
                                SCHEDULE OF WORK

- --------------------------------------
 DTCC Reference Number: I ISAR T00028
- --------------------------------------
<S>     <C>
- -------------------------------------------------------------------------------------------------------------------------
1.   Company's Personnel:                                     (a)       (b)                       DTCC
                                                                                                Location
                                                                                   Estimated      where       Estimated
                                                                                    Service     Services     Reimbursable
                                                            Hourly    Estimated       Fee       are to be      Expenses
     Name(s) of Personnel          Job Title                 Rate      Hours       [(a)x(b)]    Performed    For Duration
- -------------------------------------------------------------------------------------------------------------------------
      Carl Prizzi               Flash Developer              $150       115         $17,250      Off Site          NA
- -------------------------------------------------------------------------------------------------------------------------
      Stephanie Heacox          Information Architect        $150        63          $8,500      Off Site          NA
- -------------------------------------------------------------------------------------------------------------------------
      Tom Lynch                 Senior Designer              $150       115         $17,250      Off Site          NA
- -------------------------------------------------------------------------------------------------------------------------
      Total                                                             293         $43,000
- -------------------------------------------------------------------------------------------------------------------------

- -------------------------------------------------------------------------------------------------------------------------

2.    DTCC's Project Manager:   Gina Ghent

- -------------------------------------------------------------------------------------------------------------------------

3.    Name of DTCC's Project:   AffirmXpress - Flash Demo

- -------------------------------------------------------------------------------------------------------------------------
                                      Scope of Services                            Description of Services
                                      -----------------                            -----------------------
                                Help define new look and feel of the      For details, see the Detailed Schedule of Work,
                                new application.                          attached hereto as Exhibit A1. In the event of
                                                                          any conflict between the terms and conditions of
4.                  Services:                                             this Schedule of Work and Exhibit A1, the terms
                                                                          and conditions of this Schedule of Work shall
                                                                          prevail.
- -------------------------------------------------------------------------------------------------------------------------

5.                  Duration:         Start Date: 1/2/2006                         End Date: 4/28/2006
     (not to exceed 9 months)

- -------------------------------------------------------------------------------------------------------------------------

6.           Maximum Charges:
(based on totals from Section 1)      Service Fee: $43,000                         Reimbursable Expense: NA

- -------------------------------------------------------------------------------------------------------------------------

7.        Special Conditions:

- -------------------------------------------------------------------------------------------------------------------------

    (a)  Company shall require any subcontractors and other non-Personnel who may be performing work in connection with
         the Services or willhave access to the Confidential Information or the Proprietary Information to execute and be
         bound by the Subcontracting Agreementattached hereto as Exhibit B.

- -------------------------------------------------------------------------------------------------------------------------

    (b)  The maximum charges set forth in Section 6 shall not be exceeded without DTCC's written approval in advance.
         DTCC shall reimbursereasonable expenses actually incurred that it approved in advance and writing, up to the
         maximum amount permitted hereunder, subject tothe following: Reasonable out-of-pocket expenses necessarily and
         actually incurred by Company in the performance of its serviceshereunder, provided that (i) DTCC has given its
         prior written consent for any such expenses; (ii) the expenses have been detailed on aform acceptable to DTCC
         and submitted to the appropriate DTCC Project Manager for review and approval; and (iii) if requested byDTCC,
         Company submits supporting documentation in addition to the approved expense form. It is understood that DTCC
         shall notreimburse Company for commutation expenses under any circumstances or for travel and living expenses
         incurred by any Companyemployee in performing services at a DTCC facility located in the same metropolitan area
         as that of employee's home base. It is alsounderstood that any air transportation reimbursable hereunder shall
         be coach-economy and that entertainment by or on behalf ofCompany shall be at no cost to DTCC. Payment will be
         due net 30.

- -------------------------------------------------------------------------------------------------------------------------
</TABLE>

                                 Page 11 of 13
<PAGE>


                                                                       EXHIBIT B
                                                                       ---------

                            SUBCONTRACTING AGREEMENT;
             WORK PERFORMED IN CONNECTION WITH SERVICES PROVIDED BY
     BRIDGELINE SOFTWARE, INC., COMPANY, TO THE DEPOSITORY TRUST & CLEARING
           CORPORATION PURSUANT TO THE PROFESSIONAL SERVICES AGREEMENT
                            MADE AS JANUARY 2, 2006

         I, the undersigned, in connection with services I will be performing
for BRIDGELINE Software, Inc. as Company to The Depository Trust & Clearing
Corporation ("DTCC") pursuant to the above referenced agreement, agree to the
following:

1.       When I am on DTCC's premises, I will comply with all DTCC's rules,
regulations and policies concerning suchmatters as DTCC's security measures.

2.       I acknowledge that I may acquire confidential or proprietary
information, including, but not limited to: (i) information concerning DTCC's
business, finances, and operations; (ii) patents, copyrights, trade secrets, and
other intellectual property rights owned by DTCC or licensed by DTCC from third
parties; and (iii) other non-public information concerning third parties
(collectively, the "Confidential Information"). I will not duplicate, use nor
disclose the Confidential Information to anyone without DTCC's prior written
consent. I agree that DTCC shall have and may cumulatively exercise all rights
at law or in equity for the protection of the Confidential Information,
including obtaining an injunction enjoining the breach or threatened breach of
this paragraph. The terms of this paragraph shall also apply to the Proprietary
Information as such term is defined in paragraph 3 hereof.

3.       All data, documentation, materials, products, programs, specifications,
and other work created or prepared by me (the "PROPRIETARY INFORMATION") shall
become the exclusive and complete property of DTCC, and title to and all
interest and rights therein, including, but not limited to, all copyrights and
other intellectual property rights, shall vest in DTCC. To the extent that this
Agreement does not otherwise vest in DTCC all rights to the Proprietary
Information, title to and all interest and rights therein throughout the world
is hereby irrevocably assigned to DTCC.

4.       I will not, without prior written consent of DTCC in each instance:
(a) use in advertising, publicity or otherwise the name of DTCC, or any
affiliate of DTCC, or any partner or employee of DTCC or any trade name,
trademark, trade device, service mark, symbol or any abbreviation, contraction
or simulation thereof owned by DTCC or its affiliates; or (b) represent,
directly or indirectly, that any product or any service provided by me has been
approved or endorsed by DTCC.

AGREED:
                                       ________________________
                                       (Name)

                                       ________________________
                                       (Print or Type Name)

                                       ________________________
                                       (Date)

                                 Page 12 of 13
<PAGE>

                                                                       Exhibit C
                                                                       ---------


                       COMPANY'S BUSINESS CONTINUITY PLAN
                       ----------------------------------
































                                 Page 13 of 13
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10.30
<SEQUENCE>44
<FILENAME>ex10-30_14663.txt
<DESCRIPTION>STATEMENT OF WORK FOR WEB MAINTENANCE SERVICES
<TEXT>
                                                                   EXHIBIT 10.30
                                                                   -------------
- ---------------------------
       BRIDGELINE
Quality Internet Solutions
         [LOGO]
- ---------------------------






- --------------------------------------------------------------------------------
STATEMENT OF WORK FOR WEB MAINTENANCE SERVICES
- --------------------------------------------------------------------------------



JUNE 12, 2002                                    MAINTENANCE AND WEB DEVELOPMENT
                                             SUPPORT FOR NOMURA SECURITIES, INC.



















Prepared for:

Peter Fastovsky
Chief Technology Officer, Vice President
Nomura Securities.
535 Madison Avenue
New York, NY 10021
<PAGE>

- ---------------------------
       BRIDGELINE
Quality Internet Solutions
         [LOGO]
- ---------------------------

TABLE OF CONTENTS

Executive Summary........................................................Page 3

Project Scope ...........................................................Page 3

Key Assumptions..........................................................Page 4

Nomura's Responsibilities ...............................................Page 5

Request Orders Process...................................................Page 6

Notification.............................................................Page 6

Deliverables and Method of Delivery......................................Page 6

Reserved Resources.......................................................Page 6

Payment Schedule.........................................................Page 7

Term of this Statement of Work...........................................Page 7

Appendix A - Project Change Control Procedure............................Page 8



                                                                          Page 2
<PAGE>

- ---------------------------
       BRIDGELINE
Quality Internet Solutions
         [LOGO]
- ---------------------------

EXECUTIVE SUMMARY

This defines the scope of work to be accomplished by BRIDGELINE Software, Inc.
(hereinafter referred to as "BRIDGELINE") and for Nomura Securities
International, Inc. (hereinafter referred to as "Nomura") under the terms and
conditions of the Master Service Agreement dated February 6, 2001.

BRIDGELINE has developed Nomura's Internet Website's WWW.NOMURAFIXEDINCOME.COM,
the Nomura Derivatives intranet and WWW.NOMURAREALESTATE.COM (each referred to
as "Site" herein and collectively as "Sites"). Nomura has now elected to have
BRIDGELINE provide maintenance and support services as set forth within this
Statement of Work ("SOW") to maintain all of these Sites as well as perform
ongoing maintenance and upgrades to any and all of Nomura systems. BRIDGELINE's
employees have a vast array of skills that include creative Web design, print
design, branding, interface development, database administrators, application
engineers with a vast degree of differing technology, marketing support,
Internet strategy, and systems engineers. BRIDGELINE's people are constantly on
top of the latest technology, as well as the fastest way to implement solutions.
Our people are extremely efficient, and we are quite certain that we can deliver
quicker and more effective results than most internal teams. In addition,
BRIDGELINE offers Nomura access to such varied and much needed resources that
would be extremely expensive to replicate in-house.

Changes to this scope of work will be processed in accordance with the procedure
described in the "PROJECT CHANGE CONTROL PROCEDURE" of this Statement of Work -
see Appendix A.

PROJECT SCOPE

The scope of this project is for BRIDGELINE to maintain and provide services and
support in connection with the maintenance of all Nomura Websites, intranets,
extranets, etc. Maintenance includes changes to content, design, navigation, and
functionality and features of the sites as requested by Nomura.

BRIDGELINE WILL SUPPLY THE FOLLOWING:

o    Project Management for overall responsibility for timely and accurate
     performance of all Request Orders to be completed by BRIDGELINE for Nomura.
     BRIDGELINE will have weekly status meetings with Nomura to inform them of
     work to date as well as provided a summary of hours used and remaining
     during that current month.

o    Reserved Resources for on going changes and maintenance to the Nomura sites
     as set forth within this Statement of Work under the RESERVED RESOURCES
     section. These resources are intended to give Nomura a rapid response to
     Request Orders. Request Orders that exceed the Reserved Resources may
     require additional planning but will be provided as expeditiously as
     possible.

o    All deliverables and work required in any Request Order.

o    Training, assistance and cooperation to Nomura (including the necessary
     support for Nomura to perform Nomura's responsibilities as set forth below
     in the NOMURA'S RESPONSIBILITIES section of this Statement of Work) and
     other assistance as is reasonably required by Nomura.

                                                                          Page 3
<PAGE>

- ---------------------------
       BRIDGELINE
Quality Internet Solutions
         [LOGO]
- ---------------------------

BRIDGELINE WILL PROVIDE THE FOLLOWING SERVICES FOR GENERAL UPDATES/CHANGES TO
THE SITE:

o    General updates and/or changes to the Site will be completed between the
     normal business hours of 9am to 6pm, Eastern Time, Monday through Friday.
     The timing of each modification and/or change requested by Nomura shall be
     mutually agreed to prior to BRIDGELINE's performance of any Request Order
     issued hereunder. Nomura will have the cell phone number of two different
     people assigned to Nomura so that BRIDGELINE can be reached in case of an
     emergency within Nomura.

KEY ASSUMPTIONS

THE FOLLOWING ASSUMPTIONS HAVE BEEN MADE IN CONNECTION WITH THE WORK TO BE
PERFORMED AND DELIVERABLES TO BE COMPLETED UNDER THIS SOW. THE ESTIMATES AND
SCHEDULES FOR THE SOW ARE BASED ON THE FOLLOWING ASSUMPTIONS:

o    Requests for work/deliverables under the SOW will be sent via email or
     via a written request order (in either case, a "Request Order") by Nomura
     per the REQUEST ORDERS PROCESS section of this Statement of Work. Unless
     such e-mail or written request is an automated notification, Request Orders
     will include a detailed description of the work or deliverable(s) needed
     and the timeframe for completion and delivery thereof.

o    Work that exceeds the Reserved Resources (as identified in the RESERVED
     RESOURCES section of this Statement of Work) will be billed at Nomura's
     discounted rate of $100 per hour with execution of this agreement.
     BRIDGELINE will notify Nomura on weekly basis of hours used and remaining
     within that current month. BRIDGELINE will make every attempt to notify
     Nomura of any request that may take them over their monthly hour allotment.

o    Maintenance work will adhere to project specs stated in the original Site
     design. If Nomura's needs fall outside of the compatibility of these specs
     or if there are additional considerations, Nomura will notify BRIDGELINE
     prior to issuing a Request Order under this Statement of Work.

o    Nomura will provide one contact from each business unit (i.e. Fixed Income,
     NDPI, & Corporate) for BRIDGELINE that will direct BRIDGELINE's "monthly
     work performed". Nomura is estimating that Fixed Income will utilize one
     hundred (100) hours, NDPI fifty( 50) hours and Nomura Corporate fifty (50)
     hours per month of the two hundred (200) hour allotment. Each business unit
     is not bound to these exact hours and they may be shared amongst business
     units as needed. BRIDGELINE will hold one mandatory meeting per week with
     Nomura to review the present week's goals and objectives to help support
     Nomura. This contact will be able to approve all BRIDGELINE work performed
     and provide adequate feedback.

o    BRIDGELINE will supply hour estimates to Nomura for any work requested by
     Nomura. BRIDGELINE will make every possible attempt to notify Nomura as
     soon as reasonably possible that the initial hour estimates will be
     exceeded.

o    No individual Request Order shall exceed an anticipated two hundred (200)
     hours per month of BRIDGELINE time. If a Request Order is anticipated to
     exceed 200 hours in a month, then a separate Statement of Work shall be
     developed stating the scope, timing, and compensation terms under which
     that engagement shall be executed.

                                                                          Page 4
<PAGE>

- ---------------------------
       BRIDGELINE
Quality Internet Solutions
         [LOGO]
- ---------------------------

o    BRIDGELINE will provide Nomura a free license to its proprietary content
     management software NetEditor. This license does not include integration
     fees. Integration fees vary depending on the complexity of the website.

o    BRIDGELINE will provide proper documentation for any future development
     performed on any Nomura systems or websites. Proper documentation will be
     agreed upon by both parties before development is initiated.

o    Any code developed for Nomura Securities will be property of Nomura
     Securities exclusive of intermediate and layered Photoshop files. Any work
     developed for Nomura will not be utilized for any other BRIDGELINE clients.

o    All modifications performed to any system by either Nomura or BRIDGELINE
     will be communicated to either party via email.

NOMURA'S RESPONSIBILITIES

o    Nomura will provide content research, writing, editorial review and
     approval, and other technical and data requirements. Nomura is responsible
     for the aggregation and delivery of content to BRIDGELINE for updates to
     the Site.

o    Nomura will provide BRIDGELINE with necessary access to its server
     (provided that BRIDGELINE agrees to comply with any and all security or
     other guidelines or procedures provided by Nomura).

o    Nomura will provide one contact per business unit for BRIDGELINE that will
     direct BRIDGELINE's "monthly work performed". BRIDGELINE will hold one
     mandatory meeting per week with Nomura to review the present week's goals
     and objectives to help support Nomura. This contact will be able to approve
     all BRIDGELINE work performed and provide adequate feedback.

o    Nomura staff will be reasonably available for questions and issues for the
     duration of the project. Extended response times may impact the overall
     development and delivery schedule.

REQUEST ORDERS PROCESS

Request Orders may be communicated in writing or by e-mail per the notification
information presented below. BRIDGELINE shall respond in writing or by e-mail
with an implementation plan and completion date for such Request Order as
expeditiously as possible. Such a response shall be received by Nomura within
one (1) business day of the Request Order.

NOTIFICATION INFORMATION

All Request Orders shall be communicated to BRIDGELINE in writing and
transmitted by personal delivery, prepaid first class registered or certified
mail, or e-mail (to all participants shown below) addressed as follows:

         BRIDGELINE Software
         212 W. 35th Street - 8th Floor
         New York, NY  10001
         Attn:  Brett Zucker (bzucker@bridge-line.com) - (917) 640-3247
                Rob Seeger (rseeger@bridge-line.com ) - (516) 318-0620

                                                                          Page 5
<PAGE>

- ---------------------------
       BRIDGELINE
Quality Internet Solutions
         [LOGO]
- ---------------------------

Responses shall be communicated to Nomura in writing and transmitted by personal
delivery, prepaid first class registered or certified mail, or e-mail (to the
appropriate Nomura contacts) addressed as follows:

                  Nomura Securities International
                  2 World Financial Center, Building B
                  New York, NY 10281
                  Attn: Peter Fastovsky (pfastovsky@us.nomura.com) 212-667-9730
                  Attn: Scott Edmonds (sedmonds@us.nomura.com) 212-667-9313

DELIVERABLES AND METHOD OF DELIVERY

Deliverables, if any, will be determined within the individual Request Order(s)
and shall be delivered by BRIDGELINE via an upload to the Nomura server, or as
otherwise required by Nomura.

RESERVED RESOURCES

BRIDGELINE will reserve resources for a total of two hundred (200) hours per
month for a total of twenty thousand dollars ($20,000) per month for maintenance
work identified within this SOW (the "Reserved Resources"). Reserved Resources
include:

Project Management
Engagement Management
Interface Design (online & offline design)
Creative Director
Interface Development (HTML, DHTML, Java Script, ASP, JSP) Database
Administrator (Sybase, SQL 2000, SQL 7, Oracle)
Application Engineering  (C, C++, VB, COM, Java, XML, Web Logic, Site Server)
System Management
Director of Strategy
Marketing Services
Multimedia Designer (Macromedia Flash)

Any additional work beyond these hours will be billed on a time and materials
basis at Nomura's discounted rate of $100 per hour. This estimate does not
include expenses for couriers and materials, licensing and fees for Nomura,
printing fees, stock photography, equipment for Nomura, third-party services,
any travel-related expenses or state and local taxes.

The monthly retainer fee will include two hundred hours per month of work at
$20,000 per month. These hours will be pre-booked for a period of one year. Any
hours covered under this agreement that are not used within the month they are
allocated will be considered forfeited, unless mutually agreed upon by both
parties in writing or via email.

Invoices will be generated on the first day of each month. The first month of
work will be billed in advance on a pro rated basis.

                                                                          Page 6
<PAGE>

- ---------------------------
       BRIDGELINE
Quality Internet Solutions
         [LOGO]
- ---------------------------

PAYMENT

Monthly payments shall be made on the first day of each monthly period (i.e. the
payment for June 1st - June 30th is due June 1st). If additional resources are
utilized during the monthly cycle these hours will be invoiced at the end of the
month on a thirty (30) day payment basis. Violation of these payment terms shall
relieve BRIDGELINE of its response obligations under this Statement of Work.

TERMS

This SOW is a one (1) year agreement but may be extended on a monthly basis by
approval of both parties (E-mail correspondence will be considered a valid
approval method for extension of this Statement of Work). This agreement may be
cancelled with 30 days written notice for performance reasons only. If
BRIDGELINE fails to meet its objectives and deliverables stated in this
Statement of Work than Nomura must give BRIDGELINE 30 days written notice to
inform them of their desire to cancel or amend this agreement.



Approved for                           Approved for

NOMURA SECURITIES INTERNATIONAL,       BRIDGELINE SOFTWARE, INC.:
INC.:



Signature: /S/ PETER FASTOVSKY         Signature: /s/ Gary M. Cebula
           -------------------------              -------------------------

Print Name: Peter Fastovsky            Print Name: Gary M. Cebula
           -------------------------              -------------------------

Title:                                 Title:
           -------------------------              -------------------------
Date:                                  Date:
           -------------------------              -------------------------




                                                                          Page 7
<PAGE>

- ---------------------------
       BRIDGELINE
Quality Internet Solutions
         [LOGO]
- ---------------------------

- --------------------------------------------------------------------------------
APPENDIX A

PROJECT CHANGE CONTROL PROCEDURE

This Statement of Work may be modified or amended via electronic mail approval
from Nomura and BRIDGELINE or by a written change order (in either case, a
"Change Order") signed by an authorized representative of both Parties. If
Nomura requests or BRIDGELINE recommends changes during performance of a
Statement of Work, then within five (5) business days of such request or
recommendation, BRIDGELINE will provide to Nomura a written or an electronic
proposal (in either case, the "Change Order Proposal") setting forth (a) a
description of the proposed change(s), (b) impact on Statement of Work Price (if
any), (c) impact on the Production Schedule (if any) and (d) a revised Statement
of Work if necessary. Nomura may, at its sole discretion, accept or reject the
Change Order Proposal. A Change Order Proposal will be considered rejected if
Nomura does not respond to the proposal within ten (10) business days from the
date the Change Order Proposal is received by Nomura. If accepted, a Change
Order Proposal will become effective only upon execution by both Parties.














                                                                          Page 8

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10.31
<SEQUENCE>45
<FILENAME>ex10-31_14663.txt
<DESCRIPTION>PFIZER AGREEMENT DATED 12-16-2005
<TEXT>
                                                                   EXHIBIT 10.31
                                                                   -------------

                                    AGREEMENT

Pfizer Inc, a Delaware corporation with a business address of 235 East 42nd
Street, New York, NY 10017 and its Affiliates ("Pfizer"), and Bridgeline
Software, Inc., with a business address of 10 Sixth Road, Woburn, MA 01801
("Bridgeline"), enter into this Agreement for development of a usability study,
information architecture and user interface design, training and other services
as set forth in the Work Plan, attached to and made part of this Agreement as
Exhibit A ("Work Plan"), on the following terms and conditions:

1.   DEFINITIONS:

     a.  "Affiliates" means any corporation, firm, partnership or other entity
         which directly or indirectly controls, is controlled by, or is under
         common control with Pfizer Inc.

2.   SCOPE OF WORK: The work to be performed by Bridgeline under this Agreement
     ("Services") shall be as set forth in the Work Plan. Bridgeline will
     complete the Services in a professional and diligent manner, on a schedule
     agreed to by the parties and at the price stated in the Work Plan.
     Bridgeline will design and deliver the user interface, software and
     associated documentation ("Custom Software"), create and manage the program
     management office for the development, launch, and deployment of Atlas
     software at Pfizer sites

3.   TERM: The term of this Agreement is two years from the date of its
     execution by Bridgeline or until the completion of the work described in
     the Work Plan, whichever comes first.

4.   PAYMENT: Pfizer will pay Bridgeline the sums set forth in the Work Plan in
     accordance with the payment schedule set forth in the Work Plan. All
     payments will be made within 30 days of receipt of, and acceptance by,
     Pfizer of an invoice from Bridgeline.

5.   OWNERSHIP AND INTELLECTUAL PROPERTY RIGHTS

         5.1      PFIZER PROPERTY. Materials and information provided by Pfizer
                  remain Pfizer's property and will be treated as confidential
                  Information.

         5.2      WORK PRODUCT. The user interface, documentation and embedded
                  software produced by Bridgeline in performance of the Services
                  ("Results") and delivered to Pfizer will belong to Pfizer,
                  upon Pfizer's complete payment to Bridgeline for the services.

         5.3      BRIDGELINE PROPERTY. All Bridgeline technology embodied in the
                  work product or incorporated into the Results, including
                  without limitation, processes, methodologies, background
                  technology, tools, source codes, templates, languages,
                  documentation, and all intellectual property rights used to
                  create or operate the Results will remain Bridgeline's
                  property.


         5.4      Bridgeline hereby grants to Pfizer a non-exclusive, fully
                  paid-up and royalty free, worldwide license, with the right to
                  sublicense to Arity and Arity's sublicensees, to use such
                  Bridgeline technology and intellectual property rights
                  contained in the Results to the extent necessary for Pfizer
                  and its

<PAGE>
                                        2

                  sublicensees to make use of the Results alone or in
                  combination with other technology and information.

         5.5      NO RIGHTS GRANTED. With the exception of the rights granted to
                  Pfizer in Section 5.2, 5.4 and 11, neither party conveys or
                  licenses intellectual property of any kind to the other party.

         5.6      Bridgeline agrees to complete, at Pfizer's expense, but
                  without further compensation to Bridgeline, any documents
                  necessary for Pfizer to file patent applications and to
                  prosecute patents with respect to such Results in Pfizer's
                  name or Bridgeline's name, or both. Bridgeline will, if deemed
                  necessary or desirable by Pfizer, on the same terms, execute
                  an assignment of rights to Pfizer with respect to such patent
                  applications or patents.

6.   REPRESENTATION AND WARRANTY: Bridgeline represents and warrants to Pfizer
     that: (a) neither Bridgeline entering nor performing this Agreement will
     violate any right or breach any obligation to any third party under any
     agreement or arrangement between Bridgeline and such third party, (b) the
     Custom Software will not infringe the intellectual property rights of any
     third parties and no licenses, permissions or releases of third party
     rights are necessary for Bridgeline's development of the Custom Software in
     accordance with the terms of this Agreement, (c) all copyrightable matter
     licensed or assigned hereunder has been or will be created after the
     effective date of this Agreement by persons who were employees or
     contractors of Bridgeline at the time of creation, (d) the Services under
     this Agreement will be performed in a professional and workmanlike manner
     and all deliverables and Results will meet the relevant specifications
     therefore and (e) Bridgeline will obtain agreements with its employees and
     contractors sufficient to allow it to provide Pfizer with the assignments
     and licenses to intellectual property rights developed by them for
     Bridgeline.

     Except for the warranties made above, Bridgeline makes no warranties to any
     person or entity with respect to the services, the custom software, or any
     deliverables and disclaims all implied warranties, including without
     limitation warranties of merchantability, fitness for a particular purpose
     and non-infringement.

7.   INFORMATION: For purposes of this Agreement, the term "Information" means
     Results and all written information relating to the Services, including but
     not limited to data; know-how; technical and non-technical materials which
     Pfizer delivers to Bridgeline pursuant to this Agreement, stamped
     "Confidential," and all oral material which Pfizer declares to be
     confidential and confirms such declaration in writing within 30 days of
     disclosure.

8.   CONFIDENTIALITY: Bridgeline will maintain the Information in confidence
     with the same degree of care it holds its own confidential information.
     Bridgeline will not use the Information except to perform the Services.
     Bridgeline will disclose the Information only to its officers and employees
     directly concerned with carrying out the Work Plan, but will neither
     disclose the Information to any third party nor use the Information for any
     other purpose.

<PAGE>
                                        3

9.   EXCEPTIONS TO CONFIDENTIALITY: Bridgeline's obligation of nondisclosure and
     the limitations upon the right to use the Information will not apply to the
     extent that Bridgeline can demonstrate that the Information: (a) was in the
     possession of Bridgeline prior to the time of disclosure; or (b) is or
     becomes public knowledge through no fault or omission of Bridgeline; or (c)
     is obtained by Bridgeline from a third party under no obligation of
     confidentiality to Pfizer; or (d) is required to be disclosed in order to
     comply with applicable law, regulation or court or administrative order.
     All Information will be returned to Pfizer upon termination of this
     Agreement for any reason, except for one copy, which Bridgeline may use for
     the sole purpose of determining its continuing confidentiality obligation
     to Pfizer under this Agreement.

10.  MATERIALS: Bridgeline agrees to use the materials provided to Bridgeline
     pursuant to the Work Plan only to perform the Services under the terms and
     conditions of this Agreement, and to return to Pfizer or to destroy
     according to applicable regulatory guidelines, at Pfizer's request, any
     materials provided to Bridgeline by Pfizer remaining at the conclusion of
     the Services.

11.  USE: During the contract term Bridgeline and Pfizer each grant to the other
     and to other Pfizer service providers supporting the Work Plan, a
     nonexclusive, worldwide, royalty-free license to make and use the other's
     Confidential Information and technology in order to conduct the Work Plan.

12.  SURVIVAL OF CONFIDENTIALITY OBLIGATION: All confidentiality obligations of
     Bridgeline under this Agreement will survive the termination of this
     Agreement for a period of five years.

13.  REPORTS: At periods specified in the Work Plan and at the conclusion of the
     Services, Bridgeline will provide to Pfizer reports summarizing conclusions
     in written or standard electronic format (e.g. PDF format) to summarize the
     completion of the work. Bridgeline also provide to Pfizer training
     documents and presentations as part of the reports.

14.  RELATIONSHIP: Bridgeline will render the Services as an independent
     contractor and neither Bridgeline nor its employees are employees of
     Pfizer. Accordingly, neither Bridgeline nor its employees will (a)
     participate in Pfizer employee benefit plans nor receive any other
     compensation beyond that stated below, (b) have the power or authority to
     bind Pfizer or to assume or create any obligation or responsibility,
     express or implied, on Pfizer's part or in Pfizer's name, except as
     otherwise set forth in this Agreement, or (c) represent to any person or
     entity that Bridgeline or nay employee of Bridgeline has such power or
     authority.

15.  INSURANCE: As an independent contractor, any personal injury or property
     damage suffered by Bridgeline, its employees, directors and officers in the
     course of carrying out any duties under this Agreement will be Bridgeline's
     sole responsibility, except to the extent such personal injury or property
     damage occurs on Pfizer's premises and is caused by Pfizer's negligence. No
     workers' compensation insurance will be obtained by Pfizer concerning
     Bridgeline. Bridgeline will comply with workers' compensation laws and will
     provide a certificate of workers' compensation insurance, where applicable.

16.  NOTICES: Any notices permitted or required pursuant to this Agreement will
     be deemed effective if made in writing and sent, postage prepaid, return
     receipt requested, or by overnight delivery as follows:

<PAGE>
                                        4

                  IF TO PFIZER:          Pfizer Global R&D Headquarters
                                         50 Pequot Avenue
                                         New London, CT 06320
                                         Attn.: Executive Vice President, PGRD
                                         with copy to: General Counsel, PGRD

                  IF TO BRIDGELINE:      Bridgeline Software, Inc.
                                         10 Sixth Road
                                         Woburn, MA 01801
                                         Attn: Gary Cebula
                                         Executive Vice President & CFO
                                         With a copy to: Bridgeline Counsel

17.  ENTIRE AGREEMENT: This Agreement sets forth the entire agreement between
     Pfizer and Bridgeline as to its subject matter. None of the terms of this
     Agreement will be amended except in a writing signed by both parties.

18.  TERMINATION: Either party may terminate this Agreement with or without
     cause by giving 60 days notice to the other in writing. If Pfizer
     terminates this Agreement, Pfizer's only obligation will be to pay
     Bridgeline for the Services performed up to the date of termination, at the
     rates provided in the Work Plan.

19.  BREACH: If either party breaches this Agreement, the other may terminate it
     if the breaching party does not cure the breach within 30 days of written
     notice of same. Termination will be without prejudice to any rights which
     may have been accrued to either party before termination.

20.  FORCE MAJEURE: Neither Pfizer nor Bridgeline will be liable for failure of
     or delay in performing obligations set forth in this Agreement, and neither
     will be deemed in breach of its obligations, if such failure or delay is
     due to natural disasters or any causes reasonably beyond the control of
     Pfizer or Bridgeline.

21.  WARRANTY: Bridgeline warrants that the Services and any work product,
     provided to Pfizer pursuant to this Agreement will conform to the overall
     description, features, function and specifications set forth in the Work
     Plan.

22.  AUTHORITY AND COMPLIANCE: Bridgeline represents and warrants that it has
     the right and authority to enter into and perform its obligations under
     this Agreement. Both Pfizer and Bridgeline will perform all of its
     obligations under this Agreement in accordance with all applicable
     governmental laws, rules and regulations.

23.  PUBLICITY: No press releases or other statements in connection with this
     Agreement intended for use in the public or private media will be made by
     Pfizer or Bridgeline without the prior written consent of the other party.
     If either party is required by law or governmental regulation to describe
     its relationship to the other, it will promptly give the other party notice
     with a copy of any disclosure it proposes to make. In addition, Bridgeline
     will not use Pfizer's name in connection with any products, services,
     promotion, or advertising without Pfizer's prior written permission. In any
     such statements, it will accurately describe the scope and nature of the
     relationship and the work being conducted.

<PAGE>
                                        5

24.  CHOICE OF LAW: This Agreement will be construed in accordance with the laws
     of the State of New York.

     IN WITNESS WHEREOF the parties have caused this Agreement to be executed
     and delivered by their duly authorized representatives.


BRIDGELINE INC.                       PFIZER INC

By: /s/ Gary M. Cebula                By: /s/ Jack A. Reynolds
    -------------------------             --------------------------
Name: Gary M. Cebula                      Jack A. Reynolds
Title: CFO                                Sr. Vice President, PGRD

Date: 12/16/05                        Date: 12/16/05
      -----------------------               ------------------------



</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10.32
<SEQUENCE>46
<FILENAME>ex10-32_14663.txt
<DESCRIPTION>MASTER SERVICES AGREEMENT DATED 07-01-2004
<TEXT>
                                                                   EXHIBIT 10.32
                                                                   -------------

                                   BRIDGELINE

                           Quality Internet Solutions

                            MASTER SERVICES AGREEMENT

THIS AGREEMENT, made and entered into this 1 day of July 2004, between
Bridgeline Software, Inc. ("BRIDGELINE") a Delaware Corporation, having its
principal place of business at 130 New Boston Street, Woburn, MA 01801 and John
Hancock Life Insurance Co. ("Customer") having its principal place of business
at John Hancock Place, Boston, MA 02116.

In consideration of the mutual promises contained herein, the parties agree as
follows:

SECTION 1 - TERM OF AGREEMENT

This Agreement will commence on the day first above written and remain in full
force until terminated as provided for in Section 18 of this Agreement.

SECTION 2 - DUTIES OF THE PARTIES

During the term of the Agreement BRIDGELINE agrees to provide consultative
services ("Services") and deliver software and documentation ("Deliverables") to
Customer, which Customer may authorize, from time to time, by the execution of a
Statement of Work as described in this Agreement. BRIDGELINE shall not be
obligated to provide Services or Deliverables, and Customer shall not be liable
to pay for such, until a Statement of Work or other written authorization has
been executed in accordance with this Agreement.

SECTION 3 - STATEMENT OF WORK(S)

The following procedure will be followed to initiate and activate a Statement of
Work under this Agreement:

                  BRIDGELINE or Customer, which may include Customer's
                  affiliates (affiliates shall mean any entity directly or
                  indirectly controlling, controlled by or under common control
                  with Customer),shall prepare a Statement of Work and submit
                  such form in duplicate to the other party for approval. Each
                  Statement of Work shall define (i) the specific Services
                  and/or Deliverables authorized by the Customer, (ii) the
                  schedule or term of the engagement, (iii) the applicable rates
                  and charges therefor, and (iv) other appropriate terms and
                  conditions as warranted. Each Statement of Work shall specify
                  the appropriate financial terms and conditions applicable to
                  that Statement of Work (including whether work is to be
                  performed on a Time and Materials or a Fixed Price basis). If
                  the Statement of Work specifies that the Services or
                  Deliverables are to be performed on a Time and Materials
                  basis, BRIDGELINE will notify Customer as soon as practicable
                  if it appears that an estimate(s) will not be sufficient to
                  complete the work under the

<PAGE>

                  Statement of Work. BRIDGELINE shall not incur charges in
                  excess of one hundred and ten percent (110%) of the total cost
                  estimated until an amendment to the Statement of Work is
                  approved in writing by Customer. Any changes requested by
                  Customer in the work agreed to in a fixed price Statement of
                  Work or changes in delivery dates which cause BRIDGELINE to
                  incur additional expense shall be paid by Customer. For Web
                  based solutions, each Statement of Work shall detail the fixed
                  number of Web Pages to be provided. Additional Web Pages
                  requested by Customer shall result in additional charges to
                  Customer at the rate specified in the Statement of Work.
                  BRIDGELINE will submit written notification of all changes to
                  Customer for approval prior to invoicing. BRIDGELINE or
                  Customer, upon its acceptance, shall execute the Statement of
                  Work and return one fully executed copy to the other Party.

SECTION 4 - CONFLICT IN DOCUMENTS

Statement of Work(s) shall be governed by the terms and conditions of this
Agreement, provided, however, that should the terms within the Statement of
Work(s) conflict with the terms of this Agreement, the terms outlined within a
specific Statement of Work shall govern as applied to the work authorized
therein. All delivery dates referred to in Statement of Work(s) are predicated
on BRIDGELINE receiving content and other deliverables from the Customer in a
timely manner as requested by BRIDGELINE during the course of the project.
Should the Customer not deliver content or other deliverables in a timely
manner, BRIDGELINE shall not incur any liability to Customer as a result of such
delay and may alter delivery dates or assess additional charges as provided for
in the Statement of Work(s).

SECTION 5 - CONFIDENTIALITY

A. BRIDGELINE and its employees will treat as confidential all Customer business
plans, technical data, trade secrets, plans for products or services, customer
or supplier lists, marketing plans, software, hardware, financial documents (and
any similar information not available to the public) furnished by Customer under
this Agreement ("Confidential Information"). For the term of this Agreement and
for a period of twenty -four (24) months thereafter such information shall not
be disclosed to third parties by BRIDGELINE or its employees without Customer's
prior approval. Notwithstanding the foregoing, Confidential Information shall
not include information that (i) is or becomes generally known to the public not
as a result of a disclosure by BRIDGELINE; (ii) is rightfully in the possession
of BRIDGELINE prior to disclosure by Customer; (iii) is received by BRIDGELINE
in good faith and from a third party not known by BRIDGELINE to be under a
confidential obligation to Customer, or (iv) is independently developed by or
for BRIDGELINE without use or reference to the confidential information.

B. Customer and its employees will treat as confidential all BRIDGELINE business
plans, financial documents, customer listings, developmental processes and
methodologies (and any similar information not available to the public)
incorporated within or utilized in the development of any Deliverables and/or
work product ("Confidential Information"). For the term of this Agreement and
for a period of twenty -four (24) months thereafter Customer shall not disclose
to third parties any such Confidential Information without BRIDGELINE's prior

<PAGE>

approval. Notwithstanding the foregoing, Confidential Information shall not
include information that (i) is or becomes generally known to the public not as
a result of a disclosure by Customer; (ii) is rightfully in the possession of
Customer prior to disclosure by BRIDGELINE; (iii) is received by Customer in
good faith and from a third party not known by Customer to be under a
confidential obligation to BRIDGELINE; or (iv) is independently developed by or
for Customer without use or reference to the confidential information.

C. Both parties agree that, except as may be required by applicable law or
regulation, they shall not disclose in advertising, publicity, or otherwise the
terms and conditions of this Agreement without prior written consent of the
other party.

SECTION 6 - ACCEPTANCE

A. SERVICES - Services shall at all times be subject to Customer's reasonable
satisfaction and approval. Customer shall notify BRIDGELINE when a determination
is made that such Services are unsatisfactory and shall not be required to pay
for any Services performed after such notification. BRIDGELINE and Customer
shall mutually review the Services performed prior to the notification to
determine the amount Customer shall be obligated to pay for the work performed
satisfactorily (based upon the fees stipulated in the applicable Statement of
Work).

B. DELIVERABLE(S) - Upon completion, BRIDGELINE shall notify Customer that a
Deliverable is ready for Customer Review. Within fifteen (15) business days
("Acceptance Period") of such notice, Customer shall inspect such Deliverable to
verify conformity to the applicable specifications. In the event Customer
determines during the Acceptance Period for a Deliverable that such Deliverable
does not reasonably conform to the applicable specifications, Customer shall
notify BRIDGELINE of such determination in a written notice setting forth a
description of the nonconformities exhibited by such Deliverable (a "Rejection
Notice"). Upon BRIDGELINE's receipt of a Rejection Notice, the parties shall
meet and confer to agree in good faith upon the timing schedule and other
commercially reasonable terms by which BRIDGELINE shall remedy such
nonconformities. If the parties are unable to mutually agree to the terms by
which BRIDGELINE shall remedy such conformity, Customer shall have the right to
terminate the applicable Statement of Work pursuant to Section 18 of this
Agreement. Should Customer exercise its right to terminate the applicable
Statement of Work, Customer shall have no further liability under the terminated
Statement of Work, except that Customer shall pay BRIDGELINE any balance due for
conforming Deliverables previously accepted and for services performed up to the
date of termination. Otherwise, upon BRIDGELINE's completion of such remedy,
BRIDGELINE shall redeliver the applicable Deliverable for Customer's
re-evaluation as set forth herein. The foregoing procedure shall be repeated
until Customer accepts the deliverable or terminates the applicable Statement of
Work. In the event Customer informs BR IDGELINE that a Deliverable is
acceptable, or if Customer otherwise fails to deliver a Rejection Notice during
the applicable Acceptance Period, then such Deliverable shall thereupon be
deemed accepted.

SECTION 7 - TAXES

In the event any foreign, federal, state, or local taxes are assessed on any
Services or Deliverables produced under this Agreement Customer shall reimburse
BRIDGELINE

<PAGE>

accordingly, provided, however, that Customer shall not be responsible for taxes
assessed on BRIDGELINE income.

SECTION 8 - INSURANCE

BRIDGELINE agrees to carry the following insurance coverage during the term of
this Agreement:

A. Workers compensation as required by the laws of the jurisdiction in which the
work is being performed.

B. Comprehensive general liability and property damage insurance with combined
bodily injury and property damage limit of $1,000,000 for each occurrence.

C. Employer's Liability - $500,000 each accident; $500,000 disease policy limit;
$500,000 disease each employee.

D. Upon request, BRIDGELINE shall furnish Customer a Certificate of Insurance
evidencing such coverage and, where applicable, naming Customer as an additional
insured as its interests may appear. Nothing in this Section shall be deemed to
limit BRIDGELINE'S responsibility to the amounts stated above or to any limits
of BRIDGELINE'S insurance policies.

SECTION 9 - OWNERSHIP OF WORK PRODUCT

A. All content (including without limitation, trademarks, artwork, logos,
graphics, video, text, data, and other materials) provided by Customer to
BRIDGELINE in connection with this Agreement shall remain the sole and exclusive
property of Customer.

B. Except as set forth in Section 9.C of this Agreement, BRIDGELINE hereby
assigns to Customer the rights, title, and interest in and to any Deliverable(s)
developed under this Agreement, and a perpetual, royalty-free license to all
source programming code and intellectual property incorporated in the
deliverable, which remains the sole property of BRIDGELINE. However, such
assignment of property rights shall be subject to Customer completing its
payment obligations under this Agreement.

C. "BRIDGELINE Material" - Software, documentation, or other work product owned,
developed, or licensed by BRIDGELINE prior to this Agreement or developed
outside of this Agreement and used and/or modified by BRIDGELINE to fulfill its
obligations under this Agreement will remain the sole and exclusive property of
BRIDGELINE. In addition, BRIDGELINE shall retain the sole ownership and rights
in its proprietary design techniques (including without limitation the
intermediate design files), its methodologies, and its developmental processes
(including without limitation the ownership of intermediate work product).

D. To the extent that any Deliverable(s) embodies or reflects rights that
BRIDGELINE owns pursuant to Section 9.C, BRIDGELINE hereby grants to Customer an
irrevocable, perpetual,

<PAGE>

non-exclusive, worldwide, fully paid up, royalty-free license for the use, copy,
display, reproduction, and performance of such BRIDGELINE Material for
Customer's internal business use only. Customer agrees not to resell any
Deliverable or portion of a Deliverable that includes such licensed material.
Such license is subject to Customer completing its payment obligations under
this Agreement.

E. Upon termination or expiration of this Agreement all non-licensed software,
documentation or materials belonging to BRIDGELINE or Customer shall be returned
to the respective owner thereof within ten (10) days notice and the non-owning
party shall retain no copies unless the respective owner consents in writing
thereto.

SECTION 10 - WARRANTY

A. BRIDGELINE warrants that the Deliverables developed under this Agreement and
any Statement of Work(s) will be performed in a workmanlike manner consistent
with industry standards and practice.

B. BRIDGELINE warrants that for a period of thirty (30) days from Acceptance the
Deliverables shall perform according to the written functional specifications as
defend within the Statement of Work and other project documentation. BRIDGELINE
shall use reasonable efforts to correct all errors, defects, or malfunctions in
any Deliverable discovered by Customer, and reported in writing to BRIDGELINE,
within thirty (30) days of Acceptance. The following exceptions shall apply:

         1) Should BRIDGELINE expend effort to correct a deficiency that
         Customer and BRIDGELINE mutually agree was not the fault of BRIDGELINE
         then Customer shall reimburse BRIDGELINE at time and material rates.

         2) If BRIDGELINE identifies that an error, defect, or malfunction is
         the result of an alteration made by Customer (or another party at the
         direction of Customer) then Customer shall reimburse BRIDGELINE at time
         and material rates for all efforts expended to identify and/or correct
         such error, defect, or malfunction.

C. UNLESS OTHERWISE INCLUDED IN A STATEMENT OF WORK, THE FOREGOING WARRANTIES
ARE IN LIEU OF ALL OTHER WARRANTIES (STATUATORY, EXPRESS, OR IMPLIED) INCLUDING
WITHOUT LIMITATION THOSE CONCERNING MERCHANTABILITY OR FITNESS FOR A PARTICULAR
PURPOSE.

SECTION 11 - INDEMNITY PROVISIONS

A. Customer agrees to indemnify and hold BRIDGELINE harmless from and against
any and all claims, actions, demands, losses, and causes of action arising from
patent, trademark, copyright, or similar intellectual property infringement
related to Customer provided content.

B. BRIDGELINE agrees to indemnify and hold Customer harmless from any and all
claims, actions, demands, losses, and causes of action arising from willful
misconduct or grossly

<PAGE>

negligent acts and omissions on the part of BRIDGELINE (except in the case of
concurrent negligence in which case BRIDGELINE shall only be responsible for the
percentage of the loss attributable to BRIDGELINE).

C. BRIDGELINE agrees to indemnify and hold Customer harmless from and against
any and all claims, actions, demands, losses, and causes of action arising from
patent, trademark, copyright, or similar intellectual property infringement
related to BRIDGELINE Material or provided content.

SECTION 12 - CONSEQUENTIAL DAMAGES

Neither party hereto shall be liable to the other party for any indirect,
incidental, consequential, special, or exemplary damages arising from or related
to this agreement (even if such party has been advised of the possibility of
such damages) such as, but not limited to, loss of revenue or anticipated
profits or lost business.

SECTION 13 - PUBLICITY

BRIDGELINE may not include Customer's name and general case study information
within BRIDGELINE marketing material unless it has obtained Customer's prior
written approval. Customer shall provide BRIDGELINE an opportunity to place the
BRIDGELINE logo on the Deliverables.

SECTION 14 - INVOICES AND PAYMENTS

A. If invoicing and payment terms are defined within the specific Statement of
Work(s), they shall prevail over Section 14.B of this Agreement.

B. For all services, fees, expense amounts and reimbursements as described in
this Agreement, BRIDGELINE shall prepare and submit invoices to Customer as
required, but not more than monthly. Customer invoices are due and payable to
BRIDGELINE within thirty (30) days of receipt.

SECTION 15 - EMPLOYEE ROTATION

BRIDGELINE reserves the right to replace a BRIDGELINE employee upon prior
written notice to Customer at any installation of Customer during the
performance of any Statement of Work(s) provided that such replacement employee
shall possess the training, skills and level of competence required to perform
assigned duties as defined in the Statement of Work.

SECTION 16 - EXPENSES

Customer shall reimburse BRIDGELINE for actual, out-of-pocket, reasonable,
expenses only when agreed to in a Statement of Work. Such expenses will be
limited to third party software, documentation reproduction costs and travel
(airlines, shuttle service, taxi, bus, car rental, gas, parking), lodging and
meals. No other expenses will be reimbursed. If expenses are agreed to be
reimbursed, the applicable Statement of Work shall include an estimate of the
expenses for such Statement of Work as well as the term, "not to exceed an
amount equal to ten percent (10%) of the aggregate fees under the applicable
Statement of Work." Receipts must be supplied for all reimbursable expenses and
shall be maintained by BRIDGELINE for at least one year and be presented to
Customer upon request.

<PAGE>

SECTION 17 - NOTICES

Any notices provided for in this Agreement shall be given in writing and
transmitted by (i) personal delivery, (ii) prepaid first class registered or
certified mail, or (iii) nationally recognized overnight courier. Such notice s
shall be addressed as follows:
<TABLE><CAPTION>
<S>                                           <C>
BRIDGELINE: Bridgeline Software, Inc.         Customer:    John Hancock Life Insurance Co.
            130 New Boston Street                          197 Clarendon Street - C08
            Woburn, MA 01801                               Boston, MA 02116
            Email: cebula@bridge-line.com                  Attn: Julie Clark

                                              With copy to:

                                                           John Hancock Life Insurance Co.
                                                           380 Stuart St. - S08
                                                           Boston, MA 02116
                                                           Attn: Purchasing Contract Manager
</TABLE>
SECTION 18 - TERMINATION OF THE AGREEMENT

A. No Work Issued - In the event Customer does not execute one (1) or more
Statement of Work(s) pursuant to Section 3 of this Agreement within six (6)
months of the date first written above this Agreement shall automatically
terminate.

B. Termination for Breach - If either party should materially or repeatedly fail
to fulfill its obligations under this Agreement or any Statement of Work (a
"breach"), the other party, without liability therefor, may terminate this
Agreement, and all outstanding Statement of Work(s), in whole or in part, at any
time as of which such breach occurs or persists, by giving the breaching party
written notice of such breach and the intention of such other party to terminate
this Agreement. The breaching party will have thirty (30) days from receipt of
such notification to cure such breach. The failure to cure such breach as stated
in the preceding sentence may result in the termination of this Agreement and
each Statement of Work as of the end of such period without prejudice to any
other rights the parties may have.

C. Termination for Convenience -Either party may terminate this Agreement or any
Statement of Work for its convenience with thirty (30) days prior written
notice. In the event either party terminates this Agreement or any Statement of
Work for its convenience, Customer will notify BRIDGELINE as to what Services,
yet to be completed under such Statement of Work(s), shall be completed or not
completed. Customer shall pay BRIDGELINE, pursuant to the invoice and payment
provisions contained in this Agreement, for (i) all time and materials fees that
are completed prior to and accepted prior to or accepted after the termination
for convenience notice is provided; (ii) all time and materials fees that, per
Customer's request, are completed and accepted subsequent to provision of the
termination for convenience notice; (iii) all expenses incurred prior to
provision of the termination for convenience notice or subsequent to provision
of the termination for convenience notice if incurred as per Customer's request
so long as such

<PAGE>

expenses are incurred as permitted under this Agreement; (iv) any fixed fee
Deliverable-based payments yet to be paid for Deliverables that are received
prior to and accepted prior to or accepted after provision of the termination
for convenience notice; (v) any fixed fee Deliverable-based payments for
Deliverables that, per Customer's request, are completed, received and accepted
after provision of the termination for convenience notice; and (vi) a prorated
fixed fee Deliverable-based payment for any Deliverable not received by Customer
prior to provision of the termination for convenience notice and which Customer
requests BRIDGELINE immediately cease work on, such pro-rated amount to be
mutually agreed upon by the parties based on the total fee for such Deliverable
and the documented percentage of work completed by BRIDGELINE prior to provision
of the termination of convenience notice.

D. Statement of Work(s) Complete - Unless separately agreed to in writing, this
Agreement will automatically terminate one (1) year after the completion of all
Statement of Work(s) issued hereunder.

SECTION 19 - GOVERNING LAW

This Agreement shall be construed in accordance with the laws of the
Commonwealth of Massachusetts, excluding its conflicts of laws provisions.

SECTION 20 - STATUTE OF LIMITATIONS

No action, regardless of form, arising out of the transactions under this
Agreement may be brought by either party more than one (1) year after the cause
of action has been discovered except that an action for nonpayment for services
which, as provided herein, may be brought within two (2) years after the date of
last payment or date of last work performed, whichever shall occur later.

SECTION 21 - ENTIRE AGREEMENT/INCORPORATION OF STATEMENT OF WORK(S)

It is expressly agreed that this Agreement embodies the entire understanding of
the parties in relation to its subject matter, and that no other agreement or
understanding, verbal or otherwise, relative to its subject matter exist or
survive between the parties at the time of execution of this Agreement provided,
however, that the Statement of Work(s) are incorporated in this Agreement by
reference with the same effect as if each had been reproduced in its entirety.

SECTION 22 - INDEPENDENT CONTRACTOR

Customer acknowledges and agrees that all Services performed by BRIDGELINE
pursuant to this Agreement including, without limitation, the creation,
development, and delivery of Deliverables, are or will be performed by
BRIDGELINE as an independent contractor. BRIDGELINE may use subcontractors in
its performance of Services under this Agreement.

SECTION 23 - BACKGROUND CHECKS

BRIDGELINE warrants to Customer that it has done a background check for each
employee or subcontractor who provides Services to Customer on-site at a
Customer location within one (1) year prior to such employee's or
subcontractor's engagement on-site at a Customer location and to the best of its
knowledge, that such employee or subcontractor has not had a felony conviction
in the past seven (7) years or any misdemeanor conviction in the past seven (7)
years concerning bodily harm or theft of any intellectual or personal property.

<PAGE>

SECTION 24 - NON-SOLICITATION

Customer agrees not to knowingly solicit for hire or for subcontract services or
to offer employment to any employee, former employee, or subcontractor of
BRIDGELINE ("BRIDGELINE Personnel") who has been actively involved in the
provision of Services under this Agreement for a period of one (1) year from the
date the BRIDGELINE personnel last performed Services hereunder without the
prior written consent of BRIDGELINE.

SECTION 25 - HEADINGS

The Section headings provided in this document are for reference purposes only
and shall not govern the provisions listed within this Agreement.

SECTION 26 - ASSIGNMENT

Except as provided below, this Agreement shall not be assigned by either party
without the express written consent of the other party. Notwithstanding the
foregoing, either party may assign this Agreement, without the consent of the
other, to an entity that has acquired all or substantially all of that party's
assets as successor to the business and this Agreement shall be binding upon and
shall inure to the benefit of the parties hereto and their respective successors
and permitted assigns.

SECTION 27 - WAIVER

The failure of either party to partially or fully exercise any right or the
waiver by either party of any breach shall not prevent a subsequent exercise of
such right or be deemed a waiver of any subsequent breach of the same or any
other term of this Agreement.

SECTION 28 - SEVERABILITY

Each Section, paragraph, and provision is severable from the Agreement, and if
one or more provisions or parts are declared invalid, the remaining provisions
shall nevertheless remain in full force and effect.

SECTION 29 - DISPUTE RESOLUTION

In the event of any dispute, controversy, or claim of any kind or nature arising
under or in connection with this Agreement (a "Dispute"), then upon the written
request of either party, the appropriate level contacts of each party will meet
for the purpose of endeavoring to resolve the Dispute. The designated contacts
will meet as often as the parties reasonably deem necessary in order to gather
and furnish to the other all information with respect to the matter in issue
which the parties believe to be appropriate in connection with resolution. Such
contacts will discuss the Dispute and will negotiate in good faith in an effort
to resolve the Dispute without the necessity of any formal proceeding relating
thereto. The specific format for such discussions will be left to the discretion
of the contacts but may include the preparation of agreed upon statements of
fact or written statements of position furnished to the other party. No legal
proceedings for the resolution of the Dispute may be commenced until the earlier
to occur of (i) a good faith conclusion by the designated contacts that amicable
resolution through continued negotiation of the matter in issue does not appear
likely, or (ii) the 30th day after the initial request to negotiate the Dispute.

<PAGE>

SECTION 30 - FORCE MAJEURE

Neither party shall be liable for any failure to perform its obligations under
this Agreement if prevented from doing so by a cause or causes beyond its
control. Without limiting the foregoing, such causes include acts of God, or the
public enemy, fires, foods, storm, earthquakes, riots, strikes, lockouts, wars
or war operations, restraints of government or other cause or causes which could
not with reasonable diligence be controlled or prevented by the party.

SECTION 31 - LIMITATION OF LIABILITY

Except for liability arising from Sections 5, 9 and/or 11 , to the fullest
extent permitted by applicable law, the total aggregate liability of either
party to the other, and its subcontractors, collectively, regardless of whether
such liability is based on breach of contract, tort, strict liability, breach of
warranties, failure of essential purpose or otherwise, under this Agreement or
any Statement of Work shall be limited to the fees paid by Customer to
BRIDGELINE pursuant to the Statement of Work under which any such liability
arises. Notwithstanding the above, the maximum liability of either party arising
from Sections 5, 9 and 11 shall not exceed $1,000,000.

SECTION 32 - SURVIVAL OF PROVISIONS

The terms and provisions provided in Sections 5, 9, 11, 12, 14, 18, 20, 24, 31,
and this Section 32 shall survive the termination of the Agreement.

BRIDGELINE SOFTWARE, INC.                   JOHN HANCOCK LIFE INSURANCE CO.

By:           /S/ THOMAS L. MASSIE          By:          /S/ WILLIAM PALMER
              --------------------                       ------------------

Print Name:   Thomas L. Massie              Print Name:  William Palmer
              ----------------                           --------------

Title:        President & CEO               Title:       Senior Vice President
              ---------------                            ---------------------

Date:         7-13-2004                     Date:        7-20-2004
              ----------                                 ---------


<PAGE>

                                 AMENDMENT NO. 1

This Amendment No. 1 ("Amendment") hereby amends and is made a part of the
Master Services Agreement ("Agreement") between Bridgeline Software, Inc.
("Bridgeline") and John Hancock Life Insurance Co. ("Customer") dated July 1,
2004.

WHEREAS, Bridgeline and Customer desire to amend the terms and conditions of the
Agreement,

NOW, THEREFORE, the Agreement is amended, modified, or supplemented as follows:

1.   DEFINITIONS: Capitalized terms that are used but not defined in this
     Amendment shall have the same meaning as in the Agreement.

2.   SECTION 5 -CONFIDENTIALITY: The following is added as Paragraph D. of this
     Section:

     In the course of performing its duties and obligations under this
     Agreement, it may be necessary for Customer to disclose to Bridgeline
     nonpublic personal financial and/or nonpublic personal health information
     about its consumers and customers. Title V of the Gramm-Leach-Bliley Act of
     1999 (Public Law 106-102) and its implementing legislation and regulations
     limit the redisclosure and reuse of such information. Bridgeline may
     disclose Customer's consumers' and customers' nonpublic personal
     information in the ordinary course of business to carry out the purposes
     for which the information is disclosed, provided such disclosure is in
     compliance with (and not in violation of) (i) Title V of the
     Gramm-Leach-Bliley Act and its implementing regulations, as the same may be
     amended from time to time, and (ii) other applicable federal and state laws
     and regulations regarding privacy. Bridgeline agrees that it will not
     redisclose or use this nonpublic personal information except as necessary
     to carry out the terms of this Agreement or as necessary to effect,
     administer, or enforce a transaction that the appropriate consumer or
     customer requests or authorizes. Bridgeline may redisclose such nonpublic
     personal information to another person or entity only if the disclosure
     could be lawfully made directly to that person or entity by Customer. In
     the event that there is a question about whether redisclosure of nonpublic
     personal information is permissible, Bridgeline shall consult with Customer
     prior to making that disclosure. Bridgeline will implement appropriate
     measures to ensure the security and integrity of all nonpublic personal
     information from any anticipated threats or hazards and from unauthorized
     access or use. Bridgeline will indemnify Customer for all costs and/or
     damages awarded against it as a result of an improper disclosure by
     Bridgeline.

Except as modified herein, the terms and conditions of the Agreement shall
remain in full force and effect.

IN WITNESS WHEREOF, the parties have caused this Amendment to be executed by
their duly authorized representatives.

John Hancock Life Insurance Company        Bridgeline Software, Inc.

By: /S/ SUSAN P. YARDLEY                   By: /S/ GARY M. CEBULA
    --------------------                       ------------------

Name: Susan P. Yardley                     Name: Gary M. Cebula
      ------------------                         --------------

Title: AVP                                 Title CFO
       ---                                        ---

Date: 3/28/2005                            Date: 3/10/05
      ---------                                  -------

<PAGE>

                        HIPAA BUSINESS ASSOCIATE ADDENDUM

     This HIPAA Business Associate Addendum ("Addendum") is entered into as of
March 7, 2005 (the "Effective Date"), and when fully executed by both parties
becomes incorporated by reference into that certain Master Services Agreement
("Underlying Agreement") by and between Bridgeline Software. Inc. ("Business
Associate'), and John Hancock Life Insurance Company ("John Hancock") dated July
1, 2004 as the same may have been previously amended. This Addendum is entered
into for the purpose of complying with the Privacy Rule under the Health
Insurance Portability and Accountability Act of 1996, 45 CFR Parts 160 and 164,
as the same may be amended from time to time.

1.       DEFINITIONS

         The following terms shall have the following meanings.

         (a)      "Individual" shall mean a person who is the subject of
                  Protected Health Information, and shall include a person who
                  qualifies as a personal representative of such person in
                  accordance with the Privacy Rule.

         (b)      "Privacy Rule" shall mean the "Standards for Privacy of
                  Individually Identifiable Health Information" at 45 CFR part
                  160 and part 164, subparts A and B, as amended from time to
                  time.

         (c)      "Protected Health Information" shall mean individually
                  identifiable information, including demographic information,
                  that relates to (i) the past, present or future physical,
                  mental, or behavioral health or condition of an Individual,
                  (II) the provision of health care to an Individual, or (iii)
                  the payment for the provision of health care to an Individual,
                  limited to the information created or received by Business
                  Associate from or on behalf of John Hancock.

2.       PERMITTED USES AND DISCLOSURES BY BUSINESS ASSOCIATE

         Except as otherwise limited in this Addendum, Business Associate may
use or disclose Protected Health Information to perform functions, activities,
or services for, or on behalf of John Hancock as specified in the Underlying
Agreement, provided that such use or disclosure would not violate the Privacy
Rule if performed by John Hancock.

3.       OBLIGATIONS AND ACTIVITIES OF BUSINESS ASSOCIATE

         (a)      Business Associate agrees to not use or further disclose
                  Protected Health Information other than as permitted or
                  required by this Addendum or as required by law.

         (b)      Business Associate agrees to use appropriate safeguards to
                  prevent use or disclosure of the Protected Health Information
                  other than as provided for by this Addendum

         (c)      Business Associate agrees to mitigate, to the extent
                  practicable, any harmful effect that is known to Business
                  Associate of a use or disclosure of Protected Health
                  Information by Business Associate in violation of the
                  requirements of this Addendum.

<PAGE>

         (d)      Business Associate agrees to report to John Hancock any use or
                  disclosure of the Protected Health Information not provided
                  for by this Addendum.

         (e)      Business Associate shall require its agent, including
                  subcontractors, to whom it provides Protected Health
                  Information to comply with the same restrictions and
                  conditions that apply to Business Associate under this
                  Addendum.

         (f)      At John Hancock's request, Business Associate agrees to
                  provide access to Protected Health information to John Hancock
                  or, as directed by John Hancock, to an Individual in order to
                  satisfy John Hancock's obligation to provide Individuals with
                  a right of access to their Protected Health Information.

         (g)      At John Hancock's request, Business Associate agrees to make
                  an amendment to Protected Health Information in its
                  possession.

         (h)      Business Associate agrees to make its internal practices,
                  books, and records relating to the use and disclosure of
                  Protected Health Information available to John Hancock or, at
                  John Hancock's request, to the United States Secretary of
                  Health and Human Services, for purposes of the Secretary
                  determining John Hancock's compliance with the Privacy Rule.

         (i)      Business Associate agrees to document its disclosures of
                  Protected Health Information and, at John Hancock's request,
                  to provide Information related to such disclosures to John
                  Hancock for purposes of responding to a request by an
                  Individual for an accounting of disclosures of Protected
                  Health Information.

4        OBLIGATIONS OF JOHN HANCOCK

         (a)      John Hancock shall provide Business Associate with any changes
                  in, or revocation of, permission by an Individual to John
                  Hancock to use or disclose Protected Health Information, if
                  such changes affect Business Associate's permitted or required
                  uses and disclosures.

         (b)      John Hancock shall notify Business Associate of any
                  restriction to the use or disclosure of Protected Health
                  Information that John Hancock has agreed to in accordance with
                  the Privacy Rule.

5.       PERMISSIBLE REQUEST BY JOHN HANCOCK

         John Hancock shall not request Business Associate to use or disclose
Protected Health Information in any manner that would not be permissible under
the Privacy Rule if done by John Hancock except for use or disclosure for data
aggregation or management and administrative activities if permitted by the
Underlying Agreement.

6.       TERM AND TERMINATION

         (a)      Term. The Term of this Addendum shall be commence as of the
                  Effective Date, and shall terminate when all of the Protected
                  Health Information is destroyed or returned to John Hancock,
                  or, if it is infeasible to return or destroy Protected Health
                  Information, protections are extended to such information, in
                  accordance with Section 6(c) of this Addendum.

<PAGE>

         (b)      Effect of Termination of Underlying Agreement. Termination of
                  the Underlying Agreement shall not terminate this Addendum
                  unless and until the termination provisions of Section 6(a)
                  above have been satisfied.

         (c)      Effect of Termination.

                  (1)      Except as provided in paragraph (2) of this section
                           6(c), upon termination of the Underlying Agreement,
                           Business Associate shall return or destroy all
                           Protected Health Information received from John
                           Hancock, or created or received by Business Associate
                           on behalf of John Hancock. This provision shall also
                           apply to Protected Health Information that is in the
                           possession of subcontractors or agents of Business
                           Associate. Business Associate shall retain no copies
                           of the Protected Health Information.

                  (2)      In the event that Business Associate determines that
                           returning or destroying the Protected Health
                           Information is infeasible, Business Associate shall
                           provide to John Hancock notification of the
                           conditions that make return or destruction
                           infeasible. Upon mutual agreement of the Parties that
                           return or destruction of Protected Health Information
                           is infeasible, Business Associate shall extend the
                           protections of this Addendum to such Protected Health
                           Information and limit further uses and disclosures of
                           such Protected Health Information to those purposes
                           that make the return or destruction infeasible, for
                           so long as Business Associate maintains such
                           Protected Health Information.

7.       BREACH

         Any breach of this Addendum by Business Associate shall constitute a
valid basis for immediate termination of the Underlying Agreement by John
Hancock, notwithstanding any contrary provision in the Underlying Agreement. In
addition, Business Associate shall indemnify and hold harmless John Hancock from
any liability for damages, fines, costs, expenses and attorneys' fees, that
results or arises from Business Associate's use or disclosure of Protected
Health Information other than as authorized by this Addendum.

8.       MISCELLANEOUS

         (a)      Amendment. The Parties agree to take such action as is
                  necessary to amend this Addendum from time to time as is
                  necessary for John Hancock to comply with the requirements of
                  the Privacy Rule and the Health Insurance Portability and
                  Accountability Act, Public Law 104-191.

         (b)      Additional Obligations. The obligations set forth in this
                  Addendum are in addition to, and are not intended to replace,
                  any confidentiality obligations set forth in the Underlying
                  Agreement.

         (c)      Interpretation. Any ambiguity in this Addendum shall be
                  resolved in favor of a meaning that permits John Hancock to
                  comply with the Privacy Rule.

Except as otherwise provided for herein the reruns and conditions of the
Underlying Agreement remain in full force in effect.

<PAGE>

John Hancock Life Insurance Company          Bridgeline Software, Inc.

("John Hancock")                             ("Business Associate")

By: /S/ SUSAN P. YARDLEY                     By: /S/ GARY M. CEBULA
    ---------------------                        -----------------------

    Susan P. Yardley  (Print)                    GARY M. CEBULA (Print)
    -----------------                            -----------------------

    AVP (Title)                                  CFO  (Title)
    -----------------                            -----------------------

    3/28/2005 (Date)                             3/10/05 (Date)
    -----------------                            -----------------------



</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10.33
<SEQUENCE>47
<FILENAME>ex10-33_14663.txt
<DESCRIPTION>AMENDED AND RESTATED STOCK INCENTIVE PLAN
<TEXT>
                                                                   EXHIBIT 10.33
                                                                   -------------

                            BRIDGELINE SOFTWARE, INC.

                    AMENDED AND RESTATED STOCK INCENTIVE PLAN

SECTION 1. GENERAL PURPOSE OF THE PLAN; DEFINITIONS.

         The name of the plan is the Bridgeline Software, Inc. Amended and
Restated Stock Incentive Plan (the "Plan"). The Plan amends and restates in its
entirety the 2000 Stock Option Plan of Bridgeline Software, Inc. (the
"Company"). Any Options or Awards outstanding prior to the date of this
amendment and restatement shall be affected by this amendment and restatement
only to the extent specifically provided by the Board of Directors of the
Company and upon execution of an amendment to such Option. The purpose of the
Plan is to encourage and enable officers and employees of, and other persons
providing services to, the Company and its Affiliates to acquire a proprietary
interest in the Company. It is anticipated that providing such persons with a
direct stake in the Company's welfare will assure a closer identification of
their interests with those of the Company and its shareholders, thereby
stimulating their efforts on the Company's behalf and strengthening their desire
to remain with the Company.

         The following terms shall be defined as set forth below:

"AFFILIATE" means a parent corporation, if any, and each subsidiary corporation
of the Company, as those terms are defined in Section 424 of the Code.

"AWARD" or "AWARDS", except where referring to a particular category of grant
under the Plan, shall include Incentive Stock Options, Non-Statutory Stock
Options, Restricted Stock Awards, Unrestricted Stock Awards, Performance Share
Awards and Stock Appreciation Rights. Awards shall be evidenced by a written
agreement (which may be in electronic form and may be electronically
acknowledged and accepted by the recipient) containing such terms and conditions
not inconsistent with the provisions of this Plan as the Committee shall
determine.

"BOARD" means the Board of Directors of the Company.

"CAUSE" shall mean, with respect to any Award holder, a determination by the
Company (including the Board) or any Affiliate that the Holder's employment or
other relationship with the Company or any such Affiliate should be terminated
as a result of (i) a material breach by the Award holder of any agreement to
which the Award holder and the Company (or any such Affiliate) are parties, (ii)
any act (other than retirement) or omission to act by the Award holder that may
have a material and adverse effect on the business of the Company, such
Affiliate or any other Affiliate or on the Award holder's ability to perform
services for the Company or any such Affiliate, including, without limitation,
the proven or admitted commission of any crime (other than an ordinary traffic
violation), (iii) any material misconduct or material neglect of duties by the
Award holder in connection with the business or affairs of the Company or any
such Affiliate, or (iv)

<PAGE>

"Cause," as such term is defined in any employment or other agreement between
the Award Holder and the Company (or any such Affiliate).

"CHANGE OF CONTROL" shall have the meaning set forth in Section 15.

"CODE" means the Internal Revenue Code of 1986, as amended, and any successor
Code, and related rules, regulations and interpretations.

"COMMITTEE" shall have the meaning set forth in Section 2.

"COMPANY" shall have the meaning set forth in Section 1.

"DISABILITY" means disability as set forth in Section 22(e)(3) of the Code.

"EFFECTIVE DATE" means the date on which the Plan is approved by the Board of
Directors as set forth in Section 17.

"ELIGIBLE PERSON" shall have the meaning set forth in Section 4.

"EXCHANGE ACT" shall mean the Securities Exchange Act of 1934, as amended.

"FAIR MARKET VALUE" on any given date means the closing price per share of the
Stock on such date as reported by such registered national securities exchange
on which the Stock is listed, or, if the Stock is not listed on such an
exchange, as quoted on NASDAQ; provided, that, if there is no trading on such
date, Fair Market Value shall be deemed to be the closing price per share on the
last preceding date on which the Stock was traded. If the Stock is not listed on
any registered national securities exchange or quoted on NASDAQ, the Fair Market
Value of the Stock shall be determined in good faith by the Committee; provided,
however, that for purposes of a grant of any Award other than an Incentive Stock
Option, Fair Market Value shall be determined in a manner consistent with
Section 409A Authority.

"INCENTIVE STOCK OPTION" means any Stock Option designated and qualified as an
"incentive stock option" as defined in Section 422 of the Code.

"INDEPENDENT DIRECTOR" means any director who meets the independence requirement
of NASDAQ Marketplace Rule 4200(a)(15).

"MATURE SHARES" shall have the meaning set forth in Section 5.

"NON-EMPLOYEE DIRECTOR" means any director who: (i) is not currently an officer
of the Company or an Affiliate, or otherwise currently employed by the Company
or an Affiliate, (ii) does not receive compensation, either directly or
indirectly, from the Company or an Affiliate, for services rendered as a
consultant or in any capacity other than as a director, except for an amount
that does not exceed the dollar amount for which disclosure would be required
pursuant to Rule 404(a) of Regulation S-K promulgated by

                                        2
<PAGE>

the SEC, (iii) does not possess an interest in any other transaction for which
disclosure would be required pursuant to Rule 404(a) of Regulation S-K, and (iv)
is not engaged in a business relationship for which disclosure would be required
pursuant to Rule 404(b) of Regulation S-K.

"NON-STATUTORY STOCK OPTION" means any Stock Option that is not an Incentive
Stock Option.

"NORMAL RETIREMENT" means retirement in good standing from active employment
with the Company and its Affiliates in accordance with the retirement policies
of the Company and its Affiliates then in effect.

"OPTION" or "STOCK OPTION" means any option to purchase shares of Stock granted
pursuant to Section 5.

"OUTSIDE DIRECTOR" means any director who (i) is not an employee of the Company
or of any "affiliated group," as such term is defined in Section 1504(a) of the
Code, which includes the Company (an "Affiliated Group Member"), (ii) is not a
former employee of the Company or any Affiliated Group Member who is receiving
compensation for prior services (other than benefits under a tax-qualified
retirement plan) during the Company's or any Affiliated Group Member's taxable
year, (iii) has not been an officer of the Company or any Affiliated Group
Member and (iv) does not receive remuneration from the Company or any Affiliated
Group Member, either directly or indirectly, in any capacity other than as a
director. "Outside Director" shall be determined in accordance with Section
162(m) of the Code and the Treasury regulations issued thereunder.

"PERFORMANCE SHARE AWARD" means an Award pursuant to Section 8.

"PLAN" shall have the meaning set forth in Section 1.

"RESTRICTED Stock Award" means an Award granted pursuant to Section 6.

"SEC" means the Securities and Exchange Commission or any successor authority.

"SECTION 409A AUTHORITY" means the requirements of paragraphs (a)(2), (a)(3),
and (a)(4) of Section 409A of the Code, as interpreted by IRS Notice 2005-1,
Prop. Regs. 1.409A-1, ET SEQ., and any further guidance issued by the Internal
Revenue Service.


"STOCK" means the common stock, $.001 par value per share, of the Company,
subject to adjustments pursuant to Section 3.

"STOCK APPRECIATION RIGHT" means an Award granted pursuant to Section 9.

"UNRESTRICTED STOCK AWARD" means Awards granted pursuant to Section 7.

                                        3
<PAGE>

SECTION 2. ADMINISTRATION OF PLAN; COMMITTEE AUTHORITY TO SELECT PARTICIPANTS
AND DETERMINE AWARDS.

         (A) COMMITTEE. The Plan shall be administered by a committee of the
Board (the "Committee") consisting of not less than two (2) persons each of whom
qualifies as an Independent Director, an Outside Director and a Non-Employee
Director, but the authority and validity of any act taken or not taken by the
Committee shall not be affected if any person administering the Plan is not an
Independent Director, an Outside Director or a Non-Employee Director. Except as
specifically reserved to the Board under the terms of the Plan, the Committee
shall have full and final authority to operate, manage and administer the Plan
on behalf of the Company.

         (B) POWERS OF COMMITTEE. The Committee shall have the power and
authority to grant and modify Awards consistent with the terms of the Plan,
including the power and authority:

                         (i) to select the persons to whom Awards may from time
              to time be granted;

                         (ii) to determine the time or times of grant, and the
              extent, if any, of Incentive Stock Options, Non-Statutory Stock
              Options, Restricted Stock, Unrestricted Stock, Performance Shares
              and Stock Appreciation Rights, or any combination of the
              foregoing, granted to any one or more participants;

                         (iii) to determine the number of shares to be covered
              by any Award;

                         (iv) to determine and modify the terms and conditions,
              including restrictions, not inconsistent with the terms of the
              Plan, of any Award, which terms and conditions may differ among
              individual Awards and participants, and to approve the form of
              written instruments evidencing the Awards; provided, however,
              that, except as provided in Section 2(c), no such action shall
              materially adversely affect rights under any outstanding Award
              without the participant's consent;

                         (v) to accelerate the exercisability or vesting of all
              or any portion of any Award;

                         (vi) to extend the period in which any outstanding
              Stock Option or Stock Appreciation Right may be exercised; and

                         (vii) to adopt, alter and repeal such rules, guidelines
              and practices for administration of the Plan and for its own acts
              and proceedings as it shall deem advisable; to interpret the terms
              and provisions of the Plan and any Award (including related
              written instruments); to make all determinations it deems
              advisable for the administration of the Plan; to decide all
              disputes

                                        4
<PAGE>

              arising in connection with the Plan; and to otherwise supervise
              the administration of the Plan.

All decisions and interpretations of the Committee shall be binding on all
persons, including the Company and Plan participants. Neither the Company nor
any member or former member of the Committee or the Board shall be liable for
any action or determination made in good faith with respect to this Plan.

         (C) SECTION 409A. Awards granted under the Plan are intended either to
be exempt from the rules of Section 409A of the Code or to satisfy those rules,
and the Plan and such Awards shall be construed accordingly. Granted Awards may
be modified at any time, in the Board's discretion, so as to increase the
likelihood of exemption from or compliance with the rules of Section 409A of the
Code. Notwithstanding the foregoing, neither the Company nor any member or
former member of the Committee or the Board shall have any liability if an Award
(or any portion thereof), whether prior to or subsequent to any such
modification that may be made, is determined to be subject to the provisions of
Section 409A of the Code.

SECTION 3. SHARES ISSUABLE UNDER THE PLAN; MERGERS; SUBSTITUTION.

         (A) SHARES ISSUABLE. The maximum number of shares of Stock which may be
issued in respect of Awards (including Stock Appreciation Rights) granted under
the Plan, subject to adjustment upon changes in capitalization of the Company as
provided in this Section 3, shall be 1,400,000 shares. For purposes of this
limitation, the shares of Stock underlying any Awards which are forfeited,
cancelled, reacquired by the Company or otherwise terminated (other than by
exercise), shares that are tendered in payment of the exercise price of any
Award and shares that are tendered or withheld for tax withholding obligations
shall be added back to the shares of Stock with respect to which Awards may be
granted under the Plan. Shares issued under the Plan may be authorized but
unissued shares or shares reacquired by the Company.

         (B) LIMITATION ON AWARDS. In no event may any Plan participant be
granted Awards (including Stock Appreciation Rights) with respect to more than
500,000 shares of Stock in any calendar year. The number of shares of Stock
relating to an Award granted to a Plan participant in a calendar year that is
subsequently forfeited, cancelled or otherwise terminated shall continue to
count toward the foregoing limitation in such calendar year. In addition, if the
exercise price of an Award is subsequently reduced, the transaction shall be
deemed a cancellation of the original Award and the grant of a new one so that
both transactions shall count toward the maximum shares issuable in the calendar
year of each respective transaction.

         (C) STOCK DIVIDENDS, MERGERS, ETC. In the event that after approval of
the Plan by the stockholders of the Company in accordance with Section 17, the
Company effects a stock dividend, stock split or similar change in
capitalization affecting the Stock, the Committee shall make appropriate
adjustments in (i) the number and kind of shares of stock or securities with
respect to which Awards may thereafter be granted

                                        5
<PAGE>

(including without limitation the limitations set forth in Sections 3(a) and (b)
above), (ii) the number and kind of shares remaining subject to outstanding
Awards, and (iii) the option or purchase price in respect of such shares. In the
event of any merger, consolidation, dissolution or liquidation of the Company,
the Committee in its sole discretion may, as to any outstanding Awards, make
such substitution or adjustment in the aggregate number of shares reserved for
issuance under the Plan and in the number and purchase price (if any) of shares
subject to such Awards as it may determine and as may be permitted by the terms
of such transaction, or accelerate, amend or terminate such Awards upon such
terms and conditions as it shall provide (which, in the case of the termination
of the vested portion of any Award, shall require payment or other consideration
which the Committee deems equitable in the circumstances), subject, however, to
the provisions of Section 15. Unless the Committee determines otherwise, any
adjustments pursuant to this Section 3(c) shall be made on terms and conditions
consistent with Section 409A of the Code.

         (D) SUBSTITUTE AWARDS. The Committee may grant Awards under the Plan in
substitution for stock and stock based awards held by employees of another
corporation who concurrently become employees of the Company or an Affiliate as
the result of a merger or consolidation of the employing corporation with the
Company or an Affiliate or the acquisition by the Company or an Affiliate of
property or stock of the employing corporation. The Committee may direct that
the substitute awards be granted on such terms and conditions as the Committee
considers appropriate in the circumstances. Unless the Committee determines
otherwise, any substitutions pursuant to this Section 3(d) shall be made on
terms and conditions consistent with Section 409A of the Code.

SECTION 4. ELIGIBILITY.

         Awards may be granted to officers, directors and employees of, and
consultants and advisers to, the Company or its Affiliates ("Eligible Persons").

SECTION 5. STOCK OPTIONS.

         The Committee may grant to Eligible Persons options to purchase Stock.
Any Stock Option granted under the Plan shall be in such form as the Committee
may from time to time approve.

         Stock Options granted under the Plan may be either Incentive Stock
Options (subject to compliance with applicable law) or Non-Statutory Stock
Options. Unless otherwise so designated, an Option shall be a Non-Statutory
Stock Option. To the extent that any option does not qualify as an Incentive
Stock Option, it shall constitute a Non-Statutory Stock Option. Neither the
Company nor any member or former member of the Committee or the Board shall have
any liability if an Option (or any portion thereof) that is intended to be an
Incentive Stock Option is determined not to be a Non-Statutory Option
(including, without limitation, due to a determination that the exercise of the
Option was less than the Fair Market Value of the Stock subject to the

                                        6
<PAGE>

Option as of the grant date).

         No Incentive Stock Option shall be granted under the Plan after the
tenth anniversary of the date of adoption of the Plan by the Board.

         Each Non-Employee Director shall be automatically granted on the date
of the Company's annual meeting of stockholders, a Non-Statutory Stock Option to
purchase 10,000 shares of Stock at an exercise price per share equal to no less
than the Fair Market Value of the Stock on the date of grant, such options to
vest over three years on the anniversary of the date of grant at the rate of
33.33% per year until fully vested.

         The Committee may also grant additional Non-Statutory Stock Options to
purchase a number of shares of Stock to be determined by the Committee in
recognition of services provided by a Non-Employee Director in his or her
capacity as a director, provided that such grants are in compliance with the
requirements of Rule 16b-3, as promulgated under the Securities Exchange Act of
1934, as amended from time to time.

         The Committee in its discretion may determine the effective date of
Stock Options, provided, however, that grants of Incentive Stock Options shall
be made only to persons who are, on the effective date of the grant, employees
of the Company or an Affiliate. Stock Options granted pursuant to this Section 5
shall contain such additional terms and conditions, not inconsistent with the
terms of the Plan, as the Committee shall deem desirable.

         (A) EXERCISE PRICE. The exercise price per share for the Stock covered
by a Stock Option granted pursuant to this Section 5 shall be determined by the
Committee at the time of grant but shall be not less than one hundred percent
(100%) of Fair Market Value on the date of grant. If an employee owns or is
deemed to own (by reason of the attribution rules applicable under Section
424(d) of the Code) more than ten percent (10%) of the combined voting power of
all classes of stock of the Company or any subsidiary or parent corporation and
an Incentive Stock Option is granted to such employee, the option price shall be
not less than one hundred ten percent (110%) of Fair Market Value on the date of
grant.

         (B) OPTION TERM. The term of each Stock Option shall be fixed by the
Committee, but no Incentive Stock Option shall be exercisable more than ten (10)
years after the date the option is granted. If an employee owns or is deemed to
own (by reason of the attribution rules of Section 424(d) of the Code) more than
ten percent (10%) of the combined voting power of all classes of stock of the
Company or any subsidiary or parent corporation and an Incentive Stock Option is
granted to such employee, the term of such option shall be no more than five (5)
years from the date of grant.

         (C) EXERCISABILITY; RIGHTS OF A SHAREHOLDER. Stock Options shall become
vested and exercisable at such time or times, whether or not in installments, as
shall be determined by the Committee. The Committee, in its discretion, may
accelerate

                                        7
<PAGE>

the exercisability of all or any portion of any Stock Option only in
circumstances involving (i) a Change of Control of the Company, (ii) undue
hardship, including, but not limited to, death or disability of the option
holder, and (iii) a severance arrangement with a departing option holder. An
optionee shall have the rights of a shareholder only as to shares acquired upon
the exercise of a Stock Option and not as to unexercised Stock Options.

         (D) METHOD OF EXERCISE. Stock Options may be exercised in whole or in
part, by delivering written notice of exercise to the Company, specifying the
number of shares to be purchased. Payment of the purchase price may be made by
delivery of cash or bank check or other instrument acceptable to the Committee
in an amount equal to the exercise price of such Options, or, to the extent
provided in the applicable Option Agreement, by one or more of the following
methods:

                         (i) by delivery to the Company of shares of Stock of
              the Company that either have been purchased by the optionee on the
              open market, or have been beneficially owned by the optionee for a
              period of at least six months and are not then subject to
              restriction under any Company plan ("Mature Shares"); such
              surrendered shares shall have a Fair Market Value equal in amount
              to the exercise price of the Options being exercised; or

                         (ii) a personal recourse note issued by the optionee to
              the Company in a principal amount equal to such aggregate exercise
              price and with such other terms, including interest rate and
              maturity, as the Company may determine in its discretion;
              provided, however, that the interest rate borne by such note shall
              not be less than the lowest applicable federal rate, as defined in
              Section 1274(d) of the Code; or

                         (iii) if the class of Stock is registered under the
              Exchange Act at such time, by delivery to the Company of a
              properly executed exercise notice along with irrevocable
              instructions to a broker to deliver promptly to the Company cash
              or a check payable and acceptable to the Company for the purchase
              price; provided that in the event that the optionee chooses to pay
              the purchase price as so provided, the optionee and the broker
              shall comply with such procedures and enter into such agreements
              of indemnity and other agreements as the Committee shall prescribe
              as a condition of such payment procedure (including, in the case
              of an optionee who is an executive officer of the Company, such
              procedures and agreements as the Committee deems appropriate in
              order to avoid any extension of credit in the form of a personal
              loan to such officer). The Company need not act upon such exercise
              notice until the Company receives full payment of the exercise
              price; or

                         (iv) by reducing the number of Option shares otherwise
              issuable to the optionee upon exercise of the Option by a number
              of shares of Common Stock having a Fair Market Value equal to such
              aggregate exercise price;

                                        8
<PAGE>

              provided, however, that the optionee  otherwise holds an equal
              number of Mature Shares; or

                         (v) by any combination of such methods of payment.

The delivery of certificates representing shares of Stock to be purchased
pursuant to the exercise of a Stock Option will be contingent upon receipt from
the Optionee (or a purchaser acting in his stead in accordance with the
provisions of the Stock Option) by the Company of the full purchase price for
such shares and the fulfillment of any other requirements contained in the Stock
Option or imposed by applicable law.

                  (E) NON-TRANSFERABILITY OF OPTIONS. Except as the Committee
may provide with respect to a Non-Statutory Stock Option, no Stock Option shall
be transferable other than by will or by the laws of descent and distribution
and all Stock Options shall be exercisable, during the optionee's lifetime, only
by the optionee.

                  (F) ANNUAL LIMIT ON INCENTIVE STOCK OPTIONS. To the extent
required for "incentive stock option" treatment under Section 422 of the Code,
the aggregate Fair Market Value (determined as of the time of grant) of the
Stock with respect to which Incentive Stock Options granted under this Plan and
any other plan of the Company or its Affiliates become exercisable for the first
time by an optionee during any calendar year shall not exceed $100,000.

                  (G) LOCKUP AGREEMENT. Each Option shall provide that the
optionee shall agree for a period of time from the effective date of any
registration of securities of the Company (upon request of the Company or the
underwriters managing any underwritten offering of the Company's securities) not
to sell, make any short sale of, loan, grant any option for the purchase of, or
otherwise dispose of, any shares issued pursuant to the exercise of such Option,
without the prior written consent of the Company or such underwriters, as the
case may be.

SECTION 6. RESTRICTED STOCK AWARDS.

                   (A) NATURE OF RESTRICTED STOCK AWARD. The Committee in its
discretion may grant Restricted Stock Awards to any Eligible Person, entitling
the recipient to acquire, for such purchase price, if any, as may be determined
by the Committee, shares of Stock subject to such restrictions and conditions as
the Committee may determine at the time of grant ("Restricted Stock"), including
continued employment and/or achievement of pre-established performance goals and
objectives.

                  (B) ACCEPTANCE OF AWARD. A participant who is granted a
Restricted Stock Award shall have no rights with respect to such Award unless
the participant shall have accepted the Award within sixty (60) days (or such
shorter date as the Committee may specify) following the award date by making
payment to the Company of the specified purchase price, if any, of the shares
covered by the Award and by executing and

                                        9
<PAGE>

delivering to the Company a written instrument that sets forth the terms and
conditions applicable to the Restricted Stock in such form as the Committee
shall determine.

                  (C) RIGHTS AS A SHAREHOLDER. Upon complying with Section 6(b)
above, a participant shall have all the rights of a shareholder with respect to
the Restricted Stock, including voting and dividend rights, subject to
non-transferability restrictions and Company repurchase or forfeiture rights
described in this Section 6 and subject to such other conditions contained in
the written instrument evidencing the Restricted Award. Unless the Committee
shall otherwise determine, certificates evidencing shares of Restricted Stock
shall remain in the possession of the Company until such shares are vested as
provided in Section 6(e) below.

                  (D) RESTRICTIONS. Shares of Restricted Stock may not be sold,
assigned, transferred, pledged or otherwise encumbered or disposed of except as
specifically provided herein. In the event of termination of employment by the
Company and its Affiliates for any reason (including death, Disability, Normal
Retirement and for Cause), the Company shall have the right, at the discretion
of the Committee, to repurchase shares of Restricted Stock which have not then
vested at their purchase price, or to require forfeiture of such shares to the
Company if acquired at no cost, from the participant or the participant's legal
representative. The Company must exercise such right of repurchase or forfeiture
within ninety (90) days following such termination of employment (unless
otherwise specified in the written instrument evidencing the Restricted Stock
Award).

                  (E) VESTING OF RESTRICTED STOCK. The Committee at the time of
grant shall specify the date or dates and/or the attainment of pre-established
performance goals, objectives and other conditions on which the
non-transferability of the Restricted Stock and the Company's right of
repurchase or forfeiture shall lapse. Subsequent to such date or dates and/or
the attainment of such pre-established performance goals, objectives and other
conditions, the shares on which all restrictions have lapsed shall no longer be
Restricted Stock and shall be deemed "vested." Subject to Section 13, the
Committee, in its discretion, may accelerate the exercisability of all or any
portion of any Restricted Stock Award only in circumstances involving (i) a
Change of Control of the Company, (ii) undue hardship, including, but not
limited to, death or disability of the Restricted Stock Award holder, and (iii)
a severance arrangement with a departing Restricted Stock Award holder.

                  (F) WAIVER, DEFERRAL AND REINVESTMENT OF DIVIDENDS. The
written instrument evidencing the Restricted Stock Award may require or permit
the immediate payment, waiver, deferral or investment of dividends paid on the
Restricted Stock.

SECTION 7. UNRESTRICTED STOCK AWARDS.

                  (A) GRANT OR SALE OF UNRESTRICTED STOCK. The Committee in its
discretion may grant or sell to any Eligible Person shares of Stock free of any
restrictions under the Plan ("Unrestricted Stock") at a purchase price
determined by the Committee.

                                       10
<PAGE>

Shares of Unrestricted Stock may be granted or sold as described in the
preceding sentence in respect of past services or other valid consideration.

                  (B) RESTRICTIONS ON TRANSFERS. The right to receive
unrestricted Stock may not be sold, assigned, transferred, pledged or otherwise
encumbered, other than by will or the laws of descent and distribution.

SECTION 8. PERFORMANCE SHARE AWARDS.

         A Performance Share Award is an award entitling the recipient to
acquire shares of Stock upon the attainment of specified performance goals. The
Committee may make Performance Share Awards independent of or in connection with
the granting of any other Award under the Plan. Performance Share Awards may be
granted under the Plan to any Eligible Person. The Committee in its discretion
shall determine whether and to whom Performance Share Awards shall be made, the
performance goals applicable under each such Award (which may include, without
limitation, continued employment by the recipient or a specified achievement by
the recipient, the Company or any business unit of the Company), the periods
during which performance is to be measured, and all other limitations and
conditions applicable to the Award or the Stock issuable thereunder.

SECTION 9. STOCK APPRECIATION RIGHTS.

         The Committee in its discretion may grant Stock Appreciation Rights to
any Eligible Person (i) alone, or (ii) simultaneously with the grant of a Stock
Option and in conjunction therewith or in the alternative thereto. A Stock
Appreciation Right shall entitle the participant upon exercise thereof to
receive from the Company, upon written request to the Company at its principal
offices, a number of shares of Stock (with or without restrictions as to
substantial risk of forfeiture and transferability, as determined by the
Committee in its sole discretion), an amount of cash, or any combination of
Stock and cash, as specified in such request (but subject to the approval of the
Committee in its sole discretion, at any time up to and including the time of
payment, as to the making of any cash payment), having an aggregate Fair Market
Value equal to the product of (a) the excess of Fair Market Value, on the date
of such request, over the exercise price per share of Stock specified in such
Stock Appreciation Right or its related Option (which exercise price shall be
not less than one hundred percent (100%) of Fair Market Value on the date of
grant), multiplied by (b) the number of shares of Stock for which such Stock
Appreciation Right shall be exercised. Notwithstanding the foregoing, the
Committee may specify at the time of grant of any Stock Appreciation Right that
such Stock Appreciation Right may be exercisable solely for cash and not for
Stock.

SECTION 10. TERMINATION OF STOCK OPTIONS AND STOCK APPRECIATION RIGHTS.

                  (A)    INCENTIVE STOCK OPTIONS:

                         (I) TERMINATION BY DEATH. If any participant's
              employment by the Company and its Affiliates terminates by reason
              of death, any Incentive

                                       11
<PAGE>

              Stock Option owned by such participant may thereafter be
              exercised to the extent exercisable at the date of death, by the
              legal representative or legatee of the participant, for a period
              of one year from the date of death, or until the expiration of
              the stated term of the Incentive Stock Option, if earlier.

                         (II) TERMINATION BY REASON OF DISABILITY OR NORMAL
               RETIREMENT.

                               (A) Any Incentive Stock Option held by a
                  participant whose employment by the Company and its Affiliates
                  has terminated by reason of Disability may thereafter be
                  exercised, to the extent it was exercisable at the time of
                  such termination, for a period of one year from the date of
                  such termination of employment, or until the expiration of the
                  stated term of the Option, if earlier.

                               (B) Any Incentive Stock Option held by a
                  participant whose employment by the Company and its Affiliates
                  has terminated by reason of Normal Retirement may thereafter
                  be exercised, to the extent it was exercisable at the time of
                  such termination, for a period of ninety (90) days (or such
                  longer period as the Committee shall specify at any time) from
                  the date of such termination of employment, or until the
                  expiration of the stated term of the Option, if earlier.

                               (C) The Committee shall have sole authority and
                  discretion to determine whether a participant's employment has
                  been terminated by reason of Disability or Normal Retirement.

                         (III) TERMINATION FOR CAUSE. If any participant's
              employment by the Company and its Affiliates has been terminated
              for Cause, any Incentive Stock Option held by such participant
              shall immediately terminate and be of no further force and effect;
              provided, however, that the Committee may, in its sole discretion,
              provide that such Option can be exercised for a period of up to
              thirty (30) days from the date of termination of employment or
              until the expiration of the stated term of the Option, if earlier.

                         (IV) OTHER TERMINATION. Unless otherwise determined by
              the Committee, if a participant's employment by the Company and
              its Affiliates terminates for any reason other than death,
              Disability, Normal Retirement or for Cause, any Incentive Stock
              Option held by such participant may thereafter be exercised, to
              the extent it was exercisable on the date of termination of
              employment, for three (3) months (or such other period as the
              Committee shall specify) from the date of termination of
              employment or until the expiration of the stated term of the
              Option, if earlier.

                  (B) NON-STATUTORY STOCK OPTIONS AND STOCK APPRECIATION RIGHTS.
Any Non-Statutory Stock Option or Stock Appreciation Right granted under the
Plan

                                       12
<PAGE>

shall contain such terms and conditions with respect to its termination as
the Committee, in its discretion, may from time to time determine.

SECTION 11. TAX WITHHOLDING.

                  (A) PAYMENT BY PARTICIPANT. Each participant shall, no later
than the date as of which the value of an Award or of any Stock or other amounts
received thereunder first becomes includable in the gross income of the
participant for Federal income tax purposes, pay to the Company, or make
arrangements satisfactory to the Committee regarding payment of any Federal,
state, local and/or payroll taxes of any kind required by law to be withheld
with respect to such income. The Company and its Affiliates shall, to the extent
permitted by law, have the right to deduct any such taxes from any payment of
any kind otherwise due to the participant.

                  (B) PAYMENT IN SHARES. A Participant may elect, with the
consent of the Committee, to have such tax withholding obligation satisfied, in
whole or in part, by (i) authorizing the Company to withhold from shares of
Stock to be issued pursuant to an Award a number of shares with an aggregate
Fair Market Value (as of the date the withholding is effected) that would
satisfy the minimum withholding amount due with respect to such Award, or (ii)
delivering to the Company a number of Mature Shares of Stock with an aggregate
Fair Market Value (as of the date the withholding is effected) that would
satisfy the minimum withholding amount due.

                  (C) NOTICE OF DISQUALIFYING DISPOSITION. Each holder of an
Incentive Option shall agree to notify the Company in writing immediately after
making a disqualifying disposition (as defined in Section 421(b) of the Code) of
any Stock purchased upon exercise of an Incentive Stock Option.

SECTION 12.         TRANSFER AND LEAVE OF ABSENCE.

         For purposes of the Plan, the following events shall not be deemed a
termination of employment:

         (a)    a transfer to the employment of the Company from an Affiliate or
                from the Company to an Affiliate, or from one Affiliate to
                another;

         (b)    an approved leave of absence for military service or sickness,
                or for any other purpose approved by the Company, if the
                employee's right to re-employment is guaranteed either by a
                statute or by contract or under the policy pursuant to which the
                leave of absence was granted or if the Committee otherwise so
                provides in writing.

SECTION 13. AMENDMENTS AND TERMINATION.

         The Board may at any time amend or discontinue the Plan and the
Committee may at any time amend or cancel any outstanding Award (or provide
substitute Awards at

                                       13
<PAGE>

the same or reduced exercise or purchase price or with no exercise or purchase
price, but such price, if any, must satisfy the requirements which would apply
to the substitute or amended Award if it were then initially granted under this
Plan) for the purpose of satisfying changes in law or for any other lawful
purpose, but, except as provided in Section 2(c), no such action shall
materially adversely affect rights under any outstanding Award without the
holder's consent. In addition, no amendment to this Plan shall modify any
outstanding Award except to the extent that the Board shall determine that such
modification to an outstanding Award shall not be considered to be a material
modification.

         This Plan shall terminate as of the tenth anniversary of its Effective
Date. The Board may terminate this Plan at any earlier time for any reason. No
Award may be granted after the Plan has been terminated. No Award granted while
this Plan is in effect shall be altered or impaired by termination of this Plan,
except upon the consent of the holder of such Award. The power of the Committee
to construe and interpret this Plan and the Awards granted prior to the
termination of this Plan shall continue after such termination.

SECTION 14. STATUS OF PLAN.

         With respect to the portion of any Award which has not been exercised
and any payments in cash, Stock or other consideration not received by a
participant, a participant shall have no rights greater than those of a general
creditor of the Company unless the Committee shall otherwise expressly determine
in connection with any Award or Awards. In its sole discretion, the Committee
may authorize the creation of trusts or other arrangements to meet the Company's
obligations to deliver Stock or make payments with respect to Awards hereunder,
provided that the existence of such trusts or other arrangements is consistent
with the provision of the foregoing sentence.

SECTION 15. CHANGE OF CONTROL PROVISIONS.

                  (a) Upon the occurrence of a Change of Control as defined in
this Section 15:

                         (i) subject to the provisions of clause (iii) below,
              after the effective date of such Change of Control, each holder of
              an outstanding Stock Option, Restricted Stock Award, Performance
              Share Award or Stock Appreciation Right shall be entitled, upon
              exercise of such Award, to receive, in lieu of shares of Stock (or
              consideration based upon the Fair Market Value of Stock), shares
              of such stock or other securities, cash or property (or
              consideration based upon shares of such stock or other securities,
              cash or property) as the holders of shares of Stock received in
              connection with the Change of Control;

                         (ii) the Committee may accelerate, fully or in part,
              the time for exercise of, and waive any or all conditions and
              restrictions on, each

                                       14
<PAGE>

              unexercised and unexpired Stock Option, Restricted Stock Award,
              Performance Share Award and Stock Appreciation Right, effective
              upon a date prior or subsequent to the effective date of such
              Change of Control, as specified by the Committee; or

                         (iii) each outstanding Stock Option, Restricted Stock
              Award, Performance Share Award and Stock Appreciation Right may be
              cancelled by the Committee as of the effective date of any such
              Change of Control provided that (x) prior written notice of such
              cancellation shall be given to each holder of such an Award and
              (y) each holder of such an Award shall have the right to exercise
              such Award to the extent that the same is then exercisable or, in
              full, if the Committee shall have accelerated the time for
              exercise of all such unexercised and unexpired Awards, during the
              thirty (30) day period preceding the effective date of such Change
              of Control.

Unless the Committee determines otherwise, the foregoing actions shall be taken,
if at all, on terms and conditions consistent with Section 409A of the Code.

                  (b) "Change of Control" shall mean the occurrence of any one
of the following events:

                         (i) any "person" (as such term is used in Sections
              13(d) and 14(d)(2) of the Exchange Act) becomes, after the
              Effective Date of this Plan, a "beneficial owner" (as such term is
              defined in Rule 13d-3 promulgated under the Exchange Act) (other
              than the Company, any trustee or other fiduciary holding
              securities under an employee benefit plan of the Company, or any
              corporation owned, directly or indirectly, by the stockholders of
              the Company in substantially the same proportions as their
              ownership of stock of the Company), directly or indirectly, of
              securities of the Company representing fifty percent (50%) or more
              of the combined voting power of the Company's then outstanding
              securities (other than as a result of (i) an acquisition of
              securities directly from the Company or (ii) an acquisition of
              securities by the Company which by reducing the securities
              outstanding increases the proportionate voting power represented
              by the securities owned by any such person to fifty percent (50%)
              or more of the combined voting power of the Company's then
              outstanding securities); or

                         (ii) the stockholders of the Company approve a merger
              or consolidation of the Company with any other corporation or
              other entity, other than a merger or consolidation which would
              result in the voting securities of the Company outstanding
              immediately prior thereto continuing to represent (either by
              remaining outstanding or by being converted into voting securities
              of the surviving entity) more than fifty percent (50%) of the
              combined voting power of the voting securities of the Company or
              such surviving entity outstanding immediately after such merger or
              consolidation; or

                                       15

<PAGE>

                         (iii) the stockholders of the Company approve a plan of
              complete liquidation of the Company or an agreement for the sale
              or disposition by the Company of all or substantially all of the
              Company's assets.

SECTION 16. GENERAL PROVISIONS.

                   (A) NO DISTRIBUTION; COMPLIANCE WITH LEGAL REQUIREMENTS. The
Committee may require each person acquiring shares pursuant to an Award to
represent to and agree with the Company in writing that such person is acquiring
the shares without a view to distribution thereof. No shares of Stock shall be
issued pursuant to an Award until all applicable securities laws and other legal
and stock exchange requirements have been satisfied. The Committee may require
the placing of such stop orders and restrictive legends on certificates for
Stock and Awards as it deems appropriate.

                  (B) DELIVERY OF STOCK CERTIFICATES. Delivery of stock
certificates to participants under this Plan shall be deemed effected for all
purposes when the Company or a stock transfer agent of the Company shall have
delivered such certificates in the United States mail, addressed to the
participant, at the participant's last known address on file with the Company.

                  (C) OTHER COMPENSATION ARRANGEMENTS; NO EMPLOYMENT RIGHTS.
Nothing contained in this Plan shall prevent the Board from adopting other or
additional compensation arrangements, including trusts, subject to stockholder
approval if such approval is required; and such arrangements may be either
generally applicable or applicable only in specific cases. The adoption of the
Plan or any Award under the Plan does not confer upon any employee any right to
continued employment with the Company or any Affiliate.

                  (D) CERTAIN INDEBTEDNESS TO THE COMPANY. No Option or other
Award may be exercised at any time after the Committee has determined, in good
faith, that the participant is indebted to the Company or any Affiliate for
advances of salary, advances of expenses, recoverable draws or other amounts
unless and until either (a) such indebtedness is satisfied in full or (b) such
condition is waived by the Committee. The period during which any Option or
other Award may by its terms be exercised shall not be extended during any
period in which the participant is prohibited from such exercise by the
preceding sentence, and the neither Company nor any member or former member of
the Committee or the Board shall have any if any Option or other Award expires
unexercised in whole or in part during such period or if any Option that is
intended to be an Incentive Stock Option is deemed to be a Non-Statutory Stock
Option because such Option is not exercised within three months after the
termination of the participant's employment with the Company or an Affiliate.

SECTION 17. EFFECTIVE DATE OF PLAN.

         This Plan shall become effective upon its adoption by the Company's
Board of Directors. If the Plan shall not be approved by the shareholders of the
Company within

                                       16
<PAGE>

twelve months following its adoption, this Plan shall terminate and be of no
further force or effect.

SECTION 18. GOVERNING LAW.

         This Plan shall be governed by, and construed and enforced in
accordance with, the substantive laws of The Commonwealth of Massachusetts
without regard to its principles of conflicts of laws.

                            ------------------------



This Amended and Restated Stock Incentive Plan was approved by the Board of
Directors of the Company on August 18, 2006, and was approved by the
stockholders of the Company on September 18, 2006.






















                                       17
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10.34
<SEQUENCE>48
<FILENAME>ex10-34_14663.txt
<DESCRIPTION>LEAD DOG DIGITAL, INC. 2001 STOCK OPTION PLAN
<TEXT>
                                                                   EXHIBIT 10.34
                                                                   -------------

                  LEAD DOG DIGITAL, INC. 2001 STOCK OPTION PLAN


   1.    PURPOSE OF THE PLAN.

         This 2001 Stock Option Plan (the "Plan") is intended as an incentive,
to retain in the employ of and as directors, consultants and advisors to LEAD
DOG DIGITAL, INC., a New York corporation (the "Company") and any Subsidiary of
the Company, within the meaning of Section 424(f) of the United States Internal
Revenue Code of 1986, as amended (the "Code"), persons of training, experience
and ability, to attract new employees, directors, consultants and advisors whose
services are considered valuable, to encourage the sense of proprietorship and
to stimulate the active interest of such persons in the development and
financial success of the Company and its Subsidiaries.

         It is further intended that certain options granted pursuant to the
Plan shall constitute incentive stock options within the meaning of Section 422
of the Code (the "Incentive Options") while certain other options granted
pursuant to the Plan shall be nonqualified stock options (the "Nonqualified
Options"). Incentive Options and Nonqualified Options are hereinafter referred
to collectively as "Options."

   2.    ADMINISTRATION OF THE PLAN.

         The Board of Directors of the Company (the "Board") shall appoint and
maintain as administrator of the Plan a Committee (the "Committee") consisting
of two or more directors, which shall serve at the pleasure of the Board. The
Committee, subject to Sections 3 and 5 hereof, shall have full power and
authority to designate recipients of Options, to determine the terms and
conditions of respective Option agreements (which need not be identical) and to
interpret the provisions and supervise the administration of the Plan. The
Committee shall have the authority, without limitation, to designate which
Options granted under the Plan shall be Incentive Options and which shall be
Nonqualified Options. To the extent any Option does not qualify as an Incentive
Option, it shall constitute a separate Nonqualified Option.

         Subject to the provisions of the Plan, the Committee shall interpret
the Plan and all Options granted under the Plan, shall make such rules as it
deems necessary for the proper administration of the Plan, shall make all other
determinations necessary or advisable for the administration of the Plan and
shall correct any defects or supply any omission or reconcile any inconsistency
in the Plan or in any Options granted under the Plan in the manner and to the
extent that the Committee deems desirable to carry into effect the Plan or any
Options. The act or determination of a majority of the Committee shall be the
act or determination of the Committee and any decision reduced to writing and
signed by all of the members of the Committee shall be fully effective as if it
had been made by a majority at a meeting duly held. Subject to the provisions of
the Plan, any action taken or determination made by the Committee pursuant to
this and the other Sections of the Plan shall be conclusive on all parties.
<PAGE>

         In the event that for any reason the Committee is unable to act or if
there shall be no such Committee, then the Plan shall be administered by the
Board, and references herein to the Committee (except in the proviso to this
sentence) shall be deemed to be references to the Board.

   3.    DESIGNATION OF OPTIONEES.

         The persons eligible for participation in the Plan as recipients of
Options (the "Optionees") shall include employees, officers and directors of,
and consultants and advisors to, the Company or any Subsidiary; provided that
Incentive Options may only be granted to employees of the Company and the
Subsidiaries. In selecting Optionees, and in determining the number of shares to
be covered by each Option granted to Optionees, the Committee may consider the
office or position held by the Optionee or the Optionee's relationship to the
Company, the Optionee's degree of responsibility for and contribution to the
growth and success of the Company or any Subsidiary, the Optionee's length of
service, age, promotions, potential and any other factors that the Committee may
consider relevant. An Optionee who has been granted an Option hereunder may be
granted an additional Option or Options, if the Committee shall so determine.

   4.    STOCK RESERVED FOR THE PLAN.

         Subject to adjustment as provided in Section 7 hereof, a total of 1
million shares of the Company's Common Stock, $0.001 par value per share (the
"Stock"), shall be subject to the Plan. The shares of Stock subject to the Plan
shall consist of unissued shares or previously issued shares held by any
Subsidiary of the Company, and such amount of shares of Stock shall be and is
hereby reserved for such purpose. Any of such shares of Stock that may remain
unsold and that are not subject to outstanding Options at the termination of the
Plan shall cease to be reserved for the purposes of the Plan, but until
termination of the Plan the Company shall at all times reserve a sufficient
number of shares of Stock to meet the requirements of the Plan. Should any
Option expire or be canceled prior to its exercise in full or should the number
of shares of Stock to be delivered upon the exercise in full of an Option be
reduced for any reason, the shares of Stock theretofore subject to such Option
may be subject to future Options under the Plan.

   5.    TERMS AND CONDITIONS OF OPTIONS.

         Options granted under the Plan shall be subject to the following
conditions and shall contain such additional terms and conditions, not
inconsistent with the terms of the Plan, as the Committee shall deem desirable:

         (a) Option Price. The purchase price of each share of Stock purchasable
under an Incentive Option shall be determined by the Committee at the time of
grant, but shall not be less than 100% of the Fair Market Value (as defined
below) of such share of Stock on the date the Option is granted; provided,
however, that with respect to an Optionee who, at the time such Incentive Option
is granted, owns (within the meaning of Section 424(d) of the Code) more than
10% of the total combined voting power of all classes of stock of the Company or
of any Subsidiary, the purchase price per share of Stock shall be at least 110%
of the Fair Market Value per share of Stock on the date of grant. The purchase
price of each share of Stock purchasable under a Nonqualified Option shall not
be less than 50% of the Fair Market Value of such share of Stock on the date the
Option is granted. The exercise price for each Option shall be subject to
adjustment as provided in Section 7 below. "Fair Market Value" shall be
determined by the Committee in a manner consistent with the provisions of the
Code. Anything in this Section 5(a) to the contrary notwithstanding, in no event
shall the purchase price of a share of Stock be less than the minimum price
permitted under
<PAGE>

the rules and policies of any national securities exchange on which the shares
of Stock are listed.

         (b) Option Term. The term of each Option shall be fixed by the
Committee, but no Option shall be exercisable more than ten years after the date
such Option is granted and in the case of an Incentive Option granted to an
Optionee who, at the time such Incentive Option is granted, owns (within the
meaning of Section 424(d) of the Code) more than 10% of the total combined
voting power of all classes of stock of the Company or of any Subsidiary, no
such Incentive Option shall be exercisable more than five years after the date
such Incentive Option is granted.

         (c) Exercisability. Subject to Section 5(j) hereof, Options shall be
exercisable at such time or times and subject to such terms and conditions as
shall be determined by the Committee at the time of grant.

             Upon the occurrence of a "Change in Control" (as hereinafter
defined), the Committee may accelerate the vesting and exercisability of
outstanding Options, in whole or in part, as determined by the Committee in its
sole discretion. In its sole discretion, the Committee may also determine that,
upon the occurrence of a Change in Control, each outstanding Option shall
terminate within a specified number of days after notice to the Optionee
thereunder, and each such Optionee shall receive, with respect to each share of
Company Stock subject to such Option, an amount equal to the excess of the Fair
Market Value of such shares immediately prior to such Change in Control over the
exercise price per share of such Option; such amount shall be payable in cash,
in one or more kinds of property (including the property, if any, payable in the
transaction) or a combination thereof, as the Committee shall determine in its
sole discretion.

             For purposes of the Plan, a Change in Control shall be deemed to
have occurred if:

             (i) the Company shall be merged or consolidated with another
corporation, unless as a result of such merger or consolidation more than 50% of
the outstanding voting securities of the surviving or resulting corporation
shall be owned in the aggregate by the shareholders of the Company (as of the
time immediately prior to such transaction), any employee benefit plan of the
Company or its Subsidiaries, and their affiliates;

             (ii) the Company shall sell substantially all of its assets to
another corporation that is not wholly owned by the Company, unless as a result
of such sale more than 50% of such assets shall be owned in the aggregate by the
shareholders of the Company (as of the time immediately prior to such
transaction), any employee benefit plan of the Company or its Subsidiaries and
their affiliates; or

             (ii) a Person (as defined below) shall acquire 50% or more of the
outstanding voting securities of the Company (whether directly, indirectly,
beneficially or of record), unless as a result of such acquisition more than 50%
of the outstanding voting securities of the surviving or resulting corporation
shall be owned in the aggregate by the shareholders of the Company (as of the
time immediately prior to the first acquisition of such securities by such
Person), any employee benefit plan of the Company or its Subsidiaries, and their
affiliates.

         For purposes of this Section 5(c), ownership of voting securities shall
take into
<PAGE>

account and shall include ownership as determined by applying the provisions of
Rule 13d-3(d)(I)(i) (as in effect on the date hereof) under the Securities
Exchange Act of 1934, as amended. In addition, for such purposes, "Person" shall
have the meaning given in Section 3(a)(9) of the Exchange Act, as modified and
used in Sections 13(d) and 14(d) thereof; however, a Person shall not include
(A) the Company or any of its Subsidiaries; (B) a trustee or other fiduciary
holding securities under an employee benefit plan of the Company or any of its
Subsidiaries; (C) an underwriter temporarily holding securities pursuant to an
offering of such securities; or (D) a corporation owned, directly or indirectly,
by the shareholders of the Company in substantially the same proportion as their
ownership of stock of the Company.

         (d) Method of Exercise. Options to the extent then exercisable may be
exercised in whole or in part at any time during the option period, by giving
written notice to the Company specifying the number of shares of Stock to be
purchased, accompanied by payment in full of the purchase price, in cash, or by
check or such other instrument as may be acceptable to the Committee. As
determined by the Committee, in its sole discretion, at or after grant, payment
in full or in part may be made at the election of the Optionee (i) in the form
of Stock owned by the Optionee (based on the Fair Market Value of the Stock on
the day before the Option is exercised) which is not the subject of any pledge
or security interest, (ii) in the form of shares of Stock withheld by the
Company from the shares of Stock otherwise to be received with such withheld
shares of Stock having a Fair Market Value on the date of exercise equal to the
exercise price of the Option, or (iii) by a combination of the foregoing,
provided that the combined value of all cash and cash equivalents and the Fair
Market Value of any shares surrendered to the Company is at least equal to such
exercise price and except with respect to (ii) above, such method of payment
will not cause a disqualifying disposition of all or a portion of the Stock
received upon exercise of an Incentive Option. An Optionee shall have the right
to dividends and other rights of a stockholder with respect to shares of Stock
purchased upon exercise of an Option at such time as the Optionee has given
written notice of exercise and has paid in full for such shares and (ii) has
satisfied such conditions that may be imposed by the Company with respect to the
withholding of taxes.

         (e) Non-transferability of Options. Options are not transferable and
may be exercised solely by the Optionee during his lifetime or after his death
by the person or persons entitled thereto under his will or the laws of descent
and distribution. The Committee, in its sole discretion, may permit a transfer
of a Nonqualified Option to (i) a trust for the benefit of the Optionee or (ii)
a member of the Optionee's immediate family (or a trust for his or her benefit).
Any attempt to transfer, assign, pledge or otherwise dispose of, or to subject
to execution, attachment or similar process, any Option contrary to the
provisions hereof shall be void and ineffective and shall give no right to the
purported transferee.

         (f) Termination by Death. Unless otherwise determined by the Committee
at grant, if any Optionee's employment with or service to the Company or any
Subsidiary terminates by reason of death, the Option may thereafter be
exercised, to the extent then exercisable (or on such accelerated basis as the
Committee shall determine at or after grant), by the legal representative of the
estate or by the legatee of the Optionee under the will of the Optionee, for a
period of one year after the date of such death or until the expiration of the
stated term of such Option as provided under the Plan, whichever period is
shorter.
<PAGE>

         (g) Termination by Reason of Disability. Unless otherwise determined by
the Committee at grant, if any Optionee's employment with or service to the
Company or any Subsidiary terminates by reason of total and permanent
disability, any Option held by such Optionee may thereafter be exercised, to the
extent it was exercisable at the time of termination due to Disability (or on
such accelerated basis as the Committee shall determine at or after grant), but
may not be exercised after 90 days after the date of such termination of
employment or service or the expiration of the stated term of such Option,
whichever period is shorter; provided, however, that, if the Optionee dies
within such 90-day period, any unexercised Option held by such Optionee shall
thereafter be exercisable to the extent to which it was exercisable at the time
of death for a period of one year after the date of such death or for the stated
term of such Option, whichever period is shorter.

         (h) Termination by Reason of Retirement. Unless otherwise determined by
the Committee at grant, if any Optionee's employment with or service to the
Company or any Subsidiary terminates by reason of Normal or Early Retirement (as
such terms are defined below), any Option held by such Optionee may thereafter
be exercised to the extent it was exercisable at the time of such Retirement (or
on such accelerated basis as the Committee shall determine at or after grant),
but may not be exercised after three months from the date of such termination of
employment or service or the expiration of the stated term of such Option,
whichever period is shorter; provided, however, that, if the Optionee dies
within such three-month period, any unexercised Option held by such Optionee
shall thereafter be exercisable, to the extent to which it was exercisable at
the time of death, for a period of one year after the date of such death or for
the stated term of such Option, whichever period is shorter.

         For purposes of this paragraph (h) "Normal Retirement" shall mean
retirement from active employment with the Company or any Subsidiary on or after
the normal retirement date specified in the applicable Company or Subsidiary
pension plan or if no such pension plan, age 65, and "Early Retirement" shall
mean retirement from active employment with the Company or any Subsidiary
pursuant to the early retirement provisions of the applicable Company or
Subsidiary pension plan or if no such pension plan, age 55.

         (i) Other Termination. Unless otherwise determined by the Committee at
grant, if any Optionee's employment with or service to the Company or any
Subsidiary terminates for any reason other than death, Disability or Normal or
Early Retirement, the Option shall thereupon terminate, except that the portion
of any Option that was exercisable on the date of such termination of employment
or service may be exercised for the lesser of 30 days after the date of
termination or the balance of such Option's term if the Optionee's employment or
service with the Company or any Subsidiary is terminated by the Company or such
Subsidiary without cause (the determination as to whether termination was for
cause to be made by the Committee). The transfer of an Optionee from the employ
of or service to the Company to the employ of or service to a Subsidiary, or
vice versa, or from one Subsidiary to another, shall not be deemed to constitute
a termination of employment or service for purposes of the Plan.

         (j) Limit on Value of Incentive Option. The aggregate Fair Market
Value, determined as of the date the Incentive Option is granted, of Stock for
which Incentive Options are exercisable for the first time by any Optionee
during any calendar year under the Plan (and/or any other stock option plans of
the Company or any Subsidiary) shall not exceed $100,000.
<PAGE>

         (k) Incentive Option Shares. A grant of an Incentive Option under this
Plan shall provide that (a) the Optionee shall be required as a condition of the
exercise to furnish to the Company any payroll (employment) tax required to be
withheld, and (b)if the Optionee makes a disposition, within the meaning of
Section 424(c) of the Code and regulations promulgated thereunder, of any share
or shares of Stock issued to him upon exercise of an Incentive Option granted
under the Plan within the two-year period commencing on the day after the date
of the grant of such Incentive Option or within a one-year period commencing on
the day after the date of transfer of the share or shares to him pursuant to the
exercise of such Incentive Option, he shall, within 10 days after such
disposition, notify the Company thereof and immediately deliver to the Company
any amount of United States federal, state and local income tax withholding
required by law.

   6.    TERM OF PLAN.

         No Option shall be granted pursuant to the Plan on or after ________,
2011(1), but Options theretofore granted may extend beyond that date.

   7.    CAPITAL CHANGE OF THE COMPANY.

         In the event of any merger, reorganization, consolidation,
recapitalization, stock dividend, or other change in corporate structure
affecting the Stock, the Committee shall make an appropriate and equitable
adjustment in the number and kind of shares reserved for issuance under the Plan
and in the number and option price of shares subject to outstanding Options
granted under the Plan, to the end that after such event each Optionee's
proportionate interest shall be maintained as immediately before the occurrence
of such event. The Committee shall, to the extent feasible, make such other
adjustments as may be required under the tax laws so that any Incentive Options
previously granted shall not be deemed modified within the meaning of Section
424(h) of the Code.

   8.    PURCHASE FOR INVESTMENT.

         Unless the Options and shares covered by the Plan have been registered
under the Securities Act of 1933, as amended (the "Securities Act"), or the
Company has determined that such registration is unnecessary, each person
exercising an Option under the Plan may be required by the Company to give a
representation in writing that he is acquiring the shares for his own account
for investment and not with a view to, or for sale in connection with, the
distribution of any part thereof.

   9.    TAXES.

         The Company may make such provisions as it may deem appropriate,
consistent with applicable law, in connection with any Options granted under the
Plan with respect to the withholding of any taxes (including income or
employment taxes) or any other tax matters.

   10.   SHAREHOLDERS AND OTHER AGREEMENTS.

         Each Optionee, as a condition of the grant of an Option hereunder, may
be required by the Company to become a party to a shareholders agreement
providing for, among other things, so-called "drag along" provisions and
limitations upon the transfer of shares subject to such Option, such as a right
of first refusal by the Company upon a proposed sale or transfer by the Optionee
to any third party, or any other agreement affecting the sale or retention of
shares, such as an option

- ----------------------
(1) The date that is ten years from the effective date of the Plan.
<PAGE>

agreement whereby the Company would have the right to purchase any shares held
by the Optionee upon the Optionee's termination of employment for any reason.

   11.   EFFECTIVE DATE OF PLAN.

                 The Plan shall be effective on , 2001, provided however that
the Plan shall subsequently be approved by majority vote of the Company's
stockholders not later than , 2001.

   12.   AMENDMENT AND TERMINATION.

         The Board may amend, suspend, or terminate the Plan, except that no
amendment shall be made that would impair the rights of any Optionee under any
Option theretofore granted without the Optionee's consent, and except that no
amendment shall be made which, without the approval of the stockholders of the
Company would:

         (a) materially increase the number of shares that may be issued under
the Plan, except as is provided in Section 7;

         (b) materially increase the benefits accruing to the Optionees under
the Plan;

         (c) materially modify the requirements as to eligibility for
participation in the Plan;

         (d) decrease the exercise price of an Incentive Option to less than
100% of the Fair Market Value per share of Stock on the date of grant thereof or
the exercise price of a Nonqualified Option to less than 80% of the Fair Market
Value per share of Stock on the date of grant thereof; or

         (e) extend the term of any Option beyond that provided for in Section
5(b).

         The Committee may amend the terms of any Option theretofore granted,
prospectively or retroactively, but no such amendment shall impair the rights of
any Optionee without the Optionee's consent. The Committee may also substitute
new Options for previously granted Options, including options granted under
other plans applicable to the participant and previously granted Options having
higher option prices, upon such terms as the Committee may deem appropriate.

   13.   GOVERNMENT REGULATIONS.

         The Plan, and the grant and exercise of Options hereunder, and the
obligation of the Company to sell and deliver shares under such Options, shall
be subject to all applicable laws, rules and regulations, and to such approvals
by any governmental agencies, national securities exchanges and interdealer
quotation systems as may be required.
<PAGE>

   14.   GENERAL PROVISIONS.

         (a) Certificates. All certificates for shares of Stock delivered under
the Plan shall be subject to such stop transfer orders and other restrictions as
the Committee may deem advisable under the rules, regulations and other
requirements of the Securities and Exchange Commission, or other securities
commission having jurisdiction, any applicable Federal or state securities law,
any stock exchange or interdealer quotation system upon which the Stock is then
listed or traded and the Committee may cause a legend or legends to be placed on
any such certificates to make appropriate reference to such restrictions.

         (b) Employment Matters. The adoption of the Plan shall not confer upon
any Optionee of the Company or any Subsidiary any right to continued employment
or, in the case of an Optionee who is a director, continued service as a
director, with the Company or a Subsidiary, as the case may be, nor shall it
interfere in any way with the right of the Company or any Subsidiary to
terminate the employment of any of its employees, the service of any of its
directors or the retention of any of its consultants or advisors at any time.

         (c) Limitation of Liability. No member of the Board or the Committee,
or any officer or employee of the Company acting on behalf of the Board or the
Committee, shall be personally liable for any action, determination or
interpretation taken or made in good faith with respect to the Plan, and all
members of the Board or the Committee and each and any officer or employee of
the Company acting on their behalf shall, to the extent permitted by law, be
fully indemnified and protected by the Company in respect of any such action,
determination or interpretation.

         (d) Registration of Stock. Notwithstanding any other provision in the
Plan, no Option may be exercised unless and until the Stock to be issued upon
the exercise thereof has been registered under the Securities Act and applicable
state securities laws, or are, in the opinion of counsel to the Company, exempt
from such registration in the United States. The Company shall not be under any
obligation to register under applicable federal or state securities laws any
Stock to be issued upon the exercise of an Option granted hereunder in order to
permit the exercise of an Option and the issuance and sale of the Stock subject
to such Option, although the Company may in its sole discretion register such
Stock at such time as the Company shall determine. If the Company chooses to
comply with such an exemption from registration, the Stock issued under the Plan
may, at the direction of the Committee, bear an appropriate restrictive legend
restricting the transfer or pledge of the Stock represented thereby, and the
Committee may also give appropriate stop transfer instructions with respect to
such Stock to the Company's transfer agent.

                                       LEAD DOG DIGITAL, INC.

                                                        ,2001
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10.35
<SEQUENCE>49
<FILENAME>ex10-35_14663.txt
<DESCRIPTION>25,000 SHARE ZUCKER STOCK OPTION GRANT
<TEXT>
                                                                   EXHIBIT 10.35
                                                                   -------------

                            BRIDGELINE SOFTWARE, INC.

                               STOCK OPTION GRANT

OPTIONEE:  Brett Zucker

         Bridgeline Software, Inc. (hereinafter called the "Company"), pursuant
to its Stock Option Plan adopted August 30, 2000 (hereinafter called the
"Plan"), hereby grants to you, the optionee above named (hereinafter called the
"Optionee"), an option to purchase shares of the $.001 par value common stock of
the Company (hereinafter called the "Common Stock"). The options granted will be
Incentive Options as defined in the Plan.

         The details of your option are as follows:

1. The total number of shares of Common Stock subject to this option is 25,000.
This option shall become exercisable in three installments, as follows:

         Installment      Number of Shares     First Date Exercise is Permitted

              1                 8,333                  February 27, 2003
              2                 8,333                  February 27, 2004
              3                 8,334                  February 27, 2005

              TOTAL            25,000

2. The term of this option commences on the date hereof and terminates 10 years
hereafter on February 27, 2012. This option is not transferable, except at death
by will or the laws of descent and distribution, and is exercisable during your
life only by you. No assignment or transfer of the option, or of the rights
represented thereby, whether voluntary or involuntary, by operation of law or
otherwise, except by will or the laws of descent and distribution, shall vest in
the assignee or transferee any interest or right herein whatsoever, but
immediately upon any attempt to assign or transfer an option the same shall
terminate and be of no force or effect.

3. The exercise price of this option is one dollar ($1.00) per share.

4. a. You may exercise this option to purchase all or any part of your allotment
which has accrued to you, at any time during the term of this option, but not
thereafter, by depositing with the Secretary or Assistant Secretary of the
Company notice in writing, designating the number of shares as to which you are
exercising your option, accompanied by payment in full for such number of
shares; provided, however, that not less than 100 shares may be purchased upon
any one exercise of the option granted hereby unless the number of shares
purchased at such time is the total number of shares in respect of which the
option hereby granted is then exercisable.

<PAGE>

         b. Payment shall be in the form of cash, certified check, bank draft or
postal or express money order payable to the order of the Company in United
States Dollars. If the Board of Directors of the Company or an authorized
committee of the Board has, pursuant to subparagraph 6.2 of the Plan, authorized
payment in stock of the Company, payment, in whole or in part, may be in the
form of a certificate or certificates representing stock of the Company at its
then value.

         c. Following receipt of such notice and required payment and compliance
by the Optionee or other person entitled to exercise the option with any
limitations and conditions imposed by this grant, the Company shall thereafter
cause its transfer agent and registrar to issue and deliver to the Optionee (or
other person entitled to exercise the option) as soon as practically possible a
certificate or certificates for such number of shares registered in the name of
the Optionee or such other person entitled to exercise the option, as the case
may be.

         d. In addition, this option shall be considered to be fully accrued and
shall be exercisable in said manner during the 10 day period following the
occurrence of any of the events described in subparagraph 10.3 of the Plan.

5. This option is subject to (a) all the provisions of the Plan, a copy of which
is attached hereto and is specifically incorporated by reference herein, and (b)
to all interpretations, rules and regulations which may from time to time be
promulgated and adopted pursuant to such Plan.

6. The Company is under no obligation to register the shares of Common Stock
purchased upon exercise of this option under the Securities Act of 1933.

7. Any dispute or disagreement which shall arise under, or as a result of, or
pursuant to, this Agreement shall be determined by the Board of Directors of the
Company in its absolute and uncontrolled discretion, and any such determination
or any other determination by the Board of Directors under or pursuant to this
Agreement and any interpretation by the Board of Directors of the terms of this
Agreement, shall be final, binding and conclusive on all persons affected
thereby.

8. Any notice which either party hereto may be required or permitted to give to
the other shall be in writing and may be delivered personally or by mail,
postage prepaid, addressed as follows: to the President of the Company, at
Bridgeline Software, Inc. at 130 New Boston Street, Woburn, Massachusetts 01801,
or at such other address as the Company by notice to the Optionee may designate
in writing from time to time; to the Optionee, at his address as the Optionee,
by notice to the President of the Company, may designate in writing from time to
time.

9. The Company shall endorse an appropriate legend on certificates of Common
Stock issued to the Optionee pursuant to the Plan to evidence the
representations of the Optionee under paragraph 8 of the Plan.

<PAGE>

         Dated as of the 27th day of February, 2002.


                                         BRIDGELINE SOFTWARE, INC.



                                         By: /S/ THOMAS MASSIE
                                             ----------------------
                                             President

                                             Duly authorized on behalf of the
                                             Board of Directors

         The undersigned accepts the foregoing option and agrees to all the
terms and conditions thereof, acknowledging hereby receipt of a copy of the
Stock Option Plan.

         Dated as of the 27th day of February, 2002.

                                         /S/ BRETT ZUCKER
                                         -----------------
                                         Brett Zucker, Optionee
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10.36
<SEQUENCE>50
<FILENAME>ex10-36_14663.txt
<DESCRIPTION>5,459 SHARE ZUCKER STOCK OPTION GRANT
<TEXT>
                                                                   EXHIBIT 10.36
                                                                   -------------


                            BRIDGELINE SOFTWARE, INC.

                               STOCK OPTION GRANT

OPTIONEE:  Brett Zucker

         In conjunction with the merger of Lead Dog Digital, Inc. and Bridgeline
Software, Inc. on February 27, 2002, the outstanding Incentive Options issued to
Lead Dog Digital, Inc. employees are hereby converted to Incentive Options of
Bridgeline Software, Inc. as detailed in this Stock Option Grant.

         Bridgeline Software, Inc. (hereinafter called the "Company"), pursuant
to its Stock Option Plan adopted August 30, 2000 (hereinafter called the
"Plan"), hereby grants to you, the optionee above named (hereinafter called the
"Optionee"), an option to purchase shares of the $.001 par value common stock of
the Company (hereinafter called the "Common Stock"). The options granted will be
Incentive Options as defined in the Plan.

         The details of your option are as follows:

1. The total number of shares of Common Stock subject to this option is 5,459.
This option shall become exercisable as follows:

         Installment    Number of Shares     First Date Exercise is Permitted
         -----------    ----------------     --------------------------------

             1               5,459                   February 27, 2002

             TOTAL           5,459

2. The term of this option commences on the date hereof and terminates 10 years
hereafter on February 27, 2012. This option is not transferable, except at death
by will or the laws of descent and distribution, and is exercisable during your
life only by you. No assignment or transfer of the option, or of the rights
represented thereby, whether voluntary or involuntary, by operation of law or
otherwise, except by will or the laws of descent and distribution, shall vest in
the assignee or transferee any interest or right herein whatsoever, but
immediately upon any attempt to assign or transfer an option the same shall
terminate and be of no force or effect.

3. The exercise price of this option is eleven and 91/100 cents ($0.1191) per
share.

4. a. You may exercise this option to purchase all or any part of your allotment
which has accrued to you, at any time during the term of this option, but not
thereafter, by depositing with the Secretary or Assistant Secretary of the
Company notice in writing, designating the number of shares as to which you are
exercising your option, accompanied by payment in full for such number of
shares; provided, however, that not less than 100 shares may be purchased upon
any one exercise of the option granted hereby unless the number of shares
purchased at such time is the total number of shares in respect of which the
option hereby granted is then exercisable.

<PAGE>

         b. Payment shall be in the form of cash, certified check, bank draft or
postal or express money order payable to the order of the Company in United
States Dollars. If the Board of Directors of the Company or an authorized
committee of the Board has, pursuant to subparagraph 6.2 of the Plan, authorized
payment in stock of the Company, payment, in whole or in part, may be in the
form of a certificate or certificates representing stock of the Company at its
then value.

         c. Following receipt of such notice and required payment and compliance
by the Optionee or other person entitled to exercise the option with any
limitations and conditions imposed by this grant, the Company shall thereafter
cause its transfer agent and registrar to issue and deliver to the Optionee (or
other person entitled to exercise the option) as soon as practically possible a
certificate or certificates for such number of shares registered in the name of
the Optionee or such other person entitled to exercise the option, as the case
may be.

         d. In addition, this option shall be considered to be fully accrued and
shall be exercisable in said manner during the 10 day period following the
occurrence of any of the events described in subparagraph 10.3 of the Plan.

5. This option is subject to (a) all the provisions of the Plan, a copy of which
is attached hereto and is specifically incorporated by reference herein, and (b)
to all interpretations, rules and regulations which may from time to time be
promulgated and adopted pursuant to such Plan.

6. The Company is under no obligation to register the shares of Common Stock
purchased upon exercise of this option under the Securities Act of 1933.

7. Any dispute or disagreement which shall arise under, or as a result of, or
pursuant to, this Agreement shall be determined by the Board of Directors of the
Company in its absolute and uncontrolled discretion, and any such determination
or any other determination by the Board of Directors under or pursuant to this
Agreement and any interpretation by the Board of Directors of the terms of this
Agreement, shall be final, binding and conclusive on all persons affected
thereby.

8. Any notice which either party hereto may be required or permitted to give to
the other shall be in writing and may be delivered personally or by mail,
postage prepaid, addressed as follows: to the President of the Company, at
Bridgeline Software, Inc. at 130 New Boston Street, Woburn, Massachusetts 01801,
or at such other address as the Company by notice to the Optionee may designate
in writing from time to time; to the Optionee, at his address as the Optionee,
by notice to the President of the Company, may designate in writing from time to
time.

9. The Company shall endorse an appropriate legend on certificates of Common
Stock issued to the Optionee pursuant to the Plan to evidence the
representations of the Optionee under paragraph 8 of the Plan.

                                        2
<PAGE>

         Dated as of the 27th day of February, 2002.

                                         BRIDGELINE SOFTWARE, INC.



                                         By: /S/ THOMAS MASSIE
                                             ----------------------
                                             President

                                             Duly authorized on behalf of the
                                             Board of Directors

         The undersigned accepts the foregoing option and agrees to all the
terms and conditions thereof, acknowledging hereby receipt of a copy of the
Stock Option Plan.

         Dated as of the 27th day of February, 2002



                                         /S/ BRETT ZUCKER
                                         --------------------------
                                         Brett Zucker, Optionee














                                        3
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10.37
<SEQUENCE>51
<FILENAME>ex10-37_14663.txt
<DESCRIPTION>50,391 SHARE ZUCKER STOCK OPTION GRANT
<TEXT>
                                                                   EXHIBIT 10.37
                                                                   -------------

                            BRIDGELINE SOFTWARE, INC.

                               STOCK OPTION GRANT

OPTIONEE:  Brett Zucker

         In conjunction with the merger of Lead Dog Digital, Inc. and Bridgeline
Software, Inc. on February 27, 2002, the outstanding Incentive Options issued to
Lead Dog Digital, Inc. employees are hereby converted to Incentive Options of
Bridgeline Software, Inc. as detailed in this Stock Option Grant.

         Bridgeline Software, Inc. (hereinafter called the "Company"), pursuant
to its Stock Option Plan adopted August 30, 2000 (hereinafter called the
"Plan"), hereby grants to you, the optionee above named (hereinafter called the
"Optionee"), an option to purchase shares of the $.001 par value common stock of
the Company (hereinafter called the "Common Stock"). The options granted will be
Incentive Options as defined in the Plan.

         The details of your option are as follows:

1. The total number of shares of Common Stock subject to this option is 50,391.
This option shall become exercisable as follows:

         Installment     Number of Shares     First Date Exercise is Permitted
         -----------     ----------------     --------------------------------

              1               25,195                   February 27, 2002
              2               12,598                   August 31, 2002
              3               12,598                   August 31, 2003

              TOTAL           50,391

2. The term of this option commences on the date hereof and terminates 10 years
hereafter on February 27, 2012. This option is not transferable, except at death
by will or the laws of descent and distribution, and is exercisable during your
life only by you. No assignment or transfer of the option, or of the rights
represented thereby, whether voluntary or involuntary, by operation of law or
otherwise, except by will or the laws of descent and distribution, shall vest in
the assignee or transferee any interest or right herein whatsoever, but
immediately upon any attempt to assign or transfer an option the same shall
terminate and be of no force or effect.

3. The exercise price of this option is eleven and 91/100 cents ($0.1191) per
share.

4. a. You may exercise this option to purchase all or any part of your allotment
which has accrued to you, at any time during the term of this option, but not
thereafter, by depositing with the Secretary or Assistant Secretary of the
Company notice in writing, designating the number of shares as to which you are
exercising your option, accompanied by payment in full for

<PAGE>

such number of shares; provided, however, that not less than 100 shares may be
purchased upon any one exercise of the option granted hereby unless the number
of shares purchased at such time is the total number of shares in respect of
which the option hereby granted is then exercisable.

         b. Payment shall be in the form of cash, certified check, bank draft or
postal or express money order payable to the order of the Company in United
States Dollars. If the Board of Directors of the Company or an authorized
committee of the Board has, pursuant to subparagraph 6.2 of the Plan, authorized
payment in stock of the Company, payment, in whole or in part, may be in the
form of a certificate or certificates representing stock of the Company at its
then value.

         c. Following receipt of such notice and required payment and compliance
by the Optionee or other person entitled to exercise the option with any
limitations and conditions imposed by this grant, the Company shall thereafter
cause its transfer agent and registrar to issue and deliver to the Optionee (or
other person entitled to exercise the option) as soon as practically possible a
certificate or certificates for such number of shares registered in the name of
the Optionee or such other person entitled to exercise the option, as the case
may be.

         d. In addition, this option shall be considered to be fully accrued and
shall be exercisable in said manner during the 10 day period following the
occurrence of any of the events described in subparagraph 10.3 of the Plan.

5. This option is subject to (a) all the provisions of the Plan, a copy of which
is attached hereto and is specifically incorporated by reference herein, and (b)
to all interpretations, rules and regulations which may from time to time be
promulgated and adopted pursuant to such Plan.

6. The Company is under no obligation to register the shares of Common Stock
purchased upon exercise of this option under the Securities Act of 1933.

7. Any dispute or disagreement which shall arise under, or as a result of, or
pursuant to, this Agreement shall be determined by the Board of Directors of the
Company in its absolute and uncontrolled discretion, and any such determination
or any other determination by the Board of Directors under or pursuant to this
Agreement and any interpretation by the Board of Directors of the terms of this
Agreement, shall be final, binding and conclusive on all persons affected
thereby.

8. Any notice which either party hereto may be required or permitted to give to
the other shall be in writing and may be delivered personally or by mail,
postage prepaid, addressed as follows: to the President of the Company, at
Bridgeline Software, Inc. at 130 New Boston Street, Woburn, Massachusetts 01801,
or at such other address as the Company by notice to the Optionee may designate
in writing from time to time; to the Optionee, at his address as the Optionee,
by notice to the President of the Company, may designate in writing from time to
time.

9. The Company shall endorse an appropriate legend on certificates of Common
Stock issued to the Optionee pursuant to the Plan to evidence the
representations of the Optionee under paragraph 8 of the Plan.

                                        2
<PAGE>

         Dated as of the 27th day of February, 2002.


                                         BRIDGELINE SOFTWARE, INC.


                                         By: /S/ THOMAS MASSIE
                                             -----------------------
                                             President

                                             Duly authorized on behalf of the
                                             Board of Directors

         The undersigned accepts the foregoing option and agrees to all the
terms and conditions thereof, acknowledging hereby receipt of a copy of the
Stock Option Plan.

         Dated as of the 27th day of February, 2002


                                         /S/ BRETT ZUCKER
                                         -------------------------
                                         Brett Zucker, Optionee














                                        3
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10.38
<SEQUENCE>52
<FILENAME>ex10-38_14663.txt
<DESCRIPTION>75,000 SHARE ZUCKER STOCK OPTION GRANT
<TEXT>
                                                                   EXHIBIT 10.38
                                                                   -------------

                            BRIDGELINE SOFTWARE, INC.

                               STOCK OPTION GRANT

OPTIONEE:  Brett Zucker

         Bridgeline Software, Inc. (hereinafter called the "Company"), pursuant
to its Stock Option Plan adopted August 30, 2000 (hereinafter called the
"Plan"), hereby grants to you, the optionee above named (hereinafter called the
"Optionee"), an option to purchase shares of the $.001 par value common stock of
the Company (hereinafter called the "Common Stock"). The options granted will be
Incentive Options as defined in the Plan.

         The details of your option are as follows:

1. The total number of shares of Common Stock subject to this option is 75,000.
This option shall become exercisable in three installments, as follows:

         Installment    Number of Shares     First Date Exercise is Permitted
         -----------    ----------------     --------------------------------

              1               25,000                    June 1, 2004
              2               25,000                    June 1, 2005
              3               25,000                    June 1, 2006

              TOTAL           75,000

2. The term of this option commences on the date hereof and terminates 10 years
hereafter on June 1, 2013. This option is not transferable, except at death by
will or the laws of descent and distribution, and is exercisable during your
life only by you. No assignment or transfer of the option, or of the rights
represented thereby, whether voluntary or involuntary, by operation of law or
otherwise, except by will or the laws of descent and distribution, shall vest in
the assignee or transferee any interest or right herein whatsoever, but
immediately upon any attempt to assign or transfer an option the same shall
terminate and be of no force or effect.

3. The exercise price of this option is one dollar ($1.00) per share.

4. a. You may exercise this option to purchase all or any part of your allotment
which has accrued to you, at any time during the term of this option, but not
thereafter, by depositing with the Secretary or Assistant Secretary of the
Company notice in writing, designating the number of shares as to which you are
exercising your option, accompanied by payment in full for such number of
shares; provided, however, that not less than 100 shares may be purchased upon
any one exercise of the option granted hereby unless the number of shares
purchased at such time is the total number of shares in respect of which the
option hereby granted is then exercisable.

<PAGE>

         b. Payment shall be in the form of cash, certified check, bank draft or
postal or express money order payable to the order of the Company in United
States Dollars. If the Board of Directors of the Company or an authorized
committee of the Board has, pursuant to subparagraph 6.2 of the Plan, authorized
payment in stock of the Company, payment, in whole or in part, may be in the
form of a certificate or certificates representing stock of the Company at its
then value.

         c. Following receipt of such notice and required payment and compliance
by the Optionee or other person entitled to exercise the option with any
limitations and conditions imposed by this grant, the Company shall thereafter
cause its transfer agent and registrar to issue and deliver to the Optionee (or
other person entitled to exercise the option) as soon as practically possible a
certificate or certificates for such number of shares registered in the name of
the Optionee or such other person entitled to exercise the option, as the case
may be.

         d. In addition, this option shall be considered to be fully accrued and
shall be exercisable in said manner during the 10 day period following the
occurrence of any of the events described in subparagraph 10.3 of the Plan.

5. This option is subject to (a) all the provisions of the Plan, a copy of which
is attached hereto and is specifically incorporated by reference herein, and (b)
to all interpretations, rules and regulations which may from time to time be
promulgated and adopted pursuant to such Plan.

6. The Company is under no obligation to register the shares of Common Stock
purchased upon exercise of this option under the Securities Act of 1933.

7. Any dispute or disagreement which shall arise under, or as a result of, or
pursuant to, this Agreement shall be determined by the Board of Directors of the
Company in its absolute and uncontrolled discretion, and any such determination
or any other determination by the Board of Directors under or pursuant to this
Agreement and any interpretation by the Board of Directors of the terms of this
Agreement, shall be final, binding and conclusive on all persons affected
thereby.

8. Any notice which either party hereto may be required or permitted to give to
the other shall be in writing and may be delivered personally or by mail,
postage prepaid, addressed as follows: to the President of the Company, at
Bridgeline Software, Inc. at 130 New Boston Street, Woburn, Massachusetts 01801,
or at such other address as the Company by notice to the Optionee may designate
in writing from time to time; to the Optionee, at his address as the Optionee,
by notice to the President of the Company, may designate in writing from time to
time.

9. The Company shall endorse an appropriate legend on certificates of Common
Stock issued to the Optionee pursuant to the Plan to evidence the
representations of the Optionee under paragraph 8 of the Plan.

                                        2
<PAGE>

         Dated as of the 1st day of June, 2003.



                                         BRIDGELINE SOFTWARE, INC.

                                         By: /S/ THOMAS MASSIE
                                             ----------------------
                                             President

                                             Duly authorized on behalf of the
                                             Board of Directors

         The undersigned accepts the foregoing option and agrees to all the
terms and conditions thereof, acknowledging hereby receipt of a copy of the
Stock Option Plan.

         Dated as of the 1st day of June, 2003.



                                         /S/ BRETT ZUCKER
                                         ----------------------------
                                         Brett Zucker, Optionee













                                        3
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10.39
<SEQUENCE>53
<FILENAME>ex10-39_14663.txt
<DESCRIPTION>300,000 SHARE ZUCKER STOCK OPTION GRANT
<TEXT>
                                                                   EXHIBIT 10.39
                                                                   -------------

                            BRIDGELINE SOFTWARE, INC.

                               STOCK OPTION GRANT

OPTIONEE: Brett Zucker

         Bridgeline Software, Inc. (hereinafter called the "Company"), pursuant
to its Stock Option Plan adopted August 30, 2000 (hereinafter called the
"Plan"), hereby grants to you, the optionee above named (hereinafter called the
"Optionee"), an option to purchase shares of the $.001 par value common stock of
the Company (hereinafter called the "Common Stock"). The options granted will be
Incentive Options as defined in the Plan.

         The details of your option are as follows:

1. The total number of shares of Common Stock subject to this option is 300,000.
This option shall become exercisable as follows:

         Installment     Number of Shares     First Date Exercise is Permitted
         -----------     ----------------     --------------------------------

              1               100,000                    June 1, 2006
              2               100,000                    June 1, 2007
              3               100,000                    June 1, 2008

              TOTAL           300,000

2. The term of this option commences on the date hereof and terminates 10 years
hereafter on June 1, 2015. This option is not transferable, except at death by
will or the laws of descent and distribution, and is exercisable during your
life only by you. No assignment or transfer of the option, or of the rights
represented thereby, whether voluntary or involuntary, by operation of law or
otherwise, except by will or the laws of descent and distribution, shall vest in
the assignee or transferee any interest or right herein whatsoever, but
immediately upon any attempt to assign or transfer an option the same shall
terminate and be of no force or effect.

3. The exercise price of this option is one dollar ($1.00) per share.

4. a. You may exercise this option to purchase all or any part of your allotment
which has accrued to you, at any time during the term of this option, but not
thereafter, by depositing with the Secretary or Assistant Secretary of the
Company notice in writing, designating the number of shares as to which you are
exercising your option, accompanied by payment in full for such number of
shares; provided, however, that not less than 100 shares may be purchased upon
any one exercise of the option granted hereby unless the number of shares
purchased at such time is the total number of shares in respect of which the
option hereby granted is then exercisable.

<PAGE>

         b. Payment shall be in the form of cash, certified check, bank draft or
postal or express money order payable to the order of the Company in United
States Dollars. If the Board of Directors of the Company or an authorized
committee of the Board has, pursuant to subparagraph 6.2 of the Plan, authorized
payment in stock of the Company, payment, in whole or in part, may be in the
form of a certificate or certificates representing stock of the Company at its
then value.

         c. Following receipt of such notice and required payment and compliance
by the Optionee or other person entitled to exercise the option with any
limitations and conditions imposed by this grant, the Company shall thereafter
cause its transfer agent and registrar to issue and deliver to the Optionee (or
other person entitled to exercise the option) as soon as practically possible a
certificate or certificates for such number of shares registered in the name of
the Optionee or such other person entitled to exercise the option, as the case
may be.

         d. In addition, this option shall be considered to be fully accrued and
shall be exercisable in said manner during the 10 day period following the
occurrence of any of the events described in subparagraph 10.3 of the Plan.

5. This option is subject to (a) all the provisions of the Plan, a copy of which
is attached hereto and is specifically incorporated by reference herein, and (b)
to all interpretations, rules and regulations which may from time to time be
promulgated and adopted pursuant to such Plan.

6. The Company is under no obligation to register the shares of Common Stock
purchased upon exercise of this option under the Securities Act of 1933.

7. Any dispute or disagreement which shall arise under, or as a result of, or
pursuant to, this Agreement shall be determined by the Board of Directors of the
Company in its absolute and uncontrolled discretion, and any such determination
or any other determination by the Board of Directors under or pursuant to this
Agreement and any interpretation by the Board of Directors of the terms of this
Agreement, shall be final, binding and conclusive on all persons affected
thereby.

8. Any notice which either party hereto may be required or permitted to give to
the other shall be in writing and may be delivered personally or by mail,
postage prepaid, addressed as follows: to the President of the Company, at
Bridgeline Software, Inc. at 130 New Boston Street, Woburn, Massachusetts 01801,
or at such other address as the Company by notice to the Optionee may designate
in writing from time to time; to the Optionee, at his address as the Optionee,
by notice to the President of the Company, may designate in writing from time to
time.

9. The Company shall endorse an appropriate legend on certificates of Common
Stock issued to the Optionee pursuant to the Plan to evidence the
representations of the Optionee under paragraph 8 of the Plan.

                                        2
<PAGE>

         Dated as of the 1st day of June, 2005.

                                         BRIDGELINE SOFTWARE, INC.


                                         By: /S/ THOMAS MASSIE
                                             ----------------------------
                                             President

                                             Duly authorized on behalf of the
                                             Board of Directors

         The undersigned accepts the foregoing option and agrees to all the
terms and conditions thereof, acknowledging hereby receipt of a copy of the
Stock Option Plan.

         Dated as of the 1st day of June, 2005.


                                             /S/ BRETT ZUCKER
                                             -----------------------------
                                             Brett Zucker, Optionee






















                                        3
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10.40
<SEQUENCE>54
<FILENAME>ex10-40_14663.txt
<DESCRIPTION>25,000 SHARE SEEGER STOCK OPTION GRANT
<TEXT>
                                                                   EXHIBIT 10.40
                                                                   -------------

                            BRIDGELINE SOFTWARE, INC.

                               STOCK OPTION GRANT


OPTIONEE:  Robert Seeger


         Bridgeline Software, Inc. (hereinafter called the "Company"), pursuant
to its Stock Option Plan adopted August 30, 2000 (hereinafter called the
"Plan"), hereby grants to you, the optionee above named (hereinafter called the
"Optionee"), an option to purchase shares of the $.001 par value common stock of
the Company (hereinafter called the "Common Stock"). The options granted will be
Incentive Options as defined in the Plan.

         The details of your option are as follows:

1.    The total number of shares of Common Stock subject to this option is
25,000. This option shall become exercisable in three installments, as follows:

      Installment       Number of Shares        First Date Exercise is Permitted
      -----------       ----------------        --------------------------------

           1                  8,333                      February 27, 2003
           2                  8,333                      February 27, 2004
           3                  8,334                      February 27, 2005

                  TOTAL      25,000

2.    The term of this option commences on the date hereof and terminates 10
years hereafter on February 27, 2012. This option is not transferable, except at
death by will or the laws of descent and distribution, and is exercisable during
your life only by you. No assignment or transfer of the option, or of the rights
represented thereby, whether voluntary or involuntary, by operation of law or
otherwise, except by will or the laws of descent and distribution, shall vest in
the assignee or transferee any interest or right herein whatsoever, but
immediately upon any attempt to assign or transfer an option the same shall
terminate and be of no force or effect.

3.    The exercise price of this option is one dollar ($1.00) per share.

4.    a.    You may exercise this option to purchase all or any part of your
allotment which has accrued to you, at any time during the term of this option,
but not thereafter, by depositing with the Secretary or Assistant Secretary of
the Company notice in writing, designating the number of shares as to which you
are exercising your option, accompanied by payment in full for such number of
shares; provided, however, that not less than 100 shares may be purchased upon
any one exercise of the option granted hereby unless the number of shares
purchased at such time is the total number of shares in respect of which the
option hereby granted is then exercisable.
<PAGE>

      b.    Payment shall be in the form of cash, certified check, bank draft or
postal or express money order payable to the order of the Company in United
States Dollars. If the Board of Directors of the Company or an authorized
committee of the Board has, pursuant to subparagraph 6.2 of the Plan, authorized
payment in stock of the Company, payment, in whole or in part, may be in the
form of a certificate or certificates representing stock of the Company at its
then value.

      c.    Following receipt of such notice and required payment and compliance
by the Optionee or other person entitled to exercise the option with any
limitations and conditions imposed by this grant, the Company shall thereafter
cause its transfer agent and registrar to issue and deliver to the Optionee (or
other person entitled to exercise the option) as soon as practically possible a
certificate or certificates for such number of shares registered in the name of
the Optionee or such other person entitled to exercise the option, as the case
may be.

      d.    In addition, this option shall be considered to be fully accrued and
shall be exercisable in said manner during the 10 day period following the
occurrence of any of the events described in subparagraph 10.3 of the Plan.

5.    This option is subject to (a) all the provisions of the Plan, a copy of
which is attached hereto and is specifically incorporated by reference herein,
and (b) to all interpretations, rules and regulations which may from time to
time be promulgated and adopted pursuant to such Plan.

6.    The Company is under no obligation to register the shares of Common Stock
purchased upon exercise of this option under the Securities Act of 1933.

7.    Any dispute or disagreement which shall arise under, or as a result of, or
pursuant to, this Agreement shall be determined by the Board of Directors of the
Company in its absolute and uncontrolled discretion, and any such determination
or any other determination by the Board of Directors under or pursuant to this
Agreement and any interpretation by the Board of Directors of the terms of this
Agreement, shall be final, binding and conclusive on all persons affected
thereby.

8.    Any notice which either party hereto may be required or permitted to give
to the other shall be in writing and may be delivered personally or by mail,
postage prepaid, addressed as follows: to the President of the Company, at
Bridgeline Software, Inc. at 130 New Boston Street, Woburn, Massachusetts 01801,
or at such other address as the Company by notice to the Optionee may designate
in writing from time to time; to the Optionee, at his address as the Optionee,
by notice to the President of the Company, may designate in writing from time to
time.

9.    The Company shall endorse an appropriate legend on certificates of Common
Stock issued to the Optionee pursuant to the Plan to evidence the
representations of the Optionee under paragraph 8 of the Plan.

                                       2
<PAGE>

      Dated as of the 27th day of February, 2002.

                                       BRIDGELINE SOFTWARE, INC.



                                       By: /S/ THOMAS L. MASSIE
                                           ------------------------------
                                           President
                                           Duly authorized on behalf of the
                                           Board of Directors


      The undersigned accepts the foregoing option and agrees to all the terms
and conditions thereof, acknowledging hereby receipt of a copy of the Stock
Option Plan.

      Dated as of the 27th day of February, 2002.



                                       /S/ ROBERT SEEGER
                                       ------------------------------------
                                       Robert Seeger, Optionee







                                       3
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10.41
<SEQUENCE>55
<FILENAME>ex10-41_14663.txt
<DESCRIPTION>41,992 SHARE SEEGER STOCK OPTION GRANT
<TEXT>
                                                                   EXHIBIT 10.41
                                                                   -------------

                            BRIDGELINE SOFTWARE, INC.

                               STOCK OPTION GRANT


OPTIONEE:  Robert Seeger

      In conjunction with the merger of Lead Dog Digital, Inc. and Bridgeline
Software, Inc. on February 27, 2002, the outstanding Incentive Options issued to
Lead Dog Digital, Inc. employees are hereby converted to Incentive Options of
Bridgeline Software, Inc. as detailed in this Stock Option Grant.

      Bridgeline Software, Inc. (hereinafter called the "Company"), pursuant to
its Stock Option Plan adopted August 30, 2000 (hereinafter called the "Plan"),
hereby grants to you, the optionee above named (hereinafter called the
"Optionee"), an option to purchase shares of the $.001 par value common stock of
the Company (hereinafter called the "Common Stock"). The options granted will be
Incentive Options as defined in the Plan.

      The details of your option are as follows:

1.    The total number of shares of Common Stock subject to this option is
41,992. This option shall become exercisable as follows:

      Installment       Number of Shares        First Date Exercise is Permitted
      -----------       ----------------        --------------------------------

           1                 20,996                       February 27, 2002
           2                 10,498                       August 31, 2002
           3                 10,498                       August 31, 2003


                 TOTAL       41,991

2.    The term of this option commences on the date hereof and terminates 10
years hereafter on February 27, 2012. This option is not transferable, except at
death by will or the laws of descent and distribution, and is exercisable during
your life only by you. No assignment or transfer of the option, or of the rights
represented thereby, whether voluntary or involuntary, by operation of law or
otherwise, except by will or the laws of descent and distribution, shall vest in
the assignee or transferee any interest or right herein whatsoever, but
immediately upon any attempt to assign or transfer an option the same shall
terminate and be of no force or effect.

3.    The exercise price of this option is thirty-five and 72/100 cents
($0.3572) per share.

4.    a.    You may exercise this option to purchase all or any part of your
allotment which has accrued to you, at any time during the term of this option,
but not thereafter, by depositing with the Secretary or Assistant Secretary of
the Company notice in writing, designating the number of shares as to which you
are exercising your option, accompanied by payment in full for

<PAGE>

such number of shares; provided, however, that not less than 100 shares may be
purchased upon any one exercise of the option granted hereby unless the number
of shares purchased at such time is the total number of shares in respect of
which the option hereby granted is then exercisable.

      b.    Payment shall be in the form of cash, certified check, bank draft or
postal or express money order payable to the order of the Company in United
States Dollars. If the Board of Directors of the Company or an authorized
committee of the Board has, pursuant to subparagraph 6.2 of the Plan, authorized
payment in stock of the Company, payment, in whole or in part, may be in the
form of a certificate or certificates representing stock of the Company at its
then value.

      c.    Following receipt of such notice and required payment and compliance
by the Optionee or other person entitled to exercise the option with any
limitations and conditions imposed by this grant, the Company shall thereafter
cause its transfer agent and registrar to issue and deliver to the Optionee (or
other person entitled to exercise the option) as soon as practically possible a
certificate or certificates for such number of shares registered in the name of
the Optionee or such other person entitled to exercise the option, as the case
may be.

      d.    In addition, this option shall be considered to be fully accrued and
shall be exercisable in said manner during the 10 day period following the
occurrence of any of the events described in subparagraph 10.3 of the Plan.

5.    This option is subject to (a) all the provisions of the Plan, a copy of
which is attached hereto and is specifically incorporated by reference herein,
and (b) to all interpretations, rules and regulations which may from time to
time be promulgated and adopted pursuant to such Plan.

6.    The Company is under no obligation to register the shares of Common Stock
purchased upon exercise of this option under the Securities Act of 1933.

7.    Any dispute or disagreement which shall arise under, or as a result of, or
pursuant to, this Agreement shall be determined by the Board of Directors of the
Company in its absolute and uncontrolled discretion, and any such determination
or any other determination by the Board of Directors under or pursuant to this
Agreement and any interpretation by the Board of Directors of the terms of this
Agreement, shall be final, binding and conclusive on all persons affected
thereby.

8.    Any notice which either party hereto may be required or permitted to give
to the other shall be in writing and may be delivered personally or by mail,
postage prepaid, addressed as follows: to the President of the Company, at
Bridgeline Software, Inc. at 130 New Boston Street, Woburn, Massachusetts 01801,
or at such other address as the Company by notice to the Optionee may designate
in writing from time to time; to the Optionee, at his address as the Optionee,
by notice to the President of the Company, may designate in writing from time to
time.

9.    The Company shall endorse an appropriate legend on certificates of Common
Stock issued to the Optionee pursuant to the Plan to evidence the
representations of the Optionee under paragraph 8 of the Plan.

                                       2
<PAGE>

      Dated as of the 27th day of February, 2002.

                                       BRIDGELINE SOFTWARE, INC.



                                       By: /S/ THOMAS L. MASSIE
                                           ----------------------------
                                           President
                                           Duly authorized on behalf of the
                                           Board of Directors


      The undersigned accepts the foregoing option and agrees to all the terms
and conditions thereof, acknowledging hereby receipt of a copy of the Stock
Option Plan.

      Dated as of the 27th day of February, 2002



                                       /S/ROBERT SEEGER
                                       ------------------------------------
                                       Robert Seeger, Optionee

















                                       3
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10.42
<SEQUENCE>56
<FILENAME>ex10-42_14663.txt
<DESCRIPTION>12,500 SHARE SEEGER STOCK OPTION GRANT
<TEXT>
                                                                   EXHIBIT 10.42
                                                                   -------------

                            BRIDGELINE SOFTWARE, INC.

                               STOCK OPTION GRANT


OPTIONEE:  Robert Seeger


      Bridgeline Software, Inc. (hereinafter called the "Company"), pursuant to
its Stock Option Plan adopted August 30, 2000 (hereinafter called the "Plan"),
hereby grants to you, the optionee above named (hereinafter called the
"Optionee"), an option to purchase shares of the $.001 par value common stock of
the Company (hereinafter called the "Common Stock"). The options granted will be
Incentive Options as defined in the Plan.

      The details of your option are as follows:

1.    The total number of shares of Common Stock subject to this option is
12,500. This option shall become exercisable as follows:

      Installment       Number of Shares        First Date Exercise is Permitted
      -----------       ----------------        --------------------------------

           1                  12,500                     September 30, 2002

                   TOTAL      12,500

2.    The term of this option commences on the date hereof and terminates 10
years hereafter on September 30, 2012. This option is not transferable, except
at death by will or the laws of descent and distribution, and is exercisable
during your life only by you. No assignment or transfer of the option, or of the
rights represented thereby, whether voluntary or involuntary, by operation of
law or otherwise, except by will or the laws of descent and distribution, shall
vest in the assignee or transferee any interest or right herein whatsoever, but
immediately upon any attempt to assign or transfer an option the same shall
terminate and be of no force or effect.

3.    The exercise price of this option is one-tenth of a cent ($0.001) per
share.

4.    a.    You may exercise this option to purchase all or any part of your
allotment which has accrued to you, at any time during the term of this option,
but not thereafter, by depositing with the Secretary or Assistant Secretary of
the Company notice in writing, designating the number of shares as to which you
are exercising your option, accompanied by payment in full for such number of
shares; provided, however, that not less than 100 shares may be purchased upon
any one exercise of the option granted hereby unless the number of shares
purchased at such time is the total number of shares in respect of which the
option hereby granted is then exercisable.

      b.    Payment shall be in the form of cash, certified check, bank draft or
postal or express money order payable to the order of the Company in United
States Dollars. If the Board of Directors of the Company or an authorized
committee of the Board has, pursuant to
<PAGE>

subparagraph 6.2 of the Plan, authorized payment in stock of the Company,
payment, in whole or in part, may be in the form of a certificate or
certificates representing stock of the Company at its then value.

      c.    Following receipt of such notice and required payment and compliance
by the Optionee or other person entitled to exercise the option with any
limitations and conditions imposed by this grant, the Company shall thereafter
cause its transfer agent and registrar to issue and deliver to the Optionee (or
other person entitled to exercise the option) as soon as practically possible a
certificate or certificates for such number of shares registered in the name of
the Optionee or such other person entitled to exercise the option, as the case
may be.

      d.    In addition, this option shall be considered to be fully accrued and
shall be exercisable in said manner during the 10 day period following the
occurrence of any of the events described in subparagraph 10.3 of the Plan.

5.    This option is subject to (a) all the provisions of the Plan, a copy of
which is attached hereto and is specifically incorporated by reference herein,
and (b) to all interpretations, rules and regulations which may from time to
time be promulgated and adopted pursuant to such Plan.

6.    The Company is under no obligation to register the shares of Common Stock
purchased upon exercise of this option under the Securities Act of 1933.

7.    Any dispute or disagreement which shall arise under, or as a result of, or
pursuant to, this Agreement shall be determined by the Board of Directors of the
Company in its absolute and uncontrolled discretion, and any such determination
or any other determination by the Board of Directors under or pursuant to this
Agreement and any interpretation by the Board of Directors of the terms of this
Agreement, shall be final, binding and conclusive on all persons affected
thereby.

8.    Any notice which either party hereto may be required or permitted to give
to the other shall be in writing and may be delivered personally or by mail,
postage prepaid, addressed as follows: to the President of the Company, at
Bridgeline Software, Inc. at 130 New Boston Street, Woburn, Massachusetts 01801,
or at such other address as the Company by notice to the Optionee may designate
in writing from time to time; to the Optionee, at his address as the Optionee,
by notice to the President of the Company, may designate in writing from time to
time.

9.    The Company shall endorse an appropriate legend on certificates of Common
Stock issued to the Optionee pursuant to the Plan to evidence the
representations of the Optionee under paragraph 8 of the Plan.

                                       2
<PAGE>





      Dated as of the 30th day of September, 2002.

                                       BRIDGELINE SOFTWARE, INC.



                                       By: /S/ THOMAS L. MASSIE
                                           ----------------------------
                                           President
                                           Duly authorized on behalf of the
                                           Board of Directors


      The undersigned accepts the foregoing option and agrees to all the terms
and conditions thereof, acknowledging hereby receipt of a copy of the Stock
Option Plan.

      Dated as of the 30th day of September, 2002.



                                        /S/ ROBERT SEEGER
                                       ------------------------------------
                                       Robert Seeger, Optionee










                                       3
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10.43
<SEQUENCE>57
<FILENAME>ex10-43_14663.txt
<DESCRIPTION>75,000 SHARE SEEGER STOCK OPTION GRANT
<TEXT>
                                                                   EXHIBIT 10.43
                                                                   -------------


                            BRIDGELINE SOFTWARE, INC.

                               STOCK OPTION GRANT


OPTIONEE:  Robert Seeger


      Bridgeline Software, Inc. (hereinafter called the "Company"), pursuant to
its Stock Option Plan adopted August 30, 2000 (hereinafter called the "Plan"),
hereby grants to you, the optionee above named (hereinafter called the
"Optionee"), an option to purchase shares of the $.001 par value common stock of
the Company (hereinafter called the "Common Stock"). The options granted will be
Incentive Options as defined in the Plan.

      The details of your option are as follows:

1.    The total number of shares of Common Stock subject to this option is
75,000. This option shall become exercisable in three installments, as follows:

      Installment       Number of Shares        First Date Exercise is Permitted
      -----------       ----------------        --------------------------------

           1                 25,000                       June 1, 2004
           2                 25,000                       June 1, 2005
           3                 25,000                       June 1, 2006

                  TOTAL      75,000

2.    The term of this option commences on the date hereof and terminates 10
years hereafter on June 1, 2013. This option is not transferable, except at
death by will or the laws of descent and distribution, and is exercisable during
your life only by you. No assignment or transfer of the option, or of the rights
represented thereby, whether voluntary or involuntary, by operation of law or
otherwise, except by will or the laws of descent and distribution, shall vest in
the assignee or transferee any interest or right herein whatsoever, but
immediately upon any attempt to assign or transfer an option the same shall
terminate and be of no force or effect.

3.    The exercise price of this option is one dollar ($1.00) per share.

4.    a.    You may exercise this option to purchase all or any part of your
allotment which has accrued to you, at any time during the term of this option,
but not thereafter, by depositing with the Secretary or Assistant Secretary of
the Company notice in writing, designating the number of shares as to which you
are exercising your option, accompanied by payment in full for such number of
shares; provided, however, that not less than 100 shares may be purchased upon
<PAGE>

any one exercise of the option granted hereby unless the number of shares
purchased at such time is the total number of shares in respect of which the
option hereby granted is then exercisable.

      b.    Payment shall be in the form of cash, certified check, bank draft or
postal or express money order payable to the order of the Company in United
States Dollars. If the Board of Directors of the Company or an authorized
committee of the Board has, pursuant to subparagraph 6.2 of the Plan, authorized
payment in stock of the Company, payment, in whole or in part, may be in the
form of a certificate or certificates representing stock of the Company at its
then value.

      c.    Following receipt of such notice and required payment and compliance
by the Optionee or other person entitled to exercise the option with any
limitations and conditions imposed by this grant, the Company shall thereafter
cause its transfer agent and registrar to issue and deliver to the Optionee (or
other person entitled to exercise the option) as soon as practically possible a
certificate or certificates for such number of shares registered in the name of
the Optionee or such other person entitled to exercise the option, as the case
may be.

      d.    In addition, this option shall be considered to be fully accrued and
shall be exercisable in said manner during the 10 day period following the
occurrence of any of the events described in subparagraph 10.3 of the Plan.

5.    This option is subject to (a) all the provisions of the Plan, a copy of
which is attached hereto and is specifically incorporated by reference herein,
and (b) to all interpretations, rules and regulations which may from time to
time be promulgated and adopted pursuant to such Plan.

6.    The Company is under no obligation to register the shares of Common Stock
purchased upon exercise of this option under the Securities Act of 1933.

7.    Any dispute or disagreement which shall arise under, or as a result of, or
pursuant to, this Agreement shall be determined by the Board of Directors of the
Company in its absolute and uncontrolled discretion, and any such determination
or any other determination by the Board of Directors under or pursuant to this
Agreement and any interpretation by the Board of Directors of the terms of this
Agreement, shall be final, binding and conclusive on all persons affected
thereby.

8.    Any notice which either party hereto may be required or permitted to give
to the other shall be in writing and may be delivered personally or by mail,
postage prepaid, addressed as follows: to the President of the Company, at
Bridgeline Software, Inc. at 130 New Boston Street, Woburn, Massachusetts 01801,
or at such other address as the Company by notice to the Optionee may designate
in writing from time to time; to the Optionee, at his address as the Optionee,
by notice to the President of the Company, may designate in writing from time to
time.

9.    The Company shall endorse an appropriate legend on certificates of Common
Stock issued to the Optionee pursuant to the Plan to evidence the
representations of the Optionee under paragraph 8 of the Plan.


                                       2
<PAGE>





      Dated as of the 1st day of June, 2003.

                                       BRIDGELINE SOFTWARE, INC.



                                       By: /S/ THOMAS L. MASSIE
                                           ---------------------------
                                           President
                                           Duly authorized on behalf of the
                                           Board of Directors


      The undersigned accepts the foregoing option and agrees to all the terms
and conditions thereof, acknowledging hereby receipt of a copy of the Stock
Option Plan.

      Dated as of the 1st day of June, 2003.



                                       /S/ ROBERT SEEGER
                                       ------------------------------------
                                       Robert Seeger, Optionee






                                       3
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10.44
<SEQUENCE>58
<FILENAME>ex10-44_14663.txt
<DESCRIPTION>150,000 SHARE SEEGER STOCK OPTION GRANT
<TEXT>
                                                                   EXHIBIT 10.44
                                                                   -------------

                            BRIDGELINE SOFTWARE, INC.

                               STOCK OPTION GRANT


OPTIONEE:  Robert Seeger


         Bridgeline Software, Inc. (hereinafter called the "Company"), pursuant
to its Stock Option Plan adopted August 30, 2000 (hereinafter called the
"Plan"), hereby grants to you, the optionee above named (hereinafter called the
"Optionee"), an option to purchase shares of the $.001 par value common stock of
the Company (hereinafter called the "Common Stock"). The options granted will be
Incentive Options as defined in the Plan.

         The details of your option are as follows:

1. The total number of shares of Common Stock subject to this option is 150,000.
This option shall become exercisable as follows:

         Installment      Number of Shares      First Date Exercise is Permitted
         -----------      ----------------      --------------------------------

              1                 50,000                    June 1, 2006
              2                 50,000                    June 1, 2007
              3                 50,000                    June 1, 2008

              TOTAL            150,000

2. The term of this option commences on the date hereof and terminates 10 years
hereafter on June 1, 2015. This option is not transferable, except at death by
will or the laws of descent and distribution, and is exercisable during your
life only by you. No assignment or transfer of the option, or of the rights
represented thereby, whether voluntary or involuntary, by operation of law or
otherwise, except by will or the laws of descent and distribution, shall vest in
the assignee or transferee any interest or right herein whatsoever, but
immediately upon any attempt to assign or transfer an option the same shall
terminate and be of no force or effect.

3. The exercise price of this option is one dollar, twenty-five cents ($1.25)
per share.

4. a. You may exercise this option to purchase all or any part of your allotment
which has accrued to you, at any time during the term of this option, but not
thereafter, by depositing with the Secretary or Assistant Secretary of the
Company notice in writing, designating the number of shares as to which you are
exercising your option, accompanied by payment in full for such number of
shares; provided, however, that not less than 100 shares may be purchased upon
any one exercise of the option granted hereby unless the number of shares
purchased at such time is the total number of shares in respect of which the
option hereby granted is then exercisable.

<PAGE>

         b. Payment shall be in the form of cash, certified check, bank draft or
postal or express money order payable to the order of the Company in United
States Dollars. If the Board of Directors of the Company or an authorized
committee of the Board has, pursuant to subparagraph 6.2 of the Plan, authorized
payment in stock of the Company, payment, in whole or in part, may be in the
form of a certificate or certificates representing stock of the Company at its
then value.

         c. Following receipt of such notice and required payment and compliance
by the Optionee or other person entitled to exercise the option with any
limitations and conditions imposed by this grant, the Company shall thereafter
cause its transfer agent and registrar to issue and deliver to the Optionee (or
other person entitled to exercise the option) as soon as practically possible a
certificate or certificates for such number of shares registered in the name of
the Optionee or such other person entitled to exercise the option, as the case
may be.

         d. In addition, this option shall be considered to be fully accrued and
shall be exercisable in said manner during the 10 day period following the
occurrence of any of the events described in subparagraph 10.3 of the Plan.

5. This option is subject to (a) all the provisions of the Plan, a copy of which
is attached hereto and is specifically incorporated by reference herein, and (b)
to all interpretations, rules and regulations which may from time to time be
promulgated and adopted pursuant to such Plan.

6. The Company is under no obligation to register the shares of Common Stock
purchased upon exercise of this option under the Securities Act of 1933.

7. Any dispute or disagreement which shall arise under, or as a result of, or
pursuant to, this Agreement shall be determined by the Board of Directors of the
Company in its absolute and uncontrolled discretion, and any such determination
or any other determination by the Board of Directors under or pursuant to this
Agreement and any interpretation by the Board of Directors of the terms of this
Agreement, shall be final, binding and conclusive on all persons affected
thereby.

8. Any notice which either party hereto may be required or permitted to give to
the other shall be in writing and may be delivered personally or by mail,
postage prepaid, addressed as follows: to the President of the Company, at
Bridgeline Software, Inc. at 130 New Boston Street, Woburn, Massachusetts 01801,
or at such other address as the Company by notice to the Optionee may designate
in writing from time to time; to the Optionee, at his address as the Optionee,
by notice to the President of the Company, may designate in writing from time to
time.

9. The Company shall endorse an appropriate legend on certificates of Common
Stock issued to the Optionee pursuant to the Plan to evidence the
representations of the Optionee under paragraph 8 of the Plan.

                                        2
<PAGE>

         Dated as of the 1st day of June, 2005.


                                         BRIDGELINE SOFTWARE, INC.


                                         By: /S/ THOMAS MASSIE
                                             --------------------------------
                                             President
                                             Duly authorized on behalf of the
                                             Board of Directors


         The undersigned accepts the foregoing option and agrees to all the
terms and conditions thereof, acknowledging hereby receipt of a copy of the
Stock Option Plan.

         Dated as of the 1st day of June, 2005.



                                         /S/ ROBERT SEEGER
                                         -----------------------------
                                         Robert Seeger, Optionee









                                        3
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10.45
<SEQUENCE>59
<FILENAME>ex10-45_14663.txt
<DESCRIPTION>200,000 SHARE CEBULA STOCK OPTION GRANT
<TEXT>
                                                                   EXHIBIT 10.45
                                                                   -------------

                            BRIDGELINE SOFTWARE, INC.

                               STOCK OPTION GRANT

OPTIONEE: Gary M. Cebula

     Bridgeline Software, Inc. (hereinafter called the "Company"), pursuant to
its Stock Option Plan adopted August 30, 2000 (hereinafter called the "Plan"),
hereby grants to you, the optionee above named (hereinafter called the
"Optionee"), an option to purchase shares of the $.001 par value common stock of
the Company (hereinafter called the "Common Stock"). The options granted will be
Nonstatutory Options as defined in the Plan.

     The details of your option are as follows:

1. The total number of shares of Common Stock subject to this option is 200,000.
This option shall become exercisable in three installments, as follows:

      Installment         Number of Shares      First Date Exercise is Permitted
      -----------         ----------------      --------------------------------

            1                66,666 2/3                   August 30, 2001
            2                66,666 2/3                   August 30, 2002
            3                66,666 2/3                   August 30, 2003

            TOTAL           200,000

2. The term of this option commences on the date hereof and terminates 10 years
hereafter on August 31, 2010. This option is not transferable, except at death
by will or the laws of descent and distribution, and is exercisable during your
life only by you. No assignment or transfer of the option, or of the rights
represented thereby, whether voluntary or involuntary, by operation of law or
otherwise, except by will or the laws of descent and distribution, shall vest in
the assignee or transferee any interest or right herein whatsoever, but
immediately upon any attempt to assign or transfer an option the same shall
terminate and be of no force or effect.

3. The exercise price of this option is one dollar ($0.001) per share.

4. a. You may exercise this option to purchase all or any part of your allotment
which has accrued to you, at any time during the term of this option, but not
thereafter, by depositing with the Secretary or Assistant Secretary of the
Company notice in writing, designating the number of shares as to which you are
exercising your option, accompanied by payment in full for such number of
shares; provided, however, that not less than 100 shares may be purchased upon
any one exercise of the option granted hereby unless the number of shares
purchased at such time is the total number of shares in respect of which the
option hereby granted is then exercisable.


<PAGE>

     b. Payment shall be in the form of cash, certified check, bank draft or
postal or express money order payable to the order of the Company in United
States Dollars. If the Board of Directors of the Company or an authorized
committee of the Board has, pursuant to subparagraph 6.2 of the Plan, authorized
payment in stock of the Company, payment, in whole or in part, may be in the
form of a certificate or certificates representing stock of the Company at its
then value.

     c. Following receipt of such notice and required payment and compliance by
the Optionee or other person entitled to exercise the option with any
limitations and conditions imposed by this grant, the Company shall thereafter
cause its transfer agent and registrar to issue and deliver to the Optionee (or
other person entitled to exercise the option) as soon as practically possible a
certificate or certificates for such number of shares registered in the name of
the Optionee or such other person entitled to exercise the option, as the case
may be.

     d. In addition, this option shall be considered to be fully accrued and
shall be exercisable in said manner during the 10 day period following the
occurrence of any of the events described in subparagraph 10.3 of the Plan.

5. This option is subject to (a) all the provisions of the Plan, a copy of which
is attached hereto and is specifically incorporated by reference herein, and (b)
to all interpretations, rules and regulations which may from time to time be
promulgated and adopted pursuant to such Plan.

6. The Company is under no obligation to register the shares of Common Stock
purchased upon exercise of this option under the Securities Act of 1933.

7. Any dispute or disagreement which shall arise under, or as a result of, or
pursuant to, this Agreement shall be determined by the Board of Directors of the
Company in its absolute and uncontrolled discretion, and any such determination
or any other determination by the Board of Directors under or pursuant to this
Agreement and any interpretation by the Board of Directors of the terms of this
Agreement, shall be final, binding and conclusive on all persons affected
thereby.

8. Any notice which either party hereto may be required or permitted to give to
the other shall be in writing and may be delivered personally or by mail,
postage prepaid, addressed as follows: to the President of the Company, at
Bridgeline Software, Inc. at 129 South Street 4th Floor, Boston, Massachusetts
02111, or at such other address as the Company by notice to the Optionee may
designate in writing from time to time; to the Optionee, at his address as the
Optionee, by notice to the President of the Company, may designate in writing
from time to time.

9. The Company shall endorse an appropriate legend on certificates of Common
Stock issued to the Optionee pursuant to the Plan to evidence the
representations of the Optionee under paragraph 8 of the Plan.

                                        2
<PAGE>

     Dated as of the 31st day of August, 2000.


                                                 BRIDGELINE SOFTWARE, INC.


                                                 By: /S/ THOMAS MASSIE
                                                     --------------------------
                                                     President

                                                     Duly  authorized  on behalf
                                                     of the Board of Directors

     The undersigned accepts the foregoing option and agrees to all the terms
and conditions thereof, acknowledging hereby receipt of a copy of the Stock
Option Plan.

     Dated as of the 31st day of August, 2000.

                                                     /S/ GARY M. CEBULA
                                                     --------------------------
                                                     Gary M. Cebula, Optionee






























                                        3
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10.46
<SEQUENCE>60
<FILENAME>ex10-46_14663.txt
<DESCRIPTION>20,000 SHARE CEBULA STOCK OPTION GRANT
<TEXT>
                                                                   EXHIBIT 10.46
                                                                   -------------

                            BRIDGELINE SOFTWARE, INC.

                               STOCK OPTION GRANT

OPTIONEE: Gary Cebula

     Bridgeline Software, Inc. (hereinafter called the "Company"), pursuant to
its Stock Option Plan adopted August 30, 2000 (hereinafter called the "Plan"),
hereby grants to you, the optionee above named (hereinafter called the
"Optionee"), an option to purchase shares of the $.001 par value common stock of
the Company (hereinafter called the "Common Stock"). The options granted will be
Incentive Options as defied in the Plan.

     The details of your option are as follows:

1. The total number of shares of Common Stock subject to this option is 20,000.
This option shall become exercisable as follows:

     Installment           Number of Shares     First Date Exercise is Permitted
     -----------           ----------------     --------------------------------

          1                      20,000                 September 30, 2002

          TOTAL                  20,000

2. The term of this option commences on the date hereof and terminates 10 years
hereafter on September 30, 2012. This option is not transferable, except at
death by will or the laws of descent and distribution, and is exercisable during
your life only by you. No assignment or transfer of the option, or of the rights
represented thereby, whether voluntary or involuntary, by operation of law or
otherwise, except by will or the laws of descent and distribution, shall vest in
the assignee or transferee any interest or right herein whatsoever, but
immediately upon any attempt to assign or transfer an option the same shall
terminate and be of no force or effect.

3. The exercise price of this option is one-tenth of a cent ($0.001) per share.

4. a. You may exercise this option to purchase all or any part of your allotment
which has accrued to you, at any time during the term of this option, but not
thereafter, by depositing with the Secretary or Assistant Secretary of the
Company notice in writing, designating the number of shares as to which you are
exercising your option, accompanied by payment in full for such number of
shares; provided, however, that not less than 100 shares may be purchased upon
any one exercise of the option granted hereby unless the number of shares
purchased at such time is the total number of shares in respect of which the
option hereby granted is then exercisable.

     b. Payment shall be in the form of cash, certified check, bank draft or
postal or express money order payable to the order of the Company in United
States Dollars. If the Board of Directors of the Company or an authorized
committee of the Board has, pursuant to

<PAGE>

subparagraph 6.2 of the Plan, authorized payment in stock of the Company,
payment, in whole or in part, may be in the form of a certificate or
certificates representing stock of the Company at its then value.

     c. Following receipt of such notice and required payment and compliance by
the Optionee or other person entitled to exercise the option with any
limitations and conditions imposed by this grant, the Company shall thereafter
cause its transfer agent and registrar to issue and deliver to the Optionee (or
other person entitled to exercise the option) as soon as practically possible a
certificate or certificates for such number of shares registered in the name of
the Optionee or such other person entitled to exercise the option, as the case
may be.

     d. In addition, this option shall be considered to be fully accrued and
shall be exercisable in said manner during the 10 day period following the
occurrence of any of the events described in subparagraph 10.3 of the Plan.

5. This option is subject to (a) all the provisions of the Plan, a copy of which
is attached hereto and is specifically incorporated by reference herein, and (b)
to all interpretations, rules and regulations which may from time to time be
promulgated and adopted pursuant to such Plan.

6. The Company is under no obligation to register the shares of Common Stock
purchased upon exercise of this option under the Securities Act of 1933.

7. Any dispute or disagreement which shall arise under, or as a result of or
pursuant to, this Agreement shall be determined by the Board of Directors of the
Company in its absolute and uncontrolled discretion, and any such determination
or any other determination by the Board of Directors under or pursuant to this
Agreement and any interpretation by the Board of Directors of the terms of this
Agreement, shall be final, binding and conclusive on all persons affected
thereby.

8. Any notice which either party hereto may be required or permitted to give to
the other shall be in writing and may be delivered personally or by mail,
postage prepaid, addressed as follows: to the President of the Company, at
Bridgeline Software, Inc. at 130 New Boston Street, Woburn, Massachusetts 01801,
or at such other address as the Company by notice to the Optionee may designate
in writing from time to time; to the Optionee, at his address as the Optionee,
by notice to the President of the Company, may designate in writing from time to
time.

9. The Company shall endorse an appropriate legend on certificates of Common
Stock issued to the Optionee pursuant to the Plan to evidence the
representations of the Optionee under paragraph 8 of the Plan.

                                        2
<PAGE>

     Dated as of the 30th day of September, 2002.



                                          BRIDGELINE SOFTWARE, INC.


                                          By: /S/ THOMAS MASSIE
                                              -----------------------
                                              President
                                              Duly authorized on behalf of the
                                              Board of Directors

     The undersigned accepts the foregoing option and agrees to all the terms
and conditions thereof, acknowledging hereby receipt of a copy of the Stock
Option Plan.

     Dated as of the 30th day of September, 2002.

                                          /S/ GARY M. CEBULA
                                          ---------------------------
                                          Gary M. Cebula, Optionee













                                        3
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10.47
<SEQUENCE>61
<FILENAME>ex10-47_14663.txt
<DESCRIPTION>75,000 SHARE CEBULA STOCK OPTION GRANT
<TEXT>
                                                                   EXHIBIT 10.47
                                                                   -------------

                            BRIDGELINE SOFTWARE, INC.

                               STOCK OPTION GRANT

OPTIONEE: Gary Cebula

     Bridgeline Software, Inc. (hereinafter called the "Company"), pursuant to
its Stock Option Plan adopted August 30, 2000 (hereinafter called the "Plan"),
hereby grants to you, the optionee above named (hereinafter called the
"Optionee"), an option to purchase shares of the $.001 par value common stock of
the Company (hereinafter called the "Common Stock"). The options granted will be
Incentive Options as defined in the Plan.

     The details of your option are as follows:

1. The total number of shares of Common Stock subject to this option is 75,000.
This option shall become exercisable in three installments, as follows:

     Installment          Number of Shares     First Date Exercise is Permitted
     -----------          ----------------     --------------------------------

          1                     25,000                    June 1, 2004
          2                     25,000                    June 1, 2005
          3                     25,000                    June 1, 2006

          TOTAL                 75,000

2. The term of this option commences on the date hereof and terminates 10 years
hereafter on June 1, 2013. This option is not transferable, except at death by
will or the laws of descent and distribution, and is exercisable during your
life only by you. No assignment or transfer of the option, or of the rights
represented thereby, whether voluntary or involuntary, by operation of law or
otherwise, except by will or the laws of descent and distribution, shall vest in
the assignee or transferee any interest or right herein whatsoever, but
immediately upon any attempt to assign or transfer an option the same shall
terminate and be of no force or effect.

3. The exercise price of this option is one dollar ($1.00) per share.

4. a. You may exercise this option to purchase all or any part of your allotment
which has accrued to you, at any time during the term of this option, but not
thereafter, by depositing with the Secretary or Assistant Secretary of the
Company notice in writing, designating the number of shares as to which you are
exercising your option, accompanied by payment in full for such number of
shares; provided, however, that not less than 100 shares may be purchased upon
any one exercise of the option granted hereby unless the number of shares
purchased at such time is the total number of shares in respect of which the
option hereby granted is then exercisable.

<PAGE>

     b. Payment shall be in the form of cash, certified check, bank draft or
postal or express money order payable to the order of the Company in United
States Dollars. If the Board of Directors of the Company or an authorized
committee of the Board has, pursuant to subparagraph 6.2 of the Plan, authorized
payment in stock of the Company, payment, in whole or in part, may be in the
form of a certificate or certificates representing stock of the Company at its
then value.

     c. Following receipt of such notice and required payment and compliance by
the Optionee or other person entitled to exercise the option with any
limitations and conditions imposed by this grant, the Company shall thereafter
cause its transfer agent and registrar to issue and deliver to the Optionee (or
other person entitled to exercise the option) as soon as practically possible a
certificate or certificates for such number of shares registered in the name of
the Optionee or such other person entitled to exercise the option, as the case
may be.

     d. In addition, this option shall be considered to be fully accrued and
shall be exercisable in said manner during the 10 day period following the
occurrence of any of the events described in subparagraph 10.3 of the Plan.

5. This option is subject to (a) all the provisions of the Plan, a copy of which
is attached hereto and is specifically incorporated by reference herein, and (b)
to all interpretations, rules and regulations which may from time to time be
promulgated and adopted pursuant to such Plan.

6. The Company is under no obligation to register the shares of Common Stock
purchased upon exercise of this option under the Securities Act of 1933.

7. Any dispute or disagreement which shall arise under, or as a result of, or
pursuant to, this Agreement shall be determined by the Board of Directors of the
Company in its absolute and uncontrolled discretion, and any such determination
or any other determination by the Board of Directors under or pursuant to this
Agreement and any interpretation by the Board of Directors of the terms of this
Agreement, shall be final, binding and conclusive on all persons affected
thereby.

8. Any notice which either party hereto may be required or permitted to give to
the other shall be in writing and may be delivered personally or by mail,
postage prepaid, addressed as follows: to the President of the Company, at
Bridgeline Software, Inc. at 130 New Boston Street, Woburn, Massachusetts 01801,
or at such other address as the Company by notice to the Optionee may designate
in writing from time to time; to the Optionee, at his address as the Optionee,
by notice to the President of the Company, may designate in writing from time to
time.

9. The Company shall endorse an appropriate legend on certificates of Common
Stock issued to the Optionee pursuant to the Plan to evidence the
representations of the Optionee under paragraph 8 of the Plan.

                                        2
<PAGE>

     Dated as of the 1st day of June, 2003.


                                          BRIDGELINE SOFTWARE, INC.


                                          By: /S/ THOMAS MASSIE
                                              -------------------------------
                                              President
                                              Duly authorized on behalf of the
                                              Board of Directors

     The undersigned accepts the foregoing option and agrees to all the terms
and conditions thereof, acknowledging hereby receipt of a copy of the Stock
Option Plan.

     Dated as of the 1st day of June, 2003.

                                          By: /S/ GARY M. CEBULA
                                              -------------------------------
                                              Gary M. Cebula, Optionee













                                        3
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10.48
<SEQUENCE>62
<FILENAME>ex10-48_14663.txt
<DESCRIPTION>300,000 SHARE CEBULA STOCK OPTION GRANT
<TEXT>
                                                                   EXHIBIT 10.48
                                                                   -------------

                            BRIDGELINE SOFTWARE, INC.

                               STOCK OPTION GRANT

OPTIONEE: Gary Cebula

     Bridgeline Software, Inc. (hereinafter called the "Company"), pursuant to
its Stock Option Plan adopted August 30, 2000 (hereinafter called the "Plan"),
hereby grants to you, the optionee above named (hereinafer called the
"Optionee"), an option to purchase shares of the $.001 par value common stock of
the Company (hereinafter called the "Common Stock"). The options granted will be
Incentive Options as defined in the Plan.

     The details of your option are as follows:

1. The total number of shares of Common Stock subject to this option is 300,000.
This option shall become exercisable in three installments, as follows:

     Installment         Number of Shares      First Date Exercise is Permitted
     -----------         ----------------      --------------------------------

           1                  100,000                     June 1, 2006
           2                  100,000                     June 1, 2007
           3                  100,000                     June 1, 2008

           TOTAL              300,000

2. The term of this option commences on the date hereof and terminates 10 years
hereafter on June 1, 2015. This option is not transferable, except at death by
will or the laws of descent and distribution, and is exercisable during your
life only by you. No assignment or transfer of the option, or of the rights
represented thereby, whether voluntary or involuntary, by operation of law or
otherwise, except by will or the laws of descent and distribution, shall vest in
the assignee or transferee any interest or right herein whatsoever, but
immediately upon any attempt to assign or transfer an option the same shall
terminate and be of no force or effect.

3. The exercise price of this option is one dollar and 25/100 ($1.25) per share.

4. a. You may exercise this option to purchase all or any part of your allotment
which has accrued to you, at any time during the term of this option, but not
thereafter, by depositing with the Secretary or Assistant Secretary of the
Company notice in writing, designating the number of shares as to which you are
exercising your option, accompanied by payment in full for such number of
shares; provided, however, that not less than 100 shares may be purchased upon
any one exercise of the option granted hereby unless the number of shares
purchased at such time is the total number of shares in respect of which the
option hereby granted is then exercisable.

<PAGE>

     b. Payment shall be in the form of cash, certified check, bank draft or
postal or express money order payable to the order of the Company in United
States Dollars. If the Board of Directors of the Company or an authorized
committee of the Board has, pursuant to subparagraph 6.2 of the Plan, authorized
payment in stock of the Company, payment, in whole or in part, may be in the
form of a certificate or certificates representing stock of the Company at its
then value.

     c. Following receipt of such notice and required payment and compliance by
the Optionee or other person entitled to exercise the option with any
limitations and conditions imposed by this grant, the Company shall thereafter
cause its transfer agent and registrar to issue and deliver to the Optionee (or
other person entitled to exercise the option) as soon as practically possible a
certificate or certificates for such number of shares registered in the name of
the Optionee or such other person entitled to exercise the option, as the case
may be.

     d. In addition, this option shall be considered to be fully accrued and
shall be exercisable in said manner during the 10 day period following the
occurrence of any of the events described in subparagraph 10.3 of the Plan.

5. This option is subject to (a) all the provisions of the Plan, a copy of which
is attached hereto and is specifically incorporated by reference herein, and (b)
to all interpretations, rules and regulations which may from time to time be
promulgated and adopted pursuant to such Plan.

6. The Company is under no obligation to register the shares of Common Stock
purchased upon exercise of this option under the Securities Act of 1933.

7. Any dispute or disagreement which shall arise under, or as a result of or
pursuant to, this Agreement shall be determined by the Board of Directors of the
Company in its absolute and uncontrolled discretion, and any such determination
or any other determination by the Board of Directors under or pursuant to this
Agreement and any interpretation by the Board of Directors of the terms of this
Agreement, shall be final, binding and conclusive on all persons affected
thereby.

8. Any notice which either party hereto may be required or permitted to give to
the other shall be in writing and may be delivered personally or by mail,
postage prepaid, addressed as follows: to the President of the Company, at
Bridgeline Software, Inc. at 130 New Boston Street, Woburn, Massachusetts 01801,
or at such other address as the Company by notice to the Optionee may designate
in writing from time to time; to the Optionee, at his address as the Optionee,
by notice to the President of the Company, may designate in writing from time to
time.

9. The Company shall endorse an appropriate legend on certificates of Common
Stock issued to the Optionee pursuant to the Plan to evidence the
representations of the Optionee under paragraph 8 of the Plan.

                                        2
<PAGE>

     Dated as of the 1st day of June, 2005.


                                          BRIDGELINE SOFTWARE, INC.

                                          By: /S/ THOMAS MASSIE
                                              ---------------------------
                                              President
                                              Duly authorized on behalf of the
                                              Board of Directors

     The undersigned accepts the foregoing option and agrees to all the terms
and conditions thereof, acknowledging hereby receipt of a copy of the Stock
Option Plan.

     Dated as of the 1st day of June, 2005.


                                          /S/ GARY M. CEBULA
                                          ----------------------------
                                          Gary M. Cebula, Optionee











                                        3
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10.49
<SEQUENCE>63
<FILENAME>ex10-49_14663.txt
<DESCRIPTION>50,000 SHARE COLDRICK STOCK OPTION GRANT
<TEXT>
                                                                   EXHIBIT 10.49
                                                                   -------------

                            BRIDGELINE SOFTWARE, INC.

                               STOCK OPTION GRANT

OPTIONEE: William Coldrick

     Bridgeline Software, Inc. (hereinafter called the "Company"), pursuant to
its Stock Option Plan adopted August 30, 2000 (hereinafter called the "Plan"),
hereby grants to you, the optionee above named (hereinafter called the
"Optionee"), an option to purchase shares of the $.001 par value common stock of
the Company (hereinafter called the "Common Stock"). The options granted will be
Incentive Options as defined in the Plan.

     The details of your option are as follows:

1. The total number of shares of Common Stock subject to this option is 50,000.
This option shall become exercisable in three installments, as follows:

     Installment          Number of Shares      First Date Exercise is Permitted
     -----------          ----------------      --------------------------------

          1                    16,666                      June 1, 2006
          2                    16,667                      June 1, 2007
          3                    16,667                      June 1, 2008

          TOTAL                50,000

2. The term of this option commences on the date hereof and terminates 10 years
hereafter on June 1, 2015. This option is not transferable, except at death by
will or the laws of descent and distribution, and is exercisable during your
life only by you. No assignment or transfer of the option, or of the rights
represented thereby, whether voluntary or involuntary, by operation of law or
otherwise, except by will or the laws of descent and distribution, shall vest in
the assignee or transferee any interest or right herein whatsoever, but
immediately upon any attempt to assign or transfer an option the same shall
terminate and be of no force or effect.

3. The exercise price of this option is one dollar ($1.25) per share.

4. a. You may exercise this option to purchase all or any part of your allotment
which has accrued to you, at any time during the term of this option, but not
thereafter, by depositing with the Secretary or Assistant Secretary of the
Company notice in writing, designating the number of shares as to which you are
exercising your option, accompanied by payment in full for such number of
shares; provided, however, that not less than 100 shares may be purchased upon
any one exercise of the option granted hereby unless the number of shares
purchased at such time is the total number of shares in respect of which the
option hereby granted is then exercisable.

<PAGE>

     b. Payment shall be in the form of cash, certified check, bank draft or
postal or express money order payable to the order of the Company in United
States Dollars. If the Board of Directors of the Company or an authorized
committee of the Board has, pursuant to subparagraph 6.2 of the Plan, authorized
payment in stock of the Company, payment, in whole or in part, may be in the
form of a certificate or certificates representing stock of the Company at its
then value.

     c. Following receipt of such notice and required payment and compliance by
the Optionee or other person entitled to exercise the option with any
limitations and conditions imposed by this grant, the Company shall thereafter
cause its transfer agent and registrar to issue and deliver to the Optionee (or
other person entitled to exercise the option) as soon as practically possible a
certificate or certificates for such number of shares registered in the name of
the Optionee or such other person entitled to exercise the option, as the case
may be.

     d. In addition, this option shall be considered to be fully accrued and
shall be exercisable in said manner during the 10 day period following the
occurrence of any of the events described in subparagraph 10.3 of the Plan.

5. This option is subject to (a) all the provisions of the Plan, a copy of which
is attached hereto and is specifically incorporated by reference herein, and (b)
to all interpretations, rules and regulations which may from time to time be
promulgated and adopted pursuant to such Plan.

6. The Company is under no obligation to register the shares of Common Stock
purchased upon exercise of this option under the Securities Act of 1933.

7. Any dispute or disagreement which shall arise under, or as a result of or
pursuant to, this Agreement shall be determined by the Board of Directors of the
Company in its absolute and uncontrolled discretion, and any such determination
or any other determination by the Board of Directors under or pursuant to this
Agreement and any interpretation by the Board of Directors of the terms of this
Agreement, shall be final, binding and conclusive on all persons affected
thereby.

8. Any notice which either party hereto may be required or permitted to give to
the other shall be in writing and may be delivered personally or by mail,
postage prepaid, addressed as follows: to the President of the Company, at
Bridgeline Software, Inc. at 130 New Boston Street, Woburn, Massachusetts 01801,
or at such other address as the Company by notice to the Optionee may designate
in writing from time to time; to the Optionee, at his address as the Optionee,
by notice to the President of the Company, may designate in writing from time to
time.

9. The Company shall endorse an appropriate legend on certificates of Common
Stock issued to the Optionee pursuant to the Plan to evidence the
representations of the Optionee under paragraph 8 of the Plan.

                                        2
<PAGE>

     Dated as of the 1st day of June, 2005.


                                          BRIDGELINE SOFTWARE, INC.


                                          By: /S/ THOMAS MASSIE
                                              -----------------------------
                                              President
                                              Duly authorized on behalf of the
                                              Board of Directors

     The undersigned accepts the foregoing option and agrees to all the terms
and conditions thereof, acknowledging hereby receipt of a copy of the Stock
Option Plan.

     Dated as of the 1st day of June, 2005.

                                          /S/ WILLIAM COLDRICK
                                          ----------------------------
                                          William Coldrick, Optionee




                                        3
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10.50
<SEQUENCE>64
<FILENAME>ex10-50_14663.txt
<DESCRIPTION>100,000 SHARE MASSIE STOCK OPTION GRANT
<TEXT>
                                                                   EXHIBIT 10.50
                                                                   -------------

                            BRIDGELINE SOFTWARE, INC.

                               STOCK OPTION GRANT

OPTIONEE: Thomas Massie

     Bridgeline Software, Inc. (hereinafter called the "Company"), pursuant to
its Stock Option Plan adopted August 30, 2000 (hereinafter called the "Plan"),
hereby grants to you, the optionee above named (hereinafter called the
"Optionee"), an option to purchase shares of the $.001 par value common stock of
the Company (hereinafter called the "Common Stock"). The options granted will be
Incentive Options as defined in the Plan.

     The details of your option are as follows:

1. The total number of shares of Common Stock subject to this option is 100,000.
This option shall become exercisable in three installments, as follows:

     Installment         Number of Shares     First Date Exercise is Permitted
     -----------         ----------------     --------------------------------

           1                  33,333                  September 3, 2003
           2                  33,333                  September 3, 2004
           3                  33,334                  September 3, 2005

           TOTAL             100,000

2. The term of this option commences on the date hereof and terminates 10 years
hereafter on September 3, 2012. This option is not transferable, except at death
by will or the laws of descent and distribution, and is exercisable during your
life only by you. No assignment or transfer of the option, or of the rights
represented thereby, whether voluntary or involuntary, by operation of law or
otherwise, except by will or the laws of descent and distribution, shall vest in
the assignee or transferee any interest or right herein whatsoever, but
immediately upon any attempt to assign or transfer an option the same shall
terminate and be of no force or effect.

3. The exercise price of this option is one dollar ($1.00) per share.

4. a. You may exercise this option to purchase all or any part of your allotment
which has accrued to you, at any time during the term of this option, but not
thereafter, by depositing with the Secretary or Assistant Secretary of the
Company notice in writing, designating the number of shares as to which you are
exercising your option, accompanied by payment in full for such number of
shares; provided, however, that not less than 100 shares may be purchased upon
any one exercise of the option granted hereby unless the number of shares
purchased at such time is the total number of shares in respect of which the
option hereby granted is then exercisable.

<PAGE>

     b. Payment shall be in the form of cash, certified check, bank draft or
postal or express money order payable to the order of the Company in United
States Dollars. If the Board of Directors of the Company or an authorized
committee of the Board has, pursuant to subparagraph 6.2 of the Plan, authorized
payment in stock of the Company, payment, in whole or in part, may be in the
form of a certificate or certificates representing stock of the Company at its
then value.

     c. Following receipt of such notice and required payment and compliance by
the Optionee or other person entitled to exercise the option with any
limitations and conditions imposed by this grant, the Company shall thereafter
cause its transfer agent and registrar to issue and deliver to the Optionee (or
other person entitled to exercise the option) as soon as practically possible a
certificate or certificates for such number of shares registered in the name of
the Optionee or such other person entitled to exercise the option, as the case
may be.

     d. In addition, this option shall be considered to be fully accrued and
shall be exercisable in said manner during the 10 day period following the
occurrence of any of the events described in subparagraph 10.3 of the Plan.

5. This option is subject to (a) all the provisions of the Plan, a copy of which
is attached hereto and is specifically incorporated by reference herein, and (b)
to all interpretations, rules and regulations which may from time to time be
promulgated and adopted pursuant to such Plan.

6. The Company is under no obligation to register the shares of Common Stock
purchased upon exercise of this option under the Securities Act of 1933.

7. Any dispute or disagreement which shall arise under, or as a result of or
pursuant to, this Agreement shall be determined by the Board of Directors of the
Company in its absolute and uncontrolled discretion, and any such determination
or any other determination by the Board of Directors under or pursuant to this
Agreement and any interpretation by the Board of Directors of the terms of this
Agreement, shall be final, binding and conclusive on all persons affected
thereby.

8. Any notice which either party hereto may be required or permitted to give to
the other shall be in writing and may be delivered personally or by mail,
postage prepaid, addressed as follows: to the President of the Company, at
Bridgeline Software, Inc. at 130 New Boston Street, Woburn, Massachusetts 01801,
or at such other address as the Company by notice to the Optionee may designate
in writing from time to time; to the Optionee, at his address as the Optionee,
by notice to the President of the Company, may designate in writing from time to
time.

9. The Company shall endorse an appropriate legend on certificates of Common
Stock issued to the Optionee pursuant to the Plan to evidence the
representations of the Optionee under paragraph 8 of the Plan.

                                        2
<PAGE>

     Dated as of the 3rd day of September, 2002.


                                          BRIDGELINE SOFTWARE, INC.


                                          By: /S/ GARY M. CEBULA
                                              -------------------------------
                                              Treasurer
                                              Duly authorized on behalf of the
                                              Board of Directors

     The undersigned accepts the foregoing option and agrees to all the terms
and conditions thereof, acknowledging hereby receipt of a copy of the Stock
Option Plan.

     Dated as of the 3rd day of September, 2002.


                                          /S/ THOMAS MASSIE
                                          ----------------------------
                                          Thomas Massie, Optionee


















                                        3
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10.51
<SEQUENCE>65
<FILENAME>ex10-51_14663.txt
<DESCRIPTION>20,000 SHARE MASSIE STOCK OPTION GRANT
<TEXT>
                                                                   EXHIBIT 10.51
                                                                   -------------

                            BRIDGELINE SOFTWARE, INC.

                               STOCK OPTION GRANT


OPTIONEE: Thomas Massie

     Bridgeline Software, Inc. (hereinafter called the "Company"), pursuant to
its Stock Option Plan adopted August 30, 2000 (hereinafter called the "Plan"),
hereby grants to you, the optionee above named (hereinafter called the
"Optionee"), an option to purchase shares of the $.001 par value common stock of
the Company (hereinafter called the "Common Stock"). The options granted will be
Incentive Options as defined in the Plan.

     The details of your option are as follows:

1. The total number of shares of Common Stock subject to this option is 20,000.
This option shall become exercisable as follows:

     Installment          Number of Shares      First Date Exercise is Permitted
     -----------          ----------------      --------------------------------

           1                   20,000                   September 30, 2002

           TOTAL               20,000

2. The term of this option commences on the date hereof and terminates 10 years
hereafter on September 30, 2012. This option is not transferable, except at
death by will or the laws of descent and distribution, and is exercisable during
your life only by you. No assignment or transfer of the option, or of the rights
represented thereby, whether voluntary or involuntary, by operation of law or
otherwise, except by will or the laws of descent and distribution, shall vest in
the assignee or transferee any interest or right herein whatsoever, but
immediately upon any attempt to assign or transfer an option the same shall
terminate and be of no force or effect.

3. The exercise price of this option is one-tenth of a cent ($0.001) per share.

4. a. You may exercise this option to purchase all or any part of your allotment
which has accrued to you, at any time during the term of this option, but not
thereafter, by depositing with the Secretary or Assistant Secretary of the
Company notice in writing, designating the number of shares as to which you are
exercising your option, accompanied by payment in full for such number of
shares; provided, however, that not less than 100 shares may be purchased upon
any one exercise of the option granted hereby unless the number of shares
purchased at such time is the total number of shares in respect of which the
option hereby granted is then exercisable.

     b. Payment shall be in the form of cash, certified check, bank draft or
postal or express money order payable to the order of the Company in United
States Dollars. If the Board of Directors of the Company or an authorized
committee of the Board has, pursuant to

<PAGE>

subparagraph 6.2 of the Plan, authorized payment in stock of the Company,
payment, in whole or in part, may be in the form of a certificate or
certificates representing stock of the Company at its then value.

     c. Following receipt of such notice and required payment and compliance by
the Optionee or other person entitled to exercise the option with any
limitations and conditions imposed by this grant, the Company shall thereafter
cause its transfer agent and registrar to issue and deliver to the Optionee (or
other person entitled to exercise the option) as soon as practically possible a
certificate or certificates for such number of shares registered in the name of
the Optionee or such other person entitled to exercise the option, as the case
may be.

     d. In addition, this option shall be considered to be fully accrued and
shall be exercisable in said manner during the 10 day period following the
occurrence of any of the events described in subparagraph 10.3 of the Plan.

5. This option is subject to (a) all the provisions of the Plan, a copy of which
is attached hereto and is specifically incorporated by reference herein, and (b)
to all interpretations, rules and regulations which may from time to time be
promulgated and adopted pursuant to such Plan.

6. The Company is under no obligation to register the shares of Common Stock
purchased upon exercise of this option under the Securities Act of 1933.

7. Any dispute or disagreement which shall arise under, or as a result of or
pursuant to, this Agreement shall be determined by the Board of Directors of the
Company in its absolute and uncontrolled discretion, and any such determination
or any other determination by the Board of Directors under or pursuant to this
Agreement and any interpretation by the Board of Directors of the terms of this
Agreement, shall be final, binding and conclusive on all persons affected
thereby.

8. Any notice which either party hereto may be required or permitted to give to
the other shall be in writing and may be delivered personally or by mail,
postage prepaid, addressed as follows: to the President of the Company, at
Bridgeline Software, Inc. at 130 New Boston Street, Woburn, Massachusetts 01801,
or at such other address as the Company by notice to the Optionee may designate
in writing from time to time; to the Optionee, at his address as the Optionee,
by notice to the President of the Company, may designate in writing from time to
time.

9. The Company shall endorse an appropriate legend on certificates of Common
Stock issued to the Optionee pursuant to the Plan to evidence the
representations of the Optionee under paragraph 8 of the Plan.

     Dated as of the 30th day of September, 2002.



                                          BRIDGELINE SOFTWARE, INC.


                                          By: /S/ GARY M. CEBULA
                                              ---------------------------
                                              Treasurer
                                              Duly authorized on behalf of the
                                              Board of Directors

     The undersigned accepts the foregoing option and agrees to all the terms
and conditions thereof, acknowledging hereby receipt of a copy of the Stock
Option Plan.

     Dated as of the 30th day of September, 2002.


                                          /S/ THOMAS MASSIE
                                          ---------------------------
                                          Thomas Massie, Optionee
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10.52
<SEQUENCE>66
<FILENAME>ex10-52_14663.txt
<DESCRIPTION>25,000 SHARE HEGARTY STOCK OPTION GRANT
<TEXT>
                                                                   EXHIBIT 10.52
                                                                   -------------


                            BRIDGELINE SOFTWARE, INC.

                               STOCK OPTION GRANT


OPTIONEE: Robert Hegarty


     Bridgeline Software, Inc. (hereinafter called the "Company"), pursuant to
its Stock Option Plan adopted August 30, 2000, as amended and restated
(hereinafter called the "Plan"), hereby grants to you, the optionee above named
(hereinafter called the "Optionee"), an option to purchase shares of the $.001
par value common stock of the Company (hereinafter called the "Common Stock").
The options granted will be Non-Statutory Stock Options as defined in the Plan.

     The details of your option are as follows:

1. The total number of shares of Common Stock subject to this option is 25,000.
This option shall become exercisable in three installments, as follows:

     Installment           Number of Shares    First Date Exercise is Permitted
     -----------           ----------------    --------------------------------

          1                      8,333                 September 20, 2007
          2                      8,333                 September 20, 2008
          3                      8,334                 September 20, 2009

          TOTAL                 25,000

2. The term of this option commences on the date hereof and terminates 10 years
hereafter on September 20, 2016. This option is not transferable, except at
death by will or the laws of descent and distribution, and is exercisable during
your life only by you. No assignment or transfer of the option, or of the rights
represented thereby, whether voluntary or involuntary, by operation of law or
otherwise, except by will or the laws of descent and distribution, shall vest in
the assignee or transferee any interest or right herein whatsoever, but
immediately upon any attempt to assign or transfer an option the same shall
terminate and be of no force or effect.

3. The exercise price of this option is $3.75 per share.

4. a. You may exercise this option to purchase all or any part of your allotment
which has accrued to you, at any time during the term of this option, but not
thereafter, by depositing with the Secretary or Assistant Secretary of the
Company notice in writing, designating the number of shares as to which you are
exercising your option, accompanied by payment in full for such number of
shares; provided, however, that not less than 100 shares may be purchased upon
any one exercise of the option granted hereby unless the number of shares
purchased at such time is the total number of shares in respect of which the
option hereby granted is then exercisable.

<PAGE>

     b. Payment shall be in the form of cash, certified check, bank draft or
postal or express money order payable to the order of the Company in United
States Dollars. If the Board of Directors of the Company or an authorized
committee of the Board has, pursuant to Section 5(d) of the Plan, authorized
payment in stock of the Company, payment, in whole or in part, may be in the
form of a certificate or certificates representing stock of the Company at its
then value.

     c. Following receipt of such notice and required payment and compliance by
the Optionee or other person entitled to exercise the option with any
limitations and conditions imposed by this grant, the Company shall thereafter
cause its transfer agent and registrar to issue and deliver to the Optionee (or
other person entitled to exercise the option) as soon as practically possible a
certificate or certificates for such number of shares registered in the name of
the Optionee or such other person entitled to exercise the option, as the case
may be.

5. This option is subject to (a) all the provisions of the Plan, a copy of which
is attached hereto and is specifically incorporated by reference herein, and (b)
to all interpretations, rules and regulations which may from time to time be
promulgated and adopted pursuant to such Plan.

6. The Company is under no obligation to register the shares of Common Stock
purchased upon exercise of this option under the Securities Act of 1933.

7. Any dispute or disagreement which shall arise under, or as a result of, or
pursuant to, this Agreement shall be determined by the Board of Directors of the
Company in its absolute and uncontrolled discretion, and any such determination
or any other determination by the Board of Directors under or pursuant to this
Agreement and any interpretation by the Board of Directors of the terms of this
Agreement, shall be final, binding and conclusive on all persons affected
thereby.

8. Any notice which either party hereto may be required or permitted to give to
the other shall be in writing and may be delivered personally or by mail,
postage prepaid, addressed as follows: to the President of the Company, at
Bridgeline Software, Inc. at 10 Sixth Road, Woburn, MA 01801, or at such other
address as the Company by notice to the Optionee may designate in writing from
time to time; to the Optionee, at his address as the Optionee, by notice to the
President of the Company, may designate in writing from time to time.

                                        2
<PAGE>

     Dated as of the 20th day of September 2006.


                                       BRIDGELINE SOFTWARE, INC.

                                       By: /S/ THOMAS MASSIE
                                           ------------------------
                                           President
                                           Duly authorized on behalf of the
                                           Board of Directors


     The undersigned accepts the foregoing option and agrees to all the terms
and conditions thereof, acknowledging hereby receipt of a copy of the Stock
Option Plan.

     Dated as of the 20th day of September 2006.



                                       /S/ ROBERT HEGARTY
                                       -----------------------------
                                       Optionee





                                        3
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10.53
<SEQUENCE>67
<FILENAME>ex10-53_14663.txt
<DESCRIPTION>25,000 SHARE GALAZNIK STOCK OPTION GRANT
<TEXT>
                                                                   EXHIBIT 10.53
                                                                   -------------


                            BRIDGELINE SOFTWARE, INC.

                               STOCK OPTION GRANT


OPTIONEE: Ken Galaznik


     Bridgeline Software, Inc. (hereinafter called the "Company"), pursuant to
its Stock Option Plan adopted August 30, 2000, as amended and restated
(hereinafter called the "Plan"), hereby grants to you, the optionee above named
(hereinafter called the "Optionee"), an option to purchase shares of the $.001
par value common stock of the Company (hereinafter called the "Common Stock").
The options granted will be Non-Statutory Stock Options as defined in the Plan.

     The details of your option are as follows:

1. The total number of shares of Common Stock subject to this option is 25,000.
This option shall become exercisable in three installments, as follows:

     Installment        Number of Shares     First Date Exercise is Permitted
     -----------        ----------------     --------------------------------

          1                  8,333                 September 20, 2007
          2                  8,333                 September 20, 2008
          3                  8,334                 September 20, 2009

          TOTAL             25,000

2. The term of this option commences on the date hereof and terminates 10 years
hereafter on September 20, 2016. This option is not transferable, except at
death by will or the laws of descent and distribution, and is exercisable during
your life only by you. No assignment or transfer of the option, or of the rights
represented thereby, whether voluntary or involuntary, by operation of law or
otherwise, except by will or the laws of descent and distribution, shall vest in
the assignee or transferee any interest or right herein whatsoever, but
immediately upon any attempt to assign or transfer an option the same shall
terminate and be of no force or effect.

3. The exercise price of this option is $3.75 per share.

4. a. You may exercise this option to purchase all or any part of your allotment
which has accrued to you, at any time during the term of this option, but not
thereafter, by depositing with the Secretary or Assistant Secretary of the
Company notice in writing, designating the number of shares as to which you are
exercising your option, accompanied by payment in full for such number of
shares; provided, however, that not less than 100 shares may be purchased upon
any one exercise of the option granted hereby unless the number of shares
purchased at such time is the total number of shares in respect of which the
option hereby granted is then exercisable.

<PAGE>

     b. Payment shall be in the form of cash, certified check, bank draft or
postal or express money order payable to the order of the Company in United
States Dollars. If the Board of Directors of the Company or an authorized
committee of the Board has, pursuant to Section 5(d) of the Plan, authorized
payment in stock of the Company, payment, in whole or in part, may be in the
form of a certificate or certificates representing stock of the Company at its
then value.

     c. Following receipt of such notice and required payment and compliance by
the Optionee or other person entitled to exercise the option with any
limitations and conditions imposed by this grant, the Company shall thereafter
cause its transfer agent and registrar to issue and deliver to the Optionee (or
other person entitled to exercise the option) as soon as practically possible a
certificate or certificates for such number of shares registered in the name of
the Optionee or such other person entitled to exercise the option, as the case
may be.

5. This option is subject to (a) all the provisions of the Plan, a copy of which
is attached hereto and is specifically incorporated by reference herein, and (b)
to all interpretations, rules and regulations which may from time to time be
promulgated and adopted pursuant to such Plan.

6. The Company is under no obligation to register the shares of Common Stock
purchased upon exercise of this option under the Securities Act of 1933.

7. Any dispute or disagreement which shall arise under, or as a result of, or
pursuant to, this Agreement shall be determined by the Board of Directors of the
Company in its absolute and uncontrolled discretion, and any such determination
or any other determination by the Board of Directors under or pursuant to this
Agreement and any interpretation by the Board of Directors of the terms of this
Agreement, shall be final, binding and conclusive on all persons affected
thereby.

8. Any notice which either party hereto may be required or permitted to give to
the other shall be in writing and may be delivered personally or by mail,
postage prepaid, addressed as follows: to the President of the Company, at
Bridgeline Software, Inc. at 10 Sixth Road, Woburn, MA 01801, or at such other
address as the Company by notice to the Optionee may designate in writing from
time to time; to the Optionee, at his address as the Optionee, by notice to the
President of the Company, may designate in writing from time to time.

                                        2
<PAGE>

     Dated as of the 20th day of September 2006.


                                       BRIDGELINE SOFTWARE, INC.


                                       By: /S/ THOMAS MASSIE
                                           ----------------------------
                                           President
                                           Duly authorized on behalf of the
                                           Board of Directors


     The undersigned accepts the foregoing option and agrees to all the terms
and conditions thereof, acknowledging hereby receipt of a copy of the Stock
Option Plan.

     Dated as of the 20th day of September 2006.



                                       /S/ KEN GALAZNIK
                                       --------------------------
                                       Optionee









                                        3
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-14.1
<SEQUENCE>68
<FILENAME>ex14-1_14663.txt
<DESCRIPTION>CODE OF ETHICS
<TEXT>
                                                                    EXHIBIT 14.1
                                                                    ------------
                                   BRIDGELINE
                                    SOFTWARE

                       CODE OF BUSINESS CONDUCT AND ETHICS

         This Code of Business Conduct and Ethics (the "Code") sets forth legal
and ethical standards of conduct for directors, officers and associates of
Bridgeline Software Inc., its subsidiaries and affiliates (collectively,
"Bridgeline" or the "Company"). This Code is intended to deter wrongdoing and to
promote the conduct of all Company business in accordance with high standards of
integrity and in compliance with all applicable laws and regulations. This Code
applies to the Company and all of its subsidiaries, divisions, or business units
controlled by it worldwide.

         If you have any questions regarding this Code or its application to you
in any situation, you should contact your supervisor, your geo's General
Manager, or the Company's Head of Human Resources, or the Company's Chief
Financial Officer, or the Company's President.


I.       COMPLIANCE WITH LAWS, RULES AND REGULATIONS

         The Company requires that all employees, officers and directors comply
with all laws, rules and regulations applicable to the Company wherever it does
business. You are expected to use good judgment and common sense in seeking to
comply with all applicable laws, rules and regulations and to ask for advice
when you are uncertain about them.

         If you become aware of the violation of any law, rule or regulation by
the Company, whether by its officers, employees, directors, or any third party
doing business on behalf of the Company, it is your responsibility to promptly
report the matter to your supervisor, your geo's General Manager, or the Head of
Human Resources, or the Company's Chief Financial Officer. While it is the
Company's desire to address matters internally, nothing in this Code should
discourage you from reporting any illegal activity, including any violation of
the securities laws, antitrust laws, environmental laws or any other federal,
state or foreign law, rule or regulation, to the appropriate regulatory
authority. Associates, officers and directors shall not discharge, demote,
suspend, threaten, harass or in any other manner discriminate or retaliate
against an employee because he or she reports any such violation, unless it is
determined that the report was made with knowledge that it was false. This Code
should not be construed to prohibit you from testifying, participating or
otherwise assisting in any state or federal administrative, judicial or
legislative proceeding or investigation.


II.      CONFLICTS OF INTEREST

         Associates, officers and directors must act in the best interests of
the Company. You must refrain from engaging in any activity or having a personal
interest that presents a "conflict of interest." A conflict of interest occurs
when your personal interest interferes, or appears to interfere, with the
interests of the Company. A conflict of interest can arise whenever you, as an
officer, director or associate, take action or have an interest that prevents
you from performing your Company duties and responsibilities honestly,
objectively and effectively.

For example:

     o   No associate, officer or director shall perform services as a
         consultant, employee, officer,
<PAGE>
         director, advisor or in any other capacity for, or have a financial
         interest in, a direct competitor of the Company, other than services
         performed at the request of the Company and other than a financial
         interest representing less than one percent (1%) of the outstanding
         shares of a publicly-held company; and

     o   No associate, officer or director shall use his or her position with
         the Company to influence a transaction with a supplier or customer in
         which such person has any personal interest, other than a financial
         interest representing less than one percent (1%) of the outstanding
         shares of a publicly-held company.

     o   Additional guidelines applicable to officers and directors are attached
         as Exhibit A hereto.

         It is your responsibility to disclose any transaction or relationship
that reasonably could be expected to give rise to a conflict of interest to
Human Resources or the Company's Chief Financial Officer, or, if you are an
executive officer or director, to the Audit Committee and/or Board of Directors.

         Human Resources or the Chief Financial Officer will bring all related
party transactions to the attention of the Audit Committee; the Audit Committee
is responsible for reviewing and approving any related party transactions. All
other potential conflicts of interest will be assessed by Human Resources and
the Chief Legal Officer and raised to the Board of Directors if either or both
Human Resources and the Chief Legal Officer believe that a conflict of interest
may exist.


III.     INSIDER TRADING

         Associates, officers and directors who have material non-public
information about the Company or other companies, including our suppliers and
customers, as a result of their relationship with the Company are prohibited by
law and Company policy from trading in securities of the Company or such other
companies, as well as from communicating such information to others who might
trade on the basis of that information. To help ensure that you do not engage in
prohibited insider trading and avoid even the appearance of an improper
transaction, the Company has adopted an INSIDER INFORMATION AND INSIDER TRADING
policy, available in your Employee Handbook.

         If you are uncertain about the constraints on your purchase or sale of
any Company securities or the securities of any other company that you are
familiar with by virtue of your relationship with the Company, you should
consult with the Manager of Business Practices before making any such purchase
or sale.


IV.      CONFIDENTIALITY

         Associates, officers and directors must maintain the confidentiality of
confidential information entrusted to them by the Company or other companies,
including our suppliers and customers, except when disclosure is authorized by a
supervisor or is legally mandated. Unauthorized disclosure of any confidential
information is prohibited. Additionally, associates, officers and directors
should take appropriate precautions to ensure that confidential or sensitive
business information, whether it is proprietary to the Company or another
company, is not communicated within the Company except to associates, officers
or directors who have a need to know such information to perform their
responsibilities for the Company. You may be a party to an "EMPLOYEE
INTELLECTUAL PROPERTY, CONFIDENTIAL INFORMATION AND NON-COMPETITION AGREEMENT"
under which you have agreed to additional specific rules governing the
confidentiality of Company information.
<PAGE>
         Third parties may ask you for information concerning the Company.
Associates, officers and directors (other than the Company's authorized
spokespersons) must not discuss internal Company matters with, or disseminate
internal Company information to, anyone outside the Company, except as required
in the performance of their Company duties and after an appropriate
confidentiality (non-disclosure) agreement is in place. This prohibition applies
particularly to inquiries concerning the Company from the media, market
professionals (such as securities analysts, institutional investors, investment
advisers, brokers and dealers) and security holders. All responses to inquiries
on behalf of the Company must be made only by the Company's authorized
spokespersons. If you receive any inquiries of this nature, you must decline to
comment and refer the inquirer to your supervisor or one of the Company's
authorized spokespersons.

         You also must abide by any lawful obligations that you have to your
former employer. These obligations may include restrictions on the use and
disclosure of confidential information, restrictions on the solicitation of
former colleagues to work at the Company and non-competition obligations.


V.       HONEST AND ETHICAL CONDUCT AND FAIR DEALING

         Associates, officers and directors should endeavor to deal honestly,
ethically and fairly with the Company's suppliers, customers, competitors and
other associates. Statements regarding the Company's products and services must
not be untrue, misleading, deceptive or fraudulent. You must not take unfair
advantage of anyone through manipulation, concealment, abuse of privileged
information, misrepresentation of material facts or any other unfair-dealing
practice.


VI.      PROTECTION AND PROPER USE OF CORPORATE ASSETS

         Associates, officers and directors should seek to protect the Company's
assets. Theft, carelessness and waste have a direct impact on the Company's
financial performance. Associates, officers and directors must use the Company's
assets and services solely for legitimate business purposes of the Company and
not for any personal benefit or the personal benefit of anyone else.

         Associates, officers and directors must advance the Company's
legitimate interests when the opportunity to do so arises. You must not take for
yourself personal opportunities that are discovered through your position with
the Company or the use of property or information of the Company.


VII.     GIFTS AND GRATUITIES

         The use of Company funds or assets for gifts, gratuities or other
favors to employees or government officials is prohibited, except to the extent
such gifts are in compliance with applicable law, not prohibited under contract
terms, nominal in amount and not given in consideration or expectation of any
action by the recipient.

         An associate, officer or director must not accept, or permit any member
of his or her immediate family to accept, any gifts, gratuities or other favors
from any customer, supplier or other person doing or seeking to do business with
the Company, other than items of nominal value. Any gifts that are not of
nominal value should be returned immediately and reported to your supervisor. If
immediate return is not practical, they should be given to the Company for
charitable disposition or such other disposition as the Company believes
appropriate in its sole discretion.
<PAGE>
         As an example, gifts and entertainment that are generally acceptable
include: (1) lunch and/or dinner; (2) gifts of small value such as calendars,
pens or candy; (3) tickets to events (e.g. sports and arts); (3) gifts of
holiday food items. In addition, day outings such as golf, fishing, etc. are
acceptable with prior approval from the associate's manager.

         Common sense and moderation should prevail in business entertainment
engaged in on behalf of the Company. Associates, officers and directors should
provide, or accept, business entertainment to or from anyone doing business with
the Company only if the entertainment is infrequent, modest and intended to
serve legitimate business goals.

         Bribes and kickbacks are criminal acts, strictly prohibited by law. You
must not offer, give, solicit or receive any form of bribe or kickback anywhere
in the world.


VIII.    ACCURACY OF BOOKS AND RECORDS AND PUBLIC REPORTS

         Associates, officers and directors must honestly and accurately report
all business transactions. You are responsible for the accuracy of your records
and reports. Accurate information is essential to the Company's ability to meet
legal and regulatory obligations.

         All Company books, records and accounts shall be maintained in
accordance with all applicable regulations and standards and accurately reflect
the true nature of the transactions they record. The financial statements of the
Company shall conform to generally accepted accounting rules and the Company's
accounting policies. No undisclosed or unrecorded account or fund shall be
established for any purpose. No false or misleading entries shall be made in the
Company's books or records for any reason, and no disbursement of corporate
funds or other corporate property shall be made without adequate supporting
documentation.

         It is the policy of the Company to provide full, fair, accurate, timely
and understandable disclosure in reports and documents filed with, or submitted
to, the Securities and Exchange Commission and in other public communications.


IX.      CONCERNS REGARDING ACCOUNTING OR AUDITING MATTERS

         Associates with concerns regarding questionable accounting or auditing
matters or complaints regarding accounting, internal accounting controls or
auditing matters may confidentially, and anonymously if they wish, submit such
concerns or complaints in writing to the following e-mail address:
audit@bridgelinesw.com . All such concerns and complaints will be handled in
accordance with the procedures set forth in the Company's COMPLAINT PROCEDURES
CONCERNING AUDITING AND ACCOUNTING MATTERS available in your Employee Handbook.

         The Audit Committee will evaluate the merits of any concerns or
complaints received by it in accordance with the COMPLAINTS PROCEDURES
CONCERNING AUDITING AND ACCOUNTING MATTERS and authorize such follow-up actions,
if any, as it deems necessary or appropriate to address the substance of the
concern or complaint.

         The Company will not discipline, discriminate against or retaliate
against any associate who reports a complaint or concern, unless it is
determined that the report was made with knowledge that it was false.
<PAGE>
X.       WAIVERS OF THIS CODE OF BUSINESS CONDUCT AND ETHICS

         While some of the policies contained in this Code must be strictly
adhered to and no exceptions can be allowed, in other cases exceptions may be
possible. Any associate or officer who believes that an exception to any of
these policies is appropriate in his or her case should first contact his or her
immediate supervisor. If the supervisor agrees that an exception is appropriate,
the approval of the Chief Financial Officer and, if appropriate, the Audit
Committee, must be obtained. The Chief Financial Officer shall be responsible
for maintaining a complete record of all requests for exceptions to any of these
policies and the disposition of such requests.

         Any executive officer or director who seeks an exception to any of
these policies should contact the Chair of the Audit Committee. Any waiver of
this Code for executive officers or directors or any change to this Code that
applies to executive officers or directors may be made only by the Board of
Directors of the Company and will be disclosed as required by law, NASDAQ
regulation, or AMEX regulation.

REPORTING AND COMPLIANCE PROCEDURES

         Every associate, officer and director has the responsibility to ask
questions, seek guidance, report suspected violations and express concerns
regarding compliance with this Code. Any associate, officer or director who
knows or believes that any other associate or representative of the Company has
engaged or is engaging in Company-related conduct that violates applicable law
or this Code should report such information to his or her supervisor or to the
Chief Financial Officer of the Company, as described below. You may report such
conduct openly or anonymously without fear of retaliation. The Company will not
discipline, discriminate against or retaliate against any associate, officer or
director who reports such conduct, unless it is determined that the report was
made with knowledge that it was false, or who cooperates in any investigation or
inquiry regarding such conduct. Any supervisor who receives a report of a
violation of this Code must immediately inform the Chief Financial Officer or
the Company's President.

         You may report violations of this Code, on a confidential or anonymous
basis, by contacting the Chief Financial Officer or the Company's President by
fax (781.376.5033), mail (10 Sixth Rd., Woburn, MA., 01801) or e-mail at:
ethics@bridgelinesw.com . In addition, you can contact the Chief Financial
Officer or the Company's President by telephone or voicemail. While we prefer
that you identify yourself when reporting violations so that we may follow up
with you, as necessary, for additional information, you may leave messages
anonymously if you wish.

         If the Chief Financial Officer or the Company's President receives
information regarding an alleged violation of this Code, he or she shall, as
appropriate: (a) evaluate such information; (b) if the alleged violation
involves an executive officer or a director, inform the Chief Executive Officer
and Board of Directors of the alleged violation; (c) determine whether it is
necessary to conduct an informal inquiry or a formal investigation and, if so,
initiate such inquiry or investigation; and (d) report the results of any such
inquiry or investigation, together with a recommendation as to disposition of
the matter, to the Audit Committee or Corporate Governance Committee of the
Board of Directors. Associates, officers and directors are expected to cooperate
fully with any inquiry or investigation by the Company regarding an alleged
violation of this Code. Failure to cooperate with any such inquiry or
investigation may result in disciplinary action, up to and including discharge.

         The Company shall determine whether violations of this Code have
occurred and, if so, shall determine the disciplinary measures to be taken
against any associate who has violated this Code. In
<PAGE>
the event that the alleged violation involves an executive officer or a
director, the Chief Executive Officer and the Board of Directors, respectively,
shall determine whether a violation of this Code has occurred and, if so, shall
determine the disciplinary measures to be taken against such executive officer
or director.

         Failure to comply with the standards outlined in this Code will result
in disciplinary action including, but not limited to, reprimands, warnings,
probation or suspension without pay, demotions, reductions in salary, discharge
and restitution. Certain violations of this Code may require the Company to
refer the matter to the appropriate governmental or regulatory authorities for
investigation or prosecution. Moreover, any supervisor who directs or approves
of any conduct in violation of this Code, or who has knowledge of such conduct
and does not immediately report it, also will be subject to disciplinary action,
up to and including discharge.



                                       ###
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-21.1
<SEQUENCE>69
<FILENAME>ex21-1_14663.txt
<DESCRIPTION>SUBSIDIARIES OF THE REGISTRANT
<TEXT>
                                                                    EXHIBIT 21.1
                                                                    ------------

                            BRIDGELINE SOFTWARE, INC.
                                  SUBSIDIARIES



Bridgeline Software, Pvt. Ltd.
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-23.2
<SEQUENCE>70
<FILENAME>ex23-2_14663.txt
<DESCRIPTION>CONSENT OF INDEPENDENT ACCOUNTANTS
<TEXT>
                                                                    EXHIBIT 23.2
                                                                    ------------

            CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

We consent to the use in this Registration Statement on Form SB-2 of our report
dated December 11, 2006, relating to the consolidated financial statements of
Bridgeline Software, Inc. (which report includes an explanatory paragraph
regarding substantial doubt about the ability of Bridgeline Software, Inc. to
continue as a going concern), our report dated December 11, 2006, relating to
the financial statements of Objectware, Inc. and our report dated December 11,
2006, relating to the financial statements of New Tilt, Inc., all appearing in
the Prospectus which is part of this Registration Statement.

We also consent to the reference to us under the heading "Experts" in such
Prospectus.


/s/ UHY LLP

Boston, Massachusetts
December 11, 2006
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.1
<SEQUENCE>71
<FILENAME>ex99-1_14663.txt
<DESCRIPTION>AUDIT COMMITTEE CHARTER
<TEXT>
                                                                    EXHIBIT 99.1
                                                                    ------------

                                   Bridgeline
                                    Software
                                     [LOGO]


                             AUDIT COMMITTEE CHARTER


A.       PURPOSE

         The purpose of the Audit Committee is to assist the Board of Directors'
         oversight of:

                o     the integrity of the Company's financial statements;

                o     the effectiveness of the Company's internal controls over
                      annual and interim financial reporting, including
                      information security and control;

                o     the Company's compliance with legal and regulatory
                      requirements;

                o     the independent auditor's qualifications and independence;
                      and

                o     the performance of the Company's independent auditors.

B.       STRUCTURE AND MEMBERSHIP

         1.     Number. The Audit Committee shall consist of at least three
                members of the Board of Directors.

         2.     Independence. Except as otherwise permitted by the applicable
                rules of The Nasdaq Stock Market and Section 301 of the
                Sarbanes-Oxley Act of 2002 (and the applicable rules
                thereunder), each member of the Audit Committee shall be
                "independent" as defined by such rules and Act.

         3.     Financial Literacy. Each member of the Audit Committee shall be
                able to read and understand fundamental financial statements,
                including the Company's balance sheet, income statement, and
                cash flow statement, at the time of his or her appointment to
                the Audit Committee. At least one member of the Audit Committee
                shall be a "financial expert" (as defined by applicable Nasdaq
                and SEC rules).

         4.     Chair. Unless the Board of Directors elects a Chair of the Audit
                Committee, the Audit Committee shall elect a Chair by majority
                vote.

         5.     Compensation. The compensation of Audit Committee members shall
                be as determined by the Board of Directors. No member of the
                Audit Committee may receive any compensation from the Company
                other than director's fees.

         6.     Selection and Removal. Members of the Audit Committee shall be
                appointed by the Board of Directors. The Board of Directors may
                remove members of the Audit Committee from such committee, with
                or without cause.

C.       AUTHORITY AND RESPONSIBILITIES

         GENERAL
         -------

         The Audit Committee shall discharge its responsibilities and shall
         assess the information provided by the Company's management and the
         independent auditor in accordance with its business
<PAGE>

         judgment. The authority and responsibilities set forth in this Charter
         do not reflect or create any duty or obligation of the Audit Committee
         to plan or conduct any audit, to determine or certify that the
         Company's financial statements are complete, accurate, fairly
         presented, or in accordance with generally accepted accounting
         principles or applicable law, or to guarantee the independent auditor's
         report.

         OVERSIGHT OF INDEPENDENT AUDITORS
         ---------------------------------

         1.     Selection. The Audit Committee shall be solely and directly
                responsible for appointing, evaluating and, when necessary,
                terminating the independent auditor. The Audit Committee may, in
                its discretion, seek stockholder ratification of the independent
                auditor it appoints.

         2.     Independence. The Audit Committee shall take, or recommend that
                the full Board of Directors take, appropriate action to oversee
                the independence of the independent auditor. In connection with
                this responsibility, the Audit Committee shall obtain and review
                a formal written statement from the independent auditor
                describing all relationships between the independent auditor and
                the Company, including the disclosures required by Independence
                Standards Board Standard No. 1. The Audit Committee shall
                actively engage in dialogue with the independent auditor
                concerning any disclosed relationships or services that might
                impact the objectivity and independence of the auditor.

         3.     Compensation. The Audit Committee shall have sole and direct
                responsibility for setting the compensation of the independent
                auditor. The Audit Committee is empowered, without further
                action by the Board of Directors, to cause the Company to pay
                the compensation of the independent auditor established by the
                Audit Committee.

         4.     Preapproval of Services. The Audit Committee shall preapprove
                all audit services, which may entail providing comfort letters
                in connection with securities underwritings, and non-audit
                services (other than de-minimus non-audit services as defined by
                the Sarbanes-Oxley Act of 2002 (and the applicable rules
                thereunder)) to be provided to the Company by the independent
                auditor. The Audit Committee shall cause the Company to disclose
                in its SEC periodic reports the approval by the Audit Committee
                of any non-audit services to be performed by the independent
                auditor.

         5.     Oversight. The independent auditor shall report directly to the
                Audit Committee and the Audit Committee shall have sole and
                direct responsibility for overseeing the independent auditor,
                including resolution of disagreements between Company management
                and the independent auditor regarding financial reporting. In
                connection with its oversight role, the Audit Committee shall,
                from time to time as appropriate obtain and review the reports
                required to be made by the independent auditor pursuant to
                paragraph (k) of Section 10A of the Securities Exchange Act of
                1934 regarding:

                     -    critical accounting policies and practices;

                     -    alternative treatments of financial information within
                          generally accepted accounting principles that have
                          been discussed with Company management, ramifications
                          of the use of such alternative disclosures and
                          treatments, and the treatment preferred by the
                          independent auditor; and

                     -    other material written communications between the
                          independent auditor and Company management.

                                      -2-
<PAGE>

         REVIEW OF AUDITED FINANCIAL STATEMENTS
         --------------------------------------

         6.     Discussion of Audited Financial Statements. The Audit Committee
                shall review and discuss with the Company's management and
                independent auditor the Company's audited financial statements,
                including the matters about which Statement on Auditing
                Standards No. 61 (Codification of Statements on Auditing
                Standards, AU ss.380) requires discussion.

         7.     Recommendation to Board Regarding Financial Statements. The
                Audit Committee shall consider whether it will recommend to the
                Board of Directors that the Company's audited financial
                statements be included in the Company's Annual Report on Form
                10-K.

         8.     Audit Committee Report. The Audit Committee shall prepare for
                inclusion where necessary in a proxy or information statement of
                the Company relating to an annual meeting of security holders at
                which directors are to be elected (or special meeting or written
                consents in lieu of such meeting), the report described in Item
                407(d) of Regulation S-K or Regulation S-B, as applicable.

         REVIEW OF OTHER FINANCIAL DISCLOSURES
         -------------------------------------

         9.     Independent Auditor Review of Interim Financial Statements. The
                Audit Committee shall direct the independent auditor to use its
                best efforts to perform all reviews of interim financial
                information prior to disclosure by the Company of such
                information and to discuss promptly with the Audit Committee and
                the Chief Financial Officer any matters identified in connection
                with the auditor's review of interim financial information which
                are required to be discussed by Statement on Auditing Standards
                Nos. 61, 71 and 90. The Audit Committee shall direct management
                to advise the Audit Committee in the event that the Company
                proposes to disclose interim financial information prior to
                completion of the independent auditor's review of interim
                financial information.

         CONTROLS AND PROCEDURES
         -----------------------

         10.    Oversight. The Audit Committee shall coordinate the Board of
                Director's oversight of the Company's internal accounting
                controls, the Company's disclosure controls and procedures and
                the Company's code of conduct. The Audit Committee shall receive
                and review the reports of the CEO and CFO required by Section
                302 of the Sarbanes-Oxley Act of 2002 (and the applicable rules
                thereunder) and Rule 13a-14 of the Exchange Act.

         11.    Procedures for Complaints. The Audit Committee shall establish
                procedures for (i) the receipt, retention and treatment of
                complaints received by the Company regarding accounting,
                internal accounting controls or auditing matters; and (ii) the
                confidential, anonymous submission by employees of the Company
                of concerns regarding questionable accounting or auditing
                matters.

         12.    Related-Party Transactions. The Audit Committee shall review all
                related party transactions on an ongoing basis and all such
                transactions must be approved by the Audit Committee.

         13.    Additional Powers. The Audit Committee shall have such other
                duties as may be delegated from time to time by the Board of
                Directors.

                                      -3-
<PAGE>

D.       PROCEDURES AND ADMINISTRATION

         1.     Meetings. The Audit Committee shall meet as often as it deems
                necessary in order to perform its responsibilities. The Audit
                Committee shall keep such records of its meetings as it shall
                deem appropriate.

         2.     Subcommittees. The Audit Committee may form and delegate
                authority to one or more subcommittees (including a subcommittee
                consisting of a single member), as it deems appropriate from
                time to time under the circumstances. Any decision of a
                subcommittee to preapprove audit or non-audit services shall be
                presented to the full Audit Committee at its next scheduled
                meeting.

         3.     Reports to Board. The Audit Committee shall report regularly to
                the Board of Directors.

         4.     Charter. At least annually, the Audit Committee shall review and
                reassess the adequacy of this Charter and recommend any proposed
                changes to the Board for approval.

         5.     Independent Advisors. The Audit Committee shall have the
                authority to engage and determine funding for such independent
                legal, accounting and other advisors as it deems necessary or
                appropriate to carry out its responsibilities. Such independent
                advisors may be the regular advisors to the Company. The Audit
                Committee is empowered, without further action by the Board of
                Directors, to cause the Company to pay the compensation of such
                advisors as established by the Audit Committee.

         6.     Investigations. The Audit Committee shall have the authority to
                conduct or authorize investigations into any matters within the
                scope of its responsibilities as it shall deem appropriate,
                including the authority to request any officer, employee or
                advisor of the Company to meet with the Audit Committee or any
                advisors engaged by the Audit Committee.


                                      -4-
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.2
<SEQUENCE>72
<FILENAME>ex99-2_14663.txt
<DESCRIPTION>COMPENSATION COMMITTEE CHARTER
<TEXT>
                                                                    EXHIBIT 99.2
                                                                    ------------

                                   Bridgeline
                                    Software
                                     [LOGO]


                         COMPENSATION COMMITTEE CHARTER

A.   Purpose

     The purpose of the Compensation Committee is to discharge the
     responsibilities of the Board of Directors relating to compensation of the
     Company's executive officers.

B.   Structure and Membership

          1.   Number. The Compensation Committee shall consist of at least two
               members of the Board of Directors.

          2.   Independence. Except as otherwise permitted by the applicable
               rules of the NASDAQ Stock Market, each member of the Compensation
               Committee shall be an "independent director" as determined in
               accordance with the applicable rules of the NASDAQ Stock Market.

          3.   Chair. Unless the Board of Directors elects a Chair of the
               Compensation Committee shall elect a Chair by majority vote.

          4.   Compensation. The compensation of Compensation Committee members
               shall be as determined by the Board of Directors.

          5.   Selection and removal. Members of the Compensation Committee
               shall be appointed by the Board of Directors, upon the
               recommendation of the Nominations Committee. The Board of
               Directors may remove members from such committee, with or without
               cause.

C.   Authority and Responsibilities

     GENERAL
     -------

     The Compensation Committee shall discharge its responsibilities, and shall
     assess the information provided by the Company's management, in accordance
     with its business judgment.


     COMPENSATION MATTERS
     --------------------

     1.   CEO Compensation. The Compensation Committee shall annually review and
          approve corporate goals and objectives relevant to the compensation of
          the Company's Chief Executive Officer (the "CEO"), evaluate the CEO's
          performance in light of those goals and objectives, and set the CEO's
          compensation level based on this evaluation.

     2.   Executive Officer and CEO Compensation and Compensation of Certain
          Other Employees.

               a.   The Compensation Committee shall review and approve
                    executive officer (including CEO) compensation, including
                    salary, bonus and perquisites; equity compensation
                    (including awards to induce employment); severance
                    arrangements; change in control benefits and other forms of
                    executive officer compensation. The Compensation Committee
                    shall meet without the presence of executive officers when
                    approving CEO compensation but may, in its direction, allow
                    the CEO to be present during approval of other officer
                    compensation.
<PAGE>

               b.   The Compensation Committee must approve all other employment
                    contracts where the base salary is in excess of $200,000
                    exclusive of regularly provided fringe benefits.

     3.   Plan Recommendations and Approvals. The Compensation Committee shall
          periodically review and make recommendations to the Board of Directors
          with respect to incentive-compensation plans and equity-based plans.
          The Compensation Committee shall review and approve (a) all
          non-stockholder approved tax-qualified, non-discriminatory employee
          benefit plans and (b) all non-stockholder approved parallel
          nonqualified plans, in each case pursuant to which options or stock
          may be acquired by officers, directors, employees or consultants of
          the Company.

     4.   Incentive Plan Administration. The Compensation Committee shall
          exercise all rights, authority and functions of the Board of Directors
          under all of the Company's stock option, stock incentive, employee
          stock purchase and other equity-based plans, including without
          limitation, the authority to interpret the terms thereof, to grant
          options thereunder and to make stock awards thereunder; provided,
          however, that, except as otherwise expressly to do so by a plan or
          resolution of the Board of Directors, the Compensation Committee shall
          not be authorized to amend any such plan.

     5.   Director Compensation. The Compensation Committee shall periodically
          review and make recommendations to the Board of Directors with the
          respect to director compensation.

     6.   Compensation Committee Report on Executive Compensation. The
          Compensation Committee shall prepare for inclusion where necessary in
          a proxy of information statement of the Company relating to an annual
          meeting of security holders at which directors are to be elected (or
          special meeting or written consents in lieu of such meeting), the
          report described in Item 407(e)(5) of Regulation S-K, if applicable.

     7.   Additional Powers. The Compensation Committee shall take such other
          action with respect to compensation matters as may be delegated from
          time to time by the Board of Directors.

D.   Procedures and Administration

     1.   Meetings. The Compensation Committee shall meet as often as it deems
          necessary in order to perform its responsibilities. The Compensation
          Committee shall keep such records of its meetings as it shall deem
          appropriate.

     2.   Subcommittees. The Compensation Committee may form and delegate
          authority to one or more subcommittees as it deems appropriate from
          time to time under the circumstances (including (a) a subcommittee
          consisting of a single member and (b) a subcommittee consisting of at
          least two members, each of whom qualifies as a "non-employee director"
          as such term is defined from time to time in Rule 16b-3 promulgated
          under the Exchange Act, and an "outside director", as such term is
          defined from time to time in Sections 162(m) of the Internal Revenue
          Code of 1986, as amended, and the rules and regulations thereunder).

     3.   Reports to Board. The Compensation Committee shall report regularly to
          the Board of Directors.

     4.   Charter. The Compensation Committee shall periodically review and
          reassess the adequacy of this Charter and recommend any proposed
          changes to the Board of Directors for approval.

     5.   Consulting Arrangements. The Compensation Committee shall have the
          authority to retain and terminate any compensation consultant to be
          used to assist in the evaluation of executive officer compensation and
          shall have authority to approve the consultant's fees and other
          retention terms. The Compensation Committee shall also have authority
          to commission compensation surveys or studies as need arises. The
          Compensation Committee is
<PAGE>

          empowered, without further action by the Board of Directors, to cause
          the Company to pay the compensation of such consultants as established
          by the Compensation Committee.

     6.   Independent Advisors. The Compensation Committee shall have the
          authority to engage such independent legal, accounting and other
          advisors as it deems necessary to carry out its responsibilities. Such
          independent advisors may be the regular advisors to the Company. The
          Compensation Committee is empowered, without further action by the
          Board of Directors, to cause the Company to pay the compensation of
          such advisors as established by the Compensation Committee.

     7.   Investigations. The Compensation Committee shall have the authority to
          conduct or authorize investigations into any matters within the scope
          of its responsibilities as it shall deem appropriate, including the
          authority to request any officer, employee or advisor of the Company
          to meet with the Compensation Committee or any advisors engaged by the
          Compensation Committee.


</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.3
<SEQUENCE>73
<FILENAME>ex99-3_14663.txt
<DESCRIPTION>NOMINATING AND GOVERNANCE CHARTER
<TEXT>
                                                                    EXHIBIT 99.3
                                                                    ------------

                                   Bridgeline
                                    Software
                                     [LOGO]



              NOMINATING AND CORPORATE GOVERNANCE COMMITTEE CHARTER


I. STATEMENT OF PURPOSE

         The Nominating and Corporate Governance Committee (the "Committee") is
a standing committee of the Board of Directors. The purpose of the Committee is
to identify individuals qualified to become members of the Board, to recommend
nominees for election as directors at each annual meeting of stockholders and
nominees for election by the Board of Directors to fill any vacancies on the
Board of Directors and to address related matters. The Committee shall also
develop and recommend to the Board of Directors corporate governance principles
and be responsible for an annual review of the performance of the Board of
Directors.

II. ORGANIZATION

         A. CHARTER. The Committee shall review this charter at least annually,
and any changes shall be submitted to the Board of Directors for approval.

         B. MEMBERS. The members of the Committee shall be appointed by the
Board of
Directors and shall consist of at least two members, each of whom shall meet the
independence requirements of Nasdaq Marketplace Rule 4200(a)(15).

         C. MEETINGS. The Committee shall meet at least once a year and at such
other times as the Committee may determine.

         D. QUORUM; ACTION BY COMMITTEE. A quorum of any Committee meeting shall
be at least a majority of its members. All determinations of the Committee shall
be made by a majority of those members present at a meeting duly called and
held. The Committee may also act by unanimous consent, given in writing or by
electronic transmission.

         E. REPORTS. The Committee shall report to the Board of Directors upon
request.

III. PRINCIPAL RESPONSIBILITIES

         A. DIRECTOR RECRUITMENT. The Committee shall recruit, evaluate and
recommend (in consultation with the Chairman of the Board and the Chief
Executive Officer) candidates to fill positions on the Board of Directors,
including as a result of the removal, resignation or retirement of any director,
an increase in the size of the Board of Directors or otherwise. The Committee
shall also review any candidate recommended by stockholders of the Company in
light of the Committee's criteria for selection of new directors. In
recommending new Directors, the Committee shall consider any requirements of
applicable law or listing standards, a candidate's strength of character,
judgment, business experience and specific areas of expertise, factors relating
to the compensation of the Board (including its size and structure),
<PAGE>

principles of diversity, and such other factors as the Committee shall deem
appropriate.

         B. SELECTION OF DIRECTOR NOMINEES. The Committee shall identify and
review candidates for the Board of Directors and recommend to the full Board
candidates for election to the Board.

         C. GOVERNANCE GUIDELINES. The Committee shall recommend to the Board of
Directors corporate governance guidelines addressing, among other matters, (i)
the size, composition and responsibilities of the Board of Directors and its
committees, (ii) the tenure and retirement of Directors, and (iii) changes in
the organization and procedures of the Board. The corporate governance
guidelines shall be reviewed not less frequently than annually by the Committee,
and the Committee shall make recommendations to the Board of Directors with
respect to changes to the guidelines.

         D. ADVICE AS TO COMMITTEE MEMBERSHIP AND OPERATIONS. The Committee
shall advise the Board of Directors with respect to (i) the charters, structure
and operations of the various committees of the Board of Directors, and (ii) its
recommendations for appointments of members to the committees, qualifications
for membership thereon, rotation of members among other committees of the Board
of Directors and selection of committee chairs.

         E. EVALUATION OF THE BOARD AND THE COMMITTEE. The Committee shall
oversee an annual evaluation of the Board of Directors. The Committee shall
report annually to the Board on the results of the evaluation. The Committee
shall evaluate its own performance on an annual basis.

         F. DIRECTOR EDUCATION. The Committee shall consider on an annual basis
the nature of any continuing education that may be desirable for the Board and,
if appropriate, recommend to the Board of Directors that resources be made
available in this regard.

         G. OTHER DELEGATED RESPONSIBILITIES. The Committee shall carry out such
other duties as may be delegated to it by the Board of Directors from time to
time.

IV. OTHER

         A. ACCESS TO RECORDS, PERSONNEL AND OTHERS. The Committee shall have
full access to any relevant records and personnel of the Company. The Committee
shall have the authority to retain, at Company expense, independent advisers
(including legal counsel, accountants, search firms and consultants) as it
determines necessary to carry out its duties.

         B. DELEGATION. The Committee may delegate any of its responsibilities
to a subcommittee comprised of one or more members of the Committee.

</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
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